Leases Held for Sale

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases Held for Sale

11.    Leases Held for Sale

The Company’s leases consist of restaurant locations. We determine if a contract contains a lease at inception. The leases generally have remaining terms of 1-10 years and most leases included the option to extend the lease for an additional 5 years.

The total lease cost associated with right of use assets and operating lease liabilities for the three months ended March 31, 2024 and 2023, was $0.1 million and $0.1 million, respectively, and has been recorded in the Unaudited Condensed Consolidated Statement of Operations and Other Comprehensive Loss as Cost of goods sold.

In the first quarter of 2024 all of the Company's leased assets of $0.9 million and lease liabilities of $1.0 million were moved to Assets held for sale. See Note 3 – Assets held for sale for additional information.

The assets and liabilities related to the Company’s leases were as follows:

	As of
	March 31, 2024	December 31, 2023
	$’000	$’000
Assets
Right to use asset	887	1,284
Transferred to assets held for sale	(887)	—
Total lease assets	—	1,284
Liabilities
Operating leases – current	272	385
Operating leases – non-current	681	1,027
Transferred to liabilities held for sale	(953)	—
Total lease liabilities	—	1,412

The table below presents the future minimum lease payments under the noncancellable operating leases as of March 31, 2024:

	Operating Leases
	$’000
Fiscal Year:
2024	287
2025	280
2026	139
2027	143
2028	137
Thereafter	304
Total lease payments	1,290
Less imputed interest	(337)
Less assets transferred to held for sale	(953)
Present value of lease liabilities	—

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

	As of March 31, 2024
Weighted-average remaining lease term (in years)
Operating leases	5.11
Weighted-average discount rate
Operating leases	12.0	%