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

Leases (Tables)

3 Months Ended

Mar. 31, 2024

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows (in thousands):


	March 31,			March 31,
	2024			2023
Lease cost
Operating lease cost	$	4,289		$	3,894
Finance lease cost
Amortization of ROU assets		55			51
Interest on lease liabilities		19			21
Total finance lease cost		74			72
Variable lease cost ⁽¹⁾		3,089			2,610
Short-term lease cost		316			275
Total lease cost	$	7,768		$	6,851

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		4 years			5 years
Weighted average discount rate
Operating leases		8.79	%		8.45	%
Finance leases		9.16	%		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 condensed consolidated balance sheet were as follows (in thousands):


	March 31,		December 31,
	2024		2023
Finance lease right-of-use assets ⁽¹⁾	$	794	$	850
Current portion of finance lease liabilities ⁽¹⁾		266		222
Long-term portion of finance lease liabilities ⁽¹⁾		609		658

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

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


	March 31,		March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,171	$	3,472
Operating cash flows from finance leases	$	55	$	51
Financing cash flows from finance leases	$	68	$	104
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	3,178
Finance leases	$	—	$	41

As of March 31, 2024, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2024, nine months remaining	$	6,721
2025		16,669
2026		16,278
2027		16,671
2028		16,977
Thereafter		146,779
Total lease payments		220,095
Less: imputed interest		(99,370)
Present value of operating lease liabilities	$	120,725

As of March 31, 2024, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2024, nine months remaining	$	265
2025		266
2026		266
2027		221
Total lease payments		1,018
Less: imputed interest		(143)
Present value of finance lease liabilities	$	875