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

Leases (Tables)

3 Months Ended

Mar. 31, 2023

The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows (in thousands):


	March 31,			March 31,
	2023			2022
Lease cost
Operating lease cost	$	3,894		$	3,635
Finance lease cost
Amortization of ROU assets		51			—
Interest on lease liabilities		21			—
Total finance lease cost		72			—
Variable lease cost ⁽¹⁾		2,610			2,665
Short-term lease cost		275			244
Total lease cost	$	6,851		$	6,544

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		5 years			—
Weighted average discount rate
Operating leases		8.45	%		8.40	%
Finance leases		9.01	%		—	%

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

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


	March 31,		December 31,
	2023		2022
Finance lease right-of-use assets ⁽¹⁾	$	932	$	942
Current portion of finance lease liabilities ⁽¹⁾		188		177
Long-term portion of finance lease liabilities ⁽¹⁾		743		754

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

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


	March 31,		March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,472	$	3,043
Operating cash flows from finance leases	$	51	$	—
Financing cash flows from finance leases	$	104	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3,178	$	3,709
Finance leases	$	41	$	—

As of March 31, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2023	$	5,442
2024		15,771
2025		15,065
2026		15,019
2027		15,277
Thereafter		132,234
Total lease payments		198,808
Less: imputed interest		(84,968)
Present value of operating lease liabilities	$	113,840

As of March 31, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2023	$	203
2024		243
2025		243
2026		243
2027		203
Total lease payments		1,135
Less: imputed interest		(204)
Present value of finance lease liabilities	$	931