Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37379 | |
Entity Registrant Name | ONE GROUP HOSPITALITY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 14-1961545 | |
Entity Address, Address Line One | 1624 Market Street | |
Entity Address, Address Line Two | Suite 311 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 646 | |
Local Phone Number | 624-2400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | STKS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,273,343 | |
Entity Central Index Key | 0001399520 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 22,137 | $ 55,121 |
Accounts receivable | 11,478 | 15,220 |
Inventory | 5,923 | 5,728 |
Other current assets | 2,093 | 2,091 |
Due from related parties | 376 | 376 |
Total current assets | 42,007 | 78,536 |
Property and equipment, net | 125,408 | 94,087 |
Operating lease right-of-use assets | 93,366 | 85,161 |
Deferred tax assets, net | 13,320 | 12,323 |
Intangibles, net | 15,310 | 15,290 |
Other assets | 4,752 | 4,774 |
Security deposits | 853 | 853 |
Total assets | 295,016 | 291,024 |
Current liabilities: | ||
Accounts payable | 11,751 | 13,055 |
Accrued expenses | 24,197 | 22,409 |
Deferred gift card revenue and other | 1,254 | 2,115 |
Current portion of operating lease liabilities | 6,629 | 6,336 |
Current portion of long-term debt | 1,375 | 1,500 |
Other current liabilities | 259 | 256 |
Total current liabilities | 45,465 | 45,671 |
Operating lease liabilities, net of current portion | 115,999 | 105,247 |
Long-term debt, net of current portion | 70,881 | 70,544 |
Other long-term liabilities | 907 | 972 |
Total liabilities | 233,252 | 222,434 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value, 75,000,000 shares authorized; 33,514,057 issued and 31,273,343 outstanding at September 30, 2023 and 32,829,995 issued and 31,735,423 outstanding at December 31, 2022 | 3 | 3 |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | ||
Treasury stock, 2,240,714 and 1,094,572 shares at cost at September 30, 2023 and December 31, 2022, respectively | (14,858) | (7,169) |
Additional paid-in capital | 57,083 | 55,583 |
Retained earnings | 24,242 | 24,166 |
Accumulated other comprehensive loss | (2,999) | (2,869) |
Total stockholders' equity | 63,471 | 69,714 |
Noncontrolling interests | (1,707) | (1,124) |
Total equity | 61,764 | 68,590 |
Total liabilities and equity | $ 295,016 | $ 291,024 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 33,514,057 | 32,829,995 |
Common stock, shares outstanding | 31,273,343 | 31,735,423 |
Preferred stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,240,714 | 1,094,572 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Owned restaurant net revenue | $ 73,700 | $ 69,538 | $ 232,202 | $ 216,984 |
Management, license and incentive fee revenue | 3,184 | 3,482 | 10,631 | 11,342 |
Total revenues | 76,884 | 73,020 | 242,833 | 228,326 |
Owned operating expenses: | ||||
Owned restaurant cost of sales | 18,230 | 17,281 | 56,300 | 55,231 |
Owned restaurant operating expenses | 46,372 | 43,136 | 141,983 | 126,818 |
Total owned operating expenses | 64,602 | 60,417 | 198,283 | 182,049 |
General and administrative (including stock-based compensation of $1,244, $1,001, $3,798, $2,791 for the three and nine months ended September 30, 2023 and 2022, respectively) | 7,280 | 6,447 | 22,803 | 20,587 |
Depreciation and amortization | 3,732 | 2,930 | 10,894 | 8,571 |
Pre-opening expenses | 3,097 | 2,684 | 6,005 | 3,833 |
COVID-19 related expenses | 2,534 | |||
Lease termination expenses | 255 | |||
Other expenses | 128 | 51 | 480 | 51 |
Total costs and expenses | 78,839 | 72,529 | 238,465 | 217,880 |
Operating (loss) income | (1,955) | 491 | 4,368 | 10,446 |
Other expenses, net: | ||||
Interest expense, net of interest income | 1,673 | 435 | 5,102 | 1,387 |
Total other expenses, net | 1,673 | 435 | 5,102 | 1,387 |
(Loss) Income before provision for income taxes | (3,628) | 56 | (734) | 9,059 |
(Benefit) provision for income taxes | (375) | (321) | (227) | 721 |
Net (loss) income | (3,253) | 377 | (507) | 8,338 |
Less: net loss attributable to noncontrolling interest | (155) | (105) | (583) | (117) |
Net (loss) income attributable to The ONE Group Hospitality, Inc. | (3,098) | 482 | 76 | 8,455 |
Currency translation loss | (112) | (87) | (130) | (348) |
Comprehensive (loss) income attributable to The ONE Group Hospitality, Inc. | $ (3,210) | $ 395 | $ (54) | $ 8,107 |
Net (loss) income attributable to The ONE Group Hospitality, Inc. per share: | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.10) | $ 0.01 | $ 0.26 | |
Diluted net (loss) income per share (in dollars per share) | $ (0.10) | $ 0.01 | $ 0.25 | |
Shares used in computing basic (loss) income per share (in shares) | 31,515,011 | 32,663,549 | 31,657,761 | 32,496,780 |
Shares used in computing diluted (loss) income per share (in shares) | 31,515,011 | 33,921,498 | 32,537,572 | 34,062,661 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Stock-based compensation | $ 1,244 | $ 1,001 | $ 3,798 | $ 2,791 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common stock | Treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests | Stockholders' equity | Total |
Balance at Dec. 31, 2021 | $ 3 | $ (37) | $ 53,481 | $ 10,632 | $ (2,645) | $ (909) | $ 61,434 | $ 60,525 |
Balance (in shares) at Dec. 31, 2021 | 32,125,762 | |||||||
Stock-based compensation | 879 | 879 | 879 | |||||
Stock-based compensation, (in shares) | 7,162 | |||||||
Issuance of vested restricted shares, net of tax withholding | (314) | (314) | (314) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 127,413 | |||||||
Gain (Loss) on foreign currency translation, net | (92) | (92) | (92) | |||||
Net income (Loss) | 3,670 | (149) | 3,670 | 3,521 | ||||
Balance at Mar. 31, 2022 | $ 3 | (37) | 54,046 | 14,302 | (2,737) | (1,058) | 65,577 | 64,519 |
Balance (in shares) at Mar. 31, 2022 | 32,260,337 | |||||||
Balance at Dec. 31, 2021 | $ 3 | (37) | 53,481 | 10,632 | (2,645) | (909) | 61,434 | 60,525 |
Balance (in shares) at Dec. 31, 2021 | 32,125,762 | |||||||
Net income (Loss) | 8,338 | |||||||
Balance at Sep. 30, 2022 | $ 3 | (3,540) | 54,347 | 19,087 | (2,993) | (1,026) | 66,904 | 65,878 |
Balance (in shares) at Sep. 30, 2022 | 32,231,728 | |||||||
Balance at Mar. 31, 2022 | $ 3 | (37) | 54,046 | 14,302 | (2,737) | (1,058) | 65,577 | 64,519 |
Balance (in shares) at Mar. 31, 2022 | 32,260,337 | |||||||
Stock-based compensation | 911 | 911 | 911 | |||||
Stock-based compensation, (in shares) | 10,214 | |||||||
Exercise of stock options | 28 | 28 | 28 | |||||
Exercise of stock options (in shares) | 13,261 | |||||||
Issuance of vested restricted shares, net of tax withholding | (1,242) | (1,242) | (1,242) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 365,589 | |||||||
Gain (Loss) on foreign currency translation, net | (169) | (169) | (169) | |||||
Net income (Loss) | 4,303 | 137 | 4,303 | 4,440 | ||||
Balance at Jun. 30, 2022 | $ 3 | (37) | 53,743 | 18,605 | (2,906) | (921) | 69,408 | 68,487 |
Balance (in shares) at Jun. 30, 2022 | 32,649,401 | |||||||
Stock-based compensation | 1,001 | 1,001 | 1,001 | |||||
Stock-based compensation, (in shares) | 11,293 | |||||||
Issuance of vested restricted shares, net of tax withholding | (397) | (397) | (397) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 71,034 | |||||||
Purchase of treasury stock | (3,503) | (3,503) | (3,503) | |||||
Purchase of treasury stock (in shares) | (500,000) | |||||||
Gain (Loss) on foreign currency translation, net | (87) | (87) | (87) | |||||
Net income (Loss) | 482 | (105) | 482 | 377 | ||||
Balance at Sep. 30, 2022 | $ 3 | (3,540) | 54,347 | 19,087 | (2,993) | (1,026) | 66,904 | 65,878 |
Balance (in shares) at Sep. 30, 2022 | 32,231,728 | |||||||
Balance at Dec. 31, 2022 | $ 3 | (7,169) | 55,583 | 24,166 | (2,869) | (1,124) | 69,714 | 68,590 |
Balance (in shares) at Dec. 31, 2022 | 31,735,423 | |||||||
Stock-based compensation | 1,320 | 1,320 | 1,320 | |||||
Stock-based compensation, (in shares) | 16,205 | |||||||
Issuance of vested restricted shares, net of tax withholding | (1,432) | (1,432) | (1,432) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 247,536 | |||||||
Purchase of treasury stock | (735) | (735) | (735) | |||||
Purchase of treasury stock (in shares) | (118,085) | |||||||
Gain (Loss) on foreign currency translation, net | (70) | (70) | (70) | |||||
Net income (Loss) | 2,606 | (276) | 2,606 | 2,330 | ||||
Balance at Mar. 31, 2023 | $ 3 | (7,904) | 55,471 | 26,772 | (2,939) | (1,400) | 71,403 | 70,003 |
Balance (in shares) at Mar. 31, 2023 | 31,881,079 | |||||||
Balance at Dec. 31, 2022 | $ 3 | (7,169) | 55,583 | 24,166 | (2,869) | (1,124) | 69,714 | $ 68,590 |
Balance (in shares) at Dec. 31, 2022 | 31,735,423 | |||||||
Exercise of stock options (in shares) | 33,000 | |||||||
Net income (Loss) | $ (507) | |||||||
Balance at Sep. 30, 2023 | $ 3 | (14,858) | 57,083 | 24,242 | (2,999) | (1,707) | 63,471 | 61,764 |
Balance (in shares) at Sep. 30, 2023 | 31,273,343 | |||||||
Balance at Mar. 31, 2023 | $ 3 | (7,904) | 55,471 | 26,772 | (2,939) | (1,400) | 71,403 | 70,003 |
Balance (in shares) at Mar. 31, 2023 | 31,881,079 | |||||||
Stock-based compensation | 1,234 | 1,234 | 1,234 | |||||
Stock-based compensation, (in shares) | 17,930 | |||||||
Exercise of stock options and warrants | 226 | 226 | 226 | |||||
Exercise of stock options and warrants (in shares) | 135,500 | |||||||
Issuance of vested restricted shares, net of tax withholding | (370) | (370) | (370) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 66,717 | |||||||
Purchase of treasury stock | (3,418) | (3,418) | (3,418) | |||||
Purchase of treasury stock (in shares) | (478,992) | |||||||
Gain (Loss) on foreign currency translation, net | 52 | 52 | 52 | |||||
Net income (Loss) | 568 | (152) | 568 | 416 | ||||
Balance at Jun. 30, 2023 | $ 3 | (11,322) | 56,561 | 27,340 | (2,887) | (1,552) | 69,695 | 68,143 |
Balance (in shares) at Jun. 30, 2023 | 31,622,234 | |||||||
Stock-based compensation | 1,244 | 1,244 | 1,244 | |||||
Stock-based compensation, (in shares) | 23,865 | |||||||
Exercise of stock options | 75 | 75 | 75 | |||||
Exercise of stock options (in shares) | 22,500 | |||||||
Issuance of vested restricted shares, net of tax withholding | (797) | (797) | (797) | |||||
Issuance of vested restricted shares, net of tax withholding (in shares) | 153,809 | |||||||
Purchase of treasury stock | (3,536) | (3,536) | (3,536) | |||||
Purchase of treasury stock (in shares) | (549,065) | |||||||
Gain (Loss) on foreign currency translation, net | (112) | (112) | (112) | |||||
Net income (Loss) | (3,098) | (155) | (3,098) | (3,253) | ||||
Balance at Sep. 30, 2023 | $ 3 | $ (14,858) | $ 57,083 | $ 24,242 | $ (2,999) | $ (1,707) | $ 63,471 | $ 61,764 |
Balance (in shares) at Sep. 30, 2023 | 31,273,343 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net (loss) income | $ (507) | $ 8,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,894 | 8,571 |
Stock-based compensation | 3,798 | 2,791 |
Amortization of debt issuance costs | 558 | 279 |
Deferred taxes | (997) | 217 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,730 | 2,971 |
Inventory | (195) | (1,073) |
Other current assets | 56 | 1,380 |
Security deposits | 48 | |
Other assets | (403) | (494) |
Accounts payable | (1,720) | (841) |
Accrued expenses | (2,067) | (7,784) |
Operating lease liabilities and right-of-use assets | 2,840 | 2,607 |
Other liabilities | (759) | (674) |
Net cash provided by operating activities | 15,228 | 16,336 |
Investing activities: | ||
Purchase of property and equipment | (38,411) | (21,309) |
Net cash used in investing activities | (38,411) | (21,309) |
Financing activities: | ||
Borrowings of long-term debt | 5,000 | |
Repayments of long-term debt and financing lease liabilities | (458) | (375) |
Exercise of stock options and warrants | 301 | 28 |
Tax-withholding obligation on stock-based compensation | (1,835) | (1,953) |
Purchase of treasury stock | (7,689) | (3,503) |
Net cash used in financing activities | (9,681) | (803) |
Effect of exchange rate changes on cash | (120) | (361) |
Net decrease in cash and cash equivalents | (32,984) | (6,137) |
Cash and cash equivalents, beginning of period | 55,121 | 23,614 |
Cash and cash equivalents, end of period | 22,137 | 17,477 |
Supplemental disclosure of cash flow data: | ||
Interest paid, net of capitalized interest | 5,051 | 1,056 |
Income taxes paid | 312 | 293 |
Accrued purchases of property and equipment | $ 8,684 | $ 4,355 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Business and Significant Accounting Policies | |
Summary of Business and Significant Accounting Policies | Note 1 – Summary of Business and Significant Accounting Policies Summary of Business The ONE Group Hospitality, Inc. and its subsidiaries (collectively, the “Company”) is an international restaurant company that develops, owns and operates, manages and licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (“F&B”) services and consulting services for hospitality venues including hotels, casinos and other high-end locations. Turn-key F&B services are food and beverage services that can be scaled, customized and implemented by the Company at a particular hospitality venue and customized for the client. The Company’s primary restaurant brands are STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality and service of a traditional upscale steakhouse, and Kona Grill, a polished casual bar-centric grill concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. As of September 30, 2023, the Company owned, operated, managed, or licensed 64 venues, including 25 STKs and 26 Kona Grills in major metropolitan cities in North America, Europe and the Middle East and 13 F&B venues in seven hotels and casinos in the United States and Europe. For those restaurants and venues that are managed or licensed, the Company generates management fees based on top-line revenues and incentive fee revenue based on a percentage of the location’s revenues and profits. Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2022, which has been derived from audited financial statements, and the accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual audited financial statements have been omitted pursuant to SEC rules and regulations. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the Company’s opinion, the accompanying unaudited interim financial statements reflect all adjustments (consisting only of normal recurring accruals and adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results expected for the full year. Additionally, the Company believes that the disclosures are sufficient for interim financial reporting purposes. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB “) issued Accounting Standards Update (“ASU“) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for smaller reporting companies for fiscal years beginning after December 15, 2022. Effective, January 1, 2023, the Company implemented ASU 2016-13. The implementation did not have a material impact on the Company’s financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net | |
Property and Equipment, Net | Note 2 – Property and Equipment, Net Property and equipment, net consist of the following (in thousands): September 30, December 31, 2023 2022 Furniture, fixtures and equipment $ 39,844 $ 33,372 Leasehold improvements 99,562 89,121 Less: accumulated depreciation (56,371) (47,528) Subtotal 83,035 74,965 Construction in progress 39,482 16,276 Restaurant smallwares 2,891 2,846 Total $ 125,408 $ 94,087 Depreciation related to property and equipment was $3.6 million and $2.9 million for the three months ended September 30, 2023 and 2022, respectively, and $10.6 million and $8.3 for the nine months ended September 30, 2023 and 2022, respectively. The Company depreciates construction in progress upon such assets being placed into service. |
Intangibles, Net
Intangibles, Net | 9 Months Ended |
Sep. 30, 2023 | |
Intangibles, Net | |
Intangibles, Net | Note 3 – Intangibles, Net Intangibles, net consists of the following (in thousands): September 30, December 31, 2023 2022 Indefinite-lived intangible assets Kona Grill trade name $ 17,400 $ 17,400 Finite-lived intangible assets 101 75 Less: accumulated amortization (2,191) (2,185) Total intangibles, net $ 15,310 $ 15,290 Finite-lived intangible assets are amortized using the straight-line method over their estimated useful life of 10 years. Amortization expense was nominal for both the three months ended September 30, 2023 and 2022. Amortization expense was nominal and $0.2 million for the nine months ended September 30, 2023 and 2022, respectively. The Company’s estimated aggregate amortization expense for each of the five succeeding fiscal years is a nominal amount annually. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Accrued Expenses | Note 4 – Accrued Expenses Accrued expenses consist of the following (in thousands): September 30, December 31, 2023 2022 Payroll and related $ 4,702 $ 5,249 Construction on new restaurants 4,773 1,903 VAT and sales taxes 3,503 4,118 Amounts due to landlords 2,404 2,949 Legal, professional and other services 767 626 Insurance 462 742 Income taxes and related 637 156 Interest 777 268 Other (1) 6,172 6,398 Total $ 24,197 $ 22,409 (1) Amount primarily relates to recurring restaurant operating expenses. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt | |
Long-Term Debt | Note 5 – Long-Term Debt Long-term debt consists of the following (in thousands): September 30, December 31, 2023 2022 Term loan agreements $ 24,000 $ 24,250 Revolving credit facility — — Delayed draw term facility 50,000 50,000 Total long-term debt 74,000 74,250 Less: current portion of long-term debt (1,375) (1,500) Less: debt issuance costs (1,744) (2,206) Total long-term debt, net of current portion $ 70,881 $ 70,544 Interest expense, net for the Company’s debt arrangements, excluding the amortization of debt issuance costs and fees, was $1.8 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively, and $5.6 million and $1.1 million for the nine months ended September 30, 2023 and 2022, respectively. Capitalized interest was $0.5 million and $1.1 million for the three and nine months ended September 30, 2023, respectively. Capitalized interest was $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023, the Company had $1.4 million in standby letters of credit outstanding for certain restaurants and $10.6 million available in its revolving credit facility, subject to certain conditions. Credit and Guaranty Agreement On October 4, 2019, in conjunction with the acquisition of Kona Grill, the Company entered into a credit agreement with Goldman Sachs Bank USA (the “Credit Agreement”). On August 6, 2021, the Company entered into the Third Amendment to the Credit Agreement to extend the maturity date for both the term loan and revolving credit facility to August 2026, to eliminate all financial covenants except a maximum net leverage ratio of 2.00 to 1.00, and to eliminate restrictions on the maximum amount of capital expenditures, the maximum number of Company-owned new locations, and credit extensions under the revolving credit facility. As amended, the Credit Agreement provides for a secured revolving credit facility of $12.0 million and a $25.0 million term loan (reduced from $48.0 million). The term loan is payable in quarterly installments of $0.1 million, with the final payment due in August 2026. On December 13, 2022, the Company entered into the Fourth Amendment to the Credit Agreement that: ● Allows for a new $50.0 million delayed draw term facility, available to draw for twelve months and subject to a 1.75 x Net Leverage Ratio incurrence test (as defined in the Credit Agreement) for permitted acquisitions, stock repurchases and new restaurant capital expenditures; ● Allows the Company to redeem, repurchase or otherwise acquire its own capital stock in an aggregate amount of up to $50 million subject to a 1.75 x Net Leverage Ratio incurrence test and no default or event of default; and ● Changed the interest rate from London Interbank Offered Rate (“LIBOR“) plus a margin to Secured Overnight Financing Rate (“SOFR”) plus an applicable margin. The Company borrowed $50.0 million on the delayed draw term facility on December 28, 2022. The delayed draw term loan is payable in quarterly installments of $0.25 million beginning March 31, 2024, with the final payment due in August 2026. Loans under the amended Credit Agreement bear interest at a rate per annum using the SOFR rate subject to a 1.00% floor plus an interest rate margin of 6.50%. The Company’s weighted average interest rate on the borrowings under the amended Credit Agreement as of September 30, 2023 and December 31, 2022 was 12.40% and 10.31%, respectively. The Credit Agreement contains customary representations, warranties and conditions to borrowing including customary affirmative and negative covenants that limit or restrict the Company’s ability to incur indebtedness and other obligations, grant liens to secure obligations, make investments, merge or consolidate, alter the organizational structure of the Company and its subsidiaries, and dispose of assets outside the ordinary course of business, in each case subject to customary exceptions for credit facilities of this size and type. The Company and certain operating subsidiaries of the Company guarantee the obligations under the amended Credit Agreement, which also are secured by liens on substantially all of the assets of the Company and its subsidiaries. As of September 30, 2023, the Company had $1.7 million of debt issuance costs related to the amended Credit Agreement, which were capitalized and are recorded as a direct deduction to long-term debt and $0.4 million in debt issuance costs recorded in Other Assets on the condensed consolidated balance sheets. As of September 30, 2023, the Company was in compliance with the financial covenants required by the Credit Agreement. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 6 – Fair Value of Financial Instruments Cash and cash equivalents, accounts receivable, inventory, accounts payable and accrued expenses are carried at cost, which approximates fair value. Long-lived assets are measured and disclosed at fair value on a nonrecurring basis if an impairment is identified. There were no long-lived assets measured at fair value as of September 30, 2023. The Company’s long-term debt, including the current portion, is carried at cost on the condensed consolidated balance sheets. Fair value of long-term debt, including the current portion, is valued using Level 2 inputs including current applicable rates for similar instruments and approximates the carrying value of such obligations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | Note 7 – Income Taxes Income taxes are recorded at the Company’s estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur. The Company recorded a benefit for income taxes of $0.2 million for the nine months ended September 30, 2023 compared to income tax expense of $0.7 million for the nine months ended September 30, 2022. The Company’s effective income tax rate including discrete events was 30.9% for the nine months ended September 30, 2023 compared to 8.0% for the nine months ended September 30, 2022. The increase in the effective income tax rate is primarily the result of discrete items in comparison to lower pre-tax book income for the period. The Company’s projected annual effective tax rate for fiscal year 2023 is expected to be approximately 5.0%. The Company’s projected annual effective tax rate differs from the statutory U.S. tax rate of 21% primarily due to the following: (i) tax credits for FICA taxes on certain employees’ tips (ii) taxes owed in foreign jurisdictions with tax rates that differ from the U.S. statutory rate; (iii) taxes owed in state and local jurisdictions; and (iv) the tax effect of non-deductible compensation. The income tax (benefit) provision recorded for the nine months ended September 30, 2023 and 2022 included the discrete period tax benefits resulting from the vesting of restricted stock units. The Company is subject to U.S. federal, state, local and various foreign income taxes for the jurisdictions in which it operates. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In the normal course of business, the Company is subject to examination by the federal, state, local and foreign taxing authorities. There are no ongoing federal, state, local, or foreign tax examinations as of September 30, 2023. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 8 – Revenue from Contracts with Customers The following table provides information about liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue, the Konavore rewards program and deposits from customers for future events (in thousands): September 30, December 31, 2023 2022 Deferred license revenue (1) $ 238 $ 297 Deferred gift card and gift certificate revenue (2) $ 791 $ 1,680 Advanced party deposits (2) $ 463 $ 435 Konavore rewards program (3) $ 170 $ 163 (1) Includes the current and long-term portion of deferred license revenue. (2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the condensed consolidated balance sheets. (3) Konavore rewards program is included in accrued expenses on the condensed consolidated balance sheets. Revenue recognized during the period from contract liabilities as of the preceding fiscal year end date is as follows (in thousands): September 30, September 30, 2023 2022 Revenue recognized from deferred license revenue $ 60 $ 60 Revenue recognized from deferred gift card revenue $ 1,121 $ 1,126 Revenue recognized from advanced party deposits $ 278 $ 243 The estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2023 were as follows for each year ending (in thousands): 2023, three months remaining $ 19 2024 45 2025 44 2026 37 2027 34 Thereafter 59 Total future estimated deferred license revenue $ 238 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 9 – Leases The components of lease expense for the nine months ended September 30, 2023 and 2022 are as follows (in thousands): September 30, September 30, 2023 2022 Lease cost Operating lease cost $ 12,104 $ 10,999 Finance lease cost Amortization of ROU assets 155 — Interest on lease liabilities 62 — Total finance lease cost 217 — Variable lease cost (1) 8,499 7,707 Short-term lease cost 805 650 Total lease cost $ 21,625 $ 19,356 Weighted average remaining lease term Operating leases 13 years 13 years Finance leases 4 years — Weighted average discount rate Operating leases 8.63 % 8.37 % Finance leases 9.07 % — % (1) Variable lease cost is comprised of percentage rent and common area maintenance. Supplemental cash flow information related to leases for the period was as follows (in thousands): September 30, December 31, 2023 2022 Finance lease right-of-use assets (1) $ 868 $ 942 Current portion of finance lease liabilities (1) 206 177 Long-term portion of finance lease liabilities (1) 722 754 (1) Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the consolidated balance sheet. September 30, September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,760 $ 9,896 Operating cash flows from finance leases $ 155 $ — Financing cash flows from finance leases $ 208 $ — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,039 $ 3,709 Finance leases $ 81 $ — The Company has entered into three operating leases for future restaurants that have not commenced as of September 30, 2023. The present value of the aggregate future commitment related to these leases, net of tenant improvement allowances received from the landlord, is estimated to be $5.7 million. The Company expects these leases, which have initial lease terms of 10 years and two 5-year As of September 30, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2023, three months remaining $ (1,183) 2024 14,656 2025 16,497 2026 16,562 2027 16,968 Thereafter 157,319 Total lease payments 220,819 Less: imputed interest (98,191) Present value of operating lease liabilities $ 122,628 As of September 30, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands): 2023 $ 127 2024 254 2025 254 2026 254 2027 212 Total lease payments 1,101 Less: imputed interest (173) Present value of finance lease liabilities $ 928 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 10 – Earnings Per Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of potential shares of common stock including common stock issuable pursuant to stock options, warrants, and restricted stock units. For the three and nine months ended September 30, 2023 and 2022, net (loss) income per share was calculated as follows (in thousands, except net income per share and related share data): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (3,098) $ 482 $ 76 $ 8,455 Basic weighted average shares outstanding 31,515,011 32,663,549 31,657,761 32,496,780 Dilutive effect of stock options, warrants and restricted share units — 1,257,949 879,811 1,565,881 Diluted weighted average shares outstanding 31,515,011 33,921,498 32,537,572 34,062,661 Net income available to common stockholders per share - Basic $ (0.10) $ 0.01 $ — $ 0.26 Net income available to common stockholders per share - Diluted $ (0.10) $ 0.01 $ — $ 0.25 For the three months ended September 30, 2023 and 2022, 0.7 million and a nominal amount, respectively, of stock options, warrants and restricted share units were determined to be anti-dilutive and were therefore excluded from the calculation of diluted earnings per share. For the nine months ended September 30, 2023 and 2022, a nominal amount of stock options, warrants and restricted share units were anti-dilutive. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2023 | |
Stockholder's Equity | |
Stockholder's Equity | Note 11 – Stockholder’s Equity Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001. There were no shares of preferred stock that were issued or outstanding at September 30, 2023 or December 31, 2022. Common Stock Stock Purchase Program In September 2022, the Company’s Board of Directors authorized a repurchase program of up to |
Stock-Based Compensation and Wa
Stock-Based Compensation and Warrants | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation and Warrants | |
Stock-Based Compensation and Warrants | Note 12 – Stock-Based Compensation and Warrants As of September 30, 2023, the Company had 3,297,571 shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan). Stock-based compensation cost was $1.2 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $2.8 million for the nine months ended September 30, 2023 and 2022, respectively. Stock-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. Included in stock-based compensation cost was $0.1 million and $0.4 million of stock granted to directors for the three and nine months ended September 30, 2023 compared to $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. Such grants were awarded consistent with the Board of Director’s compensation practices. Stock-based compensation for the three and nine months ended September 30, 2023 included $0.2 million and $0.6 million, respectively, of compensation costs for the vesting of market condition-based restricted stock units (“RSUs”). Stock Option Activity Stock options in the table below include both time-based and market condition-based awards. Changes in stock options during the nine months ended September 30, 2023 were as follows: Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding and Exercisable at December 31, 2022 1,187,352 $ 3.43 2.84 years $ 3,811 Granted — — Exercised (33,000) $ 2.95 Cancelled, expired or forfeited — — Outstanding and Exercisable at September 30, 2023 1,154,352 $ 3.44 2.07 years $ 2,373 Restricted Stock Unit Activity The Company issues restricted stock units under the 2019 Equity Plan. RSUs in the table below include both time-based and market condition-based awards. The fair value of time-based RSUs is determined based upon the closing fair market value of the Company’s common stock on the grant date. RSU awards granted during September 2022 included 500,000 RSUs awarded to our Chief Executive Officer with both a market condition and time element (the “CEO RSUs”). The CEO RSUs may be earned based on achieving common stock price targets within a 48-month A summary of the status of RSUs and changes during the nine months ended September 30, 2023 is presented below: Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2022 1,839,432 $ 6.62 Granted 442,618 7.59 Vested (819,169) 5.42 Cancelled, expired or forfeited (70,341) 6.53 Non-vested RSUs at September 30, 2023 1,392,540 $ 7.62 As of September 30, 2023, the Company had approximately $9.3 million of unrecognized compensation costs related to both time-based and market condition-based RSUs, which will be recognized over a weighted average period of 2.4 years. Warrants During the three months ended June 30, 2023, warrants to purchase 125,000 shares of common stock at an exercise price of $1.63 per share were exercised. There were no warrants outstanding as of September 30, 2023. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting | |
Segment Reporting | Note 13 – Segment Reporting The Company has identified its reportable operating segments as follows: ● STK . The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and pre-opening expenses associated with new restaurants under development. ● Kona Grill . The Kona Grill segment includes the results of operations of Kona Grill restaurant locations and pre-opening expenses associated with new restaurants under development. ● ONE Hospitality . The ONE Hospitality segment is composed of the management, license and incentive fee revenue and results of operations generated from the Company’s other brands and venue concepts, which include ANGEL, Bao Yum Heliot, Hideout, Radio, and Rivershore Bar & Grill. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations. ● Corporate . The Corporate segment consists of the following: general and administrative costs, stock-based compensation, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs. The Corporate segment’s total assets primarily include cash and cash equivalents, the Kona Grill tradename, and deferred tax assets. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as revenues less operating expenses, related to the Company’s four operating segments. Certain financial information relating to the three and nine months ended September 30, 2023 and 2022 for each segment is provided below (in thousands). STK Kona Grill ONE Hospitality Corporate Total For the three months ended September 30, 2023 Total revenues $ 43,709 32,775 345 55 76,884 Operating income (loss) $ 6,003 (444) (131) (7,383) (1,955) Capital asset additions (1) $ 8,775 6,012 8 (280) 14,515 For the nine months ended September 30, 2023 Total revenues $ 143,420 97,961 1,188 264 242,833 Operating income (loss) $ 26,957 910 (174) (23,325) 4,368 Capital asset additions (1) $ 19,730 17,427 34 1,220 38,411 As of September 30, 2023 Total assets $ 132,050 96,185 5,361 61,420 295,016 STK Kona Grill ONE Hospitality Corporate Total For the three months ended September 30, 2022 Total revenues $ 42,347 30,069 483 121 73,020 Operating income (loss) $ 6,448 259 216 (6,432) 491 Capital asset additions $ 5,788 2,761 58 611 9,218 For the nine months ended September 30, 2022 Total revenues $ 131,865 94,756 1,340 365 228,326 Operating income (loss) $ 28,379 5,094 377 (23,404) 10,446 Capital asset additions $ 13,122 6,029 111 2,047 21,309 As of December 31, 2022 Total assets $ 113,911 78,691 5,746 92,676 291,024 (1) Capital asset additions for the Corporate segment include furniture, fixtures, and equipment for restaurants that the Company plans to open in the future. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2023 | |
Geographic Information | |
Geographic Information | Note 14 – Geographic Information Certain financial information by geographic location is provided below (in thousands). For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Domestic revenues $ 75,990 $ 71,860 $ 239,663 $ 224,596 International revenues 894 1,160 3,170 3,730 Total revenues $ 76,884 $ 73,020 $ 242,833 $ 228,326 September 30, December 31, 2023 2022 Domestic long-lived assets $ 251,254 $ 211,143 International long-lived assets 1,755 1,345 Total long-lived assets $ 253,009 $ 212,488 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies The Company is party to claims in lawsuits incidental to its business, including lease disputes and employee-related matters. The Company has recorded accruals, when necessary, in its consolidated financial statements in accordance with ASC 450, Contingencies. While the resolution of a lawsuit, proceeding or claim may have an impact on the Company’s financial results for the period in which it is resolved, in the opinion of management, the ultimate outcome of such matters and judgements in which the Company is currently involved, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Business and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2022, which has been derived from audited financial statements, and the accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual audited financial statements have been omitted pursuant to SEC rules and regulations. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the Company’s opinion, the accompanying unaudited interim financial statements reflect all adjustments (consisting only of normal recurring accruals and adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results expected for the full year. Additionally, the Company believes that the disclosures are sufficient for interim financial reporting purposes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB “) issued Accounting Standards Update (“ASU“) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for smaller reporting companies for fiscal years beginning after December 15, 2022. Effective, January 1, 2023, the Company implemented ASU 2016-13. The implementation did not have a material impact on the Company’s financial statements. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | Property and equipment, net consist of the following (in thousands): September 30, December 31, 2023 2022 Furniture, fixtures and equipment $ 39,844 $ 33,372 Leasehold improvements 99,562 89,121 Less: accumulated depreciation (56,371) (47,528) Subtotal 83,035 74,965 Construction in progress 39,482 16,276 Restaurant smallwares 2,891 2,846 Total $ 125,408 $ 94,087 |
Intangibles, Net (Tables)
Intangibles, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangibles, Net | |
Schedule of intangibles, net | Intangibles, net consists of the following (in thousands): September 30, December 31, 2023 2022 Indefinite-lived intangible assets Kona Grill trade name $ 17,400 $ 17,400 Finite-lived intangible assets 101 75 Less: accumulated amortization (2,191) (2,185) Total intangibles, net $ 15,310 $ 15,290 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): September 30, December 31, 2023 2022 Payroll and related $ 4,702 $ 5,249 Construction on new restaurants 4,773 1,903 VAT and sales taxes 3,503 4,118 Amounts due to landlords 2,404 2,949 Legal, professional and other services 767 626 Insurance 462 742 Income taxes and related 637 156 Interest 777 268 Other (1) 6,172 6,398 Total $ 24,197 $ 22,409 (1) Amount primarily relates to recurring restaurant operating expenses. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): September 30, December 31, 2023 2022 Term loan agreements $ 24,000 $ 24,250 Revolving credit facility — — Delayed draw term facility 50,000 50,000 Total long-term debt 74,000 74,250 Less: current portion of long-term debt (1,375) (1,500) Less: debt issuance costs (1,744) (2,206) Total long-term debt, net of current portion $ 70,881 $ 70,544 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Schedule of contract liabilities | The following table provides information about liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue, the Konavore rewards program and deposits from customers for future events (in thousands): September 30, December 31, 2023 2022 Deferred license revenue (1) $ 238 $ 297 Deferred gift card and gift certificate revenue (2) $ 791 $ 1,680 Advanced party deposits (2) $ 463 $ 435 Konavore rewards program (3) $ 170 $ 163 (1) Includes the current and long-term portion of deferred license revenue. (2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the condensed consolidated balance sheets. (3) Konavore rewards program is included in accrued expenses on the condensed consolidated balance sheets. |
Revenue recognized during the period from contract liabilities | Revenue recognized during the period from contract liabilities as of the preceding fiscal year end date is as follows (in thousands): September 30, September 30, 2023 2022 Revenue recognized from deferred license revenue $ 60 $ 60 Revenue recognized from deferred gift card revenue $ 1,121 $ 1,126 Revenue recognized from advanced party deposits $ 278 $ 243 |
Schedule of estimated deferred license revenue to be recognized in the future related to performance obligations | The estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2023 were as follows for each year ending (in thousands): 2023, three months remaining $ 19 2024 45 2025 44 2026 37 2027 34 Thereafter 59 Total future estimated deferred license revenue $ 238 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of components of lease expense | The components of lease expense for the nine months ended September 30, 2023 and 2022 are as follows (in thousands): September 30, September 30, 2023 2022 Lease cost Operating lease cost $ 12,104 $ 10,999 Finance lease cost Amortization of ROU assets 155 — Interest on lease liabilities 62 — Total finance lease cost 217 — Variable lease cost (1) 8,499 7,707 Short-term lease cost 805 650 Total lease cost $ 21,625 $ 19,356 Weighted average remaining lease term Operating leases 13 years 13 years Finance leases 4 years — Weighted average discount rate Operating leases 8.63 % 8.37 % Finance leases 9.07 % — % (1) Variable lease cost is comprised of percentage rent and common area maintenance. |
Summary of components of finance lease assets and liabilities on the consolidated balance sheet | Supplemental cash flow information related to leases for the period was as follows (in thousands): September 30, December 31, 2023 2022 Finance lease right-of-use assets (1) $ 868 $ 942 Current portion of finance lease liabilities (1) 206 177 Long-term portion of finance lease liabilities (1) 722 754 (1) Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the consolidated balance sheet. |
Schedule of supplemental cash flow information related to leases | September 30, September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,760 $ 9,896 Operating cash flows from finance leases $ 155 $ — Financing cash flows from finance leases $ 208 $ — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,039 $ 3,709 Finance leases $ 81 $ — |
Schedule of maturities of operating lease liabilities | As of September 30, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2023, three months remaining $ (1,183) 2024 14,656 2025 16,497 2026 16,562 2027 16,968 Thereafter 157,319 Total lease payments 220,819 Less: imputed interest (98,191) Present value of operating lease liabilities $ 122,628 |
Schedule of maturities of finance lease liabilities | As of September 30, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands): 2023 $ 127 2024 254 2025 254 2026 254 2027 212 Total lease payments 1,101 Less: imputed interest (173) Present value of finance lease liabilities $ 928 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | For the three and nine months ended September 30, 2023 and 2022, net (loss) income per share was calculated as follows (in thousands, except net income per share and related share data): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (3,098) $ 482 $ 76 $ 8,455 Basic weighted average shares outstanding 31,515,011 32,663,549 31,657,761 32,496,780 Dilutive effect of stock options, warrants and restricted share units — 1,257,949 879,811 1,565,881 Diluted weighted average shares outstanding 31,515,011 33,921,498 32,537,572 34,062,661 Net income available to common stockholders per share - Basic $ (0.10) $ 0.01 $ — $ 0.26 Net income available to common stockholders per share - Diluted $ (0.10) $ 0.01 $ — $ 0.25 |
Stock-Based Compensation and _2
Stock-Based Compensation and Warrants (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation and Warrants | |
Schedule of stock option activity | Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding and Exercisable at December 31, 2022 1,187,352 $ 3.43 2.84 years $ 3,811 Granted — — Exercised (33,000) $ 2.95 Cancelled, expired or forfeited — — Outstanding and Exercisable at September 30, 2023 1,154,352 $ 3.44 2.07 years $ 2,373 |
Schedule of RSUs and changes | Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2022 1,839,432 $ 6.62 Granted 442,618 7.59 Vested (819,169) 5.42 Cancelled, expired or forfeited (70,341) 6.53 Non-vested RSUs at September 30, 2023 1,392,540 $ 7.62 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting | |
Schedule of segment information | Certain financial information relating to the three and nine months ended September 30, 2023 and 2022 for each segment is provided below (in thousands). STK Kona Grill ONE Hospitality Corporate Total For the three months ended September 30, 2023 Total revenues $ 43,709 32,775 345 55 76,884 Operating income (loss) $ 6,003 (444) (131) (7,383) (1,955) Capital asset additions (1) $ 8,775 6,012 8 (280) 14,515 For the nine months ended September 30, 2023 Total revenues $ 143,420 97,961 1,188 264 242,833 Operating income (loss) $ 26,957 910 (174) (23,325) 4,368 Capital asset additions (1) $ 19,730 17,427 34 1,220 38,411 As of September 30, 2023 Total assets $ 132,050 96,185 5,361 61,420 295,016 STK Kona Grill ONE Hospitality Corporate Total For the three months ended September 30, 2022 Total revenues $ 42,347 30,069 483 121 73,020 Operating income (loss) $ 6,448 259 216 (6,432) 491 Capital asset additions $ 5,788 2,761 58 611 9,218 For the nine months ended September 30, 2022 Total revenues $ 131,865 94,756 1,340 365 228,326 Operating income (loss) $ 28,379 5,094 377 (23,404) 10,446 Capital asset additions $ 13,122 6,029 111 2,047 21,309 As of December 31, 2022 Total assets $ 113,911 78,691 5,746 92,676 291,024 (1) Capital asset additions for the Corporate segment include furniture, fixtures, and equipment for restaurants that the Company plans to open in the future. |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Geographic Information | |
Schedule of revenues by geographic location | Certain financial information by geographic location is provided below (in thousands). For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Domestic revenues $ 75,990 $ 71,860 $ 239,663 $ 224,596 International revenues 894 1,160 3,170 3,730 Total revenues $ 76,884 $ 73,020 $ 242,833 $ 228,326 |
Schedule of long-lived assets by geographic location | September 30, December 31, 2023 2022 Domestic long-lived assets $ 251,254 $ 211,143 International long-lived assets 1,755 1,345 Total long-lived assets $ 253,009 $ 212,488 |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Details) | Sep. 30, 2023 item restaurant |
Number of venues | 64 |
Number of hotels provided F&B services | item | 7 |
STK | |
Number of venues | 25 |
Kona Grill | |
Number of venues | 26 |
F&B Venues | |
Number of venues | 13 |
Property and Equipment, Net - T
Property and Equipment, Net - Total PPE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (56,371) | $ (47,528) |
Total | 125,408 | 94,087 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 39,844 | 33,372 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 99,562 | 89,121 |
Subtotal | ||
Property, Plant and Equipment [Line Items] | ||
Total | 83,035 | 74,965 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | 39,482 | 16,276 |
Restaurant smallwares | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,891 | $ 2,846 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property and Equipment, Net | ||||
Depreciation | $ 3.6 | $ 2.9 | $ 10.6 | $ 8.3 |
Intangibles, Net (Details)
Intangibles, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Indefinite-lived intangible assets | ||
Kona Grill trade name | $ 17,400 | $ 17,400 |
Finite-lived intangible assets | 101 | 75 |
Less: accumulated amortization | (2,191) | (2,185) |
Total intangibles, net | $ 15,310 | $ 15,290 |
Intangibles, Net - Narrative (D
Intangibles, Net - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangibles, Net | ||
Useful life | 10 years | |
Amortization expense | $ 0.2 | $ 0.2 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Expenses | ||
Payroll and related | $ 4,702 | $ 5,249 |
Construction on new restaurants | 4,773 | 1,903 |
VAT and sales taxes | 3,503 | 4,118 |
Amounts due to landlords | 2,404 | 2,949 |
Legal, professional and other services | 767 | 626 |
Insurance | 462 | 742 |
Income taxes and related | 637 | 156 |
Interest | 777 | 268 |
Other | 6,172 | 6,398 |
Total | $ 24,197 | $ 22,409 |
Long-Term Debt - Debt (Details)
Long-Term Debt - Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 74,000 | $ 74,250 |
Less: current portion of long-term debt | (1,375) | (1,500) |
Less: debt issuance costs | (1,744) | (2,206) |
Total long-term debt, net of current portion | 70,881 | 70,544 |
Delayed draw term facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 50,000 | 50,000 |
Medium-term Notes | Term loan agreements | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 24,000 | $ 24,250 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Dec. 28, 2022 | Dec. 13, 2022 | Aug. 06, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Aug. 05, 2021 | |
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 1,800 | $ 400 | $ 5,600 | $ 1,100 | |||||
Weighted average interest rate | 12.40% | 12.40% | 10.31% | ||||||
Standby letters of credit outstanding | $ 1,400 | $ 1,400 | |||||||
Debt issuance costs | 1,744 | 1,744 | $ 2,206 | ||||||
Debt instrument, floor interest rate | 1% | ||||||||
Capitalized interest | 500 | 100 | 1,100 | 200 | |||||
Other Assets | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 400 | 400 | |||||||
Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum net leverage ratio | 2% | ||||||||
Shares authorized | $ 10,000 | $ 10,000 | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 6.50% | ||||||||
Goldman Sachs Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 1,700 | 1,700 | |||||||
Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Available amount | $ 10,600 | $ 10,600 | |||||||
Secured revolving credit facility | $ 12,000 | ||||||||
Term Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Face value of debt | 25,000 | $ 48,000 | |||||||
Principal payments | $ 100 | ||||||||
Delayed draw term facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum net leverage ratio | 1.75% | ||||||||
Face value of debt | $ 50,000 | ||||||||
Principal payments | $ 250 | ||||||||
Loan received | $ 50,000 | ||||||||
Debt Instrument, delayed draw period | 12 months | ||||||||
Delayed draw term facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Shares authorized | $ 50,000 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) | Sep. 30, 2023 USD ($) |
Fair Value of Financial Instruments | |
Long-lived assets measured at fair value | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | |
Income Taxes | |||||
Income tax expense (benefit) | $ (375) | $ (321) | $ (227) | $ 721 | |
Effective income tax rate | 30.90% | 8% | 5% | ||
Foreign rate differential | 21% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred license revenue | ||
Deferred revenue | $ 238 | $ 297 |
Deferred gift card and gift certificate revenue | ||
Deferred revenue | 791 | 1,680 |
Advanced party deposits | ||
Deferred revenue | 463 | 435 |
Konavore rewards program | ||
Deferred revenue | $ 170 | $ 163 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Changes in Deferred Gift Card and Gift Certificate Revenue (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred license revenue | ||
Revenue recognized | $ 60 | $ 60 |
Deferred gift card revenue | ||
Revenue recognized | 1,121 | 1,126 |
Advanced party deposits | ||
Revenue recognized | $ 278 | $ 243 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Future Estimated Deferred License Revenue (Details) - Deferred license revenue $ in Thousands | Sep. 30, 2023 USD ($) |
2023, three months remaining | $ 19 |
2024 | 45 |
2025 | 44 |
2026 | 37 |
2027 | 34 |
Thereafter | 59 |
Total future estimated deferred license revenue | $ 238 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Lease cost | ||
Operating lease cost | $ 12,104 | $ 10,999 |
Amortization of ROU assets | 155 | |
Interest on lease liabilities | 62 | |
Total finance lease cost | 217 | |
Variable lease cost | 8,499 | 7,707 |
Short-term lease cost | 805 | 650 |
Total lease cost | $ 21,625 | $ 19,356 |
Weighted average remaining lease term - operating leases | 13 years | 13 years |
Weighted average remaining lease term - finance leases | 4 years | |
Weighted average discount rate - operating leases | 8.63% | 8.37% |
Weighted average discount rate - finance leases | 9.07% |
Leases - Finance Lease Assets a
Leases - Finance Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases | ||
Finance lease right-of-use assets | $ 868 | $ 942 |
Current portion of finance lease liabilities | 206 | 177 |
Long-term portion of finance lease liabilities | $ 722 | $ 754 |
Leases - Operating Lease - Narr
Leases - Operating Lease - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) lease Option | |
Leases | |
Number of operating leases | lease | 3 |
Number of options | Option | 2 |
Options term | 5 years |
The amount of lessee's operating lease not yet commenced | $ | $ 5.7 |
Initial lease term | 10 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases | ||
Operating cash flows from operating leases | $ 10,760 | $ 9,896 |
Operating cash flows from finance leases | 155 | |
Financing cash flows from finance leases | 208 | |
Operating leases | 9,039 | $ 3,709 |
Finance leases | $ 81 |
Leases - Operating Lease Liabil
Leases - Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2023, three months remaining | $ (1,183) |
2024 | 14,656 |
2025 | 16,497 |
2026 | 16,562 |
2027 | 16,968 |
Thereafter | 157,319 |
Total lease payments | 220,819 |
Less: imputed interest | (98,191) |
Present value of operating lease liabilities | $ 122,628 |
Leases - Finance Lease Liabilit
Leases - Finance Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Finance Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 127 |
2024 | 254 |
2025 | 254 |
2026 | 254 |
2027 | 212 |
Total lease payments | 1,101 |
Less: imputed interest | (173) |
Present value of finance lease liabilities | $ 928 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net (loss) income attributable to The ONE Group Hospitality, Inc. | $ (3,098) | $ 482 | $ 76 | $ 8,455 |
Basic weighted average shares outstanding | 31,515,011 | 32,663,549 | 31,657,761 | 32,496,780 |
Dilutive effect of stock options, warrants and restricted share units | 1,257,949 | 879,811 | 1,565,881 | |
Diluted weighted average shares outstanding | 31,515,011 | 33,921,498 | 32,537,572 | 34,062,661 |
Net income available to common stockholders per share - Basic | $ (0.10) | $ 0.01 | $ 0.26 | |
Net income available to common stockholders per share - Diluted | $ (0.10) | $ 0.01 | $ 0.25 | |
Stock options, warrants and restricted stock units. | ||||
Anti-dilutive securities excluded from the calculation of diluted earnings per share | 700,000 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | May 31, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Preferred stock, shares issued | 0 | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||
Stock Repurchase Program, Additional Authorized Amount | $ 5 | |||||
Shares repurchased | 200,000 | 500,000 | 2,200,000 | |||
Amount of shares repurchased | $ 3.5 | $ 14.8 | ||||
Maximum | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares authorized | $ 10 |
Stock-Based Compensation and _3
Stock-Based Compensation and Warrants - Summary of Status of Company's Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Shares | ||
Outstanding at the beginning (in shares) | shares | 1,187,352 | |
Exercisable at the beginning (in shares) | shares | 1,187,352 | |
Exercised (in shares) | shares | (33,000) | |
Exercisable at the ending (in shares) | shares | 1,154,352 | 1,187,352 |
Outstanding at the ending (in shares) | shares | 1,154,352 | 1,187,352 |
Weighted average exercise price | ||
Outstanding at the beginning (in dollars per share) | $ / shares | $ 3.43 | |
Exercisable at the beginning (in dollars per share) | $ / shares | 3.43 | |
Exercised (in dollars per share) | $ / shares | 2.95 | |
Exercisable at the ending (in dollars per share) | $ / shares | 3.44 | $ 3.43 |
Outstanding at the ending (in dollars per share) | $ / shares | $ 3.44 | $ 3.43 |
Weighted average remaining contractual life (Years) | ||
Weighted average remaining contractual life | 2 years 25 days | 2 years 10 months 2 days |
Exercisable weighted average remaining contractual life | 2 years 25 days | 2 years 10 months 2 days |
Intrinsic value | ||
Intrinsic value, Outstanding | $ | $ 2,373 | $ 3,811 |
Intrinsic value, Exercisable | $ | $ 2,373 | $ 3,811 |
Stock-Based Compensation and _4
Stock-Based Compensation and Warrants - Summary of Status of Company's Restricted Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Non-vested RSUs at beginning of period (in shares) | shares | 1,839,432 |
Granted (in shares) | shares | 442,618 |
Vested (in shares) | shares | (819,169) |
Cancelled, expired or forfeited (in shares) | shares | (70,341) |
Non-vested RSUs at ending of period (in shares) | shares | 1,392,540 |
Weighted Average Grant Date Fair Value | |
Non-vested RSUs at beginning of period (in dollars per share) | $ / shares | $ 6.62 |
Granted (in dollars per share) | $ / shares | 7.59 |
Vested (in dollars per share) | $ / shares | 5.42 |
Cancelled, expired or forfeited (in dollars per share) | $ / shares | 6.53 |
Non-vested RSUs at ending of period (in dollars per share) | $ / shares | $ 7.62 |
Stock-Based Compensation and _5
Stock-Based Compensation and Warrants - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 3,798 | $ 2,791 | |||
Shares available for purchase | 125,000 | 125,000 | |||
Warrants available | 0 | 0 | |||
Warrants maximum exercise price | $ 1.63 | ||||
Granted (in shares) | 442,618 | ||||
Risk-free interest rate | 3.31% | ||||
Class of Warrant or Right, Outstanding | 0 | 0 | |||
General and Administrative Expense. | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 1,200 | $ 1,000 | $ 3,800 | $ 2,800 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to non-vested awards | 9,300 | $ 9,300 | |||
Unrecognized compensation cost, recognition period | 2 years 4 months 24 days | ||||
CEO RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 200 | $ 600 | |||
Granted (in shares) | 500,000 | ||||
Contractual term | 48 months | ||||
Common stock value | $ 6.95 | $ 6.95 | $ 6.95 | ||
Volatility | 73% | ||||
Fair value of RSU | $ 2,900 | ||||
Milestone-Based Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 200 | $ 600 | |||
Equity Incentive Plan 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance | 3,297,571 | 3,297,571 | |||
Director | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 100 | $ 100 | $ 400 | $ 200 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 4 | ||||
Total revenues | $ 76,884 | $ 73,020 | $ 242,833 | $ 228,326 | |
Operating income (loss) | (1,955) | 491 | 4,368 | 10,446 | |
Capital asset additions | 14,515 | 9,218 | 38,411 | 21,309 | |
Total assets | 295,016 | 295,016 | $ 291,024 | ||
STK | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 43,709 | 42,347 | 143,420 | 131,865 | |
Operating income (loss) | 6,003 | 6,448 | 26,957 | 28,379 | |
Capital asset additions | 8,775 | 5,788 | 19,730 | 13,122 | |
Total assets | 132,050 | 132,050 | 113,911 | ||
Kona Grill | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 32,775 | 30,069 | 97,961 | 94,756 | |
Operating income (loss) | (444) | 259 | 910 | 5,094 | |
Capital asset additions | 6,012 | 2,761 | 17,427 | 6,029 | |
Total assets | 96,185 | 96,185 | 78,691 | ||
ONE Hospitality | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 345 | 483 | 1,188 | 1,340 | |
Operating income (loss) | (131) | 216 | (174) | 377 | |
Capital asset additions | 8 | 58 | 34 | 111 | |
Total assets | 5,361 | 5,361 | 5,746 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 55 | 121 | 264 | 365 | |
Operating income (loss) | (7,383) | (6,432) | (23,325) | (23,404) | |
Capital asset additions | (280) | $ 611 | 1,220 | $ 2,047 | |
Total assets | $ 61,420 | $ 61,420 | $ 92,676 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 76,884 | $ 73,020 | $ 242,833 | $ 228,326 | |
Long-lived assets | 253,009 | 253,009 | $ 212,488 | ||
Domestic | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 75,990 | 71,860 | 239,663 | 224,596 | |
Long-lived assets | 251,254 | 251,254 | 211,143 | ||
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 894 | $ 1,160 | 3,170 | $ 3,730 | |
Long-lived assets | $ 1,755 | $ 1,755 | $ 1,345 |