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LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

NOTE 11 –LEASES

The Company adopted Topic 842 as of January 1, 2022. The Company’s leases consist of restaurant locations. We determine if a contract contains a lease at inception. The lease generally has remaining terms of 1-10 years and most lease included the option to extend the lease for an additional 5-year period.

The total lease cost associated with right of use assets and operating lease liabilities for the three and nine months ended September 30, 2022, was $239,277 and $723,127 and has been recorded in the condensed consolidated statement of operations as rent expense within restaurant operating expenses.

MUSCLE MAKER, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 11 –LEASES, continued

As of September 30, 2022, assets and liabilities related to the Company’s leases were as follows:

 SCHEDULE OF OPERATING LEASE ASSETS AND LIABILITIES

		September 30,
		2022
Assets
Right to use asset		$	2,417,026
Total lease assets		$	2,417,026
Liabilities
Current:
Operating leases		$	548,851
Noncurrent:
Operating leases			2,022,823
Total lease liabilities		$	2,571,674

As of September 30, 2022, the Company’s lease liabilities mature as follows:

 SCHEDULE OF OPERATING LEASE LIABILITY MATURITY

		Operating Leases
Fiscal Year:
Remainder of 2022		$	223,406
2023			792,481
2024			728,583
2025			579,602
2026			368,586
Thereafter			778,328
Total lease payments		$	3,470,986
Less imputed interest			(899,312	)
Present value of lease liabilities		$	2,571,674

The Company’s lease term and discount rates were as follows:

SCHEDULE OF LEASE TERM AND DISCOUNT RATE 

		September 30,
		2022
Weighted-average remaining lease term (in year)
Operating leases			5.05
Weighted-average discount rate
Operating leases			12	%

MUSCLE MAKER, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI https://asc.fasb.org/topic&trid=2208923

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