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LEASES
 12 Months Ended
Dec. 31, 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 year ended December 31, 2022, was $945,133 and has been recorded in the Consolidated Statement of Operations as Rent expense within Restaurant operating expenses.

 

As of December 31, 2022, assets and liabilities related to the Company’s leases were as follows:

 

   December 31, 
   2022 
Assets     
Right to use asset  $2,432,894 
      
Liabilities     
Operating leases – current  $560,444 
Operating leases – non-current   2,018,851 
Total lease liabilities  $2,579,295 

 

As of December 31, 2022, the Company’s lease liabilities mature as follows:

 

   Operating Leases 
Fiscal Year:     
2023  $833,562 
2024   769,663 
2025   621,298 
2026   413,364 
2027   248,123 
Thereafter   567,519 
Total lease payments  $3,453,529 
Less imputed interest   (874,234)
Present value of lease liabilities  $2,579,295 

 

 

MUSCLE MAKER, INC. & SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

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

 

   December 31, 
   2022 
Weighted-average remaining lease term (in years)     
Operating leases   4.92 
Weighted-average discount rate     
Operating leases   12%