v3.22.1
Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASES
Greenlane as a Lessee
As of December 31, 2021, we had facilities financed under operating leases consisting of warehouses, offices, and retail stores, with lease term expirations between 2022 and 2027. Lease terms are generally three to seven years for warehouses, office space and retail store locations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
During the year ended December 31, 2020, we took steps to optimize our distribution network, transitioning to a more streamlined network with fewer, centrally-located, highly automated facilities. Accordingly, we entered into service agreements with third-party logistics ("3PL") companies in the United States and Canada to handle the bulk of the North American supply chain needs, and entered into an agreement for a California-based facility. As of December 31, 2020, we have successfully transferred, subleased or terminated leases for our Jacksonville, FL, Torrance, CA, Visalia, CA, and B.C Canada distribution centers. With regard to our retail locations, we entered into a new operating lease agreement for a new retail store location in Barcelona, Spain, and we permanently closed our Ponce City Market retail location.
During the year ended December 31, 2020, we recorded approximately $1.7 million in charges related to the closures above, comprised of $1.3 million related to right-of-use asset impairments, $0.1 million related to impairments of leasehold improvements, and a lease cancellation fee of approximately $0.3 million. These charges were offset by the derecognition of the associated operating lease liabilities of approximately $1.4 million, recorded within "general and administrative expenses" in our consolidated statement of operations and comprehensive loss.
The following table provides details of our future minimum lease payments under finance and operating lease liabilities recorded in our consolidated balance sheet as of December 31, 2021. The table below does not include commitments that are
contingent on events or other factors that are currently uncertain or unknown.
(in thousands) Finance
Leases		 Operating Leases Total
2022 $ 127  $ 3,330  $ 3,457 
2023 107  2,816  2,923 
2024 19  1,994  2,013 
2025 —  1,382  1,382 
2026 —  155  155 
Thereafter —  4  4 
Total minimum lease payments 253  9,681  9,934 
Less: imputed interest 12  448  460 
Present value of minimum lease payments 241  9,233  9,474 
Less: current portion 169  3,091  3,260 
Long-term portion $ 72  $ 6,142  $ 6,214 
Rent expense under operating leases was approximately $2.0 million and $1.6 million for the years ended December 31, 2021 and 2020, respectively.
The majority of our finance lease obligations relate to leased warehouse equipment. Payments under our finance lease agreements are fixed for terms ranging from three to five years. We recorded approximately $0.4 million of finance lease assets, net within "property and equipment, net" as of December 31, 2021 and 2020, respectively, and the related liabilities within "current portion of finance leases" and "finance leases, less current portion" in our consolidated balance sheets.
The following expenses related to our finance and operating leases were included in "general and administrative expenses" within our consolidated statements of operations and comprehensive loss for the years ended December 31, 2021 and 2020:
(in thousands) December 31,
2021		 December 31, 2020
Finance lease cost
Amortization of leased assets $ 74  $ 142 
Interest of lease liabilities 12  18 
Operating lease costs
Operating lease cost
 1,593  1,383 
Variable lease cost
 385  255 
Total lease cost $ 2,064  $ 1,798 

The table below presents lease-related terms and discount rates as of December 31, 2021:
December 31,
2021
Weighted average remaining lease terms  
Operating leases 3.3 years
Finance leases 1.9 years
Weighted average discount rate
Operating leases 2.6  %
Finance leases 3.9  %
Greenlane as a Lessor
We have five operating leases for office space leased to third-party tenants in our corporate headquarters building in Boca Raton, Florida and one sublease in California. For the years ended December 31, 2021 and 2020, respectively, we recorded approximately $0.8 million and $0.6 million in rental income related to these operating leases, which we included within “Other income, net” in our consolidated statements of operations and comprehensive loss.
The following table represents the maturity analysis of undiscounted cash flows related to lease payments, which we expect to receive from our existing operating lease agreements with tenants:
Rental Income (in thousands)
2022 $ 728 
2023 461 
2024 77 
2025 53 
Thereafter — 
Total $ 1,319 
Leases LEASES
Greenlane as a Lessee
As of December 31, 2021, we had facilities financed under operating leases consisting of warehouses, offices, and retail stores, with lease term expirations between 2022 and 2027. Lease terms are generally three to seven years for warehouses, office space and retail store locations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
During the year ended December 31, 2020, we took steps to optimize our distribution network, transitioning to a more streamlined network with fewer, centrally-located, highly automated facilities. Accordingly, we entered into service agreements with third-party logistics ("3PL") companies in the United States and Canada to handle the bulk of the North American supply chain needs, and entered into an agreement for a California-based facility. As of December 31, 2020, we have successfully transferred, subleased or terminated leases for our Jacksonville, FL, Torrance, CA, Visalia, CA, and B.C Canada distribution centers. With regard to our retail locations, we entered into a new operating lease agreement for a new retail store location in Barcelona, Spain, and we permanently closed our Ponce City Market retail location.
During the year ended December 31, 2020, we recorded approximately $1.7 million in charges related to the closures above, comprised of $1.3 million related to right-of-use asset impairments, $0.1 million related to impairments of leasehold improvements, and a lease cancellation fee of approximately $0.3 million. These charges were offset by the derecognition of the associated operating lease liabilities of approximately $1.4 million, recorded within "general and administrative expenses" in our consolidated statement of operations and comprehensive loss.
The following table provides details of our future minimum lease payments under finance and operating lease liabilities recorded in our consolidated balance sheet as of December 31, 2021. The table below does not include commitments that are
contingent on events or other factors that are currently uncertain or unknown.
(in thousands) Finance
Leases		 Operating Leases Total
2022 $ 127  $ 3,330  $ 3,457 
2023 107  2,816  2,923 
2024 19  1,994  2,013 
2025 —  1,382  1,382 
2026 —  155  155 
Thereafter —  4  4 
Total minimum lease payments 253  9,681  9,934 
Less: imputed interest 12  448  460 
Present value of minimum lease payments 241  9,233  9,474 
Less: current portion 169  3,091  3,260 
Long-term portion $ 72  $ 6,142  $ 6,214 
Rent expense under operating leases was approximately $2.0 million and $1.6 million for the years ended December 31, 2021 and 2020, respectively.
The majority of our finance lease obligations relate to leased warehouse equipment. Payments under our finance lease agreements are fixed for terms ranging from three to five years. We recorded approximately $0.4 million of finance lease assets, net within "property and equipment, net" as of December 31, 2021 and 2020, respectively, and the related liabilities within "current portion of finance leases" and "finance leases, less current portion" in our consolidated balance sheets.
The following expenses related to our finance and operating leases were included in "general and administrative expenses" within our consolidated statements of operations and comprehensive loss for the years ended December 31, 2021 and 2020:
(in thousands) December 31,
2021		 December 31, 2020
Finance lease cost
Amortization of leased assets $ 74  $ 142 
Interest of lease liabilities 12  18 
Operating lease costs
Operating lease cost
 1,593  1,383 
Variable lease cost
 385  255 
Total lease cost $ 2,064  $ 1,798 

The table below presents lease-related terms and discount rates as of December 31, 2021:
December 31,
2021
Weighted average remaining lease terms  
Operating leases 3.3 years
Finance leases 1.9 years
Weighted average discount rate
Operating leases 2.6  %
Finance leases 3.9  %
Greenlane as a Lessor
We have five operating leases for office space leased to third-party tenants in our corporate headquarters building in Boca Raton, Florida and one sublease in California. For the years ended December 31, 2021 and 2020, respectively, we recorded approximately $0.8 million and $0.6 million in rental income related to these operating leases, which we included within “Other income, net” in our consolidated statements of operations and comprehensive loss.
The following table represents the maturity analysis of undiscounted cash flows related to lease payments, which we expect to receive from our existing operating lease agreements with tenants:
Rental Income (in thousands)
2022 $ 728 
2023 461 
2024 77 
2025 53 
Thereafter — 
Total $ 1,319