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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 November 30, 2021

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: 001-39012

 

KURA SUSHI USA, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

26-3808434

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

17461 Derian Avenue, Suite 200

Irvine, California

92614

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (657) 333-4100

 

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

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.001 par value per share

 

KRUS

 

Nasdaq Global Market

 

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  

As of January 3, 2022, the registrant had 8,711,619 shares of Class A common stock, $0.001 par value per share, outstanding and 1,000,050 shares of Class B common stock, $0.001 par value per share, outstanding.

 

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations

2

 

Condensed Statements of Stockholders’ Equity

3

 

Condensed Statements of Cash Flows

4

 

Notes to Condensed Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

Item 4.

Controls and Procedures

24

PART II.

OTHER INFORMATION

25

Item 1.

Legal Proceedings

25

Item 1A.

Risk Factors

25

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

Item 3.

Defaults Upon Senior Securities

25

Item 4.

Mine Safety Disclosures

25

Item 5.

Other Information

25

Item 6.

Exhibits

26

Signatures

27

 

i


 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Kura Sushi USA, Inc.

Condensed Balance Sheets

(amounts in thousands, except par value)

(Unaudited)

 

 

 

November 30, 2021

 

 

August 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,421

 

 

$

40,430

 

Accounts and other receivables

 

 

2,040

 

 

 

2,019

 

Inventories

 

 

820

 

 

 

733

 

Due from affiliate

 

 

 

 

 

329

 

Prepaid expenses and other current assets

 

 

5,654

 

 

 

13,957

 

Total current assets

 

 

52,935

 

 

 

57,468

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment – net

 

 

59,893

 

 

 

53,885

 

Operating lease right-of-use assets

 

 

63,680

 

 

 

64,158

 

Deposits and other assets

 

 

2,311

 

 

 

2,158

 

Total assets

 

$

178,819

 

 

$

177,669

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,222

 

 

$

4,920

 

Accrued expenses and other current liabilities

 

 

3,167

 

 

 

2,820

 

Salaries and wages payable

 

 

4,755

 

 

 

4,612

 

Finance leases – current

 

 

845

 

 

 

932

 

Operating lease liabilities – current

 

 

6,534

 

 

 

5,650

 

Due to affiliate

 

 

326

 

 

 

244

 

Sales tax payable

 

 

899

 

 

 

869

 

Total current liabilities

 

 

22,748

 

 

 

20,047

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Finance leases – non-current

 

 

374

 

 

 

546

 

Operating lease liabilities – non-current

 

 

65,265

 

 

 

65,834

 

Other liabilities

 

 

401

 

 

 

398

 

Total liabilities

 

 

88,788

 

 

 

86,825

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 1,000 shares authorized, no shares

issued or outstanding

 

 

 

 

 

 

Class A common stock, $0.001 par value; 50,000 shares authorized,

8,713 and 8,700 shares issued and outstanding as of November 30, 2021

and August 31, 2021, respectively

 

 

9

 

 

 

9

 

Class B common stock, $0.001 par value; 10,000 shares authorized,

1,000 shares issued and outstanding as of November 30, 2021

and August 31, 2021

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

116,218

 

 

 

115,756

 

Accumulated deficit

 

 

(26,197

)

 

 

(24,922

)

Total stockholders' equity

 

 

90,031

 

 

 

90,844

 

Total liabilities and stockholders' equity

 

$

178,819

 

 

$

177,669

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

1


 

 

Kura Sushi USA, Inc.

Condensed Statements of Operations

(amounts in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended November 30,

 

 

 

2021

 

 

2020

 

Sales

 

$

29,832

 

 

$

9,414

 

Restaurant operating costs:

 

 

 

 

 

 

 

 

Food and beverage costs

 

 

8,957

 

 

 

3,053

 

Labor and related costs

 

 

9,710

 

 

 

4,360

 

Occupancy and related expenses

 

 

2,200

 

 

 

1,690

 

Depreciation and amortization expenses

 

 

1,171

 

 

 

927

 

Other costs

 

 

3,610

 

 

 

2,079

 

Total restaurant operating costs

 

 

25,648

 

 

 

12,109

 

General and administrative expenses

 

 

5,360

 

 

 

3,521

 

Depreciation and amortization expenses

 

 

88

 

 

 

75

 

Total operating expenses

 

 

31,096

 

 

 

15,705

 

Operating loss

 

 

(1,264

)

 

 

(6,291

)

Other expense (income):

 

 

 

 

 

 

 

 

Interest expense

 

 

25

 

 

 

34

 

Interest income

 

 

(26

)

 

 

(4

)

Loss before income taxes

 

 

(1,263

)

 

 

(6,321

)

Income tax expense

 

 

12

 

 

 

29

 

Net loss

 

$

(1,275

)

 

$

(6,350

)

Net loss per Class A and Class B shares

 

 

 

 

 

 

 

 

Basic

 

$

(0.13

)

 

$

(0.76

)

Diluted

 

$

(0.13

)

 

$

(0.76

)

Weighted average Class A and Class B shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

9,710

 

 

 

8,348

 

Diluted

 

 

9,710

 

 

 

8,348

 

 

The accompanying notes are an integral part of these condensed financial statements.

2


 

Kura Sushi USA, Inc.

Condensed Statements of Stockholders’ Equity

(amounts in thousands)

(Unaudited)

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Class A

 

 

Class B

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balances as of August 31, 2021

 

 

8,700

 

 

$

9

 

 

 

1,000

 

 

$

1

 

 

$

115,756

 

 

$

(24,922

)

 

$

90,844

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

443

 

 

 

 

 

 

443

 

Employee stock plan

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

19

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,275

)

 

 

(1,275

)

Balances as of November 30, 2021

 

 

8,713

 

 

$

9

 

 

 

1,000

 

 

$

1

 

 

$

116,218

 

 

$

(26,197

)

 

$

90,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

Class A

 

 

Class B

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balances as of August 31, 2020

 

 

7,342

 

 

$

7

 

 

 

1,000

 

 

$

1

 

 

$

60,332

 

 

$

(14,627

)

 

$

45,713

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

266

 

 

 

 

 

 

266

 

Employee stock plan

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

94

 

 

 

 

 

 

94

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,350

)

 

 

(6,350

)

Balances as of November 30, 2020

 

 

7,364

 

 

 

7

 

 

 

1,000

 

 

 

1

 

 

 

60,692

 

 

 

(20,977

)

 

 

39,723

 

 

The accompanying notes are an integral part of these condensed financial statements.

3


 

Kura Sushi USA, Inc.

Condensed Statements of Cash Flows

(amounts in thousands)

(Unaudited)

 

 

 

 

Three Months Ended November 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(1,275

)

 

$

(6,350

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,259

 

 

 

1,002

 

Stock-based compensation

 

 

443

 

 

 

266

 

Loss on disposal of property and equipment

 

 

 

 

 

29

 

Non-cash lease expense

 

 

709

 

 

 

682

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and other receivables

 

 

84

 

 

 

(19

)

Inventories

 

 

(87

)

 

 

(87

)

Due from affiliate

 

 

329

 

 

 

(227

)

Prepaid expenses and other current assets

 

 

8,303

 

 

 

(64

)

Deposits and other assets

 

 

(69

)

 

 

(1

)

Accounts payable

 

 

194

 

 

 

801

 

Accrued expenses and other current liabilities

 

 

241

 

 

 

482

 

Salaries and wages payable

 

 

143

 

 

 

823

 

Operating lease liabilities

 

 

205

 

 

 

(238

)

Due to affiliate

 

 

67

 

 

 

44

 

Sales tax payable

 

 

30

 

 

 

126

 

Net cash provided by (used in) operating activities

 

 

10,576

 

 

 

(2,731

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Payments for property and equipment

 

 

(6,036

)

 

 

(6,519

)

Payments for initial direct costs

 

 

(225

)

 

 

 

Payments for purchases of liquor licenses

 

 

(84

)

 

 

(100

)

Net cash used in investing activities

 

 

(6,345

)

 

 

(6,619

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from loan from affiliate

 

 

 

 

 

3,000

 

Repayment of principal on finance leases

 

 

(259

)

 

 

(258

)

Proceeds from exercise of stock options

 

 

19

 

 

 

94

 

Net cash (used in) provided by financing activities

 

 

(240

)

 

 

2,836

 

Increase (decrease) in cash and cash equivalents

 

 

3,991

 

 

 

(6,514

)

Cash and cash equivalents, beginning of period

 

 

40,430

 

 

 

9,259

 

Cash and cash equivalents, end of period

 

$

44,421

 

 

$

2,745

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

45

 

 

$

 

Noncash investing activities

 

 

 

 

 

 

 

 

Amounts unpaid for purchases of property and equipment

 

$

2,394

 

 

$

1,214

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed financial statements.

4


 

Kura Sushi USA, Inc.

Notes to Condensed Financial Statements

(Unaudited)

Note 1. Organization and Basis of Presentation

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

 

Effects of COVID-19

The negative effects of the COVID-19 pandemic on the Company’s business have been significant. In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus continues to spread, including recent acceleration of the spread of the Delta and Omicron variants of COVID-19 in the areas in which the Company operates. This has adversely affected workforces, customers, economies and financial markets globally. In response to this outbreak, many state and local authorities mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities during the Company’s previous two fiscal years. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. During the three months ended November 30, 2021, the Company opened one new restaurant in San Francisco, California, and was able to operate all of its 33 restaurants with no government restrictions on indoor dining capacity. Subsequent to November 30, 2021, the Company opened two new restaurants in Phoenix, Arizona and Chandler, Arizona. As of the filing date of this Quarterly Report on Form 10-Q, all of the Company’s 35 restaurants were operating with no government restrictions on indoor dining capacity.  

In response to the ongoing COVID-19 pandemic, the Company has prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained cleaning and sanitizing protocols for its restaurants and has implemented additional training and operational manuals for its restaurant employees, as well as increased handwashing procedures. The Company also provides each restaurant employee with face masks and gloves, and requires each employee to pass a health screening process, which includes a temperature check, before the start of each shift.

Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020, and the subsequent extension of the CARES Act, the Company was eligible for refundable employee retention credits subject to certain criteria through the fiscal year ended August 31, 2021. The Company has filed for refunds of the employee retention credits and during the three months ended November 30, 2021, and as of the date of this Quarterly Report on Form 10-Q, has received $8.0 million in refunds and cannot reasonably estimate when it will receive any or all of the remaining $4.1 million in refunds.

Consistent with the Company’s long-term growth strategy, the Company expects to continue to open new restaurants in locations where it believes such restaurants have the potential to achieve profitability. The future sales levels of the Company’s restaurants and its ability to implement its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the filing date of this Quarterly Report on Form 10-Q, including the recent acceleration of the spread of the Delta and Omicron variants of COVID-19.

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2021.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2021. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2022 or for any other future annual or interim period.

5


 

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2022” and “fiscal year 2021” refer to the Company’s fiscal years ending August 31, 2022 and August 31, 2021, respectively.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements.

Recently Issued Accounting Pronouncements

In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which provides guidance on disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. ASU 2021-10 is effective for the Company beginning in fiscal year 2023. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements.

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.  The Company adopted this update effective September 1, 2021. The adoption of this update did not impact the consolidated financial statements.

Note 2. Balance Sheet Components

 

Accounts and Other Receivables

 

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Lease receivables

 

$

1,532

 

 

$

1,431

 

Credit card receivables

 

 

498

 

 

 

575

 

Other receivables

 

 

10

 

 

 

13

 

Total accounts and other receivables

 

$

2,040

 

 

$

2,019

 

 


6


 

 

Prepaid Expenses and Other Current Assets

 

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Employee retention credit

 

$

4,056

 

 

$

12,007

 

Prepaid expenses

 

 

1,391

 

 

 

1,732

 

Other current assets

 

 

207

 

 

 

218

 

Total prepaid expenses and other current assets

 

$

5,654

 

 

$

13,957

 

 

Property and Equipment - net

 

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Leasehold improvements

 

$

45,318

 

 

$

43,181

 

Lease assets

 

 

6,131

 

 

 

6,128

 

Furniture and fixtures

 

 

14,258

 

 

 

13,324

 

Computer equipment

 

 

1,024

 

 

 

905

 

Vehicles

 

 

110

 

 

 

110

 

Software

 

 

831

 

 

 

773

 

Construction in progress

 

 

7,923

 

 

 

3,907

 

Property and equipment – gross

 

 

75,595

 

 

 

68,328

 

Less: accumulated depreciation and amortization

 

 

(15,702

)

 

 

(14,443

)

Total property and equipment – net

 

$

59,893

 

 

$

53,885

 

 

Depreciation and amortization expense for property and equipment was approximately $1.3 million and $1.0 million for the three months ended November 30, 2021 and November 30, 2020, respectively.

 

Note 3. Leases

The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases.

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Lease related costs recognized in the statements of operations for the three months ended November 30, 2021 and 2020 are as follows:

 

 

 

Three Months Ended November 30,

 

 

 

2021

 

 

2020

 

 

 

(amounts in thousands)

 

Finance lease cost

Classification

 

 

 

 

 

 

 

Amortization of right-of-use assets

Depreciation and amortization expenses

$

136

 

 

$

151

 

Interest on lease liabilities

Interest expense

 

13

 

 

 

23

 

Total finance lease cost

 

$

149

 

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended November 30,

 

 

 

2021

 

 

2020

 

 

 

(amounts in thousands)

 

Operating lease cost

Classification

 

 

 

 

 

 

 

Operating lease cost

Occupancy and related expenses, other costs and general and administrative expenses

$

1,832

 

 

$

1,567

 

Variable lease cost

Occupancy and related expenses, and general and administrative expenses

 

436

 

 

 

245

 

Total operating lease cost

 

$

2,268

 

 

$

1,812

 

 

 

 

 

 

 

 

 

 

 

Supplemental balance sheet information related to leases is as follows:

 

Operating Leases

 

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Right-of-use assets

 

$

63,680

 

 

$

64,158

 

 

 

 

 

 

 

 

 

 

Lease liabilities – current

 

$

6,534

 

 

$

5,650

 

Lease liabilities – non-current

 

 

65,265

 

 

 

65,834

 

Total lease liabilities

 

$

71,799

 

 

$

71,484

 

Finance Lease Assets – net

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Property and equipment

 

$

6,131

 

 

$

6,128

 

Accumulated depreciation

 

 

(2,915

)

 

 

(2,778

)

Total property and equipment – net

 

$

3,216

 

 

$

3,350

 

Finance Leases Liabilities

 

 

November 30, 2021

 

 

August 31, 2021

 

 

 

(amounts in thousands)

 

Finance lease – current

 

$

845

 

 

$

932

 

Finance lease – non-current

 

 

374

 

 

 

546

 

Total finance lease liabilities

 

$

1,219

 

 

$

1,478

 

8


 

 

 

 

 

 

 

 

 

Three months ended November 30,

 

 

 

2021

 

 

2020

 

Weighted Average Remaining Lease Term (Years)

 

 

 

 

 

 

 

 

Operating leases

 

 

16.2

 

 

 

16.2

 

Finance leases

 

 

1.3

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

 

 

 

 

Operating leases

 

 

6.4

%

 

 

6.4

%

Finance leases

 

 

4.5

%

 

 

4.4

%

 

 

Supplemental disclosures of cash flow information related to leases are as follows:

 

 

 

Three Months Ended November 30,

 

 

 

2021

 

 

2020