Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Nov. 11, 2020 | Feb. 29, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | ||
Trading Symbol | KRUS | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | KURA SUSHI USA, INC. | ||
Entity Central Index Key | 0001772177 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity File Number | 001-39012 | ||
Entity Tax Identification Number | 26-3808434 | ||
Entity Address, Address Line One | 17461 Derian Avenue | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Postal Zip Code | 92614 | ||
City Area Code | 657 | ||
Local Phone Number | 333-4100 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 62 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this Form 10-K, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement for the 2021 annual meeting of stockholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended August 31, 2020. | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,342,272 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,000,050 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 9,259 | $ 38,044 |
Accounts receivable | 2,130 | 948 |
Inventories | 367 | 539 |
Due from affiliate | 12 | 226 |
Prepaid expenses and other current assets | 3,010 | 1,744 |
Total current assets | 14,778 | 41,501 |
Non-current assets: | ||
Property and equipment - net | 45,541 | 31,917 |
Operating lease right-of-use assets | 56,119 | |
Deposits and other assets | 1,941 | 1,865 |
Deferred tax assets | 1,127 | |
Total assets | 118,379 | 76,410 |
Current liabilities: | ||
Accounts payable | 4,919 | 3,684 |
Accrued expenses and other current liabilities | 720 | 1,635 |
Salaries and wages payable | 1,786 | 1,348 |
Finance leases - current | 1,004 | 994 |
Operating lease liabilities - current | 5,106 | |
Due to affiliate | 201 | 83 |
Sales tax payable | 189 | 547 |
Total current liabilities | 13,925 | 8,291 |
Non-current liabilities: | ||
Finance leases - non-current | 1,481 | 2,424 |
Operating lease liabilities - non-current | 56,918 | |
Deferred rent | 2,188 | |
Tenant allowances | 1,089 | |
Other liabilities | 342 | 237 |
Total liabilities | 72,666 | 14,229 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock | ||
Additional paid-in capital | 60,332 | 59,442 |
Retained earnings (Accumulated deficit) | (14,627) | 2,731 |
Total stockholders' equity | 45,713 | 62,181 |
Total liabilities and stockholders' equity | 118,379 | 76,410 |
Class A | ||
Stockholders' equity: | ||
Common stock | 7 | 7 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 1 | $ 1 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2020 | Aug. 31, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 7,342,000 | 7,335,000 |
Common stock, outstanding | 7,342,000 | 7,335,000 |
Class B | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 1,000,000 | 1,000,000 |
Common stock, outstanding | 1,000,000 | 1,000,000 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Sales | $ 45,168,000 | $ 64,245,000 | $ 51,744,000 |
Restaurant operating costs: | |||
Depreciation and amortization expenses | 2,980,000 | 2,055,000 | 1,624,000 |
Other costs | 6,705,000 | 7,088,000 | 5,404,000 |
Total restaurant operating costs | 49,422,000 | 54,726,000 | 43,629,000 |
General and administrative expenses | 12,064,000 | 7,748,000 | 5,965,000 |
Depreciation and amortization expenses | 180,000 | 110,000 | 51,000 |
Impairment of long-lived assets, net | 0 | 0 | 236,000 |
Total operating expenses | 61,666,000 | 62,584,000 | 49,881,000 |
Operating income (loss) | (16,498,000) | 1,661,000 | 1,863,000 |
Other expense (income): | |||
Interest expense | 136,000 | 188,000 | 128,000 |
Interest income | (450,000) | (51,000) | (12,000) |
Income (loss) before income taxes | (16,184,000) | 1,524,000 | 1,747,000 |
Income tax expense | 1,174,000 | 68,000 | 5,000 |
Net income (loss) | $ (17,358,000) | $ 1,456,000 | $ 1,742,000 |
Net income (loss) per Class A and Class B shares | |||
Basic | $ (2.08) | $ 0.28 | $ 0.35 |
Diluted | $ (2.08) | $ 0.26 | $ 0.34 |
Weighted average Class A and Class B shares | |||
Basic | 8,338 | 5,283 | 5,000 |
Diluted | 8,338 | 5,512 | 5,050 |
Food and Beverage Costs | |||
Restaurant operating costs: | |||
Cost of goods and services sold | $ 14,709,000 | $ 21,048,000 | $ 17,594,000 |
Labor and Related Costs | |||
Restaurant operating costs: | |||
Cost of goods and services sold | 18,669,000 | 19,942,000 | 15,994,000 |
Occupancy and Related Expenses | |||
Restaurant operating costs: | |||
Cost of goods and services sold | $ 6,359,000 | $ 4,593,000 | $ 3,013,000 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A | Class B | Common StockClass A | Common StockClass B | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning balances at Aug. 31, 2017 | $ 14,658 | $ 4 | $ 1 | $ 15,120 | $ (467) | ||
Beginning balance, shares at Aug. 31, 2017 | 4,000 | 1,000 | |||||
Stock-based compensation | 105 | 105 | |||||
Additional capital investment from affiliate | 5,000 | 5,000 | |||||
Net income (loss) | 1,742 | 1,742 | |||||
Ending balances at Aug. 31, 2018 | 21,505 | $ 4 | $ 1 | 20,225 | 1,275 | ||
Ending balance, shares at Aug. 31, 2018 | 4,000 | 1,000 | |||||
Stock-based compensation | 590 | 590 | |||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs | 38,630 | $ 3 | 38,627 | ||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs, shares | 3,335 | ||||||
Net income (loss) | 1,456 | 1,456 | |||||
Ending balances at Aug. 31, 2019 | 62,181 | $ 7 | $ 1 | 59,442 | 2,731 | ||
Ending balance, shares at Aug. 31, 2019 | 7,335 | 1,000 | 7,335 | 1,000 | |||
Stock-based compensation | 860 | 860 | |||||
Net income (loss) | (17,358) | (17,358) | |||||
Exercise of stock options | 30 | 30 | |||||
Exercise of stock options, shares | 7 | ||||||
Ending balances at Aug. 31, 2020 | $ 45,713 | $ 7 | $ 1 | $ 60,332 | $ (14,627) | ||
Ending balance, shares at Aug. 31, 2020 | 7,342 | 1,000 | 7,342 | 1,000 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities | |||
Net income (loss) | $ (17,358) | $ 1,456 | $ 1,742 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 3,160 | 2,165 | 1,675 |
Stock-based compensation | 860 | 590 | 105 |
Loss on disposal of property and equipment | 47 | 234 | |
Deferred income taxes | 1,121 | (61) | (60) |
Noncash lease expense | 2,326 | ||
Inventory write-downs | 50 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 629 | (427) | 170 |
Inventories | 122 | (155) | (115) |
Due from affiliate | 214 | (222) | 3 |
Prepaid expenses and other current assets | (1,320) | (1,082) | 66 |
Deposits and other assets | (548) | (816) | 53 |
Accounts payable | (614) | 1,646 | 250 |
Accrued expenses and other current liabilities | (1,024) | 1,135 | 311 |
Sales tax payable | (358) | 152 | 60 |
Salary and wages payable | 438 | 531 | 124 |
Due to affiliate | (35) | (38) | 28 |
Deferred rent and tenant allowances | 1,119 | 597 | |
Operating lease liabilities | (714) | ||
Net cash (used in) provided by operating activities | (13,004) | 5,993 | 5,243 |
Cash flows from investing activities | |||
Redemption of short-term investment | 12 | ||
Payments for property and equipment | (14,400) | (10,726) | (7,089) |
Proceeds from disposal of property and equipment | 502 | ||
Payments for initial direct costs | (319) | ||
Payments for purchases of liquor licenses | (58) | (529) | (15) |
Net cash used in investing activities | (14,777) | (11,255) | (6,590) |
Cash flows from financing activities | |||
Cash received for additional capital investment from affiliate | 5,000 | ||
Proceeds from the initial public offering, net of discounts and commissions | 43,422 | ||
Payments of costs related to the initial public offering | (4,792) | ||
Proceeds from borrowings of debt | 3,921 | ||
Repayment on debt | (3,921) | ||
Proceeds from PPP loan | 5,983 | ||
Repayment of PPP loan | (5,983) | ||
Repayment of principal on finance leases | (1,034) | (1,035) | (824) |
Proceeds from stock option exercises | 30 | ||
Net cash (used in) provided by financing activities | (1,004) | 37,595 | 4,176 |
Increase (decrease) in cash and cash equivalents | (28,785) | 32,333 | 2,829 |
Cash and cash equivalents, beginning of year | 38,044 | 5,711 | 2,882 |
Cash and cash equivalents, end of year | 9,259 | 38,044 | 5,711 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 8 | 189 | 116 |
Cash paid for income taxes (net of refunds) | 132 | 56 | 4 |
Noncash investing activities | |||
Acquisition of finance leases | 101 | 1,733 | |
Amounts unpaid for purchases of property and equipment | $ 2,219 | $ 142 | $ 57 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Aug. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 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. Initial Public Offering On August 5, 2019, the Company completed the initial public offering of its Class A common stock at a public offering price of $14.00 per share. The Company issued 3,335,000 shares, including 435,000 shares sold to the underwriters pursuant to their over -allotment option. After underwriter discounts and commissions and offering expenses, net proceeds from the offering were approximately $39 million. Effects of COVID-19 In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus, which has continued to spread, 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. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. On March 18, 2020, the Company announced the temporary closure of all of its 25 restaurants located across five states at that time and has since furloughed certain of its employees. As restrictions lifted, the Company was able to reopen certain restaurants at reduced indoor dining capacities. The Company has also started offering outdoor dining at certain restaurants. As of the filing date of this Annual Report on Form 10-K, the Company has 28 restaurants with 12 restaurants operating with indoor dining at reduced capacities of 25% to 75% and 15 restaurants operating with outdoor dining or takeout only, depending on local requirements, and one restaurant temporarily closed. To support the Company’s employees during this challenging time, the Company had maintained payroll for all employees through April 5, 2020 and all kitchen employees through May 9, 2020. The Company continued to maintain payroll for store managers and key kitchen staff during the time when their respective restaurants were temporarily closed. The Company also continued to pay the employee’s portion of health insurance for all furloughed employees through July 31, 2020. As the restaurants reopened, the Company was able to bring back certain furloughed employees. 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. Currently, due to local government restrictions, the California restaurants are not utilizing the revolving conveyor belt . All food is ordered from the tableside touchscreen and delivered to the customers’ tables by the restaurant employees for indoor dining. For outdoor dining, food is ordered and delivered by the restaurant employees. The Company has increased cleaning and sanitizing protocols of 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. The temporary restaurant closures and the reduced capacities at the reopened restaurants have caused a substantial decline in the Company’s sales in the most recently completed fiscal year. In light of the challenges posed by the COVID-19 pandemic, the Company is focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. In line with the Company’s long-term growth strategy, it expects to continue to open new restaurants at locations where it believes the restaurants have the potential to achieve profitability. Recent Events Concerning the Company’s Financial Position On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), a majority stockholder, entered into a Revolving Credit Agreement On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment. On April 14, 2020, the Company entered into a Promissory Note with Bank of the West, which provided for a loan in the amount of $6.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020. On April 29, 2020, the Company returned the proceeds received from the PPP Loan. Under the provisions of the CARES Act, the Company is eligible for a refundable employee retention credit subject to certain criteria. In connection with the CARES Act, the Company adopted a policy to recognize the employee retention credit when earned and to offset the credit against the related expenditure. Accordingly, the Company recorded a $1.8 million employee retention credit during the twelve months ended August 31, 2020, which is included in Labor and related costs in the statements of operations. The Company has received rent concessions from its landlords for certain of its restaurants in the form of rent abatements and rent deferrals which were immaterial for the twelve months ended August 31, 2020. The Company continues to have discussions with its landlords regarding potential future rent concessions. Due to the impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of August 31, 2020. The Company also assessed the realizability of its deferred tax assets and recorded a valuation allowance of $5.6 million during the twelve months ended August 31, 2020. See “Note 10. Income Taxes”. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2—Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2020”, “fiscal year 2019” and “fiscal year 2018” refer to the Company’s fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, 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. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with financial institutions and, at times, the balance may exceed the Federal Deposit Insurance Corporation federally insured limits. The Company has never experienced any losses related to these balances. Concentration of Significant Suppliers The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers. The Company is subject to supplier concentration risk as JFC International Inc., a subsidiary of Kikkoman Corporation and the Company’s largest supplier, accounted for approximately 59% 27% Segment Information Management has determined that the Company has one operating segment and therefore one reportable segment. The Company’s chief operating decision maker, who is its Chief Executive Officer, reviews financial performance and allocates resources. All of the Company’s sales are derived in the United States of America. Cash and Cash Equivalents Cash and cash equivalents consist of primarily cash on hand, deposits with banks, and term deposits with maturities of three months or less. As of August 31, 2020 and August 31, 2019, cash equivalents consist of money market funds and time deposits of approximately $8.8 million and $37.0 million, respectively. Due to the short-term maturities and their relatively low interest rates, the carrying value of the money market accounts approximates their fair value. Cash and cash equivalents are maintained at financial institutions with strong credit ratings. The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Accounts Receivable Accounts receivable consist primarily of receivables from landlords for tenant allowances and credit card receivables. The Company does not extend credit to guests and thus does not have credit risk from guests. Accounts receivable balances are stated at the amounts management expects to collect from balances outstanding at fiscal year-end, accordingly no allowance for doubtful accounts is recorded as of August 31, 2020 and August 31, 2019. Inventories Inventories consist of food and beverages, and are stated at the lower of cost or net realizable value with cost determined on a first-in, first-out basis. Property and Equipment Property and equipment consists of computer equipment, vehicles, software, furniture and fixtures, leasehold improvements and leased assets. Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the improvements. The following table represents the various types of property and equipment and their respective useful lives: Property and Equipment Useful Life Computer equipment 3 – 5 years Vehicles 5 years Software 5 years Furniture and fixtures 10 years Leasehold improvements Shorter of useful life or remaining lease term Lease assets Fixed lease term Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets. Asset Retirement Obligations Asset retirement obligations (“ARO”) represents the estimated present value of future expenses the Company expects to incur at the end of a lease to restore the location to its original condition. The ARO is recorded as a liability at its estimated present value at inception with an offsetting increase in the carrying amount of the related property and equipment in the accompanying balance sheet. Periodic accretion of the discount of the estimated liability is recorded as an interest expense in the accompanying statements of operations. Asset retirement obligations are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the leasehold improvements. The Company’s ARO liability is approximately $0.3 million and $0.2 million as of August 31, 2020 and August 31, 2019 and is included in other liabilities in the accompanying balance sheets. Impairment of Long-lived Assets The Company assesses potential impairments of its long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment test is performed on an annual basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant-level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. Factors considered in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the fiscal year ended August 31, 2018, one of the Company’s restaurants exited a lease prior to the end of the lease term. As a result, the property and equipment held at that location were deemed to be not recoverable, which was determined by comparing the net carrying value of the assets to the undiscounted net cash flows from the eventual disposition of the assets. Given the property and equipment at the restaurant will no longer be in use, the net carrying value of the assets were deemed to have zero value. This impairment was offset by a reimbursement from the landlord of $0.5 million for the termination of the lease, hence resulting in a net impairment charge of $0.2 million, which is included in operating income. During the fiscal years ended August 31, 2020 and August 31, 2019, there were no impairment charges recognized. Income Taxes The provision for income taxes, income taxes payable, and deferred income taxes are determined using the asset and liability method. Deferred income tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income. Income tax expense or benefit is the income tax payable or refundable for the period, plus or minus the change during the period to deferred income tax assets and liabilities. The Company regularly evaluates the likelihood of realizing the benefit for income tax positions it has taken in federal and state filings by considering all facts, circumstances, and information available. For those benefits that the Company believes it is more likely than not will be sustained, it recognizes the largest amount it believes is cumulatively greater than 50% likely to be realized. Revenue Recognition Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers. Sales Taxes Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the statements of operations as restaurant sales are recorded net of sales tax. Operating and Finance Leases At inception of a contract, the Company assesses whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options is reasonably assured at the inception of the lease. Operating leases are accounted for on the balance sheet with the right-of-use (“ROU”) assets and lease liabilities recognized in “Operating lease right-of-use assets”, “Operating lease liabilities - current" and "Operating lease liabilities - noncurrent" on the balance sheet, respectively. Finance leases are accounted for on the balance sheet with ROU assets and lease liabilities recognized in "Property and equipment - net”, “Finance lease - current" and "Finance lease - noncurrent" on the balance sheet, respectively. Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates corresponding to the maturities of the leases. As the Company has no outstanding debt, it estimates this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives. Depreciation of the finance lease ROU assets are subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization expense" on the statement of operations. Related to the adoption of Topic 842, the Company’s policy elections were as follows: Separation of lease and non-lease components The Company has elected a policy to account for lease and non-lease components as a single component for its entire population of operating lease assets. Short-term policy The Company has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are not recorded on the balance sheet. The Company recognizes expense for these leases on a straight-line basis over the lease term. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, such as common area maintenance, insurance and real estate taxes, which are recognized when the associated activity occurs. Additionally, contingent rental payments based on sales thresholds for certain of its restaurants are accrued based on estimated sales. Other Costs Other costs in restaurant operating costs in the accompanying statements of operations include utilities, repairs and maintenance, credit card fees, royalty payments, stock-based compensation for restaurant-level employees, and other restaurant-level expenses. The Company incurred approximately $6.7 million, $7.1 million and $5.4 million in other costs for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. Advertising Costs Advertising costs are expensed as incurred and are included in other costs in the accompanying statements of operations. The Company incurred approximately $0.3 million, $0.4 million and $0.3 million in advertising expenses for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. Fair Value Measurements The Company defines fair value as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Observable inputs other than Level 1 prices, such as unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on the Company’s own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. The Company’s financial statements include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and salaries and wages payable for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of payments due to or from Kura Japan is not determinable due to its related-party nature. Stock-based Compensation Stock-based compensation consists of stock options issued to employees and non-employees. The Company measures and recognizes stock-based compensation for the estimated fair value of stock options based on the grant date fair value of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model and is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. The Company granted 157,539, 22,000, and 419,091 stock options for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. For stock options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, which is typically the vesting period. Stock options granted in fiscal year 2020 have vesting periods ranging from 9 months to 46 months. The majority of stock options granted in fiscal 2019 and 2018 have a vesting period of approximately 45 months. The Company adopted the Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 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. Earnings Per Share Earnings per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted earnings per share assumes the conversion, exercise or issuance of all potential dilutive common stock equivalents outstanding for the period. For the purposes of this calculation, options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Diluted earnings per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. Recently Adopted Accounting Pronouncements In April 2020, the staff of the Financial Accounting Standards Board (FASB) issued a question-and-answer document that stated that entities may elect to account for lease concessions related to the effects of the COVID-19 pandemic as though the rights and obligations for those concessions existed as of the commencement of the contract rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has made such election . On September 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” (“Topic 842” or “ASC 842”), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. The Company elected the optional transition method to apply the standard as of the effective date and therefore, prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under previous lease guidance, ASC Topic 840: “Leases (Topic 840)”. The adoption of Topic 842 had a material impact on the balance sheet and an immaterial impact on the statement of operations, statement of stockholders’ equity and statement of cash flows. The practical expedients were as follows: Practical expedients The Company has not reassessed whether any expired or existing contracts are, or contain, leases. The Company has not reassessed the lease classification for any expired or existing leases. The Company has not reassessed initial direct costs for any expired or existing leases. Hindsight Practical Expedient The Company has elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. The impact on the balance sheet is as follows: August 31, 2019 Adjustments Due to the Adoption of Topic 842 September 1, 2019 (amounts in thousands) Assets Current assets: Cash and cash equivalents $ 38,044 $ — $ 38,044 Accounts receivable 948 — 948 Inventories 539 — 539 Due from affiliate 226 — 226 Prepaid expenses and other current assets (1) 1,744 (54 ) 1,690 Total current assets 41,501 (54 ) 41,447 Non-current assets: Property and equipment - net 31,917 31,917 Operating lease right-of-use assets — 35,935 35,935 Deposits and other assets (1) 1,865 (530 ) 1,335 Deferred tax assets 1,127 — 1,127 Total assets $ 76,410 $ 35,351 $ 111,761 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,684 $ — $ 3,684 Accrued expenses and other current liabilities (1) 1,635 (97 ) 1,538 Salaries and wages payable 1,348 — 1,348 Finance leases - current 994 — 994 Operating lease liabilities - current — 3,606 3,606 Due to affiliate 83 — 83 Sales tax payable 547 — 547 Total current liabilities 8,291 3,509 11,800 Non-current liabilities: Finance leases - non-current 2,424 — 2,424 Operating lease liabilities - non-current — 35,119 35,119 Deferred rent (1) 2,188 (2,188 ) — Tenant allowances (1) 1,089 (1,089 ) — Other liabilities 237 — 237 Total liabilities 14,229 35,351 49,580 Stockholders' equity: Preferred stock — — — Common stock - Class A 7 — 7 Common stock - Class B 1 — 1 Additional paid-in capital 59,442 — 59,442 Retained earnings 2,731 — 2,731 Total stockholders' equity 62,181 — 62,181 Total liabilities and stockholders' equity $ 76,410 $ 35,351 $ 111,761 (1) Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 is effective for the Company beginning in fiscal year 2022. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Aug. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 3—Balance Sheet Components Accounts Receivable Accounts receivable as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Lease receivable $ 1,811 $ 215 Credit card receivable 281 733 Other receivable 38 — Total accounts receivable $ 2,130 $ 948 Inventories Inventories as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Food $ 320 $ 491 Liquor and beverages 47 48 Total inventories $ 367 $ 539 Prepaid expenses and other current assets Prepaid expenses and other current assets as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Prepaid expenses $ 885 $ 1,293 Other current assets 375 451 Employee retention credit 1,750 — Total prepaid expenses and other current assets $ 3,010 $ 1,744 Property and Equipment, net Property and equipment, net as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Leasehold improvements $ 30,497 $ 24,926 Lease assets 6,117 6,037 Furniture and fixtures 7,908 5,600 Computer equipment 696 599 Vehicles 88 75 Software 689 428 Construction in progress 9,558 1,127 Property and equipment, gross 55,553 38,792 Less: accumulated depreciation and amortization (10,012 ) (6,875 ) Total property and equipment - net $ 45,541 $ 31,917 Depreciation and amortization expense for property and equipment was approximately $3.2 million, $2.2 million and $1.7 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018, respectively. Amortization expense related to leased assets for the fiscal years ended August 31, 2019, and August 31, 2018 was immaterial. For amortization expense related to leased assets for the fiscal year ended August 31, 2020, please see “Note 4. Leases.” Deposits and Other Assets Deposits and other assets, as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Liquor license $ 696 $ 638 Initial direct costs — 530 Deposits 1,245 697 Total deposits and other assets $ 1,941 $ 1,865 |
Leases
Leases | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 4—Leases As a result of the COVID-19 pandemic and the economic uncertainty in the restaurant industry that has resulted, the Company contacted each of its landlords to potentially negotiate accommodations to preserve cash, and for certain leases was able to modify existing payment terms, in some cases through deferral of existing payments until future periods and in some cases through a reduction in payments due during this period. The Company elected the practical expedient to not evaluate whether a deferral of rent within the current term is a lease modification. Any concessions resulting in extension of the existing lease term were accounted for as a lease modification in accordance with Topic 842, Leases. Pursuant to such guidance, the Company remeasured the modified leases using the revised terms as of the modification dates. Adjustments were made to reflect the remeasured liability with the offset to the ROU asset. Lease related costs recognized in the statements of operations for the twelve months ended August 31, 2020 are as follows: Fiscal Year Ended August 31, 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expense $ 552 Interest on lease liabilities Interest expense 120 Total finance lease cost $ 672 Fiscal Year Ended August 31, 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 5,194 Variable lease cost Occupancy and related expenses, and general and administrative expenses 1,059 Total operating lease cost $ 6,253 Supplemental balance sheet information related to leases was as follows: Operating Leases As of August 31, 2020 (amounts in thousands) Right-of-use assets $ 56,119 Lease liabilities - current $ 5,106 Lease liabilities - non-current 56,918 Total lease liabilities $ 62,024 Finance Lease Assets, net As of August 31, 2020 (amounts in thousands) Property and equipment $ 6,117 Accumulated depreciation (2,178 ) Total property and equipment - net $ 3,939 Finance Leases Liabilities As of August 31, 2020 (amounts in thousands) Finance lease - current $ 1,004 Finance lease - non-current 1,481 Total finance lease liabilities $ 2,485 As of August 31, 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.3 Finance leases 2.4 Weighted Average Discount Rate Operating leases 6.2 % Finance leases 4.4 % Supplemental disclosures of cash flow information related to leases were as follows: Fiscal Year Ended August 31, 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 4,570 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 21,203 As of August 31, 2020, the Company has additional operating leases related to restaurants the Company has not yet taken possession of $13.7 million. These operating leases will commence in fiscal year 2021 with lease terms of 20 years. Lease expense was approximately $4.7 million and $3.0 million, including contingent rent expenses of approximately $0.2 million for each of the fiscal years ended August 31, 2019 and August 31, 2018. Maturities of lease liabilities were as follows as of August 31, 2020: Operating Leases Finance Leases (amounts in thousands) 2021 $ 2,313 $ 1,102 2022 5,734 1,005 2023 5,722 483 2024 5,848 17 2025 5,981 2 Thereafter 72,913 — Total lease payments 98,511 2,609 Less: imputed interest (36,487 ) (124 ) Present value of lease liabilities $ 62,024 $ 2,485 As previously disclosed in the Company’s fiscal year 2019 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of August 31, 2019: Operating Lease Payments Capital Lease Payments (amounts in thousands) 2020 $ 4,256 $ 1,113 2021 4,435 1,075 2022 4,477 972 2023 4,465 476 2024 4,607 13 Thereafter 58,714 — Total $ 80,954 $ 3,649 Less interest (231 ) Total capital lease obligation 3,418 Less current portion of capital lease obligation (994 ) Non-current portion of capital lease obligation $ 2,424 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5—Related Party Transactions Kura Japan is a majority stakeholder of the Company and is incorporated and headquartered in Japan. In August 2019, in connection with the closing of the IPO, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan will provide the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services, market research analyses and other additional services mutually agreed upon. In exchange for such services, supplies, parts and equipment, the parties will pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required, however, from time to time, either party will net settle transactions as needed. The Company reimburses Kura Japan for purchases of supplies, expatriate salaries and travel and other administrative expenses. These expenses are included in general and administrative expenses in the accompanying statements of operations. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets. Kura Japan reimburses the Company for a portion of the directors’ and officers’ (“D&O”) insurance, as well as travel and other administrative expenses, and are included in general and administrative expenses in the accompanying statements of operations. In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company will pay Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks “Kura Sushi” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant-level in the accompanying statements of operations. Kura Japan contributed $5.0 million to the Company in fiscal year 2018 and made no capital contributions in fiscal years 2020 and 2019. No additional shares were issued in exchange for the capital contribution. On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement establishing a $20 million revolving credit line with a termination date of March 31, 2024, to provide the Company with additional liquidity. The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months. On September 2, 2020, the Company entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) with Kura Japan. Pursuant to the terms of the First Amendment, the Revolving Credit Agreement was amended, among other things, to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment Balances with Kura Japan as of August 31, 2020 and August 31, 2019 are as follows: As of August 31, 2020 2019 (amounts in thousands) Due from affiliate $ 12 $ 226 Due to affiliate 201 83 Reimbursements by the Company to Kura Japan for fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ 53 $ 46 $ 59 Expatriate salaries expense 141 147 95 Royalty payments 226 321 279 Travel and other administrative expenses 73 49 78 Purchases of equipment 1,129 685 650 Total related party transactions $ 1,622 $ 1,248 $ 1,161 Additional investment received $ — $ — $ 5,000 Reimbursements by Kura Japan to the Company for fiscal years ended August 31, 2020 and August 31, 2019 are $0.1 million for travel and other administrative expenses and $0.3 million for D&O insurance, travel and other administrative expenses, respectively. There were no reimbursements paid to the Company by Kura Japan for the fiscal year ended August 31, 2018. |
Incentive Compensation Plan
Incentive Compensation Plan | 12 Months Ended |
Aug. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation Plan | Note 6—Incentive Compensation Plan The Company adopted the 2018 Incentive Compensation Plan (the “Stock Incentive Plan”) in January 2018. Under the Stock Incentive Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, as well as performance awards in the form of shares and cash. Stock options granted under the Stock Incentive Plan include both incentive stock options and non-qualified stock options. This plan authorizes 700,000 awards to be granted. Activity under the Stock Incentive Plan is as follows: Options Outstanding Number of shares underlying outstanding options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (amounts in thousands) Outstanding—August 31, 2018 417,272 $ 4.26 9.8 $ 1,665 Options granted 22,000 8.76 Options exercised — — Options canceled/forfeited (33,970 ) 4.78 Outstanding—August 31, 2019 405,302 $ 4.46 8.8 $ 8,353 Options granted 157,539 22.08 Options exercised (7,012 ) 4.26 Options canceled/forfeited (24,082 ) 8.26 Outstanding—August 31, 2020 531,747 $ 9.51 8.3 $ 1,441 Options exercisable 257,145 $ 6.59 8.0 $ 1,446 Stock-based compensation related to the stock options issued under the Stock Incentive Plan was $0.9 million, $0.6 million, and 0.1 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 respectively, and is included in restaurant operating costs and in general and administrative expenses on the accompanying statements of operations. The total fair value of options vested was approximately $0.6 million, $0.6 million, and $0.1 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018. As of August 31, 2020, unrecognized stock-based compensation of $2.0 million related to unvested stock options is expected to be recognized on a straight-line basis over a weighted average period of 2.54 years. Stock-based Compensation Stock-based compensation for restaurant-level employees is included in other costs and stock-based compensation for corporate-level employees is included in general and administrative expenses in the statements of operations. The total stock-based compensation recognized for stock options granted under the Stock Incentive Plan in the statements of operations is as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 86 $ 80 $ 14 Corporate-level stock-based compensation included in general and administrative expenses 774 510 91 Total stock-based compensation $ 860 $ 590 $ 105 Determination of Fair Value For the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, the fair value of stock options granted to employees and non-employees was estimated on the grant date using the Black-Scholes valuation model with the following assumptions: Fiscal Years Ended August 31, 2020 2019 2018 Expected term (in years) 5.23 - 5.98 5.96 5.50 - 5.96 Expected volatility 48% - 58.5% 64 % 64 % Risk-free interest rate 0.40% - 1.67% 2.77 % 2.83% - 2.85% Dividend rate — — — Weighted average grant date fair value $ 11.01 $ 6.91 $ 4.05 Expected Term - The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Expected Volatility - Since the Company does not have a trading history of its common stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its business over a period equivalent to the expected term of the stock option grants. Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Dividend Rate - The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to do so. Fair Value of Common Stock - Given the absence of a public trading market prior to the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of its common stock at each grant date, which was $10.75 and $6.70 for the fiscal years 2019 and 2018, respectively. These factors included, but were not limited to (i) independent contemporaneous third-party valuations of common stock; (ii) the lack of marketability of its common stock; and (iii) the likelihood of achieving a liquidity event, such as an initial public offering of the Company, given prevailing market conditions. Subsequent to the IPO, the fair value of common stock is based on the closing price of the Company’s common stock, as reported on The Nasdaq Global Market. |
Debt
Debt | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt On January 31, 2019, the Company secured a non-revolving line of credit with Bank of the West in the amount of up to $5 million (the “Credit Facility”) that expired on July 31, 2020. ring fiscal year 2019, the Company drew down and paid off $3.9 million in aggregate from this credit facility. The Company did not draw down on this credit facility during fiscal year 2020. On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. As of August 31, 2020, the Company had not drawn on the available revolving credit line. For further discussion, please see “Note 1. Organization and Basis of Presentation” and “Note 5. Related Party Transactions.” Subsequent to August 31, 2020 and through the filing date of this Annual Report on Form 10-K, the Company drew down $3 million under the Revolving Credit Agreement. On April 14, 2020, the Company entered into a Promissory Note with Bank of the West, which provided for a loan in the amount of $6.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the CARES Act. On April 29, 2020, the Company returned the proceeds received from the PPP Loan. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8—Earnings Per Share The net income (loss) per share attributable to common stockholder is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net income (loss) attributable to common stockholder is allocated on a proportionate basis. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Fiscal Years Ended August 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders - basic $ (15,276 ) $ (2,082 ) $ 1,180 $ 276 $ 1,394 $ 348 Weighted average common shares outstanding - basic 7,338 1,000 4,283 1,000 4,000 1,000 Net income (loss) per share attributable to common stockholders - basic $ (2.08 ) $ (2.08 ) $ 0.28 $ 0.28 $ 0.35 $ 0.35 Net income (loss) attributable to common stockholders - diluted $ (15,276 ) $ (2,082 ) $ 1,192 $ 264 $ 1,394 $ 348 Weighted average shares outstanding - basic 7,338 1,000 4,283 1,000 4,000 1,000 Options to purchase common stock — — 229 — 50 — Weighted average shares outstanding - diluted 7,338 1,000 4,512 1,000 4,050 1,000 Net income (loss) per share attributable to common stockholders - diluted $ (2.08 ) $ (2.08 ) $ 0.26 $ 0.26 $ 0.34 $ 0.35 The Company computes basic income (loss) per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using net income and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options. For the twelve months ended August 31, 2020 there were 115 thousand potentially dilutive shares that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. There was no antidilutive effect from stock options during the fiscal years ending August 31, 2019 and August 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—Commitments and Contingencies On May 31, 2019, a putative class action complaint was filed by a former employee Brandy Gomes in Los Angeles County Superior Court, alleging violations of California wage and hour laws. On July 9, 2020, plaintiff’s counsel filed a first amended class action complaint to add Jamar Spencer, another former employee, as a plaintiff to this action. In addition, the first amended class action complaint added new causes of action alleging violations of California wage and hour laws. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. The Company intends to defend itself vigorously in this matter. The Company is currently unable to estimate the range of possible losses associated with this proceeding. The Company is involved from time to time in various legal proceedings that arise in the ordinary course of its business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings, including the putative class action matter referenced above, will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10—Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21% as of January 1, 2018 (25.3% applicable for fiscal year 2018 or 21.0% applicable for fiscal year 2019 and after), limits the deductibility of interest, changes the rules on utilization and carryover of net operating losses, limits the deductibility of officers’ compensation, allows for expensing of certain qualified fixed assets, and implements a modified territorial tax system that includes other U.S. international tax provisions. The Company has re-measured the U.S. deferred tax assets and liabilities based on the enacted tax rates which will be in effect when these differences reverse, which is estimated to be either the blended tax rate of 25.3% for fiscal year 2018 or 21.0% for after fiscal year 2019 or after. The Company has completed its assessment and reflected the income tax effects of the Act on the Company’s financial statements. The components of income (loss) before provision for taxes are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) US $ (16,184 ) $ 1,524 $ 1,747 Total $ (16,184 ) $ 1,524 $ 1,747 The components of the provision for income taxes are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Current: Federal $ — $ — $ — State 53 129 65 Total current 53 129 65 Deferred: Federal 1,047 (47 ) (146 ) State 74 (14 ) 86 Total deferred 1,121 (61 ) (60 ) Total $ 1,174 $ 68 $ 5 The Company had an effective tax rate of (7.3)%, 4.5%, and 0.3% for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 respectively. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows: Fiscal Years Ended August 31, 2020 2019 2018 Tax at federal statutory rate 21.0 % 21.0 % 25.3 % Employer tip credit 0.9 (20.2 ) (23.5 ) Stock-based compensation (0.8 ) — — Change in valuation allowance (28.3 ) — — Other items 0.5 (2.2 ) (7.8 ) State tax, net of federal benefit (0.6 ) 5.9 6.3 Effective tax rate (7.3 )% 4.5 % 0.3 % The Company recorded an income tax provision of approximately $1.2 million and $0.1 million for the fiscal years ended August 31, 2020 and August 31, 2019, respectively. The income tax provision was immaterial for the fiscal year ended August 31, 2018. The primary difference between the effective tax rate and the federal statutory tax rate relates to the recognition of valuation allowance against deferred tax assets, employer tip credits, and non-deductible stock-based compensation. The deferred income taxes reflect the tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of August 31, 2020 2019 (amounts in thousands) Deferred tax assets: General business credit $ 6,472 $ 1,789 NOL carryover 2,003 792 Lease liabilities 16,635 — Deferred rent — 602 Tenant allowance — 324 State tax deduction 12 29 Other 535 14 Gross deferred tax assets 25,657 3,550 Deferred tax liabilities: Basis difference on fixed assets (4,593 ) (2,408 ) Right-of-use assets (15,496 ) (15 ) Gross deferred tax liabilities (20,089 ) (2,423 ) Valuation allowance (5,568 ) — Net deferred tax $ — $ 1,127 As of August 31, 2020, the Company has U.S. federal net operating loss (“NOL”) carryover of approximately $27.0 million and federal tax credit carryover of approximately $2.0 million. If not utilized, $22.8 million of the federal NOL can be carried forward indefinitely, and the remainder will begin to expire in the fiscal year ending August 31, 2032. The federal tax credit will begin to expire in the fiscal year ending August 31, 2032. Utilization of the Company’s NOL and federal tax credit carryover may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended. The Company has not recorded any unrecognized tax benefits as of August 31, 2020. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain positions. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as income tax expense. The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establish valuation allowance when it is more likely than not that all or a portion of a deferred tax asset may not be realized. During the fiscal year ended August 31, 2020, the adverse effects of the COVID-19 pandemic have caused the Company to reassess the need for valuation allowances against deferred tax assets. As a result, the Company determined that it is no longer more likely than not that it will generate sufficient future U.S. taxable income to realize its deferred tax assets and, therefore, recorded valuation allowances against the net deferred tax assets. The total amount of the valuation allowances recorded was approximately $5.6 million. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Note 11—Selected Quarterly Financial Data (unaudited) The following table sets forth certain unaudited financial information for each quarter of fiscal years 2020 and 2019. The unaudited quarterly information has been prepared using unaudited financial statements and includes all adjustments consisting only of normal recurring adjustments necessary for a fair presentation of the results of the interim periods. Fiscal Quarter of 2020 First Second Third Fourth (amounts in thousands, except per share data) Sales $ 17,440 $ 19,388 $ 2,812 $ 5,528 Operating income (loss) (1,391 ) (240 ) (8,028 ) (6,839 ) Net income (loss) (1,224 ) (133 ) (9,152 ) (6,849 ) Basic income (loss) per share of Class A and Class B common stock $ (0.15 ) $ (0.02 ) $ (1.10 ) $ (0.82 ) Diluted income (loss) per share of Class A and Class B common stock $ (0.15 ) $ (0.02 ) $ (1.10 ) $ (0.82 ) Fiscal Quarter of 2019 First Second Third Fourth (amounts in thousands, except per share data) Sales $ 13,420 $ 15,117 $ 16,955 $ 18,753 Operating income (loss) (420 ) 282 834 965 Net income (loss) (391 ) 212 719 916 Basic income (loss) per share of Class A and Class B common stock $ (0.08 ) $ 0.04 $ 0.14 $ 0.15 Diluted income (loss) per share of Class A and Class B common stock $ (0.08 ) $ 0.04 $ 0.14 $ 0.15 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Initial Public Offering | Initial Public Offering On August 5, 2019, the Company completed the initial public offering of its Class A common stock at a public offering price of $14.00 per share. The Company issued 3,335,000 shares, including 435,000 shares sold to the underwriters pursuant to their over -allotment option. After underwriter discounts and commissions and offering expenses, net proceeds from the offering were approximately $39 million. |
Effects of COVID-19 | Effects of COVID-19 In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus, which has continued to spread, 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. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. On March 18, 2020, the Company announced the temporary closure of all of its 25 restaurants located across five states at that time and has since furloughed certain of its employees. As restrictions lifted, the Company was able to reopen certain restaurants at reduced indoor dining capacities. The Company has also started offering outdoor dining at certain restaurants. As of the filing date of this Annual Report on Form 10-K, the Company has 28 restaurants with 12 restaurants operating with indoor dining at reduced capacities of 25% to 75% and 15 restaurants operating with outdoor dining or takeout only, depending on local requirements, and one restaurant temporarily closed. To support the Company’s employees during this challenging time, the Company had maintained payroll for all employees through April 5, 2020 and all kitchen employees through May 9, 2020. The Company continued to maintain payroll for store managers and key kitchen staff during the time when their respective restaurants were temporarily closed. The Company also continued to pay the employee’s portion of health insurance for all furloughed employees through July 31, 2020. As the restaurants reopened, the Company was able to bring back certain furloughed employees. 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. Currently, due to local government restrictions, the California restaurants are not utilizing the revolving conveyor belt . All food is ordered from the tableside touchscreen and delivered to the customers’ tables by the restaurant employees for indoor dining. For outdoor dining, food is ordered and delivered by the restaurant employees. The Company has increased cleaning and sanitizing protocols of 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. The temporary restaurant closures and the reduced capacities at the reopened restaurants have caused a substantial decline in the Company’s sales in the most recently completed fiscal year. In light of the challenges posed by the COVID-19 pandemic, the Company is focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. In line with the Company’s long-term growth strategy, it expects to continue to open new restaurants at locations where it believes the restaurants have the potential to achieve profitability. |
Recent Events Concerning the Company’s Financial Position | Recent Events Concerning the Company’s Financial Position On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), a majority stockholder, entered into a Revolving Credit Agreement On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment. On April 14, 2020, the Company entered into a Promissory Note with Bank of the West, which provided for a loan in the amount of $6.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020. On April 29, 2020, the Company returned the proceeds received from the PPP Loan. Under the provisions of the CARES Act, the Company is eligible for a refundable employee retention credit subject to certain criteria. In connection with the CARES Act, the Company adopted a policy to recognize the employee retention credit when earned and to offset the credit against the related expenditure. Accordingly, the Company recorded a $1.8 million employee retention credit during the twelve months ended August 31, 2020, which is included in Labor and related costs in the statements of operations. The Company has received rent concessions from its landlords for certain of its restaurants in the form of rent abatements and rent deferrals which were immaterial for the twelve months ended August 31, 2020. The Company continues to have discussions with its landlords regarding potential future rent concessions. Due to the impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of August 31, 2020. The Company also assessed the realizability of its deferred tax assets and recorded a valuation allowance of $5.6 million during the twelve months ended August 31, 2020. See “Note 10. Income Taxes”. |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2020”, “fiscal year 2019” and “fiscal year 2018” refer to the Company’s fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. |
Use of Estimates | 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. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with financial institutions and, at times, the balance may exceed the Federal Deposit Insurance Corporation federally insured limits. The Company has never experienced any losses related to these balances. |
Concentration of Significant Suppliers | Concentration of Significant Suppliers The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers. The Company is subject to supplier concentration risk as JFC International Inc., a subsidiary of Kikkoman Corporation and the Company’s largest supplier, accounted for approximately 59% 27% |
Segment Information | Segment Information Management has determined that the Company has one operating segment and therefore one reportable segment. The Company’s chief operating decision maker, who is its Chief Executive Officer, reviews financial performance and allocates resources. All of the Company’s sales are derived in the United States of America. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of primarily cash on hand, deposits with banks, and term deposits with maturities of three months or less. As of August 31, 2020 and August 31, 2019, cash equivalents consist of money market funds and time deposits of approximately $8.8 million and $37.0 million, respectively. Due to the short-term maturities and their relatively low interest rates, the carrying value of the money market accounts approximates their fair value. Cash and cash equivalents are maintained at financial institutions with strong credit ratings. The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of receivables from landlords for tenant allowances and credit card receivables. The Company does not extend credit to guests and thus does not have credit risk from guests. Accounts receivable balances are stated at the amounts management expects to collect from balances outstanding at fiscal year-end, accordingly no allowance for doubtful accounts is recorded as of August 31, 2020 and August 31, 2019. |
Inventories | Inventories Inventories consist of food and beverages, and are stated at the lower of cost or net realizable value with cost determined on a first-in, first-out basis. |
Property and Equipment | Property and Equipment Property and equipment consists of computer equipment, vehicles, software, furniture and fixtures, leasehold improvements and leased assets. Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the improvements. The following table represents the various types of property and equipment and their respective useful lives: Property and Equipment Useful Life Computer equipment 3 – 5 years Vehicles 5 years Software 5 years Furniture and fixtures 10 years Leasehold improvements Shorter of useful life or remaining lease term Lease assets Fixed lease term Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value. |
Liquor Licenses | Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets. |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations (“ARO”) represents the estimated present value of future expenses the Company expects to incur at the end of a lease to restore the location to its original condition. The ARO is recorded as a liability at its estimated present value at inception with an offsetting increase in the carrying amount of the related property and equipment in the accompanying balance sheet. Periodic accretion of the discount of the estimated liability is recorded as an interest expense in the accompanying statements of operations. Asset retirement obligations are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the leasehold improvements. The Company’s ARO liability is approximately $0.3 million and $0.2 million as of August 31, 2020 and August 31, 2019 and is included in other liabilities in the accompanying balance sheets. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company assesses potential impairments of its long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment test is performed on an annual basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant-level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. Factors considered in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the fiscal year ended August 31, 2018, one of the Company’s restaurants exited a lease prior to the end of the lease term. As a result, the property and equipment held at that location were deemed to be not recoverable, which was determined by comparing the net carrying value of the assets to the undiscounted net cash flows from the eventual disposition of the assets. Given the property and equipment at the restaurant will no longer be in use, the net carrying value of the assets were deemed to have zero value. This impairment was offset by a reimbursement from the landlord of $0.5 million for the termination of the lease, hence resulting in a net impairment charge of $0.2 million, which is included in operating income. During the fiscal years ended August 31, 2020 and August 31, 2019, there were no impairment charges recognized. |
Income Taxes | Income Taxes The provision for income taxes, income taxes payable, and deferred income taxes are determined using the asset and liability method. Deferred income tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income. Income tax expense or benefit is the income tax payable or refundable for the period, plus or minus the change during the period to deferred income tax assets and liabilities. The Company regularly evaluates the likelihood of realizing the benefit for income tax positions it has taken in federal and state filings by considering all facts, circumstances, and information available. For those benefits that the Company believes it is more likely than not will be sustained, it recognizes the largest amount it believes is cumulatively greater than 50% likely to be realized. |
Revenue Recognition | Revenue Recognition Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers. |
Sales Taxes | Sales Taxes Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the statements of operations as restaurant sales are recorded net of sales tax. |
Operating and Finance Leases | Operating and Finance Leases At inception of a contract, the Company assesses whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options is reasonably assured at the inception of the lease. Operating leases are accounted for on the balance sheet with the right-of-use (“ROU”) assets and lease liabilities recognized in “Operating lease right-of-use assets”, “Operating lease liabilities - current" and "Operating lease liabilities - noncurrent" on the balance sheet, respectively. Finance leases are accounted for on the balance sheet with ROU assets and lease liabilities recognized in "Property and equipment - net”, “Finance lease - current" and "Finance lease - noncurrent" on the balance sheet, respectively. Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates corresponding to the maturities of the leases. As the Company has no outstanding debt, it estimates this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives. Depreciation of the finance lease ROU assets are subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization expense" on the statement of operations. Related to the adoption of Topic 842, the Company’s policy elections were as follows: Separation of lease and non-lease components The Company has elected a policy to account for lease and non-lease components as a single component for its entire population of operating lease assets. Short-term policy The Company has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are not recorded on the balance sheet. The Company recognizes expense for these leases on a straight-line basis over the lease term. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, such as common area maintenance, insurance and real estate taxes, which are recognized when the associated activity occurs. Additionally, contingent rental payments based on sales thresholds for certain of its restaurants are accrued based on estimated sales. |
Other Costs | Other Costs Other costs in restaurant operating costs in the accompanying statements of operations include utilities, repairs and maintenance, credit card fees, royalty payments, stock-based compensation for restaurant-level employees, and other restaurant-level expenses. The Company incurred approximately $6.7 million, $7.1 million and $5.4 million in other costs for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in other costs in the accompanying statements of operations. The Company incurred approximately $0.3 million, $0.4 million and $0.3 million in advertising expenses for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. |
Fair Value Measurements | Fair Value Measurements The Company defines fair value as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Observable inputs other than Level 1 prices, such as unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on the Company’s own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. The Company’s financial statements include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and salaries and wages payable for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of payments due to or from Kura Japan is not determinable due to its related-party nature. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation consists of stock options issued to employees and non-employees. The Company measures and recognizes stock-based compensation for the estimated fair value of stock options based on the grant date fair value of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model and is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. The Company granted 157,539, 22,000, and 419,091 stock options for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. For stock options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, which is typically the vesting period. Stock options granted in fiscal year 2020 have vesting periods ranging from 9 months to 46 months. The majority of stock options granted in fiscal 2019 and 2018 have a vesting period of approximately 45 months. The Company adopted the Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Comprehensive Income (Loss) | 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. |
Earnings Per Share | Earnings Per Share Earnings per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted earnings per share assumes the conversion, exercise or issuance of all potential dilutive common stock equivalents outstanding for the period. For the purposes of this calculation, options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Diluted earnings per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In April 2020, the staff of the Financial Accounting Standards Board (FASB) issued a question-and-answer document that stated that entities may elect to account for lease concessions related to the effects of the COVID-19 pandemic as though the rights and obligations for those concessions existed as of the commencement of the contract rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has made such election . On September 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” (“Topic 842” or “ASC 842”), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. The Company elected the optional transition method to apply the standard as of the effective date and therefore, prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under previous lease guidance, ASC Topic 840: “Leases (Topic 840)”. The adoption of Topic 842 had a material impact on the balance sheet and an immaterial impact on the statement of operations, statement of stockholders’ equity and statement of cash flows. The practical expedients were as follows: Practical expedients The Company has not reassessed whether any expired or existing contracts are, or contain, leases. The Company has not reassessed the lease classification for any expired or existing leases. The Company has not reassessed initial direct costs for any expired or existing leases. Hindsight Practical Expedient The Company has elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. The impact on the balance sheet is as follows: August 31, 2019 Adjustments Due to the Adoption of Topic 842 September 1, 2019 (amounts in thousands) Assets Current assets: Cash and cash equivalents $ 38,044 $ — $ 38,044 Accounts receivable 948 — 948 Inventories 539 — 539 Due from affiliate 226 — 226 Prepaid expenses and other current assets (1) 1,744 (54 ) 1,690 Total current assets 41,501 (54 ) 41,447 Non-current assets: Property and equipment - net 31,917 31,917 Operating lease right-of-use assets — 35,935 35,935 Deposits and other assets (1) 1,865 (530 ) 1,335 Deferred tax assets 1,127 — 1,127 Total assets $ 76,410 $ 35,351 $ 111,761 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,684 $ — $ 3,684 Accrued expenses and other current liabilities (1) 1,635 (97 ) 1,538 Salaries and wages payable 1,348 — 1,348 Finance leases - current 994 — 994 Operating lease liabilities - current — 3,606 3,606 Due to affiliate 83 — 83 Sales tax payable 547 — 547 Total current liabilities 8,291 3,509 11,800 Non-current liabilities: Finance leases - non-current 2,424 — 2,424 Operating lease liabilities - non-current — 35,119 35,119 Deferred rent (1) 2,188 (2,188 ) — Tenant allowances (1) 1,089 (1,089 ) — Other liabilities 237 — 237 Total liabilities 14,229 35,351 49,580 Stockholders' equity: Preferred stock — — — Common stock - Class A 7 — 7 Common stock - Class B 1 — 1 Additional paid-in capital 59,442 — 59,442 Retained earnings 2,731 — 2,731 Total stockholders' equity 62,181 — 62,181 Total liabilities and stockholders' equity $ 76,410 $ 35,351 $ 111,761 (1) Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 is effective for the Company beginning in fiscal year 2022. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Various Types of Property and Equipment and Their Useful Lives | The following table represents the various types of property and equipment and their respective useful lives: Property and Equipment Useful Life Computer equipment 3 – 5 years Vehicles 5 years Software 5 years Furniture and fixtures 10 years Leasehold improvements Shorter of useful life or remaining lease term Lease assets Fixed lease term |
Accounting Standards Update 2016-02 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Impact on the Balance Sheet | The impact on the balance sheet is as follows: August 31, 2019 Adjustments Due to the Adoption of Topic 842 September 1, 2019 (amounts in thousands) Assets Current assets: Cash and cash equivalents $ 38,044 $ — $ 38,044 Accounts receivable 948 — 948 Inventories 539 — 539 Due from affiliate 226 — 226 Prepaid expenses and other current assets (1) 1,744 (54 ) 1,690 Total current assets 41,501 (54 ) 41,447 Non-current assets: Property and equipment - net 31,917 31,917 Operating lease right-of-use assets — 35,935 35,935 Deposits and other assets (1) 1,865 (530 ) 1,335 Deferred tax assets 1,127 — 1,127 Total assets $ 76,410 $ 35,351 $ 111,761 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,684 $ — $ 3,684 Accrued expenses and other current liabilities (1) 1,635 (97 ) 1,538 Salaries and wages payable 1,348 — 1,348 Finance leases - current 994 — 994 Operating lease liabilities - current — 3,606 3,606 Due to affiliate 83 — 83 Sales tax payable 547 — 547 Total current liabilities 8,291 3,509 11,800 Non-current liabilities: Finance leases - non-current 2,424 — 2,424 Operating lease liabilities - non-current — 35,119 35,119 Deferred rent (1) 2,188 (2,188 ) — Tenant allowances (1) 1,089 (1,089 ) — Other liabilities 237 — 237 Total liabilities 14,229 35,351 49,580 Stockholders' equity: Preferred stock — — — Common stock - Class A 7 — 7 Common stock - Class B 1 — 1 Additional paid-in capital 59,442 — 59,442 Retained earnings 2,731 — 2,731 Total stockholders' equity 62,181 — 62,181 Total liabilities and stockholders' equity $ 76,410 $ 35,351 $ 111,761 (1) Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable Accounts receivable as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Lease receivable $ 1,811 $ 215 Credit card receivable 281 733 Other receivable 38 — Total accounts receivable $ 2,130 $ 948 |
Schedule of Inventories | Inventories Inventories as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Food $ 320 $ 491 Liquor and beverages 47 48 Total inventories $ 367 $ 539 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets Prepaid expenses and other current assets as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Prepaid expenses $ 885 $ 1,293 Other current assets 375 451 Employee retention credit 1,750 — Total prepaid expenses and other current assets $ 3,010 $ 1,744 |
Schedule of Property and Equipment, Net | Property and Equipment, net Property and equipment, net as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Leasehold improvements $ 30,497 $ 24,926 Lease assets 6,117 6,037 Furniture and fixtures 7,908 5,600 Computer equipment 696 599 Vehicles 88 75 Software 689 428 Construction in progress 9,558 1,127 Property and equipment, gross 55,553 38,792 Less: accumulated depreciation and amortization (10,012 ) (6,875 ) Total property and equipment - net $ 45,541 $ 31,917 |
Schedule of Deposits and Other Assets | Deposits and Other Assets Deposits and other assets, as of August 31, 2020 and August 31, 2019 consists of the following: As of August 31, 2020 2019 (amounts in thousands) Liquor license $ 696 $ 638 Initial direct costs — 530 Deposits 1,245 697 Total deposits and other assets $ 1,941 $ 1,865 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease Related Costs | Lease related costs recognized in the statements of operations for the twelve months ended August 31, 2020 are as follows: Fiscal Year Ended August 31, 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expense $ 552 Interest on lease liabilities Interest expense 120 Total finance lease cost $ 672 Fiscal Year Ended August 31, 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 5,194 Variable lease cost Occupancy and related expenses, and general and administrative expenses 1,059 Total operating lease cost $ 6,253 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: Operating Leases As of August 31, 2020 (amounts in thousands) Right-of-use assets $ 56,119 Lease liabilities - current $ 5,106 Lease liabilities - non-current 56,918 Total lease liabilities $ 62,024 Finance Lease Assets, net As of August 31, 2020 (amounts in thousands) Property and equipment $ 6,117 Accumulated depreciation (2,178 ) Total property and equipment - net $ 3,939 Finance Leases Liabilities As of August 31, 2020 (amounts in thousands) Finance lease - current $ 1,004 Finance lease - non-current 1,481 Total finance lease liabilities $ 2,485 As of August 31, 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.3 Finance leases 2.4 Weighted Average Discount Rate Operating leases 6.2 % Finance leases 4.4 % |
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases | Supplemental disclosures of cash flow information related to leases were as follows: Fiscal Year Ended August 31, 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 4,570 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 21,203 |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows as of August 31, 2020: Operating Leases Finance Leases (amounts in thousands) 2021 $ 2,313 $ 1,102 2022 5,734 1,005 2023 5,722 483 2024 5,848 17 2025 5,981 2 Thereafter 72,913 — Total lease payments 98,511 2,609 Less: imputed interest (36,487 ) (124 ) Present value of lease liabilities $ 62,024 $ 2,485 |
Summary of Future Minimum Lease Payments for Operating Lease and Capital Leases | As previously disclosed in the Company’s fiscal year 2019 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of August 31, 2019: Operating Lease Payments Capital Lease Payments (amounts in thousands) 2020 $ 4,256 $ 1,113 2021 4,435 1,075 2022 4,477 972 2023 4,465 476 2024 4,607 13 Thereafter 58,714 — Total $ 80,954 $ 3,649 Less interest (231 ) Total capital lease obligation 3,418 Less current portion of capital lease obligation (994 ) Non-current portion of capital lease obligation $ 2,424 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions Due to and from Affiliates | Balances with Kura Japan as of August 31, 2020 and August 31, 2019 are as follows: As of August 31, 2020 2019 (amounts in thousands) Due from affiliate $ 12 $ 226 Due to affiliate 201 83 |
Schedule of Related Party Reimbursements | Reimbursements by the Company to Kura Japan for fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ 53 $ 46 $ 59 Expatriate salaries expense 141 147 95 Royalty payments 226 321 279 Travel and other administrative expenses 73 49 78 Purchases of equipment 1,129 685 650 Total related party transactions $ 1,622 $ 1,248 $ 1,161 Additional investment received $ — $ — $ 5,000 |
Incentive Compensation Plan (Ta
Incentive Compensation Plan (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity under Stock Incentive Plan | Activity under the Stock Incentive Plan is as follows: Options Outstanding Number of shares underlying outstanding options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (amounts in thousands) Outstanding—August 31, 2018 417,272 $ 4.26 9.8 $ 1,665 Options granted 22,000 8.76 Options exercised — — Options canceled/forfeited (33,970 ) 4.78 Outstanding—August 31, 2019 405,302 $ 4.46 8.8 $ 8,353 Options granted 157,539 22.08 Options exercised (7,012 ) 4.26 Options canceled/forfeited (24,082 ) 8.26 Outstanding—August 31, 2020 531,747 $ 9.51 8.3 $ 1,441 Options exercisable 257,145 $ 6.59 8.0 $ 1,446 |
Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan | The total stock-based compensation recognized for stock options granted under the Stock Incentive Plan in the statements of operations is as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 86 $ 80 $ 14 Corporate-level stock-based compensation included in general and administrative expenses 774 510 91 Total stock-based compensation $ 860 $ 590 $ 105 |
Fair Value of Stock Options Granted to Employees and Non-employees Estimated on Grant Date | Determination of Fair Value For the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, the fair value of stock options granted to employees and non-employees was estimated on the grant date using the Black-Scholes valuation model with the following assumptions: Fiscal Years Ended August 31, 2020 2019 2018 Expected term (in years) 5.23 - 5.98 5.96 5.50 - 5.96 Expected volatility 48% - 58.5% 64 % 64 % Risk-free interest rate 0.40% - 1.67% 2.77 % 2.83% - 2.85% Dividend rate — — — Weighted average grant date fair value $ 11.01 $ 6.91 $ 4.05 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Fiscal Years Ended August 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders - basic $ (15,276 ) $ (2,082 ) $ 1,180 $ 276 $ 1,394 $ 348 Weighted average common shares outstanding - basic 7,338 1,000 4,283 1,000 4,000 1,000 Net income (loss) per share attributable to common stockholders - basic $ (2.08 ) $ (2.08 ) $ 0.28 $ 0.28 $ 0.35 $ 0.35 Net income (loss) attributable to common stockholders - diluted $ (15,276 ) $ (2,082 ) $ 1,192 $ 264 $ 1,394 $ 348 Weighted average shares outstanding - basic 7,338 1,000 4,283 1,000 4,000 1,000 Options to purchase common stock — — 229 — 50 — Weighted average shares outstanding - diluted 7,338 1,000 4,512 1,000 4,050 1,000 Net income (loss) per share attributable to common stockholders - diluted $ (2.08 ) $ (2.08 ) $ 0.26 $ 0.26 $ 0.34 $ 0.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income (Loss) Before Provision for Taxes | The components of income (loss) before provision for taxes are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) US $ (16,184 ) $ 1,524 $ 1,747 Total $ (16,184 ) $ 1,524 $ 1,747 |
Summary of Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: Fiscal Years Ended August 31, 2020 2019 2018 (amounts in thousands) Current: Federal $ — $ — $ — State 53 129 65 Total current 53 129 65 Deferred: Federal 1,047 (47 ) (146 ) State 74 (14 ) 86 Total deferred 1,121 (61 ) (60 ) Total $ 1,174 $ 68 $ 5 |
Summary of Reconciliation of Statutory Federal Income Tax Rate | The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows: Fiscal Years Ended August 31, 2020 2019 2018 Tax at federal statutory rate 21.0 % 21.0 % 25.3 % Employer tip credit 0.9 (20.2 ) (23.5 ) Stock-based compensation (0.8 ) — — Change in valuation allowance (28.3 ) — — Other items 0.5 (2.2 ) (7.8 ) State tax, net of federal benefit (0.6 ) 5.9 6.3 Effective tax rate (7.3 )% 4.5 % 0.3 % |
Summary of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows: As of August 31, 2020 2019 (amounts in thousands) Deferred tax assets: General business credit $ 6,472 $ 1,789 NOL carryover 2,003 792 Lease liabilities 16,635 — Deferred rent — 602 Tenant allowance — 324 State tax deduction 12 29 Other 535 14 Gross deferred tax assets 25,657 3,550 Deferred tax liabilities: Basis difference on fixed assets (4,593 ) (2,408 ) Right-of-use assets (15,496 ) (15 ) Gross deferred tax liabilities (20,089 ) (2,423 ) Valuation allowance (5,568 ) — Net deferred tax $ — $ 1,127 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Summary of Certain Unaudited Financial Information | The following table sets forth certain unaudited financial information for each quarter of fiscal years 2020 and 2019. The unaudited quarterly information has been prepared using unaudited financial statements and includes all adjustments consisting only of normal recurring adjustments necessary for a fair presentation of the results of the interim periods. Fiscal Quarter of 2020 First Second Third Fourth (amounts in thousands, except per share data) Sales $ 17,440 $ 19,388 $ 2,812 $ 5,528 Operating income (loss) (1,391 ) (240 ) (8,028 ) (6,839 ) Net income (loss) (1,224 ) (133 ) (9,152 ) (6,849 ) Basic income (loss) per share of Class A and Class B common stock $ (0.15 ) $ (0.02 ) $ (1.10 ) $ (0.82 ) Diluted income (loss) per share of Class A and Class B common stock $ (0.15 ) $ (0.02 ) $ (1.10 ) $ (0.82 ) Fiscal Quarter of 2019 First Second Third Fourth (amounts in thousands, except per share data) Sales $ 13,420 $ 15,117 $ 16,955 $ 18,753 Operating income (loss) (420 ) 282 834 965 Net income (loss) (391 ) 212 719 916 Basic income (loss) per share of Class A and Class B common stock $ (0.08 ) $ 0.04 $ 0.14 $ 0.15 Diluted income (loss) per share of Class A and Class B common stock $ (0.08 ) $ 0.04 $ 0.14 $ 0.15 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) | Nov. 12, 2020Restaurant | Sep. 02, 2020USD ($) | Apr. 10, 2020USD ($) | Mar. 18, 2020RestaurantState | Aug. 05, 2019USD ($)$ / sharesshares | Aug. 31, 2020USD ($)shares | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Apr. 14, 2020USD ($) |
Organization and Basis of Presentation [Line Items] | |||||||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 236,000 | ||||||
Valuation allowance recorded | $ 5,568,000 | ||||||||
PPP Loan | Promissory Note with Bank of the West | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Loan amount | $ 6,000,000 | ||||||||
Kura Japan | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Shares issued | shares | 0 | ||||||||
Kura Japan | Revolving Credit Facility Agreement | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 20,000,000 | ||||||||
Revolving credit line, termination date | Mar. 31, 2024 | ||||||||
Kura Japan | First Amendment | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Revolving credit line, maturity date description | (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. | ||||||||
COVID-19 | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Impairment of long-lived assets | $ 0 | ||||||||
Valuation allowance recorded | $ 5,600,000 | ||||||||
COVID-19 | PPP Loan | Promissory Note with Bank of the West | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Loan amount | $ 6,000,000 | ||||||||
COVID-19 | Kura Japan | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Number of restaurants temporary closure | Restaurant | 25 | ||||||||
Number of states, temporary closure of restaurants located | State | 5 | ||||||||
Revolving credit line | $ 35,000,000 | ||||||||
COVID-19 | Kura Japan | Revolving Credit Facility Agreement | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Revolving credit line, termination date | Mar. 31, 2024 | ||||||||
CARES Act | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Employee retention credit | $ 1,800,000 | ||||||||
Subsequent Event | Kura Japan | First Amendment | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | ||||||||
Revolving credit line, termination date | Apr. 10, 2025 | ||||||||
Subsequent Event | COVID-19 | Kura Japan | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Number of restaurants temporary closure | Restaurant | 1 | ||||||||
Local Government Requirements | COVID-19 | Kura Japan | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Reduced percentage of capacities | 25.00% | ||||||||
Local Government Requirements | Subsequent Event | COVID-19 | Kura Japan | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Number of restaurants opened | Restaurant | 28 | ||||||||
Number of restaurants opened with indoor dining | Restaurant | 12 | ||||||||
Reduced percentage of capacities | 75.00% | ||||||||
Number of restaurants opened with outdoor dining or takeout | Restaurant | 15 | ||||||||
Common Stock | Initial Public Offering | |||||||||
Organization and Basis of Presentation [Line Items] | |||||||||
Sale of stock, price per share | $ / shares | $ 14 | ||||||||
Shares issued | shares | 3,335,000 | ||||||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs, shares | shares | 435,000 | ||||||||
Proceeds from offering | $ 39,000,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Aug. 31, 2020USD ($)Segmentshares | Aug. 31, 2019USD ($)shares | Aug. 31, 2018USD ($)Restaurantshares | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of reportable segment | Segment | 1 | ||
Cash and cash equivalents | $ 9,259,000 | $ 38,044,000 | |
Allowance for doubtful accounts | $ 0 | 0 | |
Description of depreciation and amortization on property and equipment | Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years. | ||
Depreciation and amortization on property and equipment calculated method | straight-line method | ||
Number of restaurants exited lease prior to end of lease term | Restaurant | 1 | ||
Net carrying value of impairment on assets deemed | $ 0 | ||
Reimbursement for lease termination | 500,000 | ||
Impairment of long-lived assets, net | $ 0 | 0 | 236,000 |
Operating and finance leases, remaining lease start range terms description | less than 1 year | ||
Outstanding borrowings | $ 0 | ||
Other costs | 6,705,000 | 7,088,000 | 5,404,000 |
Advertising expenses | $ 300,000 | $ 400,000 | $ 300,000 |
Stock options, granted | shares | 157,539 | 22,000 | 419,091 |
Stock options granted, vesting period | 45 months | 45 months | |
Lease, practical expedients, package | true | ||
Lease, practical expedient, use of hindsight | true | ||
Other Liabilities | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Asset retirement obligation liability | $ 300,000 | $ 200,000 | |
Minimum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Income tax benefit being realized | 50.00% | ||
Stock options granted, vesting period | 9 months | ||
Maximum | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 20 years | ||
Operating and finance leases, remaining lease terms | 20 years | ||
Stock options granted, vesting period | 46 months | ||
Money Market Funds and Time Deposits | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 8,800,000 | $ 37,000,000 | |
Product Concentration Risk | Sales Revenue Net | Food and Beverage Costs | JFC International Inc. | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 59.00% | 55.00% | 47.00% |
Product Concentration Risk | Sales Revenue Net | Food and Beverage Costs | Wismettac Asian Foods, Inc. | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 27.00% | 28.00% | 28.00% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Various Types of Property and Equipment and Their Useful Lives (Details) | 12 Months Ended |
Aug. 31, 2020 | |
Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 20 years |
Computer Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Vehicles | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful life | Shorter of useful life or remaining lease term |
Lease Assets | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful life | Fixed lease term |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Impact on the Balance Sheet (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Sep. 01, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Current assets: | ||||||
Cash and cash equivalents | $ 9,259 | $ 38,044 | ||||
Accounts receivable | 2,130 | 948 | ||||
Inventories | 367 | 539 | ||||
Due from affiliate | 12 | 226 | ||||
Prepaid expenses and other current assets | 3,010 | 1,744 | ||||
Total current assets | 14,778 | 41,501 | ||||
Non-current assets: | ||||||
Property and equipment - net | 45,541 | 31,917 | ||||
Operating lease right-of-use assets | 56,119 | |||||
Deposits and other assets | 1,941 | 1,865 | ||||
Deferred tax assets | 1,127 | |||||
Total assets | 118,379 | 76,410 | ||||
Current liabilities: | ||||||
Accounts payable | 4,919 | 3,684 | ||||
Accrued expenses and other current liabilities | 720 | 1,635 | ||||
Salaries and wages payable | 1,786 | 1,348 | ||||
Finance leases - current | 1,004 | 994 | ||||
Operating lease liabilities - current | 5,106 | |||||
Due to affiliate | 201 | 83 | ||||
Sales tax payable | 189 | 547 | ||||
Total current liabilities | 13,925 | 8,291 | ||||
Non-current liabilities: | ||||||
Finance leases - non-current | 1,481 | 2,424 | ||||
Operating lease liabilities - non-current | 56,918 | |||||
Deferred rent | 2,188 | |||||
Tenant allowances | 1,089 | |||||
Other liabilities | 342 | 237 | ||||
Total liabilities | 72,666 | 14,229 | ||||
Stockholders' equity: | ||||||
Preferred stock | ||||||
Additional paid-in capital | 60,332 | 59,442 | ||||
Retained earnings | (14,627) | 2,731 | ||||
Total stockholders' equity | 45,713 | 62,181 | $ 21,505 | $ 14,658 | ||
Total liabilities and stockholders' equity | 118,379 | 76,410 | ||||
Before Accounting Pronouncement Change | ||||||
Current assets: | ||||||
Cash and cash equivalents | 38,044 | |||||
Accounts receivable | 948 | |||||
Inventories | 539 | |||||
Due from affiliate | 226 | |||||
Prepaid expenses and other current assets | [1] | 1,744 | ||||
Total current assets | 41,501 | |||||
Non-current assets: | ||||||
Property and equipment - net | 31,917 | |||||
Deposits and other assets | [1] | 1,865 | ||||
Deferred tax assets | 1,127 | |||||
Total assets | 76,410 | |||||
Current liabilities: | ||||||
Accounts payable | 3,684 | |||||
Accrued expenses and other current liabilities | [1] | 1,635 | ||||
Salaries and wages payable | 1,348 | |||||
Finance leases - current | 994 | |||||
Due to affiliate | 83 | |||||
Sales tax payable | 547 | |||||
Total current liabilities | 8,291 | |||||
Non-current liabilities: | ||||||
Finance leases - non-current | 2,424 | |||||
Deferred rent | [1] | 2,188 | ||||
Tenant allowances | [1] | 1,089 | ||||
Other liabilities | 237 | |||||
Total liabilities | 14,229 | |||||
Stockholders' equity: | ||||||
Preferred stock | ||||||
Additional paid-in capital | 59,442 | |||||
Retained earnings | 2,731 | |||||
Total stockholders' equity | 62,181 | |||||
Total liabilities and stockholders' equity | 76,410 | |||||
Accounting Standards Update 2016-02 | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 38,044 | |||||
Accounts receivable | 948 | |||||
Inventories | 539 | |||||
Due from affiliate | 226 | |||||
Prepaid expenses and other current assets | [1] | 1,690 | ||||
Total current assets | 41,447 | |||||
Non-current assets: | ||||||
Property and equipment - net | 31,917 | |||||
Operating lease right-of-use assets | 35,935 | |||||
Deposits and other assets | [1] | 1,335 | ||||
Deferred tax assets | 1,127 | |||||
Total assets | 111,761 | |||||
Current liabilities: | ||||||
Accounts payable | 3,684 | |||||
Accrued expenses and other current liabilities | [1] | 1,538 | ||||
Salaries and wages payable | 1,348 | |||||
Finance leases - current | 994 | |||||
Operating lease liabilities - current | 3,606 | |||||
Due to affiliate | 83 | |||||
Sales tax payable | 547 | |||||
Total current liabilities | 11,800 | |||||
Non-current liabilities: | ||||||
Finance leases - non-current | 2,424 | |||||
Operating lease liabilities - non-current | 35,119 | |||||
Other liabilities | 237 | |||||
Total liabilities | 49,580 | |||||
Stockholders' equity: | ||||||
Preferred stock | ||||||
Additional paid-in capital | 59,442 | |||||
Retained earnings | 2,731 | |||||
Total stockholders' equity | 62,181 | |||||
Total liabilities and stockholders' equity | 111,761 | |||||
Accounting Standards Update 2016-02 | Restatement Adjustment | ||||||
Current assets: | ||||||
Prepaid expenses and other current assets | [1] | (54) | ||||
Total current assets | (54) | |||||
Non-current assets: | ||||||
Operating lease right-of-use assets | 35,935 | |||||
Deposits and other assets | [1] | (530) | ||||
Total assets | 35,351 | |||||
Current liabilities: | ||||||
Accrued expenses and other current liabilities | [1] | (97) | ||||
Operating lease liabilities - current | 3,606 | |||||
Total current liabilities | 3,509 | |||||
Non-current liabilities: | ||||||
Operating lease liabilities - non-current | 35,119 | |||||
Deferred rent | [1] | (2,188) | ||||
Tenant allowances | [1] | (1,089) | ||||
Total liabilities | 35,351 | |||||
Stockholders' equity: | ||||||
Preferred stock | ||||||
Total liabilities and stockholders' equity | 35,351 | |||||
Class A | ||||||
Stockholders' equity: | ||||||
Common stock | 7 | 7 | ||||
Class A | Before Accounting Pronouncement Change | ||||||
Stockholders' equity: | ||||||
Common stock | 7 | |||||
Class A | Accounting Standards Update 2016-02 | ||||||
Stockholders' equity: | ||||||
Common stock | 7 | |||||
Class B | ||||||
Stockholders' equity: | ||||||
Common stock | $ 1 | 1 | ||||
Class B | Before Accounting Pronouncement Change | ||||||
Stockholders' equity: | ||||||
Common stock | $ 1 | |||||
Class B | Accounting Standards Update 2016-02 | ||||||
Stockholders' equity: | ||||||
Common stock | $ 1 | |||||
[1] | Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842. |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Receivables Net Current [Line Items] | ||
Accounts receivable | $ 2,130 | $ 948 |
Lease Receivable | ||
Receivables Net Current [Line Items] | ||
Accounts receivable | 1,811 | 215 |
Credit Card Receivable | ||
Receivables Net Current [Line Items] | ||
Accounts receivable | 281 | $ 733 |
Other Receivable | ||
Receivables Net Current [Line Items] | ||
Accounts receivable | $ 38 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory [Line Items] | ||
Total inventories | $ 367 | $ 539 |
Food | ||
Inventory [Line Items] | ||
Total inventories | 320 | 491 |
Liquor and Beverages | ||
Inventory [Line Items] | ||
Total inventories | $ 47 | $ 48 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 885 | $ 1,293 |
Other current assets | 375 | 451 |
Employee retention credit | 1,750 | |
Total prepaid expenses and other current assets | $ 3,010 | $ 1,744 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 55,553 | $ 38,792 |
Less: accumulated depreciation and amortization | (10,012) | (6,875) |
Total property and equipment - net | 45,541 | 31,917 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 30,497 | 24,926 |
Lease Assets | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,117 | 6,037 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,908 | 5,600 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 696 | 599 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 88 | 75 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 689 | 428 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 9,558 | $ 1,127 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation and amortization expenses | $ 3,160 | $ 2,165 | $ 1,675 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Deposits and Other Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deposits And Other Assets [Line Items] | ||
Total deposits and other assets | $ 1,941 | $ 1,865 |
Liquor License | ||
Deposits And Other Assets [Line Items] | ||
Total deposits and other assets | 696 | 638 |
Initial Direct Costs | ||
Deposits And Other Assets [Line Items] | ||
Total deposits and other assets | 530 | |
Deposits | ||
Deposits And Other Assets [Line Items] | ||
Total deposits and other assets | $ 1,245 | $ 697 |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Costs (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Finance lease cost | |
Amortization of right-of-use assets | $ 552 |
Interest on lease liabilities | 120 |
Total finance lease cost | 672 |
Operating lease cost | |
Operating lease cost | 5,194 |
Variable lease cost | 1,059 |
Total operating lease cost | $ 6,253 |
Leases - Summary of Operating L
Leases - Summary of Operating Leases (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 56,119 |
Lease liabilities - current | 5,106 |
Lease liabilities - non-current | 56,918 |
Total lease liabilities | $ 62,024 |
Leases - Summary of Finance Lea
Leases - Summary of Finance Lease Assets, Net (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Lessee Lease Description [Line Items] | ||
Property and equipment, gross | $ 55,553 | $ 38,792 |
Less: accumulated depreciation and amortization | (10,012) | (6,875) |
Total property and equipment - net | 45,541 | $ 31,917 |
Finance Lease Assets | ||
Lessee Lease Description [Line Items] | ||
Property and equipment, gross | 6,117 | |
Less: accumulated depreciation and amortization | (2,178) | |
Total property and equipment - net | $ 3,939 |
Leases - Summary of Finance L_2
Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Leases [Abstract] | ||
Finance lease - current | $ 1,004 | $ 994 |
Finance lease - non-current | 1,481 | $ 2,424 |
Total finance lease liabilities | $ 2,485 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details) | Aug. 31, 2020 |
Weighted Average Remaining Lease Term (Years) | |
Operating leases | 16 years 3 months 18 days |
Finance leases | 2 years 4 months 24 days |
Weighted Average Discount Rate | |
Operating leases | 6.20% |
Finance leases | 4.40% |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows paid for operating lease liabilities | $ 4,570 |
Operating right-of-use assets obtained in exchange for new operating lease liabilities | $ 21,203 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2020 | |
Leases [Abstract] | |||
Operating leases not yet commenced, liability | $ 13.7 | ||
Operating leases not yet commenced, lease term | 20 years | ||
Lease expense | $ 4.7 | $ 3 | |
Contingent rent expense | $ 0.2 | $ 0.2 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 2,313 |
2022 | 5,734 |
2023 | 5,722 |
2024 | 5,848 |
2025 | 5,981 |
Thereafter | 72,913 |
Total lease payments | 98,511 |
Less: imputed interest | (36,487) |
Present value of lease liabilities | 62,024 |
Finance Leases | |
2021 | 1,102 |
2022 | 1,005 |
2023 | 483 |
2024 | 17 |
2025 | 2 |
Total lease payments | 2,609 |
Less: imputed interest | (124) |
Present value of lease liabilities | $ 2,485 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments for Operating Lease and Capital Leases (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Operating Lease Payments | |
2020 | $ 4,256 |
2021 | 4,435 |
2022 | 4,477 |
2023 | 4,465 |
2024 | 4,607 |
Thereafter | 58,714 |
Total | 80,954 |
Capital Lease Payments | |
2020 | 1,113 |
2021 | 1,075 |
2022 | 972 |
2023 | 476 |
2024 | 13 |
Total | 3,649 |
Less interest | (231) |
Total capital lease obligation | 3,418 |
Less current portion of capital lease obligation | (994) |
Non-current portion of capital lease obligation | $ 2,424 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) | Sep. 02, 2020 | Apr. 10, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Related Party Transaction [Line Items] | ||||||
Capital contributions | $ 0 | $ 0 | $ 0 | $ 5,000,000 | ||
Shares issued | 0 | |||||
Reimbursements by related party | $ 0 | |||||
Travel and Other Administrative Expenses | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursements by related party | $ 100,000 | |||||
D&O Insurance, Travel and Other Administrative Expenses | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursements by related party | $ 300,000 | |||||
Revolving Credit Facility Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Revolving credit line, termination date | Mar. 31, 2024 | |||||
Revolving credit line, maturity date description | The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months. | |||||
Credit facility maximum borrowing capacity | $ 20,000,000 | |||||
First Amendment | ||||||
Related Party Transaction [Line Items] | ||||||
Revolving credit line, maturity date description | (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. | |||||
First Amendment | Subsequent Event | ||||||
Related Party Transaction [Line Items] | ||||||
Revolving credit line, termination date | Apr. 10, 2025 | |||||
Credit facility maximum borrowing capacity | $ 35,000,000 | |||||
COVID-19 | Revolving Credit Facility Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Revolving credit line | $ 20,000,000 | |||||
Revolving credit line, termination date | Mar. 31, 2024 | |||||
Revolving credit line, maturity date description | The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months. | |||||
Amended and Restated Exclusive License Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Royalty fee of net sales | 0.50% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Related Party Transaction [Line Items] | ||
Due from affiliate | $ 12 | $ 226 |
Due to affiliate | 201 | 83 |
Kura Japan | ||
Related Party Transaction [Line Items] | ||
Due from affiliate | 12 | 226 |
Due to affiliate | $ 201 | $ 83 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Reimbursements (Details) - Kura Japan - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Total related party transactions | $ 1,622 | $ 1,248 | $ 1,161 |
Additional investment received | 5,000 | ||
Purchases of Administrative Supplies | |||
Related Party Transaction [Line Items] | |||
Total related party transactions | 53 | 46 | 59 |
Expatriate Salaries Expense | |||
Related Party Transaction [Line Items] | |||
Total related party transactions | 141 | 147 | 95 |
Royalty Payments | |||
Related Party Transaction [Line Items] | |||
Total related party transactions | 226 | 321 | 279 |
Travel and Other Administrative Expenses | |||
Related Party Transaction [Line Items] | |||
Total related party transactions | 73 | 49 | 78 |
Purchases of Equipment | |||
Related Party Transaction [Line Items] | |||
Total related party transactions | $ 1,129 | $ 685 | $ 650 |
Incentive Compensation Plan - A
Incentive Compensation Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Jan. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total intrinsic value of stock options exercised | $ 100 | |||
Expected dividend | 0.00% | |||
Fair value of common stock | $ 10.75 | $ 6.70 | ||
Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Plan authorized awards to be granted | 700,000 | |||
Stock-based compensation expense | $ 860 | $ 590 | $ 105 | |
Stock options outstanding | 531,747 | 405,302 | 417,272 | |
Weighted average grant date fair value of options granted | $ 11.01 | $ 6.91 | $ 4.05 | |
Fair value of options vested | $ 600 | $ 600 | $ 100 | |
Unrecognized stock-based compensation | $ 2,000 | |||
Unvested stock options expected to be recognized on a straight-line basis over a weighted average period | 2 years 6 months 14 days |
Incentive Compensation Plan - S
Incentive Compensation Plan - Summary of Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options Outstanding, Number of shares underlying outstanding options, Beginning balance | 405,302 | 417,272 | |
Options Outstanding, Number of shares underlying outstanding options, Options granted | 157,539 | 22,000 | |
Options Outstanding, Number of shares underlying outstanding options, Options exercised | (7,012) | ||
Options Outstanding, Number of shares underlying outstanding options, Options canceled/forfeited | (24,082) | (33,970) | |
Options Outstanding, Number of shares underlying outstanding options, Ending balance | 531,747 | 405,302 | 417,272 |
Options Outstanding, Number of shares underlying outstanding options, Options exercisable | 257,145 | ||
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance | $ 4.46 | $ 4.26 | |
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted | 22.08 | 8.76 | |
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised | 4.26 | ||
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited | 8.26 | 4.78 | |
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance | 9.51 | $ 4.46 | $ 4.26 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercisable | $ 6.59 | ||
Options Outstanding, Weighted Average Remaining Contractual Term (Years) | 8 years 3 months 18 days | 8 years 9 months 18 days | 9 years 9 months 18 days |
Options Outstanding, Weighted Average Remaining Contractual Term, Options exercisable (Years) | 8 years | ||
Options Outstanding, Aggregate Intrinsic Value | $ 1,441 | $ 8,353 | $ 1,665 |
Options Outstanding, Aggregate Intrinsic Value, Options exercisable | $ 1,446 |
Incentive Compensation Plan -_2
Incentive Compensation Plan - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 860 | $ 590 | $ 105 |
Restaurant-level Stock-based Compensation Included In Other Costs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 86 | 80 | 14 |
Corporate-level Stock-based Compensation Included In General and Administrative Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 774 | $ 510 | $ 91 |
Incentive Compensation Plan - F
Incentive Compensation Plan - Fair Value of Stock Options Granted to Employees and Non-employees Estimated on Grant Date (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend rate | 0.00% | ||
Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 11 months 15 days | ||
Expected volatility | 64.00% | 64.00% | |
Expected volatility, Minimum | 48.00% | ||
Expected volatility, Maximum | 58.50% | ||
Risk-free interest rate | 2.77% | ||
Risk-free interest rate, Minimum | 0.40% | 2.83% | |
Risk-free interest rate, Maximum | 1.67% | 2.85% | |
Weighted average grant date fair value | $ 11.01 | $ 6.91 | $ 4.05 |
Stock Incentive Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 2 months 23 days | 5 years 6 months | |
Stock Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 11 months 23 days | 5 years 11 months 15 days |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Sep. 02, 2020 | Apr. 10, 2020 | Jan. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 12, 2020 | Apr. 14, 2020 |
Debt Instrument [Line Items] | |||||||
Revolving credit line | $ 0 | ||||||
Revolving Credit Facility Agreement | Kura Japan | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 20,000,000 | ||||||
Revolving credit line | $ 20,000,000 | ||||||
Revolving credit line, termination date | Mar. 31, 2024 | ||||||
Revolving credit line, maturity date description | The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months. | ||||||
Revolving Credit Facility Agreement | Kura Japan | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit line | $ 3,000,000 | ||||||
First Amendment | Kura Japan | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit line, maturity date description | (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. | ||||||
First Amendment | Kura Japan | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | ||||||
Revolving credit line, termination date | Apr. 10, 2025 | ||||||
PPP Loan | Promissory Note with Bank of the West | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 6,000,000 | ||||||
Bank of the West | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 5,000,000 | ||||||
Credit facility expiry date | Jul. 31, 2020 | ||||||
Credit facility amount paid off | $ 3,900,000 | ||||||
Revolving credit line | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings Per Share Diluted [Line Items] | |||||||||||
Weighted average common shares outstanding - basic | 8,338 | 5,283 | 5,000 | ||||||||
Net income (loss) per share attributable to common stockholders - basic | $ (0.82) | $ (1.10) | $ (0.02) | $ (0.15) | $ 0.15 | $ 0.14 | $ 0.04 | $ (0.08) | $ (2.08) | $ 0.28 | $ 0.35 |
Weighted average shares outstanding - diluted | 8,338 | 5,512 | 5,050 | ||||||||
Net income (loss) per share attributable to common stockholders - diluted | $ (0.82) | $ (1.10) | $ (0.02) | $ (0.15) | $ 0.15 | $ 0.14 | $ 0.04 | $ (0.08) | $ (2.08) | $ 0.26 | $ 0.34 |
Class A | |||||||||||
Earnings Per Share Diluted [Line Items] | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ (15,276) | $ 1,180 | $ 1,394 | ||||||||
Weighted average common shares outstanding - basic | 7,338,000 | 4,283,000 | 4,000,000 | ||||||||
Net income (loss) per share attributable to common stockholders - basic | $ (2.08) | $ 0.28 | $ 0.35 | ||||||||
Net income (loss) attributable to common stockholders - diluted | $ (15,276) | $ 1,192 | $ 1,394 | ||||||||
Options to purchase common stock | 229,000 | 50,000 | |||||||||
Weighted average shares outstanding - diluted | 7,338,000 | 4,512,000 | 4,050,000 | ||||||||
Net income (loss) per share attributable to common stockholders - diluted | $ (2.08) | $ 0.26 | $ 0.34 | ||||||||
Class B | |||||||||||
Earnings Per Share Diluted [Line Items] | |||||||||||
Net income (loss) attributable to common stockholders - basic | $ (2,082) | $ 276 | $ 348 | ||||||||
Weighted average common shares outstanding - basic | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Net income (loss) per share attributable to common stockholders - basic | $ (2.08) | $ 0.28 | $ 0.35 | ||||||||
Net income (loss) attributable to common stockholders - diluted | $ (2,082) | $ 264 | $ 348 | ||||||||
Weighted average shares outstanding - diluted | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Net income (loss) per share attributable to common stockholders - diluted | $ (2.08) | $ 0.26 | $ 0.35 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Employee Stock Option | |||
Earnings Per Share [Line Items] | |||
Potentially dilutive shares that were excluded from the calculation of diluted loss per share | 115,000 | 0 | 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Jan. 01, 2018 | Dec. 22, 2017 | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |||||
Percentage of effective income tax rate, tax cuts and jobs act | 21 | 35 | 21 | ||
Effective income tax rate, federal tax rate | 21.00% | 21.00% | 25.30% | ||
Effective tax rate | (7.30%) | 4.50% | 0.30% | ||
Income tax provision | $ 1,174,000 | $ 68,000 | $ 5,000 | ||
Federal net operating loss (“NOL”) carryover | 27,000,000 | ||||
Federal tax credit carryover | 2,000,000 | ||||
Unrecognized tax benefits | 0 | ||||
Valuation allowance recorded | 5,568,000 | ||||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Federal NOL carried forward indefinitely, if not utilized | $ 22,800,000 | ||||
Federal NOL carryforward remainder amount expiration date | Aug. 31, 2032 | ||||
Federal tax credit expiration date | Aug. 31, 2032 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income (Loss) Before Provision for Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract] | |||
US | $ (16,184) | $ 1,524 | $ 1,747 |
Total | $ (16,184) | $ 1,524 | $ 1,747 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current: | |||
State | $ 53 | $ 129 | $ 65 |
Total current | 53 | 129 | 65 |
Deferred: | |||
Federal | 1,047 | (47) | (146) |
State | 74 | (14) | 86 |
Total deferred | 1,121 | (61) | (60) |
Total | $ 1,174 | $ 68 | $ 5 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Rate (Details) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 25.30% |
Employer tip credit | 0.90% | (20.20%) | (23.50%) |
Stock-based compensation | (0.80%) | ||
Change in valuation allowance | (28.30%) | ||
Other items | 0.50% | (2.20%) | (7.80%) |
State tax, net of federal benefit | (0.60%) | 5.90% | 6.30% |
Effective tax rate | (7.30%) | 4.50% | 0.30% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets: | ||
General business credit | $ 6,472 | $ 1,789 |
NOL carryover | 2,003 | 792 |
Lease liabilities | 16,635 | |
Deferred rent | 602 | |
Tenant allowance | 324 | |
State tax deduction | 12 | 29 |
Other | 535 | 14 |
Gross deferred tax assets | 25,657 | 3,550 |
Deferred tax liabilities: | ||
Basis difference on fixed assets | (4,593) | (2,408) |
Right-of-use assets | (15,496) | (15) |
Gross deferred tax liabilities | (20,089) | (2,423) |
Valuation allowance | $ (5,568) | |
Net deferred tax | $ 1,127 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) - Summary of Certain Unaudited Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 5,528 | $ 2,812 | $ 19,388 | $ 17,440 | $ 18,753 | $ 16,955 | $ 15,117 | $ 13,420 | $ 45,168 | $ 64,245 | $ 51,744 |
Operating income (loss) | (6,839) | (8,028) | (240) | (1,391) | 965 | 834 | 282 | (420) | (16,498) | 1,661 | 1,863 |
Net income (loss) | $ (6,849) | $ (9,152) | $ (133) | $ (1,224) | $ 916 | $ 719 | $ 212 | $ (391) | $ (17,358) | $ 1,456 | $ 1,742 |
Basic income (loss) per share of Class A and Class B common stock | $ (0.82) | $ (1.10) | $ (0.02) | $ (0.15) | $ 0.15 | $ 0.14 | $ 0.04 | $ (0.08) | $ (2.08) | $ 0.28 | $ 0.35 |
Diluted income (loss) per share of Class A and Class B common stock | $ (0.82) | $ (1.10) | $ (0.02) | $ (0.15) | $ 0.15 | $ 0.14 | $ 0.04 | $ (0.08) | $ (2.08) | $ 0.26 | $ 0.34 |