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

Leases (Tables)

12 Months Ended

Dec. 31, 2023

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


	December 31,			December 31,
	2023			2022
Lease cost
Operating lease cost	$	16,466		$	14,587
Finance lease cost
Amortization of ROU assets		210			59
Interest on lease liabilities		82			25
Total finance lease cost		292			84
Variable lease cost ⁽¹⁾		12,158			11,373
Short-term lease cost		1,114			945
Total lease cost	$	30,030		$	26,989

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		4 years			5 years
Weighted average discount rate
Operating leases		8.74	%		8.40	%
Finance leases		9.17	%		8.96	%

(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):


	December 31,		December 31,
	2023		2022
Finance lease right-of-use assets ⁽¹⁾	$	850	$	942
Current portion of finance lease liabilities ⁽¹⁾		222		177
Long-term portion of finance lease liabilities ⁽¹⁾		658		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.

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


	December 31,		December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,968	$	13,297
Operating cash flows from finance leases	$	210	$	59
Financing cash flows from finance leases	$	271	$	51
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12,699	$	5,487
Finance leases	$	118	$	1,000

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


2024	$	10,324
2025		17,373
2026		17,177
2027		17,565
2028		10,192
Thereafter		160,373
Total lease payments		233,004
Less: imputed interest		(105,626)
Present value of operating lease liabilities	$	127,378

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


2024	$	289
2025		266
2026		266
2027		221
Total lease payments		1,042
Less: imputed interest		(162)
Present value of finance lease liabilities	$	880