BurgerFi International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

6 Months Ended

Jul. 03, 2023

The components of lease expense for the periods shown is as follows:


		Quarter Ended				Six Months Ended
(in thousands)	Classification	July 3, 2023		June 30, 2022		July 3, 2023		June 30, 2022
Operating lease cost	Occupancy and related expenses Pre-opening costs Store closure costs	$	3,218	$	3,097	$	6,463	$	6,348
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	55		82		113		134
Interest on lease liabilities	Interest expense	13		19		27		31
Less: Sublease income	Occupancy and related expenses	(47)		(47)		(94)		(94)
Total lease cost		$	3,239	$	3,151	$	6,509	$	6,419

The maturity of the Company's operating and finance lease liabilities as of July 3, 2023 is as follows:


(in thousands)	Operating Leases		Finance Leases
One Year	$	12,274	$	142
Two Years	12,154		182
Three Years	11,687		167
Four Years	9,804		158
Five Years	8,173		152
Thereafter	10,217		208

Total undiscounted lease payments	64,309		1,009
Less: present value adjustment	(11,146)		(158)
Total net lease liabilities	$	53,163	$	851

The maturity of the Company's operating and finance lease liabilities as of July 3, 2023 is as follows:


(in thousands)	Operating Leases		Finance Leases
One Year	$	12,274	$	142
Two Years	12,154		182
Three Years	11,687		167
Four Years	9,804		158
Five Years	8,173		152
Thereafter	10,217		208

Total undiscounted lease payments	64,309		1,009
Less: present value adjustment	(11,146)		(158)
Total net lease liabilities	$	53,163	$	851

A summary of lease terms and discount rates for finance and operating leases is as follows:


	July 3, 2023		June 30, 2022
Weighted-average remaining lease term (in years)
Operating leases	5.8		6.4
Finance leases	5.9		6.6
Weighted-average discount rate
Operating leases	7.1	%	6.0	%
Finance leases	6.0	%	6.0	%