Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 107

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 107
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 issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, which establishes new disclosure requirements related to purchases of inventory, employee compensation, selling expenses, depreciation and intangible amortization. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027 and should be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. Management is currently evaluating the impact of this new standard. Recent accounting guidance not discussed herein is not applicable, did not have, or is not expected to have a material impact to the Company. 3. Business Acquisitions During Fiscal 2024, the Company acquired substantially all the assets associated with 22 franchise operated First Watch restaurants. The purchase price was allocated to the fair value of assets acquired and liabilities assumed, which are based on preliminary valuations and are subject to adjustment as additional information is available. The details of each acquisition are as follows: DATE OF ACQUISITION (dollars in thousands) JANUARY 22, 2024 APRIL 15, 2024 Number of acquired restaurants 1 21 Number of acquired restaurants under development — — Purchase price (cash) $ 3,002 $ 75,119 Transaction costs incurred $ 211 $ 1,328 Deferred franchise fees recognized as a result of termination of pre-existing franchise agreement $ 30 $ 383 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 1 $ 32 Inventory $ 15 $ 213 Other assets $ 1 $ 133 Property, fixtures and equipment $ 1,391 $ 16,511 Reacquired rights $ 498 $ 21,459 Goodwill $ 1,097 $ 37,585 Operating right-of-use assets, net of lease positions and prepaid rent $ 1,251 $ 26,199 Operating lease liabilities $ (1,247) $ (26,853) Deferred revenues - gift card liabilities assumed $ (5) $ (160) FIRST WATCH RESTAURANT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 70

During Fiscal 2023, the Company acquired substantially all the assets associated with 23 franchise operated First Watch restaurants. The details of each acquisition are as follows: DATE OF ACQUISITION (dollars in thousands) MAY 1, 2023 JUNE 26, 2023 AUG