10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________

FORM 10-Q

________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-38417

__________________________________________________

BurgerFi International, Inc.

(Exact name of Registrant as specified in its Charter)

____________________________________________________

Delaware	82-2418815
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 West Cypress Creek Rd., Suite 220 Fort Lauderdale, FL	33309
(Address of principal executive offices)	(Zip Code)

(954) 618-2000

(Registrant’s telephone number, including area code)

On July 28, 2022, the Company changed its fiscal year from December 31 to the Monday closest to December 31

(Former name, former address and former fiscal year, if changed since last report)

________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	BFI	The Nasdaq Stock Market LLC
Redeemable warrants, each exercisable for one share of common stock at an exercise price of $11.50 per share	BFIIW	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Common Stock outstanding as of August 9, 2022 was 22,253,232

Table of Contents

		Page
Part I Financial Information		1
Item 1.	Condensed Consolidated Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
Part II Other Information		35
Item 1.	Legal Proceedings	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	35
Item 6.	Exhibits	35
Signatures		37

i

Forward-Looking and Cautionary Statements

This Quarterly Report on Form 10-Q contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this Quarterly Report on Form 10-Q, including without limitation, the following sections: Part 1, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021 and this Quarterly Report on Form 10-Q, and in particular, the risks discussed under the caption “Risk Factors” in Item 1A of such reports and those discussed in other documents we file with the Securities and Exchange Commission (the “SEC”). We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

ii

Part I. Financial Information

BurgerFi International Inc., and Subsidiaries

Condensed Consolidated Balance Sheets

	Unaudited
(in thousands, except for per share data)	June 30, 2022		December 31, 2021
ASSETS
CURRENT ASSETS
Cash	$	15,747	$	14,889
Accounts receivable, net	1,387		1,689
Inventory	1,352		1,387
Asset held for sale	732		732
Other current assets	2,297		2,526
TOTAL CURRENT ASSETS	21,515		21,223
PROPERTY & EQUIPMENT, net	24,855		29,035
OPERATING RIGHT-OF-USE ASSET, net	52,216		—
GOODWILL	43,021		98,000
INTANGIBLE ASSETS, net	164,478		168,723
OTHER ASSETS	742		738
TOTAL ASSETS	$	306,827	$	317,719
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade and other	$	10,055	$	7,841
Accrued expenses	8,179		5,302
Short-term operating lease liability	9,486		—
Short-term borrowings, including finance leases	3,495		3,331
Other current liabilities	7,113		7,856
TOTAL CURRENT LIABILITIES	38,328		24,330
NON-CURRENT LIABILITIES
Long-term borrowings, including finance leases	55,949		56,797
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, $53 million principal redemption value	49,433		47,525
Long-term operating lease liability	43,742		—
Related party note	8,979		8,724
Deferred income taxes	902		1,353
Other non-current liabilities	2,957		5,715
TOTAL LIABILITIES	200,290		144,444
COMMITMENTS AND CONTINGENCIES - Note 7
STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,253,232 and 21,303,500 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	2		2
Additional paid-in capital	304,191		296,992
Accumulated deficit	(197,656)		(123,719)
TOTAL STOCKHOLDERS' EQUITY	106,537		173,275
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	306,827	$	317,719

See accompanying notes to condensed consolidated financial statements.

1

BurgerFi International Inc., and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended				Six Months Ended
(in thousands, except for per share data)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
REVENUE
Restaurant sales	$	42,236	$	8,971	$	84,592	17,367
Royalty and other fees	2,611		2,254		4,714		4,277
Royalty - brand development and co-op	451		545		922		1,056
TOTAL REVENUE	45,298		11,770		90,228		22,700
Restaurant level operating expenses:
Food, beverage and paper costs	12,545		2,693		25,352		5,115
Labor and related expenses	12,328		2,402		24,910		4,607
Other operating expenses	7,421		2,114		14,613		3,847
Occupancy and related expenses	3,890		786		7,725		1,561
General and administrative expenses	7,406		3,549		13,432		6,524
Depreciation and amortization expense	4,730		2,171		9,174		4,279
Share-based compensation expense	909		2,595		8,285		3,117
Brand development, co-op and advertising expense	1,126		653		1,839		1,374
Goodwill impairment	55,168		—		55,168		—
Store closure costs	52		—		566		—
Pre-opening costs	—		502		474		628
TOTAL OPERATING EXPENSES	105,575		17,465		161,538		31,052
OPERATING LOSS	(60,277)		(5,695)		(71,310)		(8,352)
Other (loss) income	(47)		2,127		(80)		2,241
Gain on change in value of warrant liability	1,858		12,619		1,324		7,673
Interest expense	(2,246)		(33)		(4,318)		(41)
(Loss) income before income taxes	(60,712)		9,018		(74,384)		1,521
Income tax benefit (expense)	335		(27)		447		(740)
Net (loss) income	(60,377)		8,991		(73,937)		781
Weighted average common shares outstanding:
Basic	22,214,628		17,888,140		22,089,799		17,852,493
Diluted	22,214,628		18,752,938		22,089,799		20,145,284
Net (loss) income per common share:
Basic	$	(2.72)	$	0.50	(3.35)		0.04
Diluted	$	(2.72)	$	(0.19)	(3.35)		(0.34)

See accompanying notes to condensed consolidated financial statements.

2

BurgerFi International Inc., and Subsidiaries

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total
(in thousands, except for share data)	Shares	Amount
Balance as of March 31, 2021	17,830,507	$	2	$	261,820	$	(10,435)	$	251,387
Share-based compensation	—	—		2,595		—		2,595
Shares issued for warrant exercises	7,969	—		—		—		—
Net income	—	—		—		8,991		8,991
Balance as of June 30, 2021	17,838,476	$	2	$	264,415	$	(1,444)	$	262,973
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total
(in thousands, except for share data)	Shares	Amount
Balance as of March 31, 2022	22,042,583	$	2	$	303,383	$	(137,279)	$	166,106
Share-based compensation	—	—		909		—		909
Shares issued for share-based compensation*	238,514	—		—		—		—
Shares withheld for taxes	(27,865)	—		(101)		—		(101)
Net loss	—	—		—		(60,377)		(60,377)
Balance as of June 30, 2022	22,253,232	$	2	$	304,191	$	(197,656)	$	106,537
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total
(in thousands, except for share data)	Shares	Amount
Balance as of December 31, 2020	17,541,838	$	2	$	261,298	$	(2,225)	$	259,075
Share-based compensation	—	—		3,042		—		3,042
Shares issued for shares-based compensation	5,000	—		75		—		75
Shares issued for warrant exercises	7,969	—		—		—		—
Exchange of UPO units	283,669	—		—		—		—
Net income	—	—		—		781		781
Balance as of June 30, 2021	17,838,476	$	2	$	264,415	$	(1,444)	$	262,973
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total
(in thousands, except for share data)	Shares	Amount
Balance as of December 31, 2021	21,303,500	$	2	$	296,992	$	(123,719)	$	173,275
Share-based compensation	—	—		4,475		—		4,475
Shares issued for share-based compensation	965,676	—		3,810		—		3,810
Shares issued in acquisition of Anthony's*	123,131	—		—		—		—
Shares withheld for taxes	(139,075)	—		(1,086)		—		(1,086)
Net loss	—	—		—		(73,937)		(73,937)
Balance as of June 30, 2022	22,253,232	$	2	$	304,191	$	(197,656)	$	106,537

*Timing of share issuance differs from recognition of related financial statement dollar amounts.

See accompanying notes to condensed consolidated financial statements.

3

BurgerFi International Inc., and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended
(in thousands)	June 30, 2022		June 30, 2021
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net (loss) income	$	(73,937)	$	781
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Goodwill impairment	55,168		—
Provision for bad debts	32		37
Depreciation and amortization	9,174		4,279
Gain on extinguishment of debt	—		(2,237)
Deferred income taxes	(447)		740
Share-based compensation	8,285		3,117
Forfeited franchise deposits	(433)		(67)
Gain on change in value of warrant liability	(1,324)		(7,673)
Loss on disposal of property and equipment	385		—
Non-cash lease cost	112		—
Other non-cash interest	2,290		—
Changes in operating assets and liabilities
Accounts receivable	270		121
Inventory	35		5
Other assets	225		(56)
Accounts payable - trade	2,120		928
Accrued expenses and other current liabilities	1,895		899
Other long-term liabilities	38		380
NET CASH PROVIDED BY OPERATING ACTIVITIES	3,888		1,254
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,056)		(3,839)
Proceeds from the sale of property and equipment	1,025		—
NET CASH USED IN INVESTING ACTIVITIES	(31)		(3,839)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on borrowings	(1,667)		(3,041)
Debt issuance costs	(164)		—
Repayments of finance leases	(82)		—
Tax payments for restricted stock upon vesting	(1,086)		—
NET CASH USED IN FINANCING ACTIVITIES	(2,999)		(3,041)
NET INCREASE (DECREASE) IN CASH	858		(5,626)
CASH, beginning of period	14,889		40,383
CASH, end of period	$	15,747	34,757

Supplemental cash flow disclosures:
Cash paid for interest	$	1,454	$	—

See accompanying notes to condensed consolidated financial statements.

4

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

1.Organization and Summary of Significant Accounting Policies

Organization

BurgerFi International, Inc. and its wholly owned subsidiaries (“BurgerFi,” or the “Company,” also “we,” “us,” and “our”), is a multi-brand restaurant company that develops, markets and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises located in the United States, Puerto Rico and Saudi Arabia. On November 3, 2021, the Company acquired (the “Anthony's acquisition”) 100% of the outstanding shares of Hot Air, Inc. (“Hot Air”). Hot Air, through its subsidiaries, owns the business of operating upscale casual dining restaurants in the specialty pizza and wings segment under the name “Anthony's Coal Fired Pizza & Wings” (“Anthony's”).

As of June 30, 2022, the Company had 183 franchised and corporate-owned restaurants of the two following brands:

BurgerFi. BurgerFi is a fast-casual “better burger” concept with 122 franchised and corporate-owned restaurants as of June 30, 2022, offering burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine and more.

Anthony’s. Anthony’s is a pizza and wing brand that operated 61 corporate-owned casual restaurant locations, as of June 30, 2022. The concept is centered around a coal fired oven, and its menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads.

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated balance sheet as of December 31, 2021 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”).

As of June 30, 2022, the Company operated on a calendar year-end. Anthony's uses a 52-week or 53-week fiscal year-end and its fiscal year ends on the Monday closest to December 31. Differences arising from the different fiscal year-ends were not deemed material for the period ended June 30, 2022 and the year ended December 31, 2021.

Reclassifications

Certain reclassifications have been made to the prior year presentation to conform to the current year presentation.

Principles of Consolidation

The condensed consolidated financial statements present the consolidated financial position, results from operations and cash flows of BurgerFi International, Inc., and its wholly owned subsidiaries. All material balances and transactions between the entities have been eliminated in consolidation.

5

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Corporate-owned stores and Franchised stores

Store activity for the six month period ended June 30, 2022 and the year ended December 31, 2021 are as follows:

	June 30, 2022			December 31, 2021
	Corporate-owned	Franchised	Total	Corporate-owned	Franchised	Total
Total BurgerFi and Anthony's	86	97	183	86	93	179
BurgerFi stores, beginning of the period	25	93	118	17	102	119
BurgerFi stores opened	3	5	8	10	6	16
BurgerFi stores transferred	(3)	3	—	(1)	1	—
BurgerFi stores closed	—	(4)	(4)	(1)	(16)	(17)
BurgerFi total stores, end of the period	25	97	122	25	93	118
Anthony's stores, beginning of period	61	—	61	61	—	61
Anthony's total stores, end of the period	61	—	61	61	—	61

End of quarter and end of year store totals included 1 international store at June 30, 2022 and December 31, 2021.

Net (Loss) Income per Common Share

Net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. The Company has considered the effect of (1) warrants outstanding to purchase 15,063,800 shares of common stock and (2) 75,000 shares of common stock and warrants to purchase 75,000 shares of common stock in the unit purchase option, (3) 1,620,869 shares of restricted stock unit grants in the calculation of income per share, and (4) the impact of any dividends associated with our redeemable preferred stock.

6

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Reconciliation of Net (Loss) Income per Common Share

Basic and diluted net (loss) income per common share is calculated as follows:

(in thousands, except for per share data)	Three Months Ended				Six Months Ended
Numerator:	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net (loss) income attributable to common shareholders	$	(60,377)	$	8,991	$	(73,937)	$	781
Reversal of gain on change in value of warrant liability	—		(12,619)		—		(7,673)
Net (loss) available to common shareholders - diluted	$	(60,377)	$	(3,628)	$	(73,937)	$	(6,892)
Denominator:
Weighted-average shares outstanding, basic	22,214,628		17,888,140		22,089,799		17,852,493
Effect of dilutive securities:
Restricted stock grants and warrants	—		847,417		—		2,261,954
UPOs	—		17,381		—		30,837
Diluted weighted-average shares outstanding	22,214,628		18,752,938		22,089,799		20,145,284
Basic net (loss) income per common share	$	(2.72)	$	0.50	$	(3.35)	$	0.04
Diluted net loss per common share	$	(2.72)	$	(0.19)	$	(3.35)	$	(0.34)

For the three and six months ended June 30, 2022, there were no dilutive warrants.

New Accounting Standards Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months and disclose certain information about the leasing arrangements. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company elected the package of practical expedients permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2022 using the modified retrospective approach without restating comparative periods. See Note 13. Leases for further disclosures upon adoption.

2.    Property & Equipment

Property and equipment consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Leasehold improvements	$	17,805	$	19,900
Kitchen equipment and other equipment	9,329		7,810
Computers and office equipment	1,414		1,425
Furniture and fixtures	2,627		2,340
Vehicles	88		88
	31,263		31,563
Less: Accumulated depreciation and amortization	(6,408)		(2,528)
Property and equipment – net	$	24,855	$	29,035

Depreciation and amortization expense totaled $2.6 million and $4.9 million for the three and six months ended June 30, 2022. Depreciation and amortization expense totaled $0.4 million and $0.7 million for the three and six months ended June 30, 2021.

7

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

3.    Intangible Assets

The following is a summary of the components of intangible assets and the related amortization expense:

	June 30, 2022						December 31, 2021
(in thousands)	Amount		Accumulated Amortization		Net Carrying Value		Amount		Accumulated Amortization		Net Carrying Value
Franchise agreements	$	24,839	$	5,470	$	19,369	$	24,839	$	3,696	$	21,143
Trade names / trademarks	143,750		5,615		138,135		143,750		3,220		140,530
Liquor licenses	6,678		—		6,678		6,678		—		6,678
Other intangible assets	1,311		1,015		296		1,311		939		372
	$	176,578	$	12,100	$	164,478	$	176,578	$	7,855	$	168,723

Liquor licenses are considered to have an indefinite life and reviewed for impairment at the end of each reporting period. The Company also reviews both indefinite and definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Intangible asset amortization expense for the three and six months ended June 30, 2022 was $2.1 million and $4.2 million. Intangible asset amortization expense totaled $1.8 million and $3.6 million for the three and six months ended June 30, 2021.

4.    Goodwill

The following table presents goodwill by reportable segment as of June 30, 2022:

(in thousands)	Goodwill, gross		Accumulated Impairment Loss		Goodwill, net
BurgerFi	$	123,981	$	(123,981)	$	—
Anthony's	80,684		(37,663)		43,021
Total	$	204,665	$	(161,644)	$	43,021

The Company conducts its goodwill impairment test annually in December, or more frequently if indicators of impairment exist. The Company evaluates it's goodwill based on its two reporting units, Anthony's and BurgerFi. As a result of a significant sustained decline in the Company’s share price and market capitalization during the six months ended June 30, 2022, the Company conducted its impairment test as of June 30, 2022. The impairment test was conducted in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”) for the reporting units' goodwill.

ASC 350 requires goodwill and other indefinite lived assets to be tested for impairment at the reporting unit level. For ASC 350 testing purposes, the Company compared the fair value of the reporting units with its carrying amounts. The fair value of the reporting units were estimated giving consideration to the Income Approach, including the discounted cash flow method, and the Market Approach, including the similar transactions method and guideline public company method. Significant inputs and assumptions in the ASC 350 analysis included forecasts (e.g., revenue, operating costs, capital expenditures, etc.), discount rate, long-term growth rate, tax rates, etc. for the reporting units under the Income Approach and market-based enterprise value to revenue multiples under the Market Approach.

As a result of the ASC 350 analysis, the Company recognized a non-cash pre-tax impairment loss of $55.2 million during the three and six months ended June 30, 2022 to write down the remaining carrying value of goodwill for the BurgerFi brand by $17.5 million and the carrying value of goodwill for the Anthony's brand by $37.7 million. The non-cash impairment loss is included in the unaudited condensed consolidated statement of operations under the caption “goodwill impairment” for the three and six months ended June 30, 2022.

8

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

5.    Acquisitions

On November 3, 2021, the Company acquired 100% of the outstanding common shares and voting interests of Hot Air.

The allocation of the excess purchase price was based upon preliminary estimates and assumptions and is subject to revision when the Company receives final information. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, become available, but will not exceed twelve months from the date of acquisition.

We had $0.2 million in adjustments to goodwill since December 31, 2021, which were made to reflect the facts and circumstances in existence as of the date of closing of the Anthony's acquisition (the “Anthony's Closing Date”) and include updates to estimates of provisional amounts recorded for certain accruals and receivables as of the Anthony's Closing Date. The accounting for the Anthony's acquisition is considered provisional because certain aspects of the purchase price allocation including the valuation of certain acquired tax assets and accruals have not been finalized.

For the six months ended June 30, 2021, unaudited proforma revenue and net loss were $82.7 million and $6.8 million.

6.    Related Party Transactions

The Company is affiliated with various entities through common control and ownership.

The Company received royalty revenue from franchisees related to a significant stockholder totaling approximately $0.1 million for the each of the three and six months ended June 30, 2022 and $0.2 million and $0.3 million for each of the three and six months ended June 30, 2021.

The Company leased building space for its former corporate office from an entity under common ownership with a significant stockholder. This lease had a 36-month term, effective January 1, 2020. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million. For the three and six months ended June 30, 2021, rent expense was approximately $0.1 million. In January 2022, the Company exercised its right to terminate this lease effective as of July 2022.

Pursuant to a lease amendment entered into in February 2022, the Company leases building space for it's corporate office from an entity controlled by the Company's Executive Chairman of the Board. This lease has a 10 year term with an option to renew. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million and $0.2 million

The Company also leased building space for a restaurant located in Virginia from an entity (i) in which the Company's Executive Chairman of the Board has an indirect minority ownership interest, and (ii) which is managed by an entity in which the Company's Executive Chairman of the Board has an indirect ownership interest. This lease was terminated in May 2022 upon transfer of the restaurant to a franchisee. Rent expense for the three and six months ended June 30, 2022 was de minimis. There was no rent expense for the three and six months ended June 30, 2021.

In August 2022, the Company amended, effective as of September 1, 2022, the independent contractor agreement entered into in April 2021 with a corporation (the “Consultant”) for which the Chief Operating Officer (the “Consultant Principal”) of Lionheart Capital, LLC, an entity controlled by the Company’s Executive Chairman of the Board, serves as President. Pursuant to the terms of the agreements, the Consultant shall provide certain strategic advisory services to the Company in exchange for total annual cash compensation and expense reimbursements of $0.1 million, payable monthly.

On January 3, 2022, the Consultant Principal was granted 37,959 unrestricted shares of common stock of the Company and recorded share-based compensation associated with this grant of approximately $0.2 million during the six months ended June 30, 2022.

9

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

7.    Commitments and Contingencies

Leases

The Company has entered into various lease agreements. For the three and six months ended June 30, 2022 rent expense was approximately $4.2 million, and $8.0 million. For the three and six months ended June 30, 2021 rent expense was approximately $0.9 million, and $1.7 million. These lease agreements expire on various dates through 2033 and have renewal options. Refer to Note 13 Leases.

Sale Commitment

In February 2020, the Company entered into an asset purchase agreement with an unrelated third party for the sale of substantially all of the assets used in connection with the operation of BF Dania Beach, LLC. The closing of this transaction has been delayed due to additional negotiation that has been on-going. In the event the transaction is terminated, the Company will begin operating the restaurant, and return the deposit to the unrelated third-party purchaser. Assets used in the operations of BF Dania Beach, LLC totaling $0.7 million have been classified as held for sale in the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021.

Contingencies

Eric Gilbert v. BurgerFi International, Inc., Ophir Sternberg, et al. (Court of Chancery of the State of Delaware, Case No. 2022-0185- , filed on February 25, 2022). Mr. Gilbert filed a class action lawsuit against BurgerFi International, Inc. and each of the members of the Board of Directors alleging that the Company’s Amended and Restated Bylaws improperly contains a provision restricting written consents by the stockholders. Mr. Gilbert sought an amendment to the bylaws, as well as attorney’ fees and costs. On March 23, 2022, BurgerFi made conforming amendments to its bylaws to remove the provision restricting written consents by the stockholders. On March 24, 2022, Mr. Gilbert filed and the Court entered an order voluntarily dismissing the action as moot and retaining jurisdiction to determine Mr. Gilbert’s application for award of attorney’s fees and expenses. At this stage, it is difficult to provide an evaluation of the likelihood of an unfavorable outcome or a reasonable estimate of the amount or range of potential loss. Based on the information known to date, the Company’s potential liability appears to be reasonably possible, but the amount or range of potential loss cannot be reasonably estimated.

Corey Winograd v BurgerFi International, LLC (Fifteenth Judicial Circuit Court of Palm Beach County, Florida, Case No. 502019-CA015256, filed December 1, 2019). Corey Winograd, the former chief executive officer of the Company, filed this suit against BurgerFi for certain alleged breaches of an employment agreement, claiming damages in excess of $15 million. BurgerFi filed a motion to dismiss the complaint on February 13, 2020. On May 20, 2020, the motion to dismiss was heard, which was granted in part and denied in part. The portion of the complaint not dismissed was answered by BurgerFi with affirmative defenses raised on July 7, 2020. Mr. Winograd served various discovery requests (including notices of non-party subpoenas) on July 9, 2020 as well as a motion to strike BurgerFi’s affirmative defenses on July 16, 2020. BurgerFi filed objections to the non-party subpoenas on July 20, 2020. On September 11, 2020, BurgerFi filed a motion to dismiss and certain claims were dismissed by the court. Mr. Winograd filed an amended complaint on August 31, 2021, which BurgerFi answered on September 30, 2021. In December 2021, Mr. Winograd filed a motion for summary judgment, which the Court denied on February 8, 2022. In February 2022, Mr. Winograd filed another motion for summary judgment, which the Court denied on May 25, 2022. During March and April of 2022, Mr. Winograd deposed several witnesses. On August 8, 2022, the parties entered into a settlement agreement whereby a former shareholder of the Company, pursuant to the terms of that certain Membership Interest Purchase Agreement, dated as of June 29, 2020, by and among OPES Acquisition Corp., BurgerFi International LLC, and certain other parties thereto, paid Mr. Winograd directly to settle this matter on behalf of the Company and such former shareholder.

Second 82nd SM, LLC v. BF NY 82, LLC, BurgerFi International, LLC and BurgerFi International, Inc. (Supreme Court of the State of New York County of New York, index No. 654907/2021, filed August 11, 2021). A lawsuit was filed by Second 82nd SM, LLC (“Landlord”) against BF NY 82, LLC (“Tenant”) whereby Landlord brought a seven-count lawsuit for, among other things, breach of the lease agreement and underlying guaranty of the lease. The amount of damages Landlord is seeking is over $0.5 million, which constitutes back rent, late charges, real estate taxes, illuminated sign charges and water/sewer charges. On November 3, 2021, the Company filed a Motion to Dismiss the Complaint. On November 17,

10

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

2021, the Tenant filed an Answer to Landlord’s Complaint and a cross claim against the Company, which the Company answered on December 7, 2021. On December 22, 2021, the Company filed its Response in Opposition to Landlord’s Motion for Summary Judgment and Memo in further Support of its Motion to Dismiss. The parties continue to discuss possible settlement, including turning over possession of the premises to the Landlord. The Company is unable to predict the ultimate outcome of this matter, however, losses may be material to the Company’s financial position and results of operations.

Lion Point Capital Allegation. Beginning March 9, 2021 through June 22, 2022, the Company received letters from counsel to Lion Point Capital, LLC, a stockholder of the Company (“Lion Point”), alleging that the Company failed to timely register Lion Point’s shares in violation of the registration rights agreement to which Lion Point is a party, which allegedly resulted in losses in excess of $26 million. The Company responded to each claim denying that any breach had occurred or that Lion Point incurred any damages caused by the delay in the filing of the registration statement registering Lion Point's shares. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

John Rosatti, as Trustee of the John Rosatti Revocable Trust U/A/D 08/27/2001 (the “JR Trust”) v. BurgerFi International, Inc. (Circuit Court for the Eleventh Judicial Circuit, Florida, File No. 146578749). On March 28, 2022, the JR Trust filed a suit against BurgerFi alleging that the JR Trust suffered losses in excess of $10 million relating to BurgerFi’s alleged failure to timely file a registration statement. The parties attended a mediation on August 9, 2022 but were unable to resolve the suit. The Company believes this case is without merit and intends to defend the case vigorously. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the case, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

Burger Guys of Dania Pointe, et. al. v. BFI, LLC (Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida, Case No. 50-2021-CA -006501-XXXX-MB, filed May 21, 2021). In response to a demand letter issued by BurgerFi to Gino Gargiulo, a former franchisee, demanding that Mr. Gargiulo pay the balance owed under an asset purchase agreement wherein BurgerFi sold the Dania Beach, Florida BurgerFi location to Mr. Gargiulo, Mr. Gargiulo filed suit against BurgerFi claiming, in addition to other matters, that no further monies are owed under the asset purchase agreement and alleges that BurgerFi is responsible for one of Gargiulo’s former failed franchises in Sunny Isles, Florida, losses he has allegedly sustained at his Dania Beach location, as well as reimbursement of expenses in connection with his marketing company. Mr. Gargiulo seeks damages in excess of $2 million in the aggregate. The parties attended mediation on January 20, 2022, but it ended in an impasse. Mr. Gargiulo amended his complaint in April 2022, which, among other matters, amended the defendant parties. In May 2022, the Company filed a motion to dismiss the amended complaint and a motion to stay discovery, both of which are pending with the Court. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

All Round Food Bakery Products, Inc. v. BurgerFi International, LLC and Neri’s Bakery Products, Inc. et al (Supreme Court Westchester County, New York (Index Number 52170-2020)). In a suit filed in February 2020, the plaintiff, All Round Food Bakery Products, Inc. (“All Round Food”) alleges breach of contract and lost profits in excess of $1 million over the course of the supply agreement with the Company and Neri’s Bakery Products, Inc. (“Neri’s” and together with the Company, the “Defendants”). The Defendants assert, among other matters, that the supply agreement amongst the parties, whereby All Round Food was warehousing BurgerFi products produced by Neri’s, was terminated when All Round Food failed to cure its material breach of the supply agreement after due notice. The parties are attending mediation to attempt to resolve the dispute. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

11

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Employment Related Matters

In July 2021, the Company received a demand letter from the attorney of one of our now former hourly restaurant employees. The letter alleges that the former employee was sexually harassed by one of her co-workers. The demand letters claim that we discriminated and retaliated against the former employee based on her gender and age and also alleged intentional infliction of emotional distress, negligent hiring, negligent training, and negligent supervision. The claimant alleges damages of more than $0.8 million.

In November 2021, a former employee filed suit alleging that she was sexually harassed by one of her co-workers. The lawsuit claims that we discriminated and retaliated against her and alleged intentional infliction of emotional distress, retaliation, and battery. The claimant alleges damages of $0.3 million.

In February 2020, a former employee filed a charge of discrimination with the EEOC alleging age discrimination. In June 2021, the claimant filed a demand for arbitration. The parties agreed to mediate the matter before commencing the arbitration proceedings but were unable to resolve the case. A final hearing is scheduled to take place in May 2022. In July 2022, the parties agreed to settle the matter, and the Company paid a nominal amount after insurance coverage.

While we believe that all claims of the above-mentioned Employment Related Claims, which are covered under the Company’s insurance policies, are meritless, and we plan to defend these allegations, it is reasonably possible that the Company may ultimately be required to pay substantial damages to the claimants, which could be up to $1.1 million or more in aggregate compensatory damages, attorneys’ fees and costs. Management believes that any liability, in excess of applicable insurance coverages or accruals, which may result from these claims, would not be significant to the Company’s financial position or results of operations.

General Liability and Other Claims.

The Company is subject to other legal proceedings and claims that arise during the normal course of business, including landlord disputes, slip and fall cases, and various food related matters. While we intend to vigorously defend these matters, it is reasonably possible that the Company may be required to pay substantial damages to the claimants. Management believes that any liability, in excess of applicable insurance coverages or accruals, which may result from these claims, would not be significant to the Company’s financial position or results of operations.

8.    Debt

(in thousands)	June 30, 2022		December 31, 2021
Term loan	$	56,135	$	57,761
Related party note	10,000		10,000
Revolving line of credit	2,500		2,500
Other notes payable	836		874
Finance lease liability	1,018		—
Total Debt	$	70,489	$	71,135
Less: Unamortized debt discount to related party note	(1,021)		(1,276)
Less: Unamortized debt issuance costs	(1,045)		(1,007)
Total Debt, net	68,423		68,852
Less: Short-term borrowings, including finance leases	(3,495)		(3,331)
Total Long-term borrowings, including finance leases and related party note	$	64,928	$	65,521

12

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Credit Agreement

The Company has a credit agreement with a syndicate of commercial banks that provides up to $71.8 million in financing (“Credit Agreement”). The Credit Agreement, which terminates on June 15, 2024, provides the Company with lender financing structured as a $57.8 million term loan, a $4 million revolving loan, and a $10 million delayed draw term loan facility (the “Delayed Draw Term Loan Facility”) provided by a related party which is a significant stockholder. The terms of the Credit Agreement require the Company to repay the principal of the term loan in quarterly installments with the balance due at the maturity date.

The loan and revolving line of credit are secured by substantially all of the Company’s assets and incurs cash interest on outstanding amounts at 4.75% per annum through June 15, 2023 and 6.75% from June 16, 2023 through maturity. Pursuant to the terms of an amendment to the Credit Agreement effective as of March 9, 2022, certain of the covenants of the Credit Agreement were amended, and the Company, together with the other borrower and the guarantors party to the Credit Agreement, agreed to pay incremental deferred interest of 2% per annum, in the event that the obligations under the Credit Agreement are not repaid on or prior to June 15, 2023; provided, however, that if no event of default has occurred and is continuing then (1) no incremental deferred interest will be due if all of the obligations under the Credit Agreement have been paid on or prior to December 31, 2022, and (2) only 50% of the incremental deferred interest will be owed if all of the obligations under the Credit Agreement have been paid from and after January 1, 2023 and on or prior to March 31, 2023.

Interest expense for the three and six months ended June 30, 2022 was $2.2 million and $4.3 million. Included within interest expense for the three and six months ended June 30, 2022 is amortization of debt issuance costs in the amount of $0.1 million and $0.3 million and the amortization of related party note debt discount in the amount of $0.1 million and $0.3 million. Additionally, included within interest expense for the three and six months ended June 30, 2022 is non-cash interest expense on the redeemable preferred stock in the amount of $1.0 million and $1.9 million. Interest expense for the three and six months ended June 30, 2021 was de minimis.

9.    Income Taxes

The Company is subject to federal and state income taxes in the United States. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. For the three and six months ended June 30, 2022, the Company concluded that it has a recent history of losses and has recognized a valuation allowance against the balance of its existing deferred tax assets.

For the three and six months ended June 30, 2022, the Company's effective income tax rate was 0.55% and 0.60%, respectively, differing from the U.S. corporate statutory federal income tax rate of 21%, and the difference is primarily the result of the valuation allowance applied to reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized. For the three and six months ended June 30, 2021, the Company's effective income tax rate was 0.3% and 48.7%, respectively. The tax returns for years 2018-2022 may be selected for examination by taxing authorities.

10.    Stockholders' Equity

Common Stock

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share. At June 30, 2022 and December 31, 2021, there were 22,253,232 shares and 21,303,500 shares of common stock outstanding, respectively.

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. As of June 30, 2022 and December 31, 2021, there were 2,120,000 shares of preferred stock outstanding.

13

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Warrants and Options

As of June 30, 2022, the Company had the following warrants and options outstanding: 15,063,800 warrants outstanding, each exercisable for one share of common stock at an exercise price of $11.50 including 11,468,800 in public warrants, 3,595,000 in private placement warrants, 75,000 unit purchase option units that are exercisable for one share of common stock at an exercise price of $10.00 and warrants exercisable for one share of common stock at an exercise price of $11.50. The public warrants expire in December 2025.

Warrant Liability

The Company has certain warrants which include provisions that affect the settlement amount. Such variables are outside of those used to determine the fair value of a fixed-for-fixed instrument, and as such, the warrants are accounted for as liabilities in accordance with ASC 815-40, Derivatives and Hedging, with changes in fair value included in the condensed consolidated statements of operations.

The warrant liability was $1.4 million and $2.7 million at June 30, 2022 and December 31, 2021, respectively. The gain on change in value of warrant liability for the three and six months ended June 30, 2022 was $1.9 million and $1.3 million, and is recognized in the accompanying condensed consolidated statement of operations. The gain on change in value of warrant liability for the three and six months ended June 30, 2021 was $12.6 million, and $7.7 million, and is recognized in the accompanying condensed consolidated statement of operations.

The following is an analysis of changes in the warrant liability for the six months ended June 30, 2022:

(in thousands)	Level 3 (Black Scholes)
Liability at December 31, 2021	$	2,706
Gain during the six months ended June 30, 2022	1,324
Liability at June 30, 2022	$	1,382

The fair value of the warrants are determined using the publicly-traded price of our common stock on the valuation dates of $3.23 on June 30, 2022 and $5.67 on December 31, 2021. See Note 11. Fair Value Measurements.

Share-Based Compensation

The Company has the ability to grant stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance compensation awards to current or prospective employees, directors, officers, consultants or advisors under the Company’s 2020 Omnibus Equity Incentive Plan (the “Plan”).

On January 3, 2022, the Company filed a Registration Statement with the SEC to register 1,065,175 additional shares of common stock, $0.0001 par value per share, of the Company under the Plan, pursuant to the “evergreen” provision of the Plan providing for an automatic increase in the number of shares reserved for issuance under the Plan.

As of June 30, 2022 and December 31, 2021, there were approximately 406,000 and 126,000 shares of common stock available for future grants under the Plan, respectively.

14

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Restricted Stock Unit Awards

The following table summarizes activity of restricted stock units during the six months ended June 30, 2022:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2021	1,783,698	$	14.18
Granted	437,847	3.32
Vested	(324,289)	14.80
Forfeited	(276,387)	9.69
Non-vested at June 30, 2022	1,620,869	$	11.89

Share-based compensation recognized during three and six months ended June 30, 2022 was approximately $0.9 million and $8.3 million, inclusive of stock grants of $3.9 million. Share-based compensation recognized during the three and six months ended June 30, 2021 was $2.6 million and $3.1 million. As of June 30, 2022, there was approximately $13.9 million of total unrecognized compensation cost related to unvested restricted stock units or performance-based restricted stock unit awards to be recognized over a weighted average period of 2.9 years.

11.    Fair Value Measurements

Fair values of financial instruments are estimated using public market prices, quotes from financial institutions, and other available information. The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration.

The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021.

	Items Measured at Fair Value at June 30, 2022
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	49,433	$	—
Related party note	—		8,979		—
Warrant liability	—		—		1,382
Total	$	—	$	58,412	$	1,382

	Items Measured at Fair Value at December 31, 2021
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	47,525	$	—
Related party note	—		8,724		—
Warrant liability	—		—		2,706
Total	$	—	$	56,249	$	2,706

15

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The fair value of the preferred stock was determined using a discounted cash flow methodology. The expected future redemption payment was forecasted based on the contractual PIK (payment in kind) interest and estimated redemption date of December 31, 2024.

The fair value of the related party note is determined based on the present value of the underlying cash flows discounted at our incremental borrowing rates.

The fair value of non-financial assets measured at fair value on a non-recurring basis, classified as Level 2 in the fair value hierarchy, is determined based on third-party market appraisals. The fair value of our warrant liability is measured at fair value on a non-recurring basis, classified as Level 3 in the fair value hierarchy. The fair value of the private placement warrants, private warrants, and working capital warrants was determined using the publicly-traded price of our common stock on the valuation dates of $3.23 on June 30, 2022 and $5.67 on December 31, 2021 and was estimated using a Dynamic Black-Scholes model. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price, risk free interest rate and volatility assumptions. The calculated warrant price for private warrants was $0.38 and $0.75 on June 30, 2022 and December 31, 2021.

The input variables for the Black-Scholes are noted in the table below:

	June 30, 2022		December 31, 2021
Risk-free interest rate	2.95	%	1.11	%
Expected life in years	3.47		3.96
Expected volatility	57.0	%	41.8	%
Expected dividend yield	—	%	—	%

Assets and liabilities that are measured at fair value on a non-recurring basis include our long-lived assets and definite-lived intangible assets that we performed impairment testing for. In determining fair value, we used an income-based approach. As a number of assumptions and estimates were involved that are largely unobservable, they are classified as Level 3 inputs within the fair value hierarchy. Assumptions used in these forecasts are consistent with internal planning, and include revenue growth rates, royalties, gross margins, and operating expense in relation to the current economic environment and the Company’s future expectations.

12.    Segment Information

Prior to the Anthony's acquisition in November 2021, the Company had one operating and reportable segment. As such, segment information is presented for the six months ended June 30, 2022, but not prior periods as all information in prior periods relates to the BurgerFi brand. Following the Anthony's acquisition, the Company has two operating and reportable segments: BurgerFi and Anthony's.

The following tables present revenue and net loss by segment:

16

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(in thousands)	Three Months Ended  June 30, 2022		Six Months Ended  June 30, 2022
Revenue:
BurgerFi	$	13,458	$	25,853
Anthony's	31,840		64,375
Total	$	45,298	$	90,228
Net loss:
BurgerFi	$	(21,726)	$	(34,686)
Anthony's	(38,651)		(39,251)
Total	$	(60,377)	$	(73,937)

13.    Leases

On January 1, 2022, we adopted ASU 2016-02. Results for reporting periods beginning on or after January 1, 2022 are presented under Accounting Standards Codification Topic 842 (“ASC 842”). Prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840, the accounting standard then in effect.

Upon transition, on January 1, 2022, we recorded the following increases (decreases) to the respective line items on the Condensed Consolidated Balance Sheet:

(in thousands)	Adjustment as of January 1, 2022
Prepaid expenses	$	(773)
Operating right-of-use asset, net	57,385
Finance right-of-use asset, net	855
Deferred rent	(900)
Short-term operating lease liability	9,457
Short-term finance lease liability	143
Long-term operating lease liability	49,149
Long-term finance lease liability	712

The Company currently leases all of its corporate-owned restaurants, corporate offices, and certain equipment. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment and evaluates whether it controls the use of the asset, which is determined by assessing whether all economic benefits from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. Once the Company has identified a lease, the lease is accounted for under the requirements of ASC 842.

Upon the possession of a leased asset, the Company determines its classification as an operating or finance lease. The Company's real estate leases are classified as operating leases, and the Company's equipment leases are classified as finance leases. Generally, the real estate leases have initial terms ranging from 10 years to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the options to extend the lease. The real estate leases typically provide for fixed minimum rent payments or variable rent payments based on a percentage of monthly sales or annual changes to the Consumer Price Index. Fixed minimum rent payments are recognized on a straight-line basis over the lease term from the date the Company takes possession of the leased property. Lease expense incurred before a corporate-owned store opens is recorded in pre-opening costs in the condensed consolidated statements of operations. Once a corporate-owned store opens, the straight-line lease expense is recorded in occupancy and related expenses in the condensed consolidated statements of operations. Many of the leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in occupancy and related expenses in the condensed consolidated statements of operations.

17

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

A summary of finance and operating lease right-of-use assets and liabilities as of June 30, 2022 is as follows:

(in thousands)	Classification	June 30, 2022
Operating leases	Operating right-of-use asset, net	$	52,216
Finance leases	Property & equipment, net	976
Total right-of-use assets		$	53,192
Operating leases:
	Short-term operating lease liability	$	9,486
	Long-term operating lease liability	43,742
Finance leases:
	Short-term borrowings, including finance leases	160
	Long-term borrowings, including finance leases	858
Total lease liabilities		$	54,246

The components of lease expense for the three and six months ended June 30, 2022 is as follows:

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

The maturity of the Company's operating and finance lease liabilities as of June 30, 2022 is as follows:

(in thousands)	Operating Leases		Finance Leases
07/01/2022 - 12/31/2022	$	6,265	$	114
01/01/2023 - 12/31/2023	12,178		201
01/01/2024 - 12/31/2024	10,432		184
01/01/2025 - 12/31/2025	8,927		170
01/01/2026 - 12/31/2026	7,110		159
Thereafter	19,553		404
Total undiscounted lease payments	64,465		1,232
Less: present value adjustment	11,237		214
Total net lease liabilities	$	53,228	$	1,018

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

18

BurgerFi International Inc., and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of June 30, 2022, the Company had additional operating lease commitments of $2.2 million for non-cancelable leases without a possession date, which begin to commence in 2022. These lease commitments are consistent with the leases that have been executed thus far.

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

	Six Months Ended
	June 30, 2022
Weighted-average remaining lease term
Operating leases	6.4 years
Finance leases	6.6 years
Weighted-average discount rate
Operating leases	6.0	%
Finance leases	6.0	%

19

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and the related notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”). Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause such differences are discussed in the sections of this Quarterly Report on Form 10-Q titled “Forward-Looking and Cautionary Statements” and “Item 1A. Risk Factors,” and in Part I. “Item 1A. Risk Factors” in the 2021 Form 10-K.

Overview

BurgerFi International, Inc. and its wholly owned subsidiaries (“BurgerFi” or the “Company,” also “we,” “us,” and “our”) is a leading multi-brand restaurant company that develops, markets and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. On November 3, 2021, the Company acquired (the “Anthony’s acquisition”) 100% of the outstanding shares of Hot Air, Inc. ("Hot Air"). Hot Air, through its subsidiaries, owns the business of operating upscale casual dining restaurants in the specialty pizza and wings segment under the name “Anthony's Coal Fired Pizza & Wings” (“Anthony's”). The results of operations, financial position and cash flows of Anthony's is included in our consolidated financial statements as of the closing date of the acquisition. As of June 30, 2022, we were the owner and franchisor of the two following brands:

BurgerFi. BurgerFi is a fast-casual “better burger” concept, renowned for delivering an exceptional, all-natural premium “better burger” experience in a refined, contemporary environment. BurgerFi’s chef-driven menu offerings and eco-friendly restaurant design drive our brand communication. It offers a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine and more. Originally founded in 2011 in Lauderdale-by-the-Sea, Florida, the purpose was simple – “RedeFining” the way the world eats burgers by providing an upscale burger offering, at a fast-casual price point. BurgerFi is committed to an uncompromising and rewarding dining experience that promises fresh food of transparent quality. Since its inception, BurgerFi has grown to 122 BurgerFi locations, and as of June 30, 2022, was comprised of 25 corporate-owned restaurants and 97 franchised restaurants in two countries including 22 states within the United States, as well as Puerto Rico.

BurgerFi was named “Best Fast Casual Restaurant” in USA Today’s 10Best 2022 Readers Choice Awards for the second consecutive year, QSR Magazine's Breakout Brand of 2020, Fast Casual's 2021 #1 Brand of the Year and included in Inc. Magazine’s Fastest Growing Private Companies List. In 2021, Consumer Report’s Chain Reaction Report praised BurgerFi for serving “no antibiotic beef” across all its restaurants, and Consumer Reports awarded BurgerFi an “A-Grade Angus Beef” rating for the third consecutive year.

Anthony’s. Anthony’s is a premium pizza and wing brand operating 61 corporate-owned casual restaurant locations, as of June 30, 2022. Anthony’s prides itself on serving fresh, never frozen, high-quality ingredients. The concept is centered around a 900-degree coal fired oven, and its menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. The restaurants also feature a deep wine and craft beer selection to round out the menu. The pizzas are prepared using a unique coal fired oven to quickly seal in natural flavors while creating a lightly charred crust. Anthony’s provides a differentiated offering among its casual dining peers driven by its coal fired oven, which enables the use of fresh, high-quality ingredients with quicker ticket times.

Since its inception in 2002, the Anthony’s brand has grown to 61 corporate-owned locations, as of June 30, 2022, primarily along the East coast and has restaurants in eight states, including Florida (28), Pennsylvania (12), New Jersey (8), New York (5), Massachusetts (4), Delaware (2), Maryland (1), and Rhode Island (1).

Anthony’s was named “The Best Pizza Chain in America” by USA Today's Great American Bites and “Top 3 Best Major Pizza Chain” by Mashed in 2021.

Beyond our current brand portfolio, we intend to acquire other restaurant concepts that will allow us to grow and also offer additional food categories. In evaluating potential acquisitions, we specifically seek concepts with, among others, the following characteristics:

•established, recognized brands;

•long-term, sustainable operating performance;

20

Table of Contents

•consistent cash flows; and

•growth potential, both geographically and through co-branding initiatives across our portfolio.

Intending to leverage our developing management platform, we expect to achieve cost synergies post-acquisition by reducing the corporate overhead of the acquired company. We also plan to grow the top line revenues of newly acquired brands through support from our management and systems platform, franchising, marketing and advertising, supply chain assistance, site selection analysis, staff training and operational oversight and support.

Segments

We have two operating and reportable segments: BurgerFi and Anthony’s. Our business generates revenue from the following sources: restaurant sales, royalty and other fees, consisting primarily of royalties based on a percentage of sales reported by franchised restaurants and paid by franchisees, and franchise fees, consisting primarily of licensing fees paid by franchisees, and royalty - brand development and co-op, consisting of royalties collected for advertising and related costs.

Significant Recent Developments Regarding COVID-19

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly spreading outbreak of a novel strain of coronavirus designated COVID-19. The pandemic has significantly impacted economic conditions in the United States, where all of our corporate-owned restaurants are located. While the adverse effects of the COVID-19 pandemic have partially subsided, its effects vary by region, and uncertainties arising from the COVID-19 pandemic could continue to disrupt economic conditions and business activities, particularly as new outbreaks and variants of COVID-19 arise. The extent to which the COVID-19 pandemic, including the recent and emerging variants, could affect our business, operations and financial results is uncertain as it will depend upon numerous evolving factors that management may not be able to accurately predict, including the duration and scope of the pandemic and the continued emergence of new strains of COVID-19.

We believe that we have taken appropriate steps to mitigate the effects of the COVID-19 pandemic on our business, and our business model has, thus far, proven resilient. We continue to actively monitor the effects of the COVID-19 pandemic on our operations, and to the extent that future business activities are adversely affected by the pandemic, we intend to take appropriate actions designed to mitigate these impacts. We continue to adapt to the changing operational and economic environment that has resulted from the COVID-19 pandemic. Our top priority has been to take appropriate actions to protect the health and safety of our employees, customers and business partners, and we continue to monitor evolving health guidelines and respond to changes as appropriate. Notwithstanding moderation of the COVID-19 pandemic and related governmental and other restrictions, we may continue to experience negative effects on our business and operations from possible longer-term changes in consumer and customer behavior and/or from negative economic conditions, including recent inflationary effects on labor and food costs, supply chain disruptions and availability of labor.

We did not experience any material supply chain disruptions as a result of COVID-19 to date however, there can be no assurance that we will not experience supply chain challenges in the future.

We have implemented price increases in an effort to mitigate the inflationary effects of food and labor costs; however, we cannot predict the long-term impact of these negative economic conditions on our restaurant profitability. Although we have experienced some recovery since the initial impact of COVID-19 and are able to meet our obligations as they become due with our cash flow from operations, the long-term impact of COVID-19 on the economy and on our business remains uncertain, the duration and scope of which cannot currently be predicted. We may take additional mitigation actions in the future such as raising additional financing, reducing capital spending, raising prices, or modifying our operating strategies. Some of these measures may have an adverse impact on our business.

21

Table of Contents

Key Metrics

The following key metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of our marketing, operating, and growth initiatives:

	Consolidated
(in thousands except for percentage data)	Three Months Ended June 30, 2022*			Six Months Ended June 30, 2022*
Systemwide Restaurant Sales	$	74,277		$	147,373
Systemwide Restaurant Sales Growth	(2)		%	2		%
Systemwide Restaurant Same Store Sales Growth	(5)		%	(1)		%
Corporate-Owned Restaurant Sales	$	42,058		$	84,035
Corporate-Owned Restaurant Sales Growth	6		%	10		%
Corporate-Owned Restaurant Same Store Sales Growth	(1)		%	4		%
Franchise Restaurant Sales	$	32,219		$	63,338
Franchise Restaurant Sales Growth	(4)		%	—		%
Franchise Restaurant Same Store Sales Growth	(11)		%	(8)		%
Digital Channel % of Systemwide Sales	35		%	36		%

*Included within Systemwide Restaurant Sales Growth, Systemwide Restaurant Same Store Sales Growth, Corporate-Owned Restaurant Sales Growth and Corporate-Owned Restaurant Same Store Sales Growth data presented above is information for Anthony's for the respective periods in 2021 which is presented only for informational purposes as Anthony's was not under common ownership until November 2021, the date of acquisition.

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
(in thousands, except for percentage data)	BurgerFi			Anthony's*			BurgerFi
Systemwide Restaurant Sales	$	42,438		$	31,840		$	44,194
Systemwide Restaurant Sales Growth	(4)		%	2		%	63		%
Systemwide Restaurant Same Store Sales Growth	(11)		%	3		%	44		%
Corporate-Owned Restaurant Sales	$	10,219		$	31,840		$	8,730
Corporate-Owned Restaurant Sales Growth	20		%	2		%	65		%
Corporate-Owned Restaurant Same Store Sales Growth	(14)		%	3		%	39		%
Franchise Restaurant Sales	$	32,219		N/A			$	35,464
Franchise Restaurant Sales Growth	(4)		%	N/A			63		%
Franchise Restaurant Same Store Sales Growth	(11)		%	N/A			45		%
Digital Channel % of Systemwide Sales	33		%	36		%	39		%

*Included within Systemwide Restaurant Sales Growth, Systemwide Restaurant Same Store Sales Growth, Corporate-Owned Restaurant Sales Growth and Corporate-Owned Restaurant Same Store Sales Growth data presented above is information for Anthony's for the respective periods in 2021 which is presented only for informational purposes as Anthony's was not under common ownership until November 2021, the date of acquisition.

22

Table of Contents

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
(in thousands, except for percentage data)	BurgerFi			Anthony's*			BurgerFi
Systemwide Restaurant Sales	$	82,998		$	64,375		$	84,013
Systemwide Restaurant Sales Growth	(1)		%	7		%	39		%
Systemwide Restaurant Same Store Sales Growth	(8)		%	8		%	20		%
Corporate-Owned Restaurant Sales	$	19,660		$	64,375		$	16,873
Corporate-Owned Restaurant Sales Growth	20		%	7		%	53		%
Corporate-Owned Restaurant Same Store Sales Growth	(11)		%	8		%	24		%
Franchise Restaurant Sales	$	63,338		N/A			$	67,140
Franchise Restaurant Sales Growth	—		%	N/A			36		%
Franchise Restaurant Same Store Sales Growth	(8)		%	N/A			20		%
Digital Channel % of Systemwide Sales	35		%	37		%	42		%

*Included within Systemwide Restaurant Sales Growth, Systemwide Restaurant Same Store Sales Growth, Corporate-Owned Restaurant Sales Growth and Corporate-Owned Restaurant Same Store Sales Growth data presented above is information for Anthony's for the respective periods in 2021 which is presented only for informational purposes as Anthony's was not under common ownership until November 2021, the date of acquisition.

Systemwide Restaurant Sales

Systemwide restaurant sales are not revenues to the Company, however the Company records royalty revenue based as a percentage of systemwide restaurant sales. Systemwide restaurant sales is presented as informational data in order to understand the aggregation of franchised stores sales, ghost kitchen and corporate-owned store sales performance. Systemwide restaurant sales growth refers to the percentage change in sales at all franchised restaurants, ghost kitchens and corporate-owned restaurants in one period from the same period in the prior year. Systemwide restaurant same store sales growth refers to the percentage change in sales at all franchised restaurants, ghost kitchens, and corporate-owned restaurants once the restaurant has been in operation after 14 months. See definition below for same store sales.

Corporate-Owned Restaurant Sales

Corporate-owned restaurant sales represent the sales generated only by corporate-owned restaurants. Corporate-owned restaurant sales growth refers to the percentage change in sales at all corporate-owned restaurants in one period from the same period in the prior year. Corporate-owned restaurant same store sales growth refers to the percentage change in sales at all corporate-owned restaurants once the restaurant has been in operation after 14 months. These measures highlight the performance of existing corporate-owned restaurants.

Franchise Restaurant Sales

Franchise restaurant sales represent the sales generated only by franchisee-owned restaurants and are not recorded as revenue, however, the royalties based on a percentage of these franchise restaurant sales are recorded as revenue. Franchise restaurant sales growth refers to the percentage change in sales at all franchised restaurants in one period from the same period in the prior year. Franchise restaurant same store sales growth refers to the percentage change in sales at all franchised restaurants once the restaurant has been in operation after 14 months. These measures highlight the performance of existing franchised restaurants.

Same Store Sales

We use the measure of same store sales to evaluate the performance of our store base, which excludes the impact of new stores and closed stores, in both periods under comparison. We include a restaurant in the calculation of same store sales once it has been in operation after 14 months. A restaurant that is temporarily closed (including as a result of the COVID-19 pandemic), is included in the same store sales computation. A restaurant that is closed permanently, such as upon termination of the lease, or other permanent closure, is immediately removed from the same store sales computation. Our calculation of same store sales may not be comparable to others in the industry.

23

Table of Contents

Digital Channel Percentage of Systemwide Sales

We use the measure of digital channel percentage of systemwide sales to evaluate the performance of our investments made in our digital platform and partnerships with third party delivery partners. We believe our digital platform capabilities are a vital element to continuing to serve our customers and will continue to be a differentiator for the Company as compared to some of our competitors. Digital channel as percentages of systemwide sales are indicative of the sales placed through our digital platforms and the percentage of those digital sales when compared to total sales at all our franchised and corporate-owned restaurants.

Unless otherwise stated, “Systemwide Restaurant Sales”, “Systemwide Sales Growth”, and “Same Store Sales” are presented on a systemwide basis, which means they include franchise restaurants and corporate-owned restaurants. Franchise restaurant sales represent sales at all franchise restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and brand royalty revenues are calculated based on a percentage of franchise sales.

By providing these key metrics, we believe we are enhancing investors’ understanding of our business as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Results of Operations

The tables below present our results of operations as reported in our condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

(in thousands, except for per share data)	Three Months Ended				Six Months Ended
REVENUE	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Restaurant sales	$	42,236	$	8,971	$	84,592	$	17,367
Royalty and other fees	2,611		2,254		4,714		4,277
Royalty - brand development and co-op	451		545		922		1,056
TOTAL REVENUE	45,298		11,770		90,228		22,700
Restaurant level operating expenses:
Food, beverage and paper costs	12,545		2,693		25,352		5,115
Labor and related expenses	12,328		2,402		24,910		4,607
Other operating expenses	7,421		2,114		14,613		3,847
Occupancy and related expenses	3,890		786		7,725		1,561
General and administrative expenses	7,406		3,549		13,432		6,524
Depreciation and amortization expense	4,730		2,171		9,174		4,279
Share-based compensation expense	909		2,595		8,285		3,117
Brand development, co-op and advertising expense	1,126		653		1,839		1,374
Goodwill impairment	55,168		—		55,168		—
Store closure costs	52		—		566		—
Pre-opening costs	—		502		474		628
TOTAL OPERATING EXPENSES	105,575		17,465		161,538		31,052
OPERATING LOSS	(60,277)		(5,695)		(71,310)		(8,352)
Other (loss) income	(47)		2,127		(80)		2,241
Gain on change in value of warrant liability	1,858		12,619		1,324		7,673
Interest expense	(2,246)		(33)		(4,318)		(41)
(Loss) income before income taxes	(60,712)		9,018		(74,384)		1,521
Income tax benefit (expense)	335		(27)		447		(740)
Net (loss) income	$	(60,377)	$	8,991	$	(73,937)	$	781

24

Table of Contents

Revenue

The following table presents our revenue by segment:

	Three Months Ended						Six Months Ended
(in thousands)	June 30, 2022		June 30, 2021				June 30, 2022		June 30, 2021
BurgerFi	13,458		11,770				25,853		22,700
Anthony's	31,840		—				64,375		—
Total Consolidated	$	45,298	$	11,770	$	11,770	$	90,228	$	22,700

Comparison of the three months ended June 30, 2022 and 2021

Restaurant Sales

For the three months ended June 30, 2022, the Company’s restaurant sales increased by approximately $33.3 million or 371% as compared to the three months June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $31.8 million, or 95% of the increase in restaurant sales. The remaining increase of $1.5 million resulted from the operation of new BurgerFi corporate-owned restaurants during the three months ended June 30, 2022 offset by a decline in BurgerFi same store sales of 14%.

25

Table of Contents

Restaurant Level Operating Expenses

Restaurant level operating expenses are as follows:

	Three Months Ended  June 30, 2022				Three Months Ended  June 30, 2021
(in thousands, except for percentage data)	In dollars		As a % of restaurant sales		In dollars		As a % of restaurant sales
Consolidated:
Restaurant Sales	$	42,236	100	%	$	8,971	100	%
Restaurant level operating expenses:
Food, beverage and paper costs	12,545		29.7	%	2,693		30.0	%
Labor and related expenses	12,328		29.2	%	2,402		26.8	%
Other operating expenses	7,421		17.6	%	2,114		23.6	%
Occupancy and related expenses	3,890		9.2	%	786		8.8	%
Total	$	36,184	85.7	%	$	7,995	89.1	%
BurgerFi:
Restaurant Sales	$	10,396	100	%	$	8,971	100	%
Restaurant level operating expenses:
Food, beverage and paper costs	3,412		32.8	%	2,693		30.0	%
Labor and related expenses	2,902		27.9	%	2,402		26.8	%
Other operating expenses	2,108		20.3	%	2,114		23.6	%
Occupancy and related expenses	902		8.7	%	786		8.8	%
Total	$	9,324	89.7	%	$	7,995	89.1	%
Anthony's *:
Restaurant Sales	$	31,840	100	%	$	31,292	100	%
Restaurant level operating expenses:
Food, beverage and paper costs	$	9,133	28.7	%	$	9,363	29.9	%
Labor and related expenses	9,426		29.6	%	9,035		28.9	%
Other operating expenses	5,313		16.7	%	5,443		17.4	%
Occupancy and related expenses	2,988		9.4	%	2,634		8.4	%
Total	$	26,860	84.4	%	$	26,475	84.6	%

*Included within the data presented above is information for Anthony's for the respective periods in 2021 which is presented only for informational purposes as Anthony's was not under common ownership until November 2021, the date of acquisition.

Total consolidated restaurant level operating expenses as a percentage of restaurant sales was 85.7% for the three months ended June 30, 2022 as compared to 89.1% for the three months ended June 30, 2021, an improvement of 340 basis points. This 340 basis points improvement is primarily attributable to including our Anthony's brand which represents a large portion of our restaurant level financial results and a reduction in operating expenses at both brands from more efficient management of our third-party delivery providers.

Food, Beverage and Paper Costs

Food, beverage, and paper costs for the three months ended June 30, 2022 increased approximately $9.9 million, or 366% as compared to the three months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $9.1 million or 92% of the increase. The remaining increase of $0.8 million resulted from the operation of new BurgerFi corporate-owned restaurants during the three months ended June 30, 2022 and higher food, beverage and paper costs. As a percentage of restaurant sales, food, beverage and paper costs were 29.7% for the three months June 30, 2022 as compared to 30.0% for the three months ended June 30, 2021. This decrease is primarily

26

Table of Contents

attributable to the lower food, beverage and paper costs at our Anthony's brand which represents a large portion our financial results.

Labor and Related Expenses

Labor and related expenses for the three months ended June 30, 2022 increased by approximately $9.9 million, or 413% as compared to the three months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $9.4 million, or 95% of the increase. The remaining increase of $0.5 million resulted from the operation of new BurgerFi corporate-owned restaurants during the three months ended June 30, 2022. As a percentage of corporate-owned restaurant sales, labor and related expenses were 29.2% for the three months ended June 30, 2022 as compared to 26.8% for the three months ended June 30, 2021. This 240 basis points increase is due to including our Anthony's brand which represents a large portion of our restaurant level financial results.

Other Operating Expenses

Other operating expenses for the three months ended June 30, 2022 increased by approximately $5.3 million, or 251% as compared to the three months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $5.3 million, or 100% of the increase. As a percentage of corporate-owned restaurant sales, other operating expenses were 17.6% for the three months ended June 30, 2022 as compared to 23.6% for the three months ended June 30, 2021. This 600 basis points decrease primarily relates to lower other operating expenses at our Anthony's brand which represents a large portion our financial results and more efficient management of our third-party delivery providers.

Occupancy and Related Expenses

Occupancy and related expenses for the three months ended June 30, 2022 increased by approximately $3.1 million, or 395% as compared to the three months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $3.0 million, or 97% of the increase. The remaining increase of $0.1 million resulted from the operation of new BurgerFi corporate-owned restaurants during the three months ended June 30, 2022. As a percentage of corporate-owned restaurant sales, occupancy and related expenses were 9.2% for the three months ended June 30, 2022 as compared to 8.8% for the three months ended June 30, 2021. This increase primarily relates to the higher occupancy and related expenses at our Anthony's brand which represents a large portion our financial results.

General and Administrative Expenses

General and administrative expenses for the three months ended June 30, 2022 increased by approximately $3.9 million, or 108% as compared to the three months ended June 30, 2021. This increase partially related to the acquisition of Anthony's, which contributed approximately $2.1 million, or 54% of the increase. The remaining increase of $1.8 million was primarily driven by higher directors and officers' insurance costs and legal, professional and other corporate expenses of $1.0 million during the three months ended June 30, 2022 as compared to the three months ended June 30, 2021.

Share-Based Compensation Expense

Stock compensation expense was $0.9 million for the three months ended June 30, 2022 as compared to $2.6 million for the three months ended June 30, 2021 primarily as a result of less market price based awards being amortized and forfeitures during the quarter ended March 31, 2022 as compared to the prior period.

Goodwill Impairment

    The Company recorded goodwill impairment charges of $55.2 million for the three months ended June 30, 2022 in relation to the goodwill balance for our Anthony's reporting unit and the remaining goodwill balance for our BurgerFi reporting unit. The goodwill impairment amount was driven by the impact on the Company's market capitalization due to the decrease in stock price.

27

Table of Contents

Depreciation and Amortization Expense

Depreciation and amortization expense was $4.7 million for the three months ended June 30, 2022 as compared to $2.2 million for the three months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $2.1 million, or 83% of the increase. The remaining increase of $0.1 million resulted from the operation of new BurgerFi corporate-owned restaurants during the three months ended June 30, 2022.

Interest Expense

Interest expense was approximately $2.2 million during the three months ended June 30, 2022 as compared to $0.03 million during the three months ended June 30, 2021. This increase is primarily due to interest expense resulting from the debt acquired in the Anthony's acquisition and non-cash interest expense incurred of $1.0 million in relation to the accretion in value of preferred stock.

Gain on Change in Value of Warrant Liability

The Company recorded a non-cash gain of approximately $1.9 million during the three months ended June 30, 2022 related to change in the fair value of the warrant liability. The gain is primarily attributable to a decrease in the trading price of our publicly traded warrants.

Income Tax Benefit (Expense)

For the three months ended June 30, 2022, the Company recorded income tax benefit of $0.3 million primarily as a result of a valuation allowance on the Company’s deferred tax assets. This resulted in an effective tax rate of approximately 0.55%. For the three months ended June 30, 2021, the Company recorded de minimis income tax expense.

Net (Loss) Income

Net loss was $60.4 million compared with net income of $9.0 million, for the three months ended June 30, 2022 and 2021. This change is primarily the result of a goodwill impairment charge of $55.2 million and higher depreciation, amortization of intangibles and interest expense resulting from the acquisition-related debt.

Adjusted EBITDA

Adjusted EBITDA was approximately $2.6 million and $0.3 million, for the three months ended June 30, 2022 and 2021. The change in Adjusted EBITDA for the three months ended June 30, 2022 is primarily the result of the acquisition of Anthony's and corporate-owned restaurant sales growth. Refer below for reconciliation of Non-U.S. GAAP Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net (loss) income on a consolidated basis and by segment.

Comparison of the six months ended June 30, 2022 and 2021

Restaurant Sales

For the six months ended June 30, 2022, the Company’s restaurant sales increased by approximately $67.2 million or 387% as compared to the six months June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $64.4 million, or 96% of the increase in restaurant sales. The remaining increase of $2.8 million resulted from the operation of new BurgerFi corporate-owned restaurants during the six months ended June 30, 2022 offset by a decline in BurgerFi same store sales of 11%.

28

Table of Contents

Restaurant Level Operating Expenses

Restaurant level operating expenses are as follows:

	Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
(in thousands, except for percentage data)	In dollars		As a % of restaurant sales		In dollars		As a % of restaurant sales
Consolidated:
Restaurant Sales	$	84,592	100	%	$	17,367	100	%
Restaurant level operating expenses:
Food, beverage and paper costs	25,352		30.0	%	5,115		29.5	%
Labor and related expenses	24,910		29.4	%	4,607		26.5	%
Other operating expenses	14,613		17.3	%	3,847		22.2	%
Occupancy and related expenses	7,725		9.1	%	1,561		9.0	%
Total	$	72,600	85.8	%	$	15,129	87.1	%
BurgerFi:
Restaurant Sales	$	20,217	100	%	$	17,367	100	%
Restaurant level operating expenses:
Food, beverage and paper costs	6,442		31.9	%	$	5,115	29.5	%
Labor and related expenses	5,651		28.0	%	4,607		26.5	%
Other operating expenses	4,051		20.0	%	3,847		22.2	%
Occupancy and related expenses	1,865		9.2	%	1,561		9.0	%
Total	$	18,009	89.1	%	$	15,129	87.1	%
Anthony's*:
Restaurant Sales	$	64,375	100	%	$	59,962	100%
Restaurant level operating expenses:
Food, beverage and paper costs	$	18,910	29.4	%	17,798		29.7%
Labor and related expenses	19,259		29.9	%	17,261		28.8%
Other operating expenses	10,562		16.4	%	10,870		18.1%
Occupancy and related expenses	5,860		9.1	%	5,226		8.7%
Total	$	54,591	84.8	%	$	51,155	85.3%

*Included within the data presented above is information for Anthony's for the respective periods in 2021 which is presented only for informational purposes as Anthony's was not under common ownership until November 2021, the date of acquisition.

Total consolidated restaurant level operating expenses as a percentage of restaurant sales was 85.8% for the six months ended June 30, 2022 as compared to 87.1% for the six months ended June 30, 2021, an improvement of 130 basis points. This 130 basis points improvement is primarily attributable to including our Anthony's brand which represents a large portion of our restaurant level financial results and a reduction in operating expenses at both brands from more efficient management of our our third-party delivery providers.

Food, Beverage and Paper Costs

Food, beverage, and paper costs for the six months ended June 30, 2022 increased approximately $20.2 million, or 396% as compared to the six months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $18.9 million, or 94% of the increase. The remaining increase of $1.3 million resulted from the operation of new BurgerFi corporate-owned restaurants during the six months ended June 30, 2022 and higher food, beverage and paper costs. As a percentage of restaurant sales, food, beverage and paper costs were 30.0% for the six months June 30, 2022 as compared to 29.5% for the six months ended June 30, 2021 driven primarily by an increase in food, beverage and paper costs at our BurgerFi brand.

29

Table of Contents

Labor and Related Expenses

Labor and related expenses for the six months ended June 30, 2022 increased by approximately $20.3 million, or 441% as compared to the six months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $19.3 million, or 95% of the increase. The remaining increase of $1.0 million resulted from the operation of new BurgerFi corporate-owned restaurants during the six months ended June 30, 2022. As a percentage of corporate-owned restaurant sales, labor and related expenses were 29.4% for the six months ended June 30, 2022 as compared to 26.5% for the six months ended June 30, 2021. This 290 basis points increase is due to including our Anthony's brand which represents a large portion of our restaurant level financial results and loss of leverage on labor and related expenses at our BurgerFi brand as a result of a decrease in same store sales.

Other Operating Expenses

Other operating expenses for the six months ended June 30, 2022 increased by approximately $10.8 million, or 280% as compared to the six months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $10.6 million, or 98% of the increase. As a percentage of corporate-owned restaurant sales, other operating expenses were 17.3% for the six months ended June 30, 2022 as compared to 22.2% for the six months ended June 30, 2021. This 490 basis points decrease primarily relates to lower other operating expenses at our Anthony's brand which represents a large portion our financial results and more efficient management of our third-party delivery providers.

Occupancy and Related Expenses

Occupancy and related expenses for the six months ended June 30, 2022 increased by approximately $6.2 million, or 395% as compared to the six months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's, which contributed approximately $5.9 million, or 95% of the increase. The remaining increase of $0.3 million resulted from the operation of new BurgerFi corporate-owned restaurants during the six months ended June 30, 2022. As a percentage of corporate-owned restaurant sales, occupancy and related expenses were 9.1% for the six months ended June 30, 2022 as compared to 9.0% for the six months ended June 30, 2021.

General and Administrative Expenses

General and administrative expenses for the six months ended June 30, 2022 increased by approximately $6.9 million, or 106% as compared to the six months ended June 30, 2021. This increase partially related to the acquisition of Anthony's, which contributed approximately $4.3 million, or 62% of the increase. The remaining increase of $2.7 million was primarily driven by higher directors and officers' insurance costs, legal, professional and other corporate expenses during the six months ended June 30, 2022 as compared to the six months ended June 30, 2021.

Share-Based Compensation Expense

Share-Based compensation expense was $8.3 million for the six months ended June 30, 2022 as compared to $3.1 million for the six months ended June 30, 2021 primarily as a result of restricted stock unit and stock awards under the Company’s 2020 Omnibus Equity Incentive Plan made in the first quarter of 2022.

Goodwill Impairment

    The Company recorded goodwill impairment charges of $55.2 million for the six months ended June 30, 2022 in relation to the goodwill balance for our Anthony's reporting unit and the remaining goodwill balance for our BurgerFi reporting unit. The goodwill impairment amount was driven by the impact on the Company's market capitalization due to the decrease in stock price.

Depreciation and Amortization Expense

Depreciation and amortization expense was $9.2 million for the six months ended June 30, 2022 as compared to $4.3 million for the six months ended June 30, 2021. This increase was primarily related to the acquisition of Anthony's,

30

Table of Contents

which contributed approximately $4.1 million, or 83% of the increase. The remaining increase of $0.8 million resulted from the operation of new BurgerFi corporate-owned restaurants.

Interest Expense

Interest expense was approximately $4.3 million during the six months ended June 30, 2022 as compared to $0.04 million during the six months ended June 30, 2021. This increase is primarily due to an increase in interest expense resulting from the debt acquired in the Anthony's acquisition and non-cash interest expense incurred of $1.9 million in relation to the accretion in value of preferred stock.

Gain on Change in Value of Warrant Liability

The Company recorded a non-cash gain of approximately $1.3 million during the six months ended June 30, 2022 related to change in the fair value of the warrant liability. The gain is primarily attributable to a decrease in the trading price of our publicly traded warrants.

Income Tax Benefit (Expense)

For the six months ended June 30, 2022, the Company recorded income tax benefit of $0.4 million, primarily as a result of a valuation allowance on the Company’s deferred tax assets. This resulted in an effective tax rate of approximately 0.60%. For the six months ended June 30, 2021, the Company recorded income tax expense of $0.7 million as a result of a valuation allowance on the Company's deferred tax assets. This resulted in an effective tax rate of approximately 48.7%.

Net (Loss) Income

Net loss was approximately $73.9 million for the six months ended June 30, 2022 as compared to net income of $0.8 million for the six months ended June 30, 2021. This change is primarily the result of goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony's coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt.

Adjusted EBITDA

Adjusted EBITDA was approximately $4.9 million and $1.0 million, for the six months ended June 30, 2022 and 2021. The change in Adjusted EBITDA for the six months ended June 30, 2022 is primarily the result of the acquisition of Anthony's and corporate-owned restaurant sales growth. Refer below for reconciliation of Non-U.S. GAAP Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net (loss) income on a consolidated basis and by segment.

Non-U.S. GAAP Financial Measures

As appropriate, we supplement our reported U.S. GAAP financial information with certain non-U.S. GAAP financial measures, including adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”). We define Adjusted EBITDA as net (loss) income before goodwill impairment, the gain or loss on change in value of warrant liability, interest expense (which includes non-cash interest on preferred stock and interest accretion on related party notes), income tax (benefit) expense, depreciation and amortization, share-based compensation expense, pre-opening costs, store closure costs, legal settlements, and merger, acquisition and integration costs and PPP loan gain.

We use Adjusted EBITDA to evaluate our performance, both internally and as compared with our peers, because this measure excludes certain items that may not be indicative of our core operating results, as well as items that can vary widely across different industries or among companies within the same industry. We believe that this adjusted measure provides a baseline for analyzing trends in our underlying business.

We believe that this non-U.S. GAAP financial measure provides meaningful information and helps investors understand our financial results and assess our prospects for future performance. Because non-U.S. GAAP financial measures are not standardized, it may not be possible to compare this financial measure with other companies’ non-U.S. GAAP financial measures having the same or similar names. This financial measure should not be considered in isolation from, as a substitute for, or an alternative measure of, reported net (loss) income, and should be viewed in conjunction with the most comparable U.S. GAAP financial measure and the provided reconciliation thereto. We believe this non-U.S. GAAP financial measure, when viewed together with our U.S. GAAP results and the related reconciliation, provides a

31

Table of Contents

more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

Below is a reconciliation of Non-U.S. GAAP Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net (loss) income on a consolidated basis and by segment:

	Consolidated
	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net (loss) income	(60,377)		8,991		(73,937)		781
Goodwill impairment	55,168		—		55,168		—
Gain on change in value of warrant liability	(1,858)		(12,619)		(1,324)		(7,673)
Interest expense	2,246		33		4,318		41
Income tax (benefit) expense	(335)		27		(447)		740
Depreciation and amortization expense	4,730		2,171		9,174		4,279
Share-based compensation expense	909		2,595		8,285		3,117
Pre-opening costs	—		502		474		628
PPP loan gain	—		(2,123)		—		(2,237)
Store closure costs	52		—		566		—
Legal settlements	187		220		312		420
Merger, acquisition and integration costs	1,893		469		2,304		898
Adjusted EBITDA	$	2,615	$	266	$	4,893	$	994

	BurgerFi				Anthony's
(in thousands)	Three Months Ended  June 30, 2022		Six Months Ended  June 30, 2022		Three Months Ended  June 30, 2022		Six Months Ended  June 30, 2022
Net loss	$	(21,726)	$	(34,686)	$	(38,651)	$	(39,251)
Goodwill impairment	17,505		17,505		37,663		37,663
Gain on change in value of warrant liability	(1,858)		(1,324)		—		—
Interest expense	992		1,957		1,254		2,361
Income tax (benefit) expense	(341)		(451)		6		4
Depreciation and amortization expense	2,616		5,123		2,114		4,051
Share-based compensation expense	909		8,285		—		—
Pre-opening costs	—		474		—		—
Store closure costs	52		586		—		(20)
Legal settlements	187		312		—		—
Merger, acquisition and integration costs	1,846		2,191		47		113
Adjusted EBITDA	$	182	$	(28)	$	2,433	$	4,921

.

Liquidity, Capital Resources, and COVID-19

Our primary sources of liquidity are cash from operations, cash and cash equivalents on hand. As of June 30, 2022, we maintained a cash balance of approximately $15.7 million.

Our primary requirements for liquidity are to fund our working capital needs, operating and finance lease obligations, capital expenditures and general corporate needs. Our requirements for working capital are generally not significant because our guests pay for their food and beverage purchases in cash or on debit or credit cards at the time of the sale and we are able to sell many of our inventory items before payment is due to the supplier of such items. Our ongoing capital expenditures are principally related to opening new restaurants, remodels and maintenance, as well as

32

Table of Contents

investments in our digital and corporate infrastructure. We estimate our capital expenditures will be approximately $2 million for the year ending December 31, 2022.

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly spreading outbreak of a novel strain of coronavirus designated COVID-19. The pandemic has significantly impacted economic conditions in the United States, where all of our corporate-owned restaurants are located. While the adverse effects of the COVID-19 pandemic have partially subsided, its effects vary by region, and uncertainties arising from the COVID-19 pandemic could continue to disrupt economic conditions and business activities, particularly as new outbreaks and variants of COVID-19 arise. The extent to which the COVID-19 pandemic, including the recent and emerging variants, could affect our business, operations and financial results is uncertain as it will depend upon numerous evolving factors that management may not be able to accurately predict, including the duration and scope of the pandemic and the continued emergence of new strains of COVID-19.

We have implemented price increases to mitigate the inflationary effects of food and labor costs, however we cannot predict the long-term impact of these negative economic conditions on our restaurant profitability. Although we have experienced some recovery since the initial impact of COVID-19 and are able to meet our obligations as they become due with our cash flow from operations, the long-term impact of COVID-19 on the economy and on our business remains uncertain, the duration and scope of which cannot currently be predicted. In addition, we continue to monitor the spread of new variants, including the pandemic’s emergence of variants.

We are currently able to pay our obligations as they become due for at least the next 12 months and for the foreseeable future, with our cash flow generated from operations and our cash on hand balance of $15.7 million. Should federal, state or municipal government authorities impose mandatory restrictions in excess of what they currently are, we believe that our current cash balance will allow us the liquidity to meet our commitments as they become due.

The following table presents the summary cash flow information for the periods indicated:

	Six Months Ended
(in thousands)	June 30, 2022		June 30, 2021
Net cash (used in) provided by:
Operating activities	$	3,888	$	1,254
Investing activities	(31)		(3,839)
Financing activities	(2,999)		(3,041)
Net decrease in cash	$	858	$	(5,626)

Cash Flows Provided By Operating Activities

During the six months ended June 30, 2022, cash flows provided by operating activities were approximately $3.9 million. The cash flows used in operating activities resulted from a net loss of $73.9 million, which was primarily related to goodwill impairment of $55.2 million, depreciation and amortization of $9.2 million, share-based compensation of $8.3 million, non-cash interest of $2.3 million, and gain on change in value of warrant liability of $1.3 million. Additionally, changes in operating assets and liabilities resulted in a net liability increase of approximately $4.6 million, which was mainly due to a net increase in accounts payable, accrued expenses and other current liabilities.

Cash Flows Used in Investing Activities

During the six months ended June 30, 2022, cash flows used in investing activities were approximately $0.03 million related to the purchase of property and equipment of $1.1 million offset by the proceeds from sale of property and equipment of $1.0 million.

Cash Flows Used in Financing Activities

During the six months ended June 30, 2022, cash flows used in financing activities were approximately $3.0 million, which were primarily related to principal payments on borrowings of approximately $1.7 million and tax payments relating to vesting of restricted stock of approximately $1.1 million.

33

Table of Contents

Credit Agreement

The Company has a credit agreement with a syndicate of commercial banks providing up to $71.8 million in financing (“Credit Agreement”). The Credit Agreement, which terminates on June 15, 2024, provides the Company with lender financing structured as a $57.8 million term loan, a $4 million revolving loan, and a $10 million delayed draw term loan facility (the “Delayed Draw Term Loan Facility”) provided by a related party and a significant stockholder. Pursuant to the terms of an amendment to the Credit Agreement effective as of March 9, 2022, certain of the covenants were amended, such that the Company, together with the other borrowers and the guarantors party to the Credit Agreement, agreed to pay incremental deferred interest of 2% per annum, in the event that the Credit Agreement is not repaid on or prior to June 15, 2023; provided, however, that if no event of default has occurred and is continuing then (1) no incremental deferred interest will be due if all of the obligations under the Credit Agreement have been paid on or prior to December 31, 2022, and (2) only 50% of the incremental deferred interest will be owed if all of the obligations under the Credit Agreement have been paid from and after January 1, 2023 and on or prior to March 31, 2023.

Critical Accounting Policies and Use of Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenue generated and expenses incurred during the reporting periods. Our estimates are based on our historical experience and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about items that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Except as described in Note 1, “Basis of Presentation,” to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, there have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates disclosed in the 2021 Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered on this Form 10-Q, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act. We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on management’s evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures continued were effective as of June 30, 2022, as the material weakness described below has been remediated.

Previously Reported Material Weakness in Internal Control Over Financial Reporting

In the 2021 Form 10-K, filed with the SEC on April 14, 2022, management concluded that our internal control over financial reporting was not effective as of December 31, 2021. In the evaluation, management identified a material weakness to the design and implementation of controls over the accounting for income taxes. Specifically, management did not maintain controls over the Company’s assessment of its ability to realize historical deferred tax assets on its acquired businesses in accordance with Section 382 of the Internal Revenue Code and the Company’s tax provision controls were not designed to detect certain errors and omissions in calculating the impact of certain transactions on the income tax provision during the period.

34

In connection with the material weakness as it relates to the accounting for income taxes that was identified as of and for the year ended December 31, 2021, management re-evaluated the effectiveness of such controls as of June 30, 2022 and concluded that such controls were operating effectively as of June 30, 2022. The remediation of the material weakness constituted (1) expanded review processes for the Company’s assessment of its ability to realize historical deferred tax assets on its acquired businesses in accordance with Section 382 of the Internal Revenue Code and the Company’s tax provision controls and (2) the utilization of additional third-party professionals and consultants regarding income tax matters.

Changes in Internal Control over Financial Reporting

Other than as described above, there has been no change in our internal control over financial reporting during the three months ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II. Other Information

ITEM 1.    LEGAL PROCEEDINGS

Information regarding our legal proceedings can be found under the Contingencies sections of Note 7. Commitments and Contingencies to the Consolidated Financial Statements included within this report.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 5. Other Information

None.

Item 6.    Exhibits

The Exhibit Index below contains a list of exhibits filed or furnished with this Form 10-Q.

Exhibit Index

35

Exhibit No.	Description
10.1	Amended and Restated Employment Agreement effective as of May 10, 2022 by and between BurgerFi International, Inc. and Karl Goodhew (Incorporated by reference to Exhibit 10.19 to the registrant's Quarterly Report on Form 10-Q filed by the registrant on May 16, 2022).
31.1*	Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications required by Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1**	Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002.
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2022 has been formatted in Inline XBRL.

___________________________

*    Filed herewith.

**    Furnished.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 11, 2022

BurgerFi International, Inc.
By:	/s/ Ian Baines
	Ian Baines
	Chief Executive Officer (Principal Executive Officer)

By:	/s/ Michael Rabinovitch
	Michael Rabinovitch
	Chief Financial Officer (Principal Financial and Accounting Officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATIONS REQUIRED BY SECTION 302(A)

OF SARBANES-OXLEY ACT OF 2002

I, Ian Baines, certify that:

1.I have reviewed this quarterly report on Form 10-Q of BurgerFi International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2022
	By:	/s/ Ian Baines
	Ian Baines
	Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS REQUIRED BY SECTION 302(A)

OF SARBANES-OXLEY ACT OF 2002

I, Michael Rabinovitch, certify that:

1.I have reviewed this quarterly report on Form 10-Q of BurgerFi International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2022
	By:	/s/ Michael Rabinovitch
	Michael Rabinovitch
	Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of BurgerFi International, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ian Baines, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 11, 2022
	By:	/s/ Ian Baines
	Ian Baines
	Chief Executive Officer (Principal Executive Officer)

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Quarterly Report on Form 10-Q for the period ended March 31, 2022, or as a separate disclosure document of the Company or the certifying officers.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of BurgerFi International, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Rabinovitch, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 11, 2022
	By:	/s/ Michael Rabinovitch
	Michael Rabinovitch
	Chief Financial Officer (Principal Financial and Accounting Officer)

The certification set forth above is being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Quarterly Report on Form 10-Q for the period ended June 30, 2022, or as a separate disclosure document of the Company or the certifying officers.

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-38417
Entity Registrant Name	BurgerFi International, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2418815
Entity Address, Address Line One	200 West Cypress Creek Rd.,
Entity Address, Address Line Two	Suite 220
Entity Address, City or Town	Fort Lauderdale
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33309
City Area Code	(954)
Local Phone Number	618-2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,253,232
Entity Central Index Key	0001723580
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Common Stock Par Value 0.0001 Per Share 2
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	BFI
Security Exchange Name	NASDAQ
Redeemable Warrants Each Exercisable For One Share Of Common Stock At An Exercise Price of 11.50 per share 1
Document Information [Line Items]
Title of 12(b) Security	Redeemable warrants, each exercisable for one share of common stock at an exercise price of $11.50 per share
Trading Symbol	BFIIW
Security Exchange Name	NASDAQ

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash	$ 15,747	$ 14,889
Accounts receivable, net	1,387	1,689
Inventory	1,352	1,387
Asset held for sale	732	732
Other current assets	2,297	2,526
TOTAL CURRENT ASSETS	21,515	21,223
PROPERTY & EQUIPMENT, net	24,855	29,035
OPERATING RIGHT-OF-USE ASSET, net	52,216	0
GOODWILL	43,021	98,000
INTANGIBLE ASSETS, net	164,478	168,723
OTHER ASSETS	742	738
TOTAL ASSETS	306,827	317,719
CURRENT LIABILITIES
Accounts payable - trade and other	10,055	7,841
Accrued expenses	8,179	5,302
Short-term operating lease liability	9,486	0
Short-term borrowings, including finance leases	3,495	3,331
Other current liabilities	7,113	7,856
TOTAL CURRENT LIABILITIES	38,328	24,330
NON-CURRENT LIABILITIES
Long-term borrowings, including finance leases	55,949	56,797
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021, $53 million principal redemption value	49,433	47,525
Long-term operating lease liability	43,742	0
Related party note	8,979	8,724
Deferred income taxes	902	1,353
Other non-current liabilities	2,957	5,715
TOTAL LIABILITIES	200,290	144,444
COMMITMENTS AND CONTINGENCIES - Note 7
STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,253,232 and 21,303,500 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	2	2
Additional paid-in capital	304,191	296,992
Accumulated deficit	(197,656)	(123,719)
TOTAL STOCKHOLDERS' EQUITY	106,537	173,275
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 306,827	$ 317,719

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	2,120,000	2,120,000
Preferred stock, shares outstanding	2,120,000	2,120,000
Preferred stock, redemption value	$ 53	$ 53
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	22,253,232	21,303,500
Common stock, shares outstanding	22,253,232	21,303,500

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
REVENUE
Restaurant sales	$ 42,236	$ 8,971	$ 84,592	$ 17,367
TOTAL REVENUE	45,298	11,770	90,228	22,700
Restaurant level operating expenses:
Food, beverage and paper costs	12,545	2,693	25,352	5,115
Labor and related expenses	12,328	2,402	24,910	4,607
Other operating expenses	7,421	2,114	14,613	3,847
Occupancy and related expenses	3,890	786	7,725	1,561
General and administrative expenses	7,406	3,549	13,432	6,524
Depreciation and amortization expense	4,730	2,171	9,174	4,279
Share-based compensation expense	909	2,595	8,285	3,117
Brand development, co-op and advertising expense	1,126	653	1,839	1,374
Goodwill impairment	55,168	0	55,168	0
Store closure costs	52	0	566	0
Pre-opening costs	0	502	474	628
TOTAL OPERATING EXPENSES	105,575	17,465	161,538	31,052
OPERATING LOSS	(60,277)	(5,695)	(71,310)	(8,352)
Other (loss) income	(47)	2,127	(80)	2,241
Gain on change in value of warrant liability	1,858	12,619	1,324	7,673
Interest expense	(2,246)	(33)	(4,318)	(41)
(Loss) income before income taxes	(60,712)	9,018	(74,384)	1,521
Income tax benefit (expense)	335	(27)	447	(740)
Net (loss) income	$ (60,377)	$ 8,991	$ (73,937)	$ 781
Weighted average common shares outstanding:
Basic (in shares)	22,214,628	17,888,140	22,089,799	17,852,493
Diluted (in shares)	22,214,628	18,752,938	22,089,799	20,145,284
Net (loss) income per common share:
Basic (in USD per share)	$ (2.72)	$ 0.50	$ (3.35)	$ 0.04
Diluted (in USD per share)	$ (2.72)	$ (0.19)	$ (3.35)	$ (0.34)
Royalty and other fees
REVENUE
Revenues	$ 2,611	$ 2,254	$ 4,714	$ 4,277
Royalty - brand development and co-op
REVENUE
Revenues	$ 451	$ 545	$ 922	$ 1,056

XML

Consolidated Statements of Changes in Stockholders'/Members' Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2020			17,541,838
Balance at beginning of period at Dec. 31, 2020		$ 259,075	$ 2	$ 261,298	$ (2,225)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		3,042		3,042
Shares issued for warrant exercises (in shares)			7,969
Shares issued for share-based compensation (in shares)			5,000
Shares issued for shares-based compensation*		75		75
Exchange of UPO units (in shares)			283,669
Net (loss) income		781			781
Balance at end of period (in shares) at Jun. 30, 2021			17,838,476
Balance at end of period at Jun. 30, 2021		262,973	$ 2	264,415	(1,444)
Balance at beginning of period (in shares) at Mar. 31, 2021			17,830,507
Balance at beginning of period at Mar. 31, 2021		251,387	$ 2	261,820	(10,435)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		2,595		2,595
Shares issued for warrant exercises (in shares)			7,969
Net (loss) income		8,991			8,991
Balance at end of period (in shares) at Jun. 30, 2021			17,838,476
Balance at end of period at Jun. 30, 2021		262,973	$ 2	264,415	(1,444)
Balance at beginning of period (in shares) at Dec. 31, 2021			21,303,500
Balance at beginning of period at Dec. 31, 2021		173,275	$ 2	296,992	(123,719)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		4,475		4,475
Shares issued for share-based compensation (in shares)			965,676
Shares issued for shares-based compensation*		3,810		3,810
Stock issued in acquisition of Anthony's (in shares)	[1]		123,131
Shares withheld for taxes (in shares)			(139,075)
Shares withheld for taxes		(1,086)		(1,086)
Net (loss) income		(73,937)			(73,937)
Balance at end of period (in shares) at Jun. 30, 2022			22,253,232
Balance at end of period at Jun. 30, 2022		106,537	$ 2	304,191	(197,656)
Balance at beginning of period (in shares) at Mar. 31, 2022			22,042,583
Balance at beginning of period at Mar. 31, 2022		166,106	$ 2	303,383	(137,279)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		909		909
Shares issued for share-based compensation (in shares)	[1]		238,514
Shares withheld for taxes (in shares)			(27,865)
Shares withheld for taxes		(101)		(101)
Net (loss) income		(60,377)			60,377
Balance at end of period (in shares) at Jun. 30, 2022			22,253,232
Balance at end of period at Jun. 30, 2022		$ 106,537	$ 2	$ 304,191	$ (197,656)

[1] *Timing of share issuance differs from recognition of related financial statement dollar amounts.

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net (loss) income	$ (73,937)	$ 781
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Goodwill impairment	55,168	0
Provision for bad debts	32	37
Depreciation and amortization	9,174	4,279
Gain on extinguishment of debt	0	(2,237)
Deferred income taxes	(447)	740
Share-based compensation	8,285	3,117
Forfeited franchise deposits	(433)	(67)
Gain on change in value of warrant liability	(1,324)	(7,673)
Loss on disposal of property and equipment	385	0
Non-cash lease cost	112	0
Other non-cash interest	2,290	0
Changes in operating assets and liabilities
Accounts receivable	270	121
Inventory	35	5
Other assets	225	(56)
Accounts payable - trade	2,120	928
Accrued expenses and other current liabilities	1,895	899
Other long-term liabilities	38	380
NET CASH PROVIDED BY OPERATING ACTIVITIES	3,888	1,254
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,056)	(3,839)
Proceeds from the sale of property and equipment	1,025	0
NET CASH USED IN INVESTING ACTIVITIES	(31)	(3,839)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on borrowings	(1,667)	(3,041)
Debt issuance costs	(164)	0
Repayments of finance leases	(82)	0
Tax payments for restricted stock upon vesting	(1,086)	0
NET CASH USED IN FINANCING ACTIVITIES	(2,999)	(3,041)
NET INCREASE (DECREASE) IN CASH	858	(5,626)
CASH, beginning of period	14,889	40,383
CASH, end of period	15,747	34,757
Supplemental cash flow disclosures:
Cash paid for interest	$ 1,454	$ 0

XML

Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Organization and Summary of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

Organization

BurgerFi International, Inc. and its wholly owned subsidiaries (“BurgerFi,” or the “Company,” also “we,” “us,” and “our”), is a multi-brand restaurant company that develops, markets and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises located in the United States, Puerto Rico and Saudi Arabia. On November 3, 2021, the Company acquired (the “Anthony's acquisition”) 100% of the outstanding shares of Hot Air, Inc. (“Hot Air”). Hot Air, through its subsidiaries, owns the business of operating upscale casual dining restaurants in the specialty pizza and wings segment under the name “Anthony's Coal Fired Pizza & Wings” (“Anthony's”).

As of June 30, 2022, the Company had 183 franchised and corporate-owned restaurants of the two following brands:

BurgerFi. BurgerFi is a fast-casual “better burger” concept with 122 franchised and corporate-owned restaurants as of June 30, 2022, offering burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine and more.

Anthony’s. Anthony’s is a pizza and wing brand that operated 61 corporate-owned casual restaurant locations, as of June 30, 2022. The concept is centered around a coal fired oven, and its menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads.

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated balance sheet as of December 31, 2021 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”).

As of June 30, 2022, the Company operated on a calendar year-end. Anthony's uses a 52-week or 53-week fiscal year-end and its fiscal year ends on the Monday closest to December 31. Differences arising from the different fiscal year-ends were not deemed material for the period ended June 30, 2022 and the year ended December 31, 2021.

Reclassifications

Certain reclassifications have been made to the prior year presentation to conform to the current year presentation.

Principles of Consolidation

The condensed consolidated financial statements present the consolidated financial position, results from operations and cash flows of BurgerFi International, Inc., and its wholly owned subsidiaries. All material balances and transactions between the entities have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Corporate-owned stores and Franchised stores

Store activity for the six month period ended June 30, 2022 and the year ended December 31, 2021 are as follows:

	June 30, 2022			December 31, 2021
	Corporate-owned	Franchised	Total	Corporate-owned	Franchised	Total
Total BurgerFi and Anthony's	86	97	183	86	93	179
BurgerFi stores, beginning of the period	25	93	118	17	102	119
BurgerFi stores opened	3	5	8	10	6	16
BurgerFi stores transferred	(3)	3	—	(1)	1	—
BurgerFi stores closed	—	(4)	(4)	(1)	(16)	(17)
BurgerFi total stores, end of the period	25	97	122	25	93	118
Anthony's stores, beginning of period	61	—	61	61	—	61
Anthony's total stores, end of the period	61	—	61	61	—	61

End of quarter and end of year store totals included 1 international store at June 30, 2022 and December 31, 2021.

Net (Loss) Income per Common Share

Net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. The Company has considered the effect of (1) warrants outstanding to purchase 15,063,800 shares of common stock and (2) 75,000 shares of common stock and warrants to purchase 75,000 shares of common stock in the unit purchase option, (3) 1,620,869 shares of restricted stock unit grants in the calculation of income per share, and (4) the impact of any dividends associated with our redeemable preferred stock.

Reconciliation of Net (Loss) Income per Common Share

Basic and diluted net (loss) income per common share is calculated as follows:

(in thousands, except for per share data)	Three Months Ended				Six Months Ended
Numerator:	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net (loss) income attributable to common shareholders	$	(60,377)	$	8,991	$	(73,937)	$	781
Reversal of gain on change in value of warrant liability	—		(12,619)		—		(7,673)
Net (loss) available to common shareholders - diluted	$	(60,377)	$	(3,628)	$	(73,937)	$	(6,892)
Denominator:
Weighted-average shares outstanding, basic	22,214,628		17,888,140		22,089,799		17,852,493
Effect of dilutive securities:
Restricted stock grants and warrants	—		847,417		—		2,261,954
UPOs	—		17,381		—		30,837
Diluted weighted-average shares outstanding	22,214,628		18,752,938		22,089,799		20,145,284
Basic net (loss) income per common share	$	(2.72)	$	0.50	$	(3.35)	$	0.04
Diluted net loss per common share	$	(2.72)	$	(0.19)	$	(3.35)	$	(0.34)

For the three and six months ended June 30, 2022, there were no dilutive warrants.

New Accounting Standards Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months and disclose certain information about the leasing arrangements. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company elected the package of practical expedients permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2022 using the modified retrospective approach without restating comparative periods. See Note 13. Leases for further disclosures upon adoption.

XML

Property & Equipment

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property & Equipment

Property & Equipment

Property and equipment consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Leasehold improvements	$	17,805	$	19,900
Kitchen equipment and other equipment	9,329		7,810
Computers and office equipment	1,414		1,425
Furniture and fixtures	2,627		2,340
Vehicles	88		88
	31,263		31,563
Less: Accumulated depreciation and amortization	(6,408)		(2,528)
Property and equipment – net	$	24,855	$	29,035

Depreciation and amortization expense totaled $2.6 million and $4.9 million for the three and six months ended June 30, 2022. Depreciation and amortization expense totaled $0.4 million and $0.7 million for the three and six months ended June 30, 2021.

XML

Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The following is a summary of the components of intangible assets and the related amortization expense:

	June 30, 2022						December 31, 2021
(in thousands)	Amount		Accumulated Amortization		Net Carrying Value		Amount		Accumulated Amortization		Net Carrying Value
Franchise agreements	$	24,839	$	5,470	$	19,369	$	24,839	$	3,696	$	21,143
Trade names / trademarks	143,750		5,615		138,135		143,750		3,220		140,530
Liquor licenses	6,678		—		6,678		6,678		—		6,678
Other intangible assets	1,311		1,015		296		1,311		939		372
	$	176,578	$	12,100	$	164,478	$	176,578	$	7,855	$	168,723

Liquor licenses are considered to have an indefinite life and reviewed for impairment at the end of each reporting period. The Company also reviews both indefinite and definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

Intangible asset amortization expense for the three and six months ended June 30, 2022 was $2.1 million and $4.2 million. Intangible asset amortization expense totaled $1.8 million and $3.6 million for the three and six months ended June 30, 2021.

XML

Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The following table presents goodwill by reportable segment as of June 30, 2022:

(in thousands)	Goodwill, gross		Accumulated Impairment Loss		Goodwill, net
BurgerFi	$	123,981	$	(123,981)	$	—
Anthony's	80,684		(37,663)		43,021
Total	$	204,665	$	(161,644)	$	43,021

The Company conducts its goodwill impairment test annually in December, or more frequently if indicators of impairment exist. The Company evaluates it's goodwill based on its two reporting units, Anthony's and BurgerFi. As a result of a significant sustained decline in the Company’s share price and market capitalization during the six months ended June 30, 2022, the Company conducted its impairment test as of June 30, 2022. The impairment test was conducted in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”) for the reporting units' goodwill.

ASC 350 requires goodwill and other indefinite lived assets to be tested for impairment at the reporting unit level. For ASC 350 testing purposes, the Company compared the fair value of the reporting units with its carrying amounts. The fair value of the reporting units were estimated giving consideration to the Income Approach, including the discounted cash flow method, and the Market Approach, including the similar transactions method and guideline public company method. Significant inputs and assumptions in the ASC 350 analysis included forecasts (e.g., revenue, operating costs, capital expenditures, etc.), discount rate, long-term growth rate, tax rates, etc. for the reporting units under the Income Approach and market-based enterprise value to revenue multiples under the Market Approach.

As a result of the ASC 350 analysis, the Company recognized a non-cash pre-tax impairment loss of $55.2 million during the three and six months ended June 30, 2022 to write down the remaining carrying value of goodwill for the BurgerFi brand by $17.5 million and the carrying value of goodwill for the Anthony's brand by $37.7 million. The non-cash impairment loss is included in the unaudited condensed consolidated statement of operations under the caption “goodwill impairment” for the three and six months ended June 30, 2022.

XML

Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

On November 3, 2021, the Company acquired 100% of the outstanding common shares and voting interests of Hot Air.

The allocation of the excess purchase price was based upon preliminary estimates and assumptions and is subject to revision when the Company receives final information. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, become available, but will not exceed twelve months from the date of acquisition.

We had $0.2 million in adjustments to goodwill since December 31, 2021, which were made to reflect the facts and circumstances in existence as of the date of closing of the Anthony's acquisition (the “Anthony's Closing Date”) and include updates to estimates of provisional amounts recorded for certain accruals and receivables as of the Anthony's Closing Date. The accounting for the Anthony's acquisition is considered provisional because certain aspects of the purchase price allocation including the valuation of certain acquired tax assets and accruals have not been finalized.

For the six months ended June 30, 2021, unaudited proforma revenue and net loss were $82.7 million and $6.8 million.

XML

Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company is affiliated with various entities through common control and ownership.

The Company received royalty revenue from franchisees related to a significant stockholder totaling approximately $0.1 million for the each of the three and six months ended June 30, 2022 and $0.2 million and $0.3 million for each of the three and six months ended June 30, 2021.

The Company leased building space for its former corporate office from an entity under common ownership with a significant stockholder. This lease had a 36-month term, effective January 1, 2020. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million. For the three and six months ended June 30, 2021, rent expense was approximately $0.1 million. In January 2022, the Company exercised its right to terminate this lease effective as of July 2022.

Pursuant to a lease amendment entered into in February 2022, the Company leases building space for it's corporate office from an entity controlled by the Company's Executive Chairman of the Board. This lease has a 10 year term with an option to renew. For the three and six months ended June 30, 2022, rent expense was approximately $0.1 million and $0.2 million

The Company also leased building space for a restaurant located in Virginia from an entity (i) in which the Company's Executive Chairman of the Board has an indirect minority ownership interest, and (ii) which is managed by an entity in which the Company's Executive Chairman of the Board has an indirect ownership interest. This lease was terminated in May 2022 upon transfer of the restaurant to a franchisee. Rent expense for the three and six months ended June 30, 2022 was de minimis. There was no rent expense for the three and six months ended June 30, 2021.

In August 2022, the Company amended, effective as of September 1, 2022, the independent contractor agreement entered into in April 2021 with a corporation (the “Consultant”) for which the Chief Operating Officer (the “Consultant Principal”) of Lionheart Capital, LLC, an entity controlled by the Company’s Executive Chairman of the Board, serves as President. Pursuant to the terms of the agreements, the Consultant shall provide certain strategic advisory services to the Company in exchange for total annual cash compensation and expense reimbursements of $0.1 million, payable monthly.

On January 3, 2022, the Consultant Principal was granted 37,959 unrestricted shares of common stock of the Company and recorded share-based compensation associated with this grant of approximately $0.2 million during the six months ended June 30, 2022.

XML

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Leases

The Company has entered into various lease agreements. For the three and six months ended June 30, 2022 rent expense was approximately $4.2 million, and $8.0 million. For the three and six months ended June 30, 2021 rent expense was approximately $0.9 million, and $1.7 million. These lease agreements expire on various dates through 2033 and have renewal options. Refer to Note 13 Leases.

Sale Commitment

In February 2020, the Company entered into an asset purchase agreement with an unrelated third party for the sale of substantially all of the assets used in connection with the operation of BF Dania Beach, LLC. The closing of this transaction has been delayed due to additional negotiation that has been on-going. In the event the transaction is terminated, the Company will begin operating the restaurant, and return the deposit to the unrelated third-party purchaser. Assets used in the operations of BF Dania Beach, LLC totaling $0.7 million have been classified as held for sale in the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021.

Contingencies

Eric Gilbert v. BurgerFi International, Inc., Ophir Sternberg, et al. (Court of Chancery of the State of Delaware, Case No. 2022-0185- , filed on February 25, 2022). Mr. Gilbert filed a class action lawsuit against BurgerFi International, Inc. and each of the members of the Board of Directors alleging that the Company’s Amended and Restated Bylaws improperly contains a provision restricting written consents by the stockholders. Mr. Gilbert sought an amendment to the bylaws, as well as attorney’ fees and costs. On March 23, 2022, BurgerFi made conforming amendments to its bylaws to remove the provision restricting written consents by the stockholders. On March 24, 2022, Mr. Gilbert filed and the Court entered an order voluntarily dismissing the action as moot and retaining jurisdiction to determine Mr. Gilbert’s application for award of attorney’s fees and expenses. At this stage, it is difficult to provide an evaluation of the likelihood of an unfavorable outcome or a reasonable estimate of the amount or range of potential loss. Based on the information known to date, the Company’s potential liability appears to be reasonably possible, but the amount or range of potential loss cannot be reasonably estimated.

Corey Winograd v BurgerFi International, LLC (Fifteenth Judicial Circuit Court of Palm Beach County, Florida, Case No. 502019-CA015256, filed December 1, 2019). Corey Winograd, the former chief executive officer of the Company, filed this suit against BurgerFi for certain alleged breaches of an employment agreement, claiming damages in excess of $15 million. BurgerFi filed a motion to dismiss the complaint on February 13, 2020. On May 20, 2020, the motion to dismiss was heard, which was granted in part and denied in part. The portion of the complaint not dismissed was answered by BurgerFi with affirmative defenses raised on July 7, 2020. Mr. Winograd served various discovery requests (including notices of non-party subpoenas) on July 9, 2020 as well as a motion to strike BurgerFi’s affirmative defenses on July 16, 2020. BurgerFi filed objections to the non-party subpoenas on July 20, 2020. On September 11, 2020, BurgerFi filed a motion to dismiss and certain claims were dismissed by the court. Mr. Winograd filed an amended complaint on August 31, 2021, which BurgerFi answered on September 30, 2021. In December 2021, Mr. Winograd filed a motion for summary judgment, which the Court denied on February 8, 2022. In February 2022, Mr. Winograd filed another motion for summary judgment, which the Court denied on May 25, 2022. During March and April of 2022, Mr. Winograd deposed several witnesses. On August 8, 2022, the parties entered into a settlement agreement whereby a former shareholder of the Company, pursuant to the terms of that certain Membership Interest Purchase Agreement, dated as of June 29, 2020, by and among OPES Acquisition Corp., BurgerFi International LLC, and certain other parties thereto, paid Mr. Winograd directly to settle this matter on behalf of the Company and such former shareholder.

Second 82nd SM, LLC v. BF NY 82, LLC, BurgerFi International, LLC and BurgerFi International, Inc. (Supreme Court of the State of New York County of New York, index No. 654907/2021, filed August 11, 2021). A lawsuit was filed by Second 82nd SM, LLC (“Landlord”) against BF NY 82, LLC (“Tenant”) whereby Landlord brought a seven-count lawsuit for, among other things, breach of the lease agreement and underlying guaranty of the lease. The amount of damages Landlord is seeking is over $0.5 million, which constitutes back rent, late charges, real estate taxes, illuminated sign charges and water/sewer charges. On November 3, 2021, the Company filed a Motion to Dismiss the Complaint. On November 17,

2021, the Tenant filed an Answer to Landlord’s Complaint and a cross claim against the Company, which the Company answered on December 7, 2021. On December 22, 2021, the Company filed its Response in Opposition to Landlord’s Motion for Summary Judgment and Memo in further Support of its Motion to Dismiss. The parties continue to discuss possible settlement, including turning over possession of the premises to the Landlord. The Company is unable to predict the ultimate outcome of this matter, however, losses may be material to the Company’s financial position and results of operations.

Lion Point Capital Allegation. Beginning March 9, 2021 through June 22, 2022, the Company received letters from counsel to Lion Point Capital, LLC, a stockholder of the Company (“Lion Point”), alleging that the Company failed to timely register Lion Point’s shares in violation of the registration rights agreement to which Lion Point is a party, which allegedly resulted in losses in excess of $26 million. The Company responded to each claim denying that any breach had occurred or that Lion Point incurred any damages caused by the delay in the filing of the registration statement registering Lion Point's shares. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

John Rosatti, as Trustee of the John Rosatti Revocable Trust U/A/D 08/27/2001 (the “JR Trust”) v. BurgerFi International, Inc. (Circuit Court for the Eleventh Judicial Circuit, Florida, File No. 146578749). On March 28, 2022, the JR Trust filed a suit against BurgerFi alleging that the JR Trust suffered losses in excess of $10 million relating to BurgerFi’s alleged failure to timely file a registration statement. The parties attended a mediation on August 9, 2022 but were unable to resolve the suit. The Company believes this case is without merit and intends to defend the case vigorously. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the case, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

Burger Guys of Dania Pointe, et. al. v. BFI, LLC (Circuit Court of the 15th Judicial Circuit in and for Palm Beach County, Florida, Case No. 50-2021-CA -006501-XXXX-MB, filed May 21, 2021). In response to a demand letter issued by BurgerFi to Gino Gargiulo, a former franchisee, demanding that Mr. Gargiulo pay the balance owed under an asset purchase agreement wherein BurgerFi sold the Dania Beach, Florida BurgerFi location to Mr. Gargiulo, Mr. Gargiulo filed suit against BurgerFi claiming, in addition to other matters, that no further monies are owed under the asset purchase agreement and alleges that BurgerFi is responsible for one of Gargiulo’s former failed franchises in Sunny Isles, Florida, losses he has allegedly sustained at his Dania Beach location, as well as reimbursement of expenses in connection with his marketing company. Mr. Gargiulo seeks damages in excess of $2 million in the aggregate. The parties attended mediation on January 20, 2022, but it ended in an impasse. Mr. Gargiulo amended his complaint in April 2022, which, among other matters, amended the defendant parties. In May 2022, the Company filed a motion to dismiss the amended complaint and a motion to stay discovery, both of which are pending with the Court. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

All Round Food Bakery Products, Inc. v. BurgerFi International, LLC and Neri’s Bakery Products, Inc. et al (Supreme Court Westchester County, New York (Index Number 52170-2020)). In a suit filed in February 2020, the plaintiff, All Round Food Bakery Products, Inc. (“All Round Food”) alleges breach of contract and lost profits in excess of $1 million over the course of the supply agreement with the Company and Neri’s Bakery Products, Inc. (“Neri’s” and together with the Company, the “Defendants”). The Defendants assert, among other matters, that the supply agreement amongst the parties, whereby All Round Food was warehousing BurgerFi products produced by Neri’s, was terminated when All Round Food failed to cure its material breach of the supply agreement after due notice. The parties are attending mediation to attempt to resolve the dispute. We believe that all claims are meritless, and we plan to vigorously defend these allegations. Management is unable to determine the likelihood of a loss or range of loss, if any, which may result from the cases described above, therefore, no contingent liability has been recorded as of June 30, 2022; any losses, however, may be material to the Company's financial position and results of operations.

Employment Related Matters

In July 2021, the Company received a demand letter from the attorney of one of our now former hourly restaurant employees. The letter alleges that the former employee was sexually harassed by one of her co-workers. The demand letters claim that we discriminated and retaliated against the former employee based on her gender and age and also alleged intentional infliction of emotional distress, negligent hiring, negligent training, and negligent supervision. The claimant alleges damages of more than $0.8 million.

In November 2021, a former employee filed suit alleging that she was sexually harassed by one of her co-workers. The lawsuit claims that we discriminated and retaliated against her and alleged intentional infliction of emotional distress, retaliation, and battery. The claimant alleges damages of $0.3 million.

In February 2020, a former employee filed a charge of discrimination with the EEOC alleging age discrimination. In June 2021, the claimant filed a demand for arbitration. The parties agreed to mediate the matter before commencing the arbitration proceedings but were unable to resolve the case. A final hearing is scheduled to take place in May 2022. In July 2022, the parties agreed to settle the matter, and the Company paid a nominal amount after insurance coverage.

While we believe that all claims of the above-mentioned Employment Related Claims, which are covered under the Company’s insurance policies, are meritless, and we plan to defend these allegations, it is reasonably possible that the Company may ultimately be required to pay substantial damages to the claimants, which could be up to $1.1 million or more in aggregate compensatory damages, attorneys’ fees and costs. Management believes that any liability, in excess of applicable insurance coverages or accruals, which may result from these claims, would not be significant to the Company’s financial position or results of operations.

General Liability and Other Claims.

The Company is subject to other legal proceedings and claims that arise during the normal course of business, including landlord disputes, slip and fall cases, and various food related matters. While we intend to vigorously defend these matters, it is reasonably possible that the Company may be required to pay substantial damages to the claimants. Management believes that any liability, in excess of applicable insurance coverages or accruals, which may result from these claims, would not be significant to the Company’s financial position or results of operations.

XML

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

(in thousands)	June 30, 2022		December 31, 2021
Term loan	$	56,135	$	57,761
Related party note	10,000		10,000
Revolving line of credit	2,500		2,500
Other notes payable	836		874
Finance lease liability	1,018		—
Total Debt	$	70,489	$	71,135
Less: Unamortized debt discount to related party note	(1,021)		(1,276)
Less: Unamortized debt issuance costs	(1,045)		(1,007)
Total Debt, net	68,423		68,852
Less: Short-term borrowings, including finance leases	(3,495)		(3,331)
Total Long-term borrowings, including finance leases and related party note	$	64,928	$	65,521

Credit Agreement

The Company has a credit agreement with a syndicate of commercial banks that provides up to $71.8 million in financing (“Credit Agreement”). The Credit Agreement, which terminates on June 15, 2024, provides the Company with lender financing structured as a $57.8 million term loan, a $4 million revolving loan, and a $10 million delayed draw term loan facility (the “Delayed Draw Term Loan Facility”) provided by a related party which is a significant stockholder. The terms of the Credit Agreement require the Company to repay the principal of the term loan in quarterly installments with the balance due at the maturity date.

The loan and revolving line of credit are secured by substantially all of the Company’s assets and incurs cash interest on outstanding amounts at 4.75% per annum through June 15, 2023 and 6.75% from June 16, 2023 through maturity. Pursuant to the terms of an amendment to the Credit Agreement effective as of March 9, 2022, certain of the covenants of the Credit Agreement were amended, and the Company, together with the other borrower and the guarantors party to the Credit Agreement, agreed to pay incremental deferred interest of 2% per annum, in the event that the obligations under the Credit Agreement are not repaid on or prior to June 15, 2023; provided, however, that if no event of default has occurred and is continuing then (1) no incremental deferred interest will be due if all of the obligations under the Credit Agreement have been paid on or prior to December 31, 2022, and (2) only 50% of the incremental deferred interest will be owed if all of the obligations under the Credit Agreement have been paid from and after January 1, 2023 and on or prior to March 31, 2023.

Interest expense for the three and six months ended June 30, 2022 was $2.2 million and $4.3 million. Included within interest expense for the three and six months ended June 30, 2022 is amortization of debt issuance costs in the amount of $0.1 million and $0.3 million and the amortization of related party note debt discount in the amount of $0.1 million and $0.3 million. Additionally, included within interest expense for the three and six months ended June 30, 2022 is non-cash interest expense on the redeemable preferred stock in the amount of $1.0 million and $1.9 million. Interest expense for the three and six months ended June 30, 2021 was de minimis.

XML

Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is subject to federal and state income taxes in the United States. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. For the three and six months ended June 30, 2022, the Company concluded that it has a recent history of losses and has recognized a valuation allowance against the balance of its existing deferred tax assets.

For the three and six months ended June 30, 2022, the Company's effective income tax rate was 0.55% and 0.60%, respectively, differing from the U.S. corporate statutory federal income tax rate of 21%, and the difference is primarily the result of the valuation allowance applied to reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized. For the three and six months ended June 30, 2021, the Company's effective income tax rate was 0.3% and 48.7%, respectively. The tax returns for years 2018-2022 may be selected for examination by taxing authorities.

XML

Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders' Equity

Common Stock

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share. At June 30, 2022 and December 31, 2021, there were 22,253,232 shares and 21,303,500 shares of common stock outstanding, respectively.

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. As of June 30, 2022 and December 31, 2021, there were 2,120,000 shares of preferred stock outstanding.

Warrants and Options

As of June 30, 2022, the Company had the following warrants and options outstanding: 15,063,800 warrants outstanding, each exercisable for one share of common stock at an exercise price of $11.50 including 11,468,800 in public warrants, 3,595,000 in private placement warrants, 75,000 unit purchase option units that are exercisable for one share of common stock at an exercise price of $10.00 and warrants exercisable for one share of common stock at an exercise price of $11.50. The public warrants expire in December 2025.

Warrant Liability

The Company has certain warrants which include provisions that affect the settlement amount. Such variables are outside of those used to determine the fair value of a fixed-for-fixed instrument, and as such, the warrants are accounted for as liabilities in accordance with ASC 815-40, Derivatives and Hedging, with changes in fair value included in the condensed consolidated statements of operations.

The warrant liability was $1.4 million and $2.7 million at June 30, 2022 and December 31, 2021, respectively. The gain on change in value of warrant liability for the three and six months ended June 30, 2022 was $1.9 million and $1.3 million, and is recognized in the accompanying condensed consolidated statement of operations. The gain on change in value of warrant liability for the three and six months ended June 30, 2021 was $12.6 million, and $7.7 million, and is recognized in the accompanying condensed consolidated statement of operations.

The following is an analysis of changes in the warrant liability for the six months ended June 30, 2022:

(in thousands)	Level 3 (Black Scholes)
Liability at December 31, 2021	$	2,706
Gain during the six months ended June 30, 2022	1,324
Liability at June 30, 2022	$	1,382

The fair value of the warrants are determined using the publicly-traded price of our common stock on the valuation dates of $3.23 on June 30, 2022 and $5.67 on December 31, 2021. See Note 11. Fair Value Measurements.

Share-Based Compensation

The Company has the ability to grant stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance compensation awards to current or prospective employees, directors, officers, consultants or advisors under the Company’s 2020 Omnibus Equity Incentive Plan (the “Plan”).

On January 3, 2022, the Company filed a Registration Statement with the SEC to register 1,065,175 additional shares of common stock, $0.0001 par value per share, of the Company under the Plan, pursuant to the “evergreen” provision of the Plan providing for an automatic increase in the number of shares reserved for issuance under the Plan.

As of June 30, 2022 and December 31, 2021, there were approximately 406,000 and 126,000 shares of common stock available for future grants under the Plan, respectively.

Restricted Stock Unit Awards

The following table summarizes activity of restricted stock units during the six months ended June 30, 2022:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2021	1,783,698	$	14.18
Granted	437,847	3.32
Vested	(324,289)	14.80
Forfeited	(276,387)	9.69
Non-vested at June 30, 2022	1,620,869	$	11.89

Share-based compensation recognized during three and six months ended June 30, 2022 was approximately $0.9 million and $8.3 million, inclusive of stock grants of $3.9 million. Share-based compensation recognized during the three and six months ended June 30, 2021 was $2.6 million and $3.1 million. As of June 30, 2022, there was approximately $13.9 million of total unrecognized compensation cost related to unvested restricted stock units or performance-based restricted stock unit awards to be recognized over a weighted average period of 2.9 years.

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair values of financial instruments are estimated using public market prices, quotes from financial institutions, and other available information. The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration.

The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021.

	Items Measured at Fair Value at June 30, 2022
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	49,433	$	—
Related party note	—		8,979		—
Warrant liability	—		—		1,382
Total	$	—	$	58,412	$	1,382

	Items Measured at Fair Value at December 31, 2021
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	47,525	$	—
Related party note	—		8,724		—
Warrant liability	—		—		2,706
Total	$	—	$	56,249	$	2,706

The fair value of the preferred stock was determined using a discounted cash flow methodology. The expected future redemption payment was forecasted based on the contractual PIK (payment in kind) interest and estimated redemption date of December 31, 2024.

The fair value of the related party note is determined based on the present value of the underlying cash flows discounted at our incremental borrowing rates.

The fair value of non-financial assets measured at fair value on a non-recurring basis, classified as Level 2 in the fair value hierarchy, is determined based on third-party market appraisals. The fair value of our warrant liability is measured at fair value on a non-recurring basis, classified as Level 3 in the fair value hierarchy. The fair value of the private placement warrants, private warrants, and working capital warrants was determined using the publicly-traded price of our common stock on the valuation dates of $3.23 on June 30, 2022 and $5.67 on December 31, 2021 and was estimated using a Dynamic Black-Scholes model. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price, risk free interest rate and volatility assumptions. The calculated warrant price for private warrants was $0.38 and $0.75 on June 30, 2022 and December 31, 2021.

The input variables for the Black-Scholes are noted in the table below:

	June 30, 2022		December 31, 2021
Risk-free interest rate	2.95	%	1.11	%
Expected life in years	3.47		3.96
Expected volatility	57.0	%	41.8	%
Expected dividend yield	—	%	—	%

Assets and liabilities that are measured at fair value on a non-recurring basis include our long-lived assets and definite-lived intangible assets that we performed impairment testing for. In determining fair value, we used an income-based approach. As a number of assumptions and estimates were involved that are largely unobservable, they are classified as Level 3 inputs within the fair value hierarchy. Assumptions used in these forecasts are consistent with internal planning, and include revenue growth rates, royalties, gross margins, and operating expense in relation to the current economic environment and the Company’s future expectations.

XML

Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

Prior to the Anthony's acquisition in November 2021, the Company had one operating and reportable segment. As such, segment information is presented for the six months ended June 30, 2022, but not prior periods as all information in prior periods relates to the BurgerFi brand. Following the Anthony's acquisition, the Company has two operating and reportable segments: BurgerFi and Anthony's.

The following tables present revenue and net loss by segment:

(in thousands)	Three Months Ended  June 30, 2022		Six Months Ended  June 30, 2022
Revenue:
BurgerFi	$	13,458	$	25,853
Anthony's	31,840		64,375
Total	$	45,298	$	90,228
Net loss:
BurgerFi	$	(21,726)	$	(34,686)
Anthony's	(38,651)		(39,251)
Total	$	(60,377)	$	(73,937)

XML

Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

On January 1, 2022, we adopted ASU 2016-02. Results for reporting periods beginning on or after January 1, 2022 are presented under Accounting Standards Codification Topic 842 (“ASC 842”). Prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840, the accounting standard then in effect.

Upon transition, on January 1, 2022, we recorded the following increases (decreases) to the respective line items on the Condensed Consolidated Balance Sheet:

(in thousands)	Adjustment as of January 1, 2022
Prepaid expenses	$	(773)
Operating right-of-use asset, net	57,385
Finance right-of-use asset, net	855
Deferred rent	(900)
Short-term operating lease liability	9,457
Short-term finance lease liability	143
Long-term operating lease liability	49,149
Long-term finance lease liability	712

The Company currently leases all of its corporate-owned restaurants, corporate offices, and certain equipment. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment and evaluates whether it controls the use of the asset, which is determined by assessing whether all economic benefits from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. Once the Company has identified a lease, the lease is accounted for under the requirements of ASC 842.

Upon the possession of a leased asset, the Company determines its classification as an operating or finance lease. The Company's real estate leases are classified as operating leases, and the Company's equipment leases are classified as finance leases. Generally, the real estate leases have initial terms ranging from 10 years to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the options to extend the lease. The real estate leases typically provide for fixed minimum rent payments or variable rent payments based on a percentage of monthly sales or annual changes to the Consumer Price Index. Fixed minimum rent payments are recognized on a straight-line basis over the lease term from the date the Company takes possession of the leased property. Lease expense incurred before a corporate-owned store opens is recorded in pre-opening costs in the condensed consolidated statements of operations. Once a corporate-owned store opens, the straight-line lease expense is recorded in occupancy and related expenses in the condensed consolidated statements of operations. Many of the leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in occupancy and related expenses in the condensed consolidated statements of operations.

A summary of finance and operating lease right-of-use assets and liabilities as of June 30, 2022 is as follows:

(in thousands)	Classification	June 30, 2022
Operating leases	Operating right-of-use asset, net	$	52,216
Finance leases	Property & equipment, net	976
Total right-of-use assets		$	53,192
Operating leases:
	Short-term operating lease liability	$	9,486
	Long-term operating lease liability	43,742
Finance leases:
	Short-term borrowings, including finance leases	160
	Long-term borrowings, including finance leases	858
Total lease liabilities		$	54,246

The components of lease expense for the three and six months ended June 30, 2022 is as follows:

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

The maturity of the Company's operating and finance lease liabilities as of June 30, 2022 is as follows:

(in thousands)	Operating Leases		Finance Leases
07/01/2022 - 12/31/2022	$	6,265	$	114
01/01/2023 - 12/31/2023	12,178		201
01/01/2024 - 12/31/2024	10,432		184
01/01/2025 - 12/31/2025	8,927		170
01/01/2026 - 12/31/2026	7,110		159
Thereafter	19,553		404
Total undiscounted lease payments	64,465		1,232
Less: present value adjustment	11,237		214
Total net lease liabilities	$	53,228	$	1,018

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

As of June 30, 2022, the Company had additional operating lease commitments of $2.2 million for non-cancelable leases without a possession date, which begin to commence in 2022. These lease commitments are consistent with the leases that have been executed thus far.

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

	Six Months Ended
	June 30, 2022
Weighted-average remaining lease term
Operating leases	6.4 years
Finance leases	6.6 years
Weighted-average discount rate
Operating leases	6.0	%
Finance leases	6.0	%

Leases

Leases

On January 1, 2022, we adopted ASU 2016-02. Results for reporting periods beginning on or after January 1, 2022 are presented under Accounting Standards Codification Topic 842 (“ASC 842”). Prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840, the accounting standard then in effect.

Upon transition, on January 1, 2022, we recorded the following increases (decreases) to the respective line items on the Condensed Consolidated Balance Sheet:

(in thousands)	Adjustment as of January 1, 2022
Prepaid expenses	$	(773)
Operating right-of-use asset, net	57,385
Finance right-of-use asset, net	855
Deferred rent	(900)
Short-term operating lease liability	9,457
Short-term finance lease liability	143
Long-term operating lease liability	49,149
Long-term finance lease liability	712

The Company currently leases all of its corporate-owned restaurants, corporate offices, and certain equipment. The Company evaluates contracts entered into to determine whether the contract involves the use of property or equipment and evaluates whether it controls the use of the asset, which is determined by assessing whether all economic benefits from the use of the asset is obtained, and whether the Company has the right to direct the use of the asset. Once the Company has identified a lease, the lease is accounted for under the requirements of ASC 842.

Upon the possession of a leased asset, the Company determines its classification as an operating or finance lease. The Company's real estate leases are classified as operating leases, and the Company's equipment leases are classified as finance leases. Generally, the real estate leases have initial terms ranging from 10 years to 15 years and typically include two five-year renewal options. Renewal options are generally not recognized as part of the right-of-use assets and lease liabilities as it is not reasonably certain at commencement date that the Company would exercise the options to extend the lease. The real estate leases typically provide for fixed minimum rent payments or variable rent payments based on a percentage of monthly sales or annual changes to the Consumer Price Index. Fixed minimum rent payments are recognized on a straight-line basis over the lease term from the date the Company takes possession of the leased property. Lease expense incurred before a corporate-owned store opens is recorded in pre-opening costs in the condensed consolidated statements of operations. Once a corporate-owned store opens, the straight-line lease expense is recorded in occupancy and related expenses in the condensed consolidated statements of operations. Many of the leases also require the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in occupancy and related expenses in the condensed consolidated statements of operations.

A summary of finance and operating lease right-of-use assets and liabilities as of June 30, 2022 is as follows:

(in thousands)	Classification	June 30, 2022
Operating leases	Operating right-of-use asset, net	$	52,216
Finance leases	Property & equipment, net	976
Total right-of-use assets		$	53,192
Operating leases:
	Short-term operating lease liability	$	9,486
	Long-term operating lease liability	43,742
Finance leases:
	Short-term borrowings, including finance leases	160
	Long-term borrowings, including finance leases	858
Total lease liabilities		$	54,246

The components of lease expense for the three and six months ended June 30, 2022 is as follows:

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

The maturity of the Company's operating and finance lease liabilities as of June 30, 2022 is as follows:

(in thousands)	Operating Leases		Finance Leases
07/01/2022 - 12/31/2022	$	6,265	$	114
01/01/2023 - 12/31/2023	12,178		201
01/01/2024 - 12/31/2024	10,432		184
01/01/2025 - 12/31/2025	8,927		170
01/01/2026 - 12/31/2026	7,110		159
Thereafter	19,553		404
Total undiscounted lease payments	64,465		1,232
Less: present value adjustment	11,237		214
Total net lease liabilities	$	53,228	$	1,018

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

As of June 30, 2022, the Company had additional operating lease commitments of $2.2 million for non-cancelable leases without a possession date, which begin to commence in 2022. These lease commitments are consistent with the leases that have been executed thus far.

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

	Six Months Ended
	June 30, 2022
Weighted-average remaining lease term
Operating leases	6.4 years
Finance leases	6.6 years
Weighted-average discount rate
Operating leases	6.0	%
Finance leases	6.0	%

XML

Organization and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated balance sheet as of December 31, 2021 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2021 contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”).

As of June 30, 2022, the Company operated on a calendar year-end. Anthony's uses a 52-week or 53-week fiscal year-end and its fiscal year ends on the Monday closest to December 31. Differences arising from the different fiscal year-ends were not deemed material for the period ended June 30, 2022 and the year ended December 31, 2021.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior year presentation to conform to the current year presentation.

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements present the consolidated financial position, results from operations and cash flows of BurgerFi International, Inc., and its wholly owned subsidiaries. All material balances and transactions between the entities have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Net (Loss) Income per Common Share

Net (Loss) Income per Common ShareNet (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. The Company has considered the effect of (1) warrants outstanding to purchase 15,063,800 shares of common stock and (2) 75,000 shares of common stock and warrants to purchase 75,000 shares of common stock in the unit purchase option, (3) 1,620,869 shares of restricted stock unit grants in the calculation of income per share, and (4) the impact of any dividends associated with our redeemable preferred stock.

Reconciliation of Net (Loss) Income Per Common Share

Reconciliation of Net (Loss) Income per Common Share

Basic and diluted net (loss) income per common share is calculated as follows:

(in thousands, except for per share data)	Three Months Ended				Six Months Ended
Numerator:	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net (loss) income attributable to common shareholders	$	(60,377)	$	8,991	$	(73,937)	$	781
Reversal of gain on change in value of warrant liability	—		(12,619)		—		(7,673)
Net (loss) available to common shareholders - diluted	$	(60,377)	$	(3,628)	$	(73,937)	$	(6,892)
Denominator:
Weighted-average shares outstanding, basic	22,214,628		17,888,140		22,089,799		17,852,493
Effect of dilutive securities:
Restricted stock grants and warrants	—		847,417		—		2,261,954
UPOs	—		17,381		—		30,837
Diluted weighted-average shares outstanding	22,214,628		18,752,938		22,089,799		20,145,284
Basic net (loss) income per common share	$	(2.72)	$	0.50	$	(3.35)	$	0.04
Diluted net loss per common share	$	(2.72)	$	(0.19)	$	(3.35)	$	(0.34)

For the three and six months ended June 30, 2022, there were no dilutive warrants.

New Accounting Standards Adopted

New Accounting Standards Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months and disclose certain information about the leasing arrangements. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company elected the package of practical expedients permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. The Company adopted the requirements of the new standard as of the first day of fiscal year 2022 using the modified retrospective approach without restating comparative periods. See Note 13. Leases for further disclosures upon adoption.

Goodwill

The Company conducts its goodwill impairment test annually in December, or more frequently if indicators of impairment exist. The Company evaluates it's goodwill based on its two reporting units, Anthony's and BurgerFi. As a result of a significant sustained decline in the Company’s share price and market capitalization during the six months ended June 30, 2022, the Company conducted its impairment test as of June 30, 2022. The impairment test was conducted in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”) for the reporting units' goodwill.

ASC 350 requires goodwill and other indefinite lived assets to be tested for impairment at the reporting unit level. For ASC 350 testing purposes, the Company compared the fair value of the reporting units with its carrying amounts. The fair value of the reporting units were estimated giving consideration to the Income Approach, including the discounted cash flow method, and the Market Approach, including the similar transactions method and guideline public company method. Significant inputs and assumptions in the ASC 350 analysis included forecasts (e.g., revenue, operating costs, capital expenditures, etc.), discount rate, long-term growth rate, tax rates, etc. for the reporting units under the Income Approach and market-based enterprise value to revenue multiples under the Market Approach.

XML

Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Store Activity

Store activity for the six month period ended June 30, 2022 and the year ended December 31, 2021 are as follows:

	June 30, 2022			December 31, 2021
	Corporate-owned	Franchised	Total	Corporate-owned	Franchised	Total
Total BurgerFi and Anthony's	86	97	183	86	93	179
BurgerFi stores, beginning of the period	25	93	118	17	102	119
BurgerFi stores opened	3	5	8	10	6	16
BurgerFi stores transferred	(3)	3	—	(1)	1	—
BurgerFi stores closed	—	(4)	(4)	(1)	(16)	(17)
BurgerFi total stores, end of the period	25	97	122	25	93	118
Anthony's stores, beginning of period	61	—	61	61	—	61
Anthony's total stores, end of the period	61	—	61	61	—	61

Summary of Calculation of Basic and Diluted Income (Loss) Per Common Share

Basic and diluted net (loss) income per common share is calculated as follows:

(in thousands, except for per share data)	Three Months Ended				Six Months Ended
Numerator:	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net (loss) income attributable to common shareholders	$	(60,377)	$	8,991	$	(73,937)	$	781
Reversal of gain on change in value of warrant liability	—		(12,619)		—		(7,673)
Net (loss) available to common shareholders - diluted	$	(60,377)	$	(3,628)	$	(73,937)	$	(6,892)
Denominator:
Weighted-average shares outstanding, basic	22,214,628		17,888,140		22,089,799		17,852,493
Effect of dilutive securities:
Restricted stock grants and warrants	—		847,417		—		2,261,954
UPOs	—		17,381		—		30,837
Diluted weighted-average shares outstanding	22,214,628		18,752,938		22,089,799		20,145,284
Basic net (loss) income per common share	$	(2.72)	$	0.50	$	(3.35)	$	0.04
Diluted net loss per common share	$	(2.72)	$	(0.19)	$	(3.35)	$	(0.34)

Schedule of Goodwill

Business Combination, Segment Allocation

The following table presents goodwill by reportable segment as of June 30, 2022:

(in thousands)	Goodwill, gross		Accumulated Impairment Loss		Goodwill, net
BurgerFi	$	123,981	$	(123,981)	$	—
Anthony's	80,684		(37,663)		43,021
Total	$	204,665	$	(161,644)	$	43,021

XML

Property & Equipment (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Leasehold improvements	$	17,805	$	19,900
Kitchen equipment and other equipment	9,329		7,810
Computers and office equipment	1,414		1,425
Furniture and fixtures	2,627		2,340
Vehicles	88		88
	31,263		31,563
Less: Accumulated depreciation and amortization	(6,408)		(2,528)
Property and equipment – net	$	24,855	$	29,035

XML

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Components of Intangible Assets

The following is a summary of the components of intangible assets and the related amortization expense:

	June 30, 2022						December 31, 2021
(in thousands)	Amount		Accumulated Amortization		Net Carrying Value		Amount		Accumulated Amortization		Net Carrying Value
Franchise agreements	$	24,839	$	5,470	$	19,369	$	24,839	$	3,696	$	21,143
Trade names / trademarks	143,750		5,615		138,135		143,750		3,220		140,530
Liquor licenses	6,678		—		6,678		6,678		—		6,678
Other intangible assets	1,311		1,015		296		1,311		939		372
	$	176,578	$	12,100	$	164,478	$	176,578	$	7,855	$	168,723

XML

Goodwill (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Business Combination, Segment Allocation

The following table presents goodwill by reportable segment as of June 30, 2022:

(in thousands)	Goodwill, gross		Accumulated Impairment Loss		Goodwill, net
BurgerFi	$	123,981	$	(123,981)	$	—
Anthony's	80,684		(37,663)		43,021
Total	$	204,665	$	(161,644)	$	43,021

XML

Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt

(in thousands)	June 30, 2022		December 31, 2021
Term loan	$	56,135	$	57,761
Related party note	10,000		10,000
Revolving line of credit	2,500		2,500
Other notes payable	836		874
Finance lease liability	1,018		—
Total Debt	$	70,489	$	71,135
Less: Unamortized debt discount to related party note	(1,021)		(1,276)
Less: Unamortized debt issuance costs	(1,045)		(1,007)
Total Debt, net	68,423		68,852
Less: Short-term borrowings, including finance leases	(3,495)		(3,331)
Total Long-term borrowings, including finance leases and related party note	$	64,928	$	65,521

XML

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

The following is an analysis of changes in the warrant liability for the six months ended June 30, 2022:

(in thousands)	Level 3 (Black Scholes)
Liability at December 31, 2021	$	2,706
Gain during the six months ended June 30, 2022	1,324
Liability at June 30, 2022	$	1,382

Summary of Activity of Restricted Stock Units

The following table summarizes activity of restricted stock units during the six months ended June 30, 2022:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2021	1,783,698	$	14.18
Granted	437,847	3.32
Vested	(324,289)	14.80
Forfeited	(276,387)	9.69
Non-vested at June 30, 2022	1,620,869	$	11.89

The input variables for the Black-Scholes are noted in the table below:

	June 30, 2022		December 31, 2021
Risk-free interest rate	2.95	%	1.11	%
Expected life in years	3.47		3.96
Expected volatility	57.0	%	41.8	%
Expected dividend yield	—	%	—	%

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021.

	Items Measured at Fair Value at June 30, 2022
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	49,433	$	—
Related party note	—		8,979		—
Warrant liability	—		—		1,382
Total	$	—	$	58,412	$	1,382

	Items Measured at Fair Value at December 31, 2021
(in thousands)	Quoted prices in active market for identical assets (liabilities) (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Redeemable preferred stock	$	—	$	47,525	$	—
Related party note	—		8,724		—
Warrant liability	—		—		2,706
Total	$	—	$	56,249	$	2,706

Input Variable for Black-Scholes Model

The following table summarizes activity of restricted stock units during the six months ended June 30, 2022:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2021	1,783,698	$	14.18
Granted	437,847	3.32
Vested	(324,289)	14.80
Forfeited	(276,387)	9.69
Non-vested at June 30, 2022	1,620,869	$	11.89

The input variables for the Black-Scholes are noted in the table below:

	June 30, 2022		December 31, 2021
Risk-free interest rate	2.95	%	1.11	%
Expected life in years	3.47		3.96
Expected volatility	57.0	%	41.8	%
Expected dividend yield	—	%	—	%

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

The following tables present revenue and net loss by segment:

(in thousands)	Three Months Ended  June 30, 2022		Six Months Ended  June 30, 2022
Revenue:
BurgerFi	$	13,458	$	25,853
Anthony's	31,840		64,375
Total	$	45,298	$	90,228
Net loss:
BurgerFi	$	(21,726)	$	(34,686)
Anthony's	(38,651)		(39,251)
Total	$	(60,377)	$	(73,937)

XML

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Assets And Liabilities, Lessee

Upon transition, on January 1, 2022, we recorded the following increases (decreases) to the respective line items on the Condensed Consolidated Balance Sheet:

(in thousands)	Adjustment as of January 1, 2022
Prepaid expenses	$	(773)
Operating right-of-use asset, net	57,385
Finance right-of-use asset, net	855
Deferred rent	(900)
Short-term operating lease liability	9,457
Short-term finance lease liability	143
Long-term operating lease liability	49,149
Long-term finance lease liability	712

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

	Six Months Ended
	June 30, 2022
Weighted-average remaining lease term
Operating leases	6.4 years
Finance leases	6.6 years
Weighted-average discount rate
Operating leases	6.0	%
Finance leases	6.0	%

Lease, Cost

A summary of finance and operating lease right-of-use assets and liabilities as of June 30, 2022 is as follows:

(in thousands)	Classification	June 30, 2022
Operating leases	Operating right-of-use asset, net	$	52,216
Finance leases	Property & equipment, net	976
Total right-of-use assets		$	53,192
Operating leases:
	Short-term operating lease liability	$	9,486
	Long-term operating lease liability	43,742
Finance leases:
	Short-term borrowings, including finance leases	160
	Long-term borrowings, including finance leases	858
Total lease liabilities		$	54,246

The components of lease expense for the three and six months ended June 30, 2022 is as follows:

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

Lessee, Operating Lease, Liability, Maturity

The maturity of the Company's operating and finance lease liabilities as of June 30, 2022 is as follows:

(in thousands)	Operating Leases		Finance Leases
07/01/2022 - 12/31/2022	$	6,265	$	114
01/01/2023 - 12/31/2023	12,178		201
01/01/2024 - 12/31/2024	10,432		184
01/01/2025 - 12/31/2025	8,927		170
01/01/2026 - 12/31/2026	7,110		159
Thereafter	19,553		404
Total undiscounted lease payments	64,465		1,232
Less: present value adjustment	11,237		214
Total net lease liabilities	$	53,228	$	1,018

Finance Lease, Liability, Fiscal Year Maturity

The maturity of the Company's operating and finance lease liabilities as of June 30, 2022 is as follows:

(in thousands)	Operating Leases		Finance Leases
07/01/2022 - 12/31/2022	$	6,265	$	114
01/01/2023 - 12/31/2023	12,178		201
01/01/2024 - 12/31/2024	10,432		184
01/01/2025 - 12/31/2025	8,927		170
01/01/2026 - 12/31/2026	7,110		159
Thereafter	19,553		404
Total undiscounted lease payments	64,465		1,232
Less: present value adjustment	11,237		214
Total net lease liabilities	$	53,228	$	1,018

XML

Organization and Summary of Significant Accounting Policies - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 Store brand shares	Dec. 31, 2021 Store	Nov. 03, 2021	Dec. 31, 2020 Store
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants | Store	183	179
Number of brands | brand	2
Hot Air, Inc.
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Percentage of shares acquired			100.00%
Public Warrants
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	15,063,800
Warrant
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	75,000
Common Stock | Unit Purchase Option
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	75,000
Restricted Shares
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,620,869
BurgerFi
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants | Store	122	118		119
Anthony's
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants | Store	61	61

XML

Organization and Summary of Significant Accounting Policies - Summary of Store Activity (Details) - Store	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Store Activity [Roll Forward]
Stores, beginning of year	179
Stores, end of year	183	179
BurgerFi
Store Activity [Roll Forward]
Stores, beginning of year	118	119
BurgerFi stores opened	8	16
BurgerFi stores transferred	0	0
BurgerFi stores closed	(4)	(17)
Stores, end of year	122	118
Anthony's
Store Activity [Roll Forward]
Stores, beginning of year	61
Anthony's stores, beginning of period	61	61
Stores, end of year	61	61
Corporate-owned
Store Activity [Roll Forward]
Stores, beginning of year	86
Stores, end of year	86	86
Corporate-owned | BurgerFi
Store Activity [Roll Forward]
Stores, beginning of year	25	17
BurgerFi stores opened	3	10
BurgerFi stores transferred	(3)	(1)
BurgerFi stores closed	0	(1)
Stores, end of year	25	25
Corporate-owned | Anthony's
Store Activity [Roll Forward]
Stores, beginning of year	61
Anthony's stores, beginning of period	61	61
Stores, end of year	61	61
Franchised
Store Activity [Roll Forward]
Stores, beginning of year	93
Stores, end of year	97	93
Franchised | BurgerFi
Store Activity [Roll Forward]
Stores, beginning of year	93	102
BurgerFi stores opened	5	6
BurgerFi stores transferred	3	1
BurgerFi stores closed	(4)	(16)
Stores, end of year	97	93
Franchised | Anthony's
Store Activity [Roll Forward]
Stores, beginning of year	0
Anthony's stores, beginning of period	0	0
Stores, end of year	0	0

XML

Organization and Summary of Significant Accounting Policies - Summary of Calculation of Basic and Diluted Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net (loss) income attributable to common shareholders	$ (60,377)	$ 8,991	$ (73,937)	$ 781
Reversal of gain on change in value of warrant liability	0	(12,619)	0	(7,673)
Net (loss) available to common shareholders - diluted	$ (60,377)	$ (3,628)	$ (73,937)	$ (6,892)
Denominator:
Weighted-average shares outstanding, basic (in shares)	22,214,628	17,888,140	22,089,799	17,852,493
Restricted stock grants and warrants (in shares)	0	847,417	0	2,261,954
UPOs (in shares)	0	17,381	0	30,837
Diluted weighted-average shares outstanding (in shares)	22,214,628	18,752,938	22,089,799	20,145,284
Basic net (loss) income per common share (in dollars per share)	$ (2.72)	$ 0.50	$ (3.35)	$ 0.04
Diluted net loss income per common share (in dollars per share)	$ (2.72)	$ (0.19)	$ (3.35)	$ (0.34)

XML

Property & Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment – gross	$ 31,263	$ 31,563
Less: Accumulated depreciation and amortization	(6,408)	(2,528)
Property and equipment – net	24,855	29,035
Leasehold improvements
Property Plant And Equipment [Line Items]
Property and equipment – gross	17,805	19,900
Kitchen equipment and other equipment
Property Plant And Equipment [Line Items]
Property and equipment – gross	9,329	7,810
Computers and office equipment
Property Plant And Equipment [Line Items]
Property and equipment – gross	1,414	1,425
Furniture and fixtures
Property Plant And Equipment [Line Items]
Property and equipment – gross	2,627	2,340
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment – gross	$ 88	$ 88

XML

Property & Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.6	$ 0.4	$ 4.9	$ 0.7

XML

Intangible Assets - Summary of Components of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Amount	$ 176,578	$ 176,578
Accumulated Amortization	12,100	7,855
Net Carrying Value	164,478	168,723
Franchise agreements
Finite Lived Intangible Assets [Line Items]
Amount	24,839	24,839
Accumulated Amortization	5,470	3,696
Net Carrying Value	19,369	21,143
Trade names / trademarks
Finite Lived Intangible Assets [Line Items]
Amount	143,750	143,750
Accumulated Amortization	5,615	3,220
Net Carrying Value	138,135	140,530
Liquor licenses
Finite Lived Intangible Assets [Line Items]
Amount	6,678	6,678
Accumulated Amortization	0	0
Net Carrying Value	6,678	6,678
Other intangible assets
Finite Lived Intangible Assets [Line Items]
Amount	1,311	1,311
Accumulated Amortization	1,015	939
Net Carrying Value	$ 296	$ 372

XML

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 2.1	$ 1.8	$ 4.2	$ 3.6

XML

Goodwill (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) reporting_unit	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Goodwill [Line Items]
Goodwill, gross	$ 204,665		$ 204,665
Accumulated Impairment Loss	(161,644)		(161,644)
Goodwill, net	43,021		$ 43,021		$ 98,000
Number of reporting units | reporting_unit			2
Goodwill impairment	55,168	$ 0	$ 55,168	$ 0
BurgerFi
Goodwill [Line Items]
Goodwill, gross	123,981		123,981
Accumulated Impairment Loss	(123,981)		(123,981)
Goodwill, net	0		0
Goodwill, impairment loss, net of tax	17,500		17,500
Anthony's
Goodwill [Line Items]
Goodwill, gross	80,684		80,684
Accumulated Impairment Loss	(37,663)		(37,663)
Goodwill, net	$ 43,021		$ 43,021

XML

Acquisitions - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Nov. 03, 2021
Business Acquisition [Line Items]
Revenue		$ 82.7
Net loss		$ 6.8
Hot Air, Inc.
Business Acquisition [Line Items]
Percentage of shares acquired			100.00%
Anthony's
Business Acquisition [Line Items]
Goodwill adjustments	$ 0.2

XML

Related Party Transactions (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 03, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 01, 2022	Feb. 22, 2022	Jan. 01, 2020
Related Party Transaction [Line Items]
Rent expense		$ 100,000	$ 200,000	$ 100,000	$ 300,000
Operating lease, expense			0		0
Share-based compensation expense		909,000	2,595,000	8,285,000	3,117,000
Leased Building Space
Related Party Transaction [Line Items]
Rent expense		100,000		100,000
Affiliated Entity | Independent Contractor Agreement | Subsequent Event
Related Party Transaction [Line Items]
Due to related parties						$ 100,000
Affiliated Entity | Entity Under Common Ownership With Significant Shareholder | Leased Building Space
Related Party Transaction [Line Items]
Rent expense			$ 100,000		$ 100,000
Lease term								36 months
Affiliated Entity | Entity Under Common Ownership With Significant Shareholder | Leased Building Space Amendment
Related Party Transaction [Line Items]
Rent expense		$ 100,000		200,000
Lease term							10 years
Affiliated Entity | Consultant | Restricted Stock Units (RSUs) | Strategic Advisory Services
Related Party Transaction [Line Items]
Share-based compensation expense				$ 200,000
Chief Operating Officer | Common Stock
Related Party Transaction [Line Items]
Shares granted (in shares)	37,959

XML

Commitments and Contingencies - Narrative (Details)					1 Months Ended			3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 28, 2022 USD ($)	Aug. 11, 2021 USD ($) claim	May 21, 2021 USD ($)	Dec. 01, 2019 USD ($)	Nov. 30, 2021 USD ($)	Jul. 31, 2021 USD ($)	Feb. 29, 2020 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 11, 2022 USD ($)	Dec. 31, 2021 USD ($)
Commitments And Contingencies [Line Items]
Base rent cost								$ 4,200,000		$ 8,000,000.0
Operating leases, rent expense									$ 900,000		$ 1,700,000
Asset held for sale								732,000		732,000			$ 732,000
Pending Litigation | Corey Winograd v BurgerFi International, LLC
Commitments And Contingencies [Line Items]
Loss contingency, damages sought				$ 15,000,000
Pending Litigation | Second 82nd SM, LLC c BF NY 82, LLC, BurgerFi International, LLC and BurgerFi International, Inc.
Commitments And Contingencies [Line Items]
Loss contingency, damages sought		$ 500,000
Pending claims | claim		7
Pending Litigation | Lion Point Capital Allegation
Commitments And Contingencies [Line Items]
Loss contingency, damages sought												$ 26,000,000
Pending Litigation | John Rosatti, as Trustee of the John Rosatti Revocable Trust v. BurgerFi International, Inc
Commitments And Contingencies [Line Items]
Loss contingency, damages sought	$ 10,000,000
Pending Litigation | Burger Guys of Dania Pointe, et. al
Commitments And Contingencies [Line Items]
Loss contingency, damages sought			$ 2,000,000
Pending Litigation | All Round Food Bakery Products, Inc. v. BurgerFi International, LLC and Neri’s Bakery Products, Inc. et al
Commitments And Contingencies [Line Items]
Loss contingency, damages sought							$ 1,000,000
Pending Litigation | Employment Related Claims
Commitments And Contingencies [Line Items]
Loss contingency, damages sought					$ 300,000	$ 800,000
Estimate of possible loss								1,100,000		1,100,000
BF Dania Beach, LLC
Commitments And Contingencies [Line Items]
Asset held for sale								$ 700,000		$ 700,000			$ 700,000

XML

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt, gross	$ 70,489	$ 71,135
Other notes payable	836	874
Less: Unamortized debt discount to related party note	(1,021)	(1,276)
Less: Unamortized debt issuance costs	(1,045)	(1,007)
Total Debt, net	68,423	68,852
Less: Short-term borrowings, including finance leases	(3,495)	(3,331)
Total Long-term borrowings, including finance leases and related party note	64,928	65,521
Related party note
Debt Instrument [Line Items]
Loans payable	10,000	10,000
Finance lease liability
Debt Instrument [Line Items]
Loans payable	1,018	0
Term loan
Debt Instrument [Line Items]
Long-term debt, gross	56,135	57,761
Revolving line of credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,500	$ 2,500

XML

Debt - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 09, 2022	Nov. 03, 2021
Debt Instrument [Line Items]
Interest expense on debt	$ 2,200,000		$ 4,300,000
Amortization of debt discount	100,000		300,000
Other noncash expense	1,000,000	$ 0	1,900,000	$ 0
Credit Agreement
Debt Instrument [Line Items]
Debt instrument, face amount						$ 71,800,000
Related party note						10,000,000
Incremental deferred interest, annual percentage					2.00%
Amortization of debt discount	$ 100,000		$ 300,000
Credit Agreement | Repayment on or Prior to December 31, 2022
Debt Instrument [Line Items]
Deferred interest due					0.00%
Credit Agreement | Repayment Between January 1, 2023 and March 31, 2023
Debt Instrument [Line Items]
Deferred interest due					50.00%
Credit Agreement | Interest Period Through June 15, 2023
Debt Instrument [Line Items]
Stated interest rate	4.75%		4.75%
Credit Agreement | Interest Period From June 16, 2023 Through Maturity
Debt Instrument [Line Items]
Stated interest rate	6.75%		6.75%
Credit Agreement | Term loan
Debt Instrument [Line Items]
Debt instrument, face amount						57,800,000
Credit Agreement | Revolving line of credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity						$ 4,000,000

XML

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax rate	0.55%	0.30%	0.60%	48.70%

XML

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jan. 03, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized (in shares)	100,000,000		100,000,000			100,000,000
Common stock, par value (in Dollars per share)	$ 0.0001		$ 0.0001		$ 0.0001	$ 0.0001
Common stock, shares, outstanding (in shares)	22,253,232		22,253,232			21,303,500
Issuance of common stock (in shares)	22,253,232		22,253,232			21,303,500
Preferred stock, shares authorized (in shares)	10,000,000		10,000,000			10,000,000
Preferred stock, par value (in Dollars per share)	$ 0.0001		$ 0.0001			$ 0.0001
Preferred stock, shares outstanding (in shares)	2,120,000		2,120,000			2,120,000
Warrants outstanding (in shares)	15,063,800		15,063,800
Warrants exercise price (in dollars per share)	$ 11.50		$ 11.50
UPO units that are exercisable (in shares)			75,000
Warrant liability	$ 1,382		$ 1,382			$ 2,706
Additional shares issued (in shares)					1,065,175
Employee benefits and share-based compensation	900	$ 2,600	8,300	$ 3,100
Shares granted	$ 3,900		$ 3,900
Measurement Input, Share Price
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants, measurement input	3.23		3.23			5.67
2020 Omnibus Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common shares available for future grants (in shares)	406,000		406,000			126,000
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 13,900		$ 13,900
Unrecognized stock-based compensation expense, weighted-average recognition period	2 years 10 months 24 days
Public Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding (in shares)	11,468,800		11,468,800
Private Placement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding (in shares)	3,595,000		3,595,000
UPO Units Exercise Price One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
UPO units exercise price (in dollars per share)			$ 10.00

XML

Stockholders' Equity - Warrants (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Warrant Liability [Roll Forward]
Liability at December 31, 2021			$ 2,706
Gain during the six months ended June 30, 2022	$ 1,858	$ 12,619	1,324	$ 7,673
Liability at June 30, 2022	$ 1,382		$ 1,382

XML

Stockholders' Equity - Summary of Activity of Restricted Stock Units (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Restricted Stock Units
Non-vested, beginning balance (in shares) | shares	1,783,698
Granted (in shares) | shares	437,847
Vested (in shares) | shares	(324,289)
Forfeited (in shares) | shares	(276,387)
Non-vested, ending balance (in shares) | shares	1,620,869
Weighted Average Grant Date Fair Value
Non-vested, beginning balance (in dollars per share) | $ / shares	$ 14.18
Granted (in dollars per share) | $ / shares	3.32
Vested (in dollars per share) | $ / shares	14.80
Forfeited (in dollars per share) | $ / shares	9.69
Non-vested, ending balance (in dollars per share) | $ / shares	$ 11.89

XML

Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Related party note	$ 8,979	$ 8,724
Warrant liability	1,382	2,706
Quoted prices in active market for identical assets (liabilities) (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Redeemable preferred stock	0	0
Related party note	0	0
Warrant liability	0	0
Total	0	0
Significant other observable inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Redeemable preferred stock	49,433	47,525
Related party note	8,979	8,724
Warrant liability	0	0
Total	58,412	56,249
Significant unobservable inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Redeemable preferred stock	0	0
Related party note	0	0
Warrant liability	1,382	2,706
Total	$ 1,382	$ 2,706

XML

Fair Value Measurements (Details) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share price (in dollars per share)	$ 3.23	$ 5.67
Warrants exercise price	11.50
Private Warrants
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Warrants exercise price	$ 0.38	$ 0.75

XML

Fair Value Measurements - Black Scholes Measurement Inputs (Details)	Jun. 30, 2022 yr	Dec. 31, 2021 yr
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0295	0.0111
Expected life in years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	3.47	3.96
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.570	0.418
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0	0

XML

Segment Information - Narrative (Details) - Segment	2 Months Ended	10 Months Ended
	Dec. 31, 2021	Nov. 03, 2021
Segment Reporting [Abstract]
Number of operating segments	2	1
Number of reportable segments	2	1

XML

Segment Information - Summary of Financial Statement Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Revenue:	$ 45,298	$ 11,770	$ 90,228	$ 22,700
Net (loss) income	(60,377)	$ 8,991	(73,937)	$ 781
BurgerFi
Segment Reporting Information [Line Items]
Revenue:	13,458		25,853
Net (loss) income	(21,726)		(34,686)
Anthony's
Segment Reporting Information [Line Items]
Revenue:	31,840		64,375
Net (loss) income	$ (38,651)		$ (39,251)

XML

Leases - Adjustments to Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021
Lessor, Lease, Description [Line Items]
Operating right-of-use asset, net	$ 52,216		$ 0
Finance right-of-use asset, net	976
Short-term operating lease liability	9,486		0
Short-term finance lease liability	160
Long-term operating lease liability	43,742		$ 0
Long-term finance lease liability	$ 858
Cumulative Effect, Period of Adoption, Adjustment
Lessor, Lease, Description [Line Items]
Prepaid expenses		$ (773)
Operating right-of-use asset, net		57,385
Finance right-of-use asset, net		855
Deferred rent		(900)
Short-term operating lease liability		9,457
Short-term finance lease liability		143
Long-term operating lease liability		49,149
Long-term finance lease liability		$ 712

XML

Leases - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) renewal
Lessor, Lease, Description [Line Items]
Lease not yet commenced, amount | $	$ 2.2
Minimum
Lessor, Lease, Description [Line Items]
Lease term	10 years
Renewal term | renewal	2
Maximum
Lessor, Lease, Description [Line Items]
Lease term	15 years
Operating lease renewal period	5 years

XML

Leases - Summary of Finance and Operating Lease Right-Of-Use Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating right-of-use asset, net	$ 52,216	$ 0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	PROPERTY & EQUIPMENT, net
Finance right-of-use asset, net	$ 976
Total right-of-use assets	53,192
Short-term operating lease liability	9,486	0
Long-term operating lease liability	$ 43,742	$ 0
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Short-term borrowings, including finance leases
Short-term finance lease liability	$ 160
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term borrowings, including finance leases
Long-term finance lease liability	$ 858
Total lease liabilities	$ 54,246

XML

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 3,097	$ 6,348
Finance lease cost:
Amortization of right-of-use assets	82	134
Interest on lease liabilities	19	31
Less: Sublease income	(47)	(94)
Total lease cost	$ 3,151	$ 6,419

XML

Leases - Lease Maturities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Operating Leases
07/01/2022 - 12/31/2022	$ 6,265
01/01/2023 - 12/31/2023	12,178
01/01/2024 - 12/31/2024	10,432
01/01/2025 - 12/31/2025	8,927
01/01/2026 - 12/31/2026	7,110
Thereafter	19,553
Total undiscounted lease payments	64,465
Less: present value adjustment	11,237
Total net lease liabilities	53,228
Finance Leases
07/01/2022 - 12/31/2022	114
01/01/2023 - 12/31/2023	201
01/01/2024 - 12/31/2024	184
01/01/2025 - 12/31/2025	170
01/01/2026 - 12/31/2026	159
Thereafter	404
Total undiscounted lease payments	1,232
Less: present value adjustment	214
Total net lease liabilities	$ 1,018

XML

Leases - Lease Terms and Discount Rates (Details)	Jun. 30, 2022
Weighted-average remaining lease term
Operating leases	6 years 4 months 24 days
Finance leases	6 years 7 months 6 days
Weighted-average discount rate
Operating leases	6.00%
Finance leases	6.00%