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

Leases (Tables)

6 Months Ended

Jun. 30, 2023

The components of lease expense for the six months ended June 30, 2023 and 2022 are as follows (in thousands):


	June 30,			June 30,
	2023			2022
Lease cost
Operating lease cost	$	7,943		$	7,317
Finance lease cost
Amortization of ROU assets		102			—
Interest on lease liabilities		41			—
Total finance lease cost		143			—
Variable lease cost ⁽¹⁾		5,781			5,597
Short-term lease cost		488			521
Total lease cost	$	14,355		$	13,435

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		4.3 years			—
Weighted average discount rate
Operating leases		8.53	%		8.40	%
Finance leases		9.00	%		—	%

(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):


	June 30,		December 31,
	2023		2022
Finance lease right-of-use assets ⁽¹⁾	$	884	$	942
Current portion of finance lease liabilities ⁽¹⁾		191		177
Long-term portion of finance lease liabilities ⁽¹⁾		700		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.


	June 30,		June 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,090	$	6,531
Operating cash flows from finance leases	$	102	$	—
Financing cash flows from finance leases	$	185	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	8,034	$	3,709
Finance leases	$	43	$	—

As of June 30, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2023	$	1,382
2024		15,944
2025		15,490
2026		15,561
2027		15,950
Thereafter		140,918
Total lease payments		205,245
Less: imputed interest		(88,550)
Present value of operating lease liabilities	$	116,695

As of June 30, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2023	$	141
2024		244
2025		244
2026		244
2027		203
Total lease payments		1,076
Less: imputed interest		(185)
Present value of finance lease liabilities	$	891