Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 118

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 118
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) 1,014,164 5,305 Less: imputed interest (402,884) (2,539) Total present value of lease liabilities $ 611,280 $ 2,766 _____________ (1) Excludes approximately $116.1 million of executed operating leases that have not commenced as of December 29, 2024. Sale-Leaseback Transactions In 2015, Management entered into an agreement relating to the sale and leaseback of the land for use in restaurant operations and received cash proceeds of $3.1 million. As the Company had continuing involvement with the property, the sale of the land did not qualify for sale accounting. As a result, the cash proceeds were recorded as a financing obligation. The balance of the financing obligation was $3.1 million as of December 29, 2024 and December 31, 2023. 13. Transaction Expenses (Income), Net Transaction expenses (income), net consisted of the following: FISCAL YEAR (in thousands) 2024 2023 2022 Acquisition-related costs 1,595 $ 2,062 $ — Secondary offering costs $ 1,259 1,031 1,957 Credit Agreement modification 268 127 — Contingent consideration liability revaluation (612) — 165 (Gain) Loss, net on restaurant closures/relocations 13 (73) 391 Other 64 — — Total transaction expenses (income), net $ 2,587 $ 3,147 $ 2,513 FIRST WATCH RESTAURANT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 79

During Fiscal 2024 and 2023, $1.6 million and $2.1 million of costs were incurred in connection with the acquisition of certain franchise-owned restaurants, which was partially offset by the gain recognized from the lease modification of one company-owned restaurant in 2024 and one company-owned restaurant in 2023. During Fiscal 2024 and 2023 $1.3 million and $1.0 million of costs were incurred by the Company in connection with underwritten secondary public offerings of the Company’s common stock by entities affiliated with our majority owner, Advent International L.P., (“Secondary Offerings”). During Fiscal 2022, total costs of $2.0 million were incurred by the Company in connection with Secondary Offerings as well as for the Registration Statement on Form S-3 that allows the Company to sell up to