The ONE Group Hospitality, Inc. Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

The components of lease expense for the period were as follows (in thousands):


	December 31,			December 31,
	2022			2021
Lease cost
Operating lease cost	$	14,587		$	13,602
Finance lease cost
Amortization of ROU assets		59			—
Interest on lease liabilities		25			—
Total finance lease cost		84			—
Variable lease cost ⁽¹⁾		11,373			7,400
Short-term lease cost		945			684
Total lease cost	$	26,989		$	21,686

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		5 years			—
Weighted average discount rate
Operating leases		8.40	%		8.43	%
Finance leases		8.96	%		—	%

(1)	Variable lease cost is comprised of percentage rent and common area maintenance.

Supplemental cash flow information related to leases for the period was as follows (in thousands):


	December 31,		December 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13,297	$	12,644
Operating cash flows from finance leases	$	59	$	—
Financing cash flows from finance leases	$	51	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,487	$	8,068
Finance leases	$	1,000	$	—

As of December 31, 2022, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2023	$	11,789
2024		14,881
2025		14,105
2026		14,047
2027		14,356
Thereafter		124,223
Total lease payments		193,401
Less: imputed interest		(81,818)
Present value of operating lease liabilities	$	111,583

The components of finance lease assets and liabilities on the consolidated balance sheet were as follows (in thousands):


	December 31,		December 31,
	2022		2021
Finance lease right-of-use assets ⁽¹⁾	$	942	$	—
Current portion of finance lease liabilities ⁽¹⁾		177		—
Long-term portion of finance lease liabilities ⁽¹⁾		754		—

(1)	Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the consolidated balance sheets.

As of December 31, 2022, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2023	$	253
2024		233
2025		233
2026		233
2027		194
Total lease payments		1,146
Less: imputed interest		(215)
Present value of finance lease liabilities	$	931