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

Leases (Tables)

9 Months Ended

Sep. 30, 2023

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


	September 30,			September 30,
	2023			2022
Lease cost
Operating lease cost	$	12,104		$	10,999
Finance lease cost
Amortization of ROU assets		155			—
Interest on lease liabilities		62			—
Total finance lease cost		217			—
Variable lease cost ⁽¹⁾		8,499			7,707
Short-term lease cost		805			650
Total lease cost	$	21,625		$	19,356

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		4 years			—
Weighted average discount rate
Operating leases		8.63	%		8.37	%
Finance leases		9.07	%		—	%

(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):


	September 30,		December 31,
	2023		2022
Finance lease right-of-use assets ⁽¹⁾	$	868	$	942
Current portion of finance lease liabilities ⁽¹⁾		206		177
Long-term portion of finance lease liabilities ⁽¹⁾		722		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.


	September 30,		September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,760	$	9,896
Operating cash flows from finance leases	$	155	$	—
Financing cash flows from finance leases	$	208	$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	9,039	$	3,709
Finance leases	$	81	$	—

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


2023, three months remaining	$	(1,183)
2024		14,656
2025		16,497
2026		16,562
2027		16,968
Thereafter		157,319
Total lease payments		220,819
Less: imputed interest		(98,191)
Present value of operating lease liabilities	$	122,628

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


2023	$	127
2024		254
2025		254
2026		254
2027		212
Total lease payments		1,101
Less: imputed interest		(173)
Present value of finance lease liabilities	$	928