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

Leases (Tables)

9 Months Ended

Oct. 02, 2023

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


		Quarter Ended				Nine Months Ended
(in thousands)	Classification	October 2, 2023		October 3, 2022		October 2, 2023		October 3, 2022
Operating lease cost	Occupancy and related expenses Pre-opening costs Store closure costs	$	3,202	$	3,202	$	9,665	$	9,796
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	55		62		168		196
Interest on lease liabilities	Interest expense	12		15		39		48
Less: Sublease income	Occupancy and related expenses	(62)		(47)		(156)		(141)
Total lease cost		$	3,207	$	3,232	$	9,716	$	9,899

The maturity of the Company's operating and finance lease liabilities as of October 2, 2023 is as follows:


(in thousands)	Operating Leases		Finance Leases
One Year	$	12,252	$	114
Two Years	12,242		248
Three Years	10,382		234
Four Years	8,873		224
Five Years	7,120		219
Thereafter	9,109		385

Total undiscounted lease payments	59,978		1,424
Less: present value adjustment	(7,054)		(144)
Total net lease liabilities	$	52,924	$	1,280

The maturity of the Company's operating and finance lease liabilities as of October 2, 2023 is as follows:


(in thousands)	Operating Leases		Finance Leases
One Year	$	12,252	$	114
Two Years	12,242		248
Three Years	10,382		234
Four Years	8,873		224
Five Years	7,120		219
Thereafter	9,109		385

Total undiscounted lease payments	59,978		1,424
Less: present value adjustment	(7,054)		(144)
Total net lease liabilities	$	52,924	$	1,280

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


	October 2, 2023		October 3, 2022
Weighted-average remaining lease term (in years)
Operating leases	5.5		6.3
Finance leases	5.7		6.5
Weighted-average discount rate
Operating leases	7.3	%	6.0	%
Finance leases	6.0	%	6.0	%