Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2021 | Jul. 07, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | KRUS | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | KURA SUSHI USA, INC. | |
Entity Central Index Key | 0001772177 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity File Number | 001-39012 | |
Entity Tax Identification Number | 26-3808434 | |
Entity Address, Address Line One | 17461 Derian Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 92614 | |
City Area Code | 657 | |
Local Phone Number | 333-4100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,427,334 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,000,050 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 4,701 | $ 9,259 |
Accounts and other receivables | 3,258 | 2,130 |
Inventories | 467 | 367 |
Due from affiliate | 2 | 12 |
Prepaid expenses and other current assets | 11,973 | 3,010 |
Total current assets | 20,401 | 14,778 |
Non-current assets: | ||
Property and equipment - net | 51,783 | 45,541 |
Operating lease right-of-use assets | 56,165 | 56,119 |
Deposits and other assets | 2,085 | 1,941 |
Total assets | 130,434 | 118,379 |
Current liabilities: | ||
Accounts payable | 3,631 | 4,919 |
Accrued expenses and other current liabilities | 1,638 | 720 |
Salaries and wages payable | 4,755 | 1,786 |
Finance leases - current | 1,011 | 1,004 |
Operating lease liabilities - current | 5,159 | 5,106 |
Due to affiliate | 60 | 201 |
Sales tax payable | 687 | 189 |
Total current liabilities | 16,941 | 13,925 |
Non-current liabilities: | ||
Loan from affiliate | 17,000 | |
Finance leases - non-current | 696 | 1,481 |
Operating lease liabilities - non-current | 57,777 | 56,918 |
Other liabilities | 363 | 342 |
Total liabilities | 92,777 | 72,666 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 61,737 | 60,332 |
Accumulated deficit | (24,088) | (14,627) |
Total stockholders' equity | 37,657 | 45,713 |
Total liabilities and stockholders' equity | 130,434 | 118,379 |
Class A | ||
Stockholders' equity: | ||
Common stock | 7 | 7 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | May 31, 2021 | Aug. 31, 2020 |
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, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 7,424,000 | 7,342,000 |
Common stock, shares outstanding | 7,424,000 | 7,342,000 |
Class B | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 1,000,000 | 1,000,000 |
Common stock, shares outstanding | 1,000,000 | 1,000,000 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Sales | $ 18,471 | $ 2,812 | $ 36,967 | $ 39,640 |
Restaurant operating costs: | ||||
Depreciation and amortization expenses | 1,086 | 743 | 3,015 | 2,118 |
Other costs | 2,713 | 964 | 6,843 | 5,221 |
Total restaurant operating costs | 13,183 | 7,916 | 35,208 | 40,208 |
General and administrative expenses | 4,292 | 2,885 | 10,687 | 8,994 |
Depreciation and amortization expenses | 130 | 39 | 299 | 97 |
Total operating expenses | 17,605 | 10,840 | 46,194 | 49,299 |
Operating income (loss) | 866 | (8,028) | (9,227) | (9,659) |
Other expense (income): | ||||
Interest expense | 67 | 36 | 154 | 103 |
Interest income | (1) | (65) | (8) | (432) |
Income (loss) before income taxes | 800 | (7,999) | (9,373) | (9,330) |
Income tax expense | 30 | 1,153 | 88 | 1,179 |
Net income (loss) | $ 770 | $ (9,152) | $ (9,461) | $ (10,509) |
Net income (loss) per Class A and Class B shares | ||||
Basic | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Diluted | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Weighted average Class A and Class B shares outstanding | ||||
Basic | 8,383 | 8,341 | 8,381 | 8,337 |
Diluted | 8,663 | 8,341 | 8,381 | 8,337 |
Food and Beverage Costs | ||||
Restaurant operating costs: | ||||
Cost of goods and services sold | $ 5,850 | $ 1,069 | $ 12,078 | $ 12,868 |
Labor and Related Costs | ||||
Restaurant operating costs: | ||||
Cost of goods and services sold | 1,649 | 3,551 | 8,070 | 15,336 |
Occupancy and Related Expenses | ||||
Restaurant operating costs: | ||||
Cost of goods and services sold | $ 1,885 | $ 1,589 | $ 5,202 | $ 4,665 |
Condensed Statements of Stockho
Condensed 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, 2019 | $ 62,181 | $ 7 | $ 1 | $ 59,442 | $ 2,731 | ||
Beginning balance, shares at Aug. 31, 2019 | 7,335 | 1,000 | |||||
Stock-based compensation | 121 | 121 | |||||
Net income (loss) | (1,224) | (1,224) | |||||
Ending balances at Nov. 30, 2019 | 61,078 | $ 7 | $ 1 | 59,563 | 1,507 | ||
Ending balance, shares at Nov. 30, 2019 | 7,335 | 1,000 | |||||
Beginning balances at Aug. 31, 2019 | 62,181 | $ 7 | $ 1 | 59,442 | 2,731 | ||
Beginning balance, shares at Aug. 31, 2019 | 7,335 | 1,000 | |||||
Net income (loss) | (10,509) | ||||||
Ending balances at May. 31, 2020 | 52,282 | $ 7 | $ 1 | 60,052 | (7,778) | ||
Ending balance, shares at May. 31, 2020 | 7,342 | 1,000 | |||||
Beginning balances at Nov. 30, 2019 | 61,078 | $ 7 | $ 1 | 59,563 | 1,507 | ||
Beginning balance, shares at Nov. 30, 2019 | 7,335 | 1,000 | |||||
Stock-based compensation | 211 | 211 | |||||
Net income (loss) | (133) | (133) | |||||
Exercise of stock options | 15 | 15 | |||||
Exercise of stock options, shares | 3 | ||||||
Ending balances at Feb. 29, 2020 | 61,171 | $ 7 | $ 1 | 59,789 | 1,374 | ||
Ending balance, shares at Feb. 29, 2020 | 7,338 | 1,000 | |||||
Stock-based compensation | 248 | 248 | |||||
Net income (loss) | (9,152) | (9,152) | |||||
Exercise of stock options | 15 | 15 | |||||
Exercise of stock options, shares | 4 | ||||||
Ending balances at May. 31, 2020 | 52,282 | $ 7 | $ 1 | 60,052 | (7,778) | ||
Ending balance, shares at May. 31, 2020 | 7,342 | 1,000 | |||||
Beginning balances at Aug. 31, 2020 | 45,713 | $ 7 | $ 1 | 60,332 | (14,627) | ||
Beginning balance, shares at Aug. 31, 2020 | 7,342 | 1,000 | 7,342 | 1,000 | |||
Stock-based compensation | 266 | 266 | |||||
Net income (loss) | (6,350) | (6,350) | |||||
Exercise of stock options | 94 | 94 | |||||
Exercise of stock options, shares | 22 | ||||||
Ending balances at Nov. 30, 2020 | 39,723 | $ 7 | $ 1 | 60,692 | (20,977) | ||
Ending balance, shares at Nov. 30, 2020 | 7,364 | 1,000 | |||||
Beginning balances at Aug. 31, 2020 | 45,713 | $ 7 | $ 1 | 60,332 | (14,627) | ||
Beginning balance, shares at Aug. 31, 2020 | 7,342 | 1,000 | 7,342 | 1,000 | |||
Net income (loss) | (9,461) | ||||||
Ending balances at May. 31, 2021 | 37,657 | $ 7 | $ 1 | 61,737 | (24,088) | ||
Ending balance, shares at May. 31, 2021 | 7,424 | 1,000 | 7,424 | 1,000 | |||
Beginning balances at Nov. 30, 2020 | 39,723 | $ 7 | $ 1 | 60,692 | (20,977) | ||
Beginning balance, shares at Nov. 30, 2020 | 7,364 | 1,000 | |||||
Stock-based compensation | 309 | 309 | |||||
Net income (loss) | (3,881) | (3,881) | |||||
Exercise of stock options | 272 | 272 | |||||
Exercise of stock options, shares | 49 | ||||||
Ending balances at Feb. 28, 2021 | 36,423 | $ 7 | $ 1 | 61,273 | (24,858) | ||
Ending balance, shares at Feb. 28, 2021 | 7,413 | 1,000 | |||||
Stock-based compensation | 391 | 391 | |||||
Net income (loss) | 770 | 770 | |||||
Exercise of stock options | 73 | 73 | |||||
Exercise of stock options, shares | 11 | ||||||
Ending balances at May. 31, 2021 | $ 37,657 | $ 7 | $ 1 | $ 61,737 | $ (24,088) | ||
Ending balance, shares at May. 31, 2021 | 7,424 | 1,000 | 7,424 | 1,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (9,461) | $ (10,509) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 3,314 | 2,215 |
Stock-based compensation | 966 | 580 |
Loss on disposal of property and equipment | 91 | 4 |
Deferred income taxes | 1,114 | |
Non-cash lease expense | 1,975 | 1,695 |
Inventory write-downs | 50 | |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (1,227) | 836 |
Inventories | (100) | 82 |
Due from affiliate | 10 | 221 |
Prepaid expenses and other current assets | (8,963) | (1,227) |
Deposits and other assets | (34) | (108) |
Accounts payable | 71 | (2,995) |
Accrued expenses and other current liabilities | 1,129 | (861) |
Salaries and wages payable | 2,969 | (340) |
Operating lease liabilities | (1,011) | (915) |
Due to affiliate | 76 | (4) |
Sales tax payable | 498 | (533) |
Net cash used in operating activities | (9,697) | (10,695) |
Cash flows from investing activities | ||
Payments for property and equipment | (11,412) | (9,348) |
Payments for initial direct costs | (165) | |
Payments for purchases of liquor licenses | (111) | (58) |
Net cash used in investing activities | (11,523) | (9,571) |
Cash flows from financing activities | ||
Proceeds from PPP loan | 5,983 | |
Repayment of PPP loan | (5,983) | |
Proceeds from loan from affiliate | 17,000 | |
Repayment of principal on finance leases | (777) | (778) |
Proceeds from exercise of stock options | 439 | 30 |
Net cash provided by (used in) financing activities | 16,662 | (748) |
Decrease in cash, cash equivalents and restricted cash | (4,558) | (21,014) |
Cash, cash equivalents and restricted cash, beginning of period | 9,259 | 38,044 |
Cash, cash equivalents and restricted cash, end of period | 4,701 | 17,030 |
Noncash investing activities | ||
Amounts included in accounts payable for purchases of property and equipment | $ 641 | $ 1,916 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
May 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires. Effects of COVID-19 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, supply chains and financial markets globally. In response to this outbreak, many state and local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. As of May 31, 2021, the Company had all of its 31 restaurants operating at indoor dining capacities ranging from 50% to 100%. In June 2021, the Company opened one new restaurant in Bellevue, Washington. As of the filing date of this Quarterly Report on Form 10-Q, the Company had all of its 32 restaurants operating at 100% indoor capacity with no restrictions in place. In response to the ongoing COVID-19 pandemic, the Company prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained its 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 reduced capacities at its restaurants have caused a substantial decline in the Company’s comparable restaurant sales in the most recently completed fiscal quarter and year-to-date period compared to pre-pandemic levels. In response to the challenges posed by the COVID-19 pandemic, the Company focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, emphasizing mobile ordering and takeout, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. Currently, with the lift of all indoor dining restrictions at all of its restaurants, the Company has experienced a staffing shortage and has provided certain employee retention and new hire bonuses. 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”), the majority stockholder of the Company, 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. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million. In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, as well as amendments to the interest rate. For additional information, s Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed by the United States Congress and signed by the President, the Company is eligible for a refundable employee retention credit subject to certain criteria. The Company recognized a $6.3 million employee retention credit and a $1.6 million employee retention credit during the three months ended May 31, 2021 and May 31, 2020, respectively, and recognized an $8.9 million employee retention credit and a $1.6 million employee retention credit during the nine months ended May 31, 2021 and May 31, 2020, respectively. For the three months ended May 31, 2021, $ 5.8 million is 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 three and nine months ended May 31, 2021. Due to the current staffing shortage, the Company provided certain employee retention and new hire bonuses totaling $0.7 million in the three and nine months ended May 31, 2021. Due to the ongoing impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of May 31, 2021. Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2020. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2021 or for any other future annual or interim period. Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2022”, “fiscal year 2021,” “fiscal year 2020” and “fiscal year 2019” refer to the Company’s fiscal years ending August 31, 2022 and August 31, 2021, and ended August 31, 2020 and August 31, 2019, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements. Recently Issued Accounting Pronouncements In 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 | 9 Months Ended |
May 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 2. Accounts and Other Receivables May 31, 2021 August 31, 2020 (amounts in thousands) Lease receivable $ 1,694 $ 1,811 Credit card receivable 1,491 281 Other receivables 73 38 Total accounts and other receivables $ 3,258 $ 2,130 Prepaid Expenses and Other Current Assets May 31, 2021 August 31, 2020 (amounts in thousands) Employee retention credit $ 10,697 $ 1,750 Prepaid expenses 1,046 885 Other current assets 230 375 Total prepaid expenses and other current assets $ 11,973 $ 3,010 Property and Equipment - net May 31, 2021 August 31, 2020 (amounts in thousands) Leasehold improvements $ 41,239 $ 30,497 Lease assets 6,102 6,117 Furniture and fixtures 12,359 7,908 Computer equipment 800 696 Vehicles 110 88 Software 761 689 Construction in progress 3,647 9,558 Property and equipment – gross 65,018 55,553 Less: accumulated depreciation and amortization (13,235 ) (10,012 ) Total property and equipment – net $ 51,783 $ 45,541 Depreciation and amortization expense for property and equipment was approximately $1.2 million and $0.8 Accrued Expenses and Other Current Liabilities May 31, 2021 August 31, 2020 (amounts in thousands) Credit card payable $ 135 $ 84 Income taxes payable 143 56 Other current liabilities 1,360 580 Total accrued expenses and other current liabilities $ 1,638 $ 720 |
Leases
Leases | 9 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Leases | Note 3. 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 Company’s 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 within 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 – non-current,” respectively. Finance leases are accounted for on the balance sheet within ROU assets and lease liabilities recognized in “Property and equipment – net,” “Finance lease – current” and “Finance lease – non-current,” respectively. Lease assets and liabilities are recognized at the lease commencement date. 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 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 statements of operations. 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 the Company’s restaurants are accrued based on estimated sales. Lease related costs recognized in the statements of operations for the three and nine months ended May 31, 2021 and May 31, 2020 are as follows: Three Months Ended May 31, Nine Months Ended May 31, May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 157 $ 141 $ 465 $ 419 Interest on lease liabilities Interest expense 20 30 69 95 Total finance lease cost $ 177 $ 171 $ 534 $ 514 Three Months Ended May 31, Nine Months Ended May 31, May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 1,571 $ 1,244 $ 4,687 $ 3,688 Variable lease cost Occupancy and related expenses, and general and administrative expenses 401 223 898 923 Total operating lease cost $ 1,972 $ 1,467 $ 5,585 $ 4,611 Supplemental balance sheet information related to leases is as follows: Operating Leases May 31, 2021 August 31, 2020 (amounts in thousands) Operating lease right-of-use assets $ 56,165 $ 56,119 Operating lease liabilities – current $ 5,159 $ 5,106 Operating lease liabilities – non-current 57,777 56,918 Total operating lease liabilities $ 62,936 $ 62,024 Finance Lease Assets – net May 31, 2021 August 31, 2020 (amounts in thousands) Finance lease assets $ 6,102 $ 6,117 Accumulated depreciation (2,644 ) (2,178 ) Total finance lease assets - net $ 3,458 $ 3,939 Finance Leases Liabilities May 31, 2021 August 31, 2020 (amounts in thousands) Finance lease liabilities - current $ 1,011 $ 1,004 Finance lease liabilities - non-current 696 1,481 Total finance lease liabilities $ 1,707 $ 2,485 May 31, 2021 May 31, 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.0 15.1 Finance leases 1.7 2.6 Weighted Average Discount Rate Operating leases 6.6 % 5.8 % Finance leases 4.5 % 4.5 % Supplemental disclosures of cash flow information related to leases are as follows: Nine Months Ended May 31, May 31, 2021 May 31, 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 3,234 $ 2,644 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 2,952 $ 15,074 As of May 31, 2021, the Company had additional operating leases liabilities related to restaurants of which the Company has not yet taken possession of $22.8 million. These operating leases are expected to commence in fiscal years 2021 and 2022 with lease terms of 20 years. Maturities of lease liabilities, net of lease receivables, were as follows as of May 31, 2021: Operating Leases Finance Leases (amounts in thousands) Remainder of 2021 $ 428 $ 263 2022 3,828 1,005 2023 6,106 483 2024 6,237 17 2025 6,335 1 Thereafter 79,694 — Total lease payments 102,628 1,769 Less: imputed interest (39,692 ) (62 ) Present value of lease liabilities $ 62,936 $ 1,707 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
May 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4. Related Party Transactions Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company, and is incorporated and headquartered in Japan. In August 2019 the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides 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 certain employees to work for 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 and market research analyses. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth in the Shared Services Agreement. A right of setoff is not required, however, from time to time, either party net settles transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan 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. 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 pays 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. On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, which was subsequently amended on September 2, 2020 and April 9, 2021, to provide the Company a credit line of $45 million. For additional information, see “Note 6. Debt.” Balances with Kura Japan as of May 31, 2021 and August 31, 2020 are as follows: May 31, 2021 August 31, 2020 (amounts in thousands) Due from affiliate $ 2 $ 12 Due to affiliate $ 60 $ 201 Loan from affiliate $ 17,000 $ — Reimbursements and other payments by the Company to Kura Japan for the three and nine months ended May 31, 2021 and May 31, 2020 were as follows: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ 4 $ 8 $ 76 $ 31 Expatriate salaries expense 30 34 92 106 Royalty payments 93 14 185 198 Travel and other administrative expenses — 23 17 73 Purchases of equipment 29 200 430 833 Interest expense 47 — 74 — Total related party transactions $ 203 $ 279 $ 874 $ 1,241 Reimbursements by Kura Japan to the Company were $2 thousand and $17 thousand for the three months ended May 31, 2021 and May 31, 2020, respectively, and were $27 thousand and $86 thousand for the nine months ended May 31, 2021 and May 31, 2020, respectively. The reimbursements were for travel and audit expenses. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
May 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 5. Stock-based Compensation The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”) for the period from August 31, 2020 through May 31, 2021: Options Outstanding Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Per Share Outstanding—August 31, 2020 531,747 $ 9.51 Options granted 152,260 20.97 Options exercised (82,588 ) 5.31 Options canceled/forfeited (22,537 ) 10.88 Outstanding— May 31, 2021 578,882 $ 13.07 The Company issued seven thousand restricted stock awards during the nine months ended May 31, 2021 in addition to the option awards stated above, amounting to an expense of $32 thousand for the three months ended May 31, 2021 and $60 thousand for the nine months ended May 31, 2021. No restricted stock awards were issued during the three months ended May 31, 2021 and the three and nine months ended May 31, 2020. The total stock-based compensation expense recognized under the Stock Incentive Plan in the statements of operations is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 34 $ 23 $ 83 $ 59 Corporate-level stock-based compensation included in general and administrative expenses 357 225 883 521 Total stock-based compensation $ 391 $ 248 $ 966 $ 580 |
Debt
Debt | 9 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement establishing a $20 million revolving credit line for the Company. 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 and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, and additionally, amending the interest rate for advances disbursed prior to April 10, 2021 to be fixed at 1.1% and the interest rate for advances disbursed on or after April 10, 2021 to be fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. The AFR as of May 31, 2021 was 2.82%. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply. As of May 31, 2021, the Company had borrowed $14.0 million at a fixed interest rate of 1.1% and $3.0 million at a fixed interest rate of 2.8% under the Revolving Credit Agreement. Interest expense for the three and nine months ended May 31, 2021 was immaterial. As of May 31, 2021, the Company had $28.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.” |
Income (Loss) Per Share
Income (Loss) Per Share | 9 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | Note 7. Income (Loss) Per Share The net income (loss) per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net income (loss) attributable to common stockholders 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: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 Class A Class B 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 $ 678 $ 92 $ (8,055 ) $ (1,097 ) $ (8,332 ) $ (1,129 ) $ (9,248 ) $ (1,261 ) Weighted average common shares outstanding - basic 7,383 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Net income (loss) per share attributable to common stockholders - basic $ 0.09 $ 0.09 $ (1.10 ) $ (1.10 ) $ (1.13 ) $ (1.13 ) $ (1.26 ) $ (1.26 ) Net income (loss) attributable to common stockholders - diluted $ 681 $ 89 $ (8,055 ) $ (1,097 ) $ (8,332 ) $ (1,129 ) $ (9,248 ) $ (1,261 ) Weighted average shares outstanding - basic 7,383 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Dilutive effect of stock-based awards 280 — — — — — — — Weighted average shares outstanding - diluted 7,663 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Net income (loss) per share attributable to common stockholders - diluted $ 0.09 $ 0.09 $ (1.10 ) $ (1.10 ) $ (1.13 ) $ (1.13 ) $ (1.26 ) $ (1.26 ) The Company computes basic income (loss) per common share using net income (loss) and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using net income (loss) 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 and restricted stock awards. For the three months ended May 31, 2021 and May 31, 2020, there were 87 thousand and 21 thousand shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share because their inclusion would have been anti-dilutive. For the nine months ended May 31, 2021 and May 31, 2020, there were approximately 586 thousand and 137 thousand shares of common stock subject to outstanding employee stock options and restricted stock awards, respectively, that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. 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 including a cause of action brought under the California Private Attorney General Act. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. During the three months ended May 31, 2021, a joint stipulation was filed requesting a delay in the class certification hearing date to March 3, 2022 and a mediation was scheduled for September 24, 2021. Based on research conducted by the Company in preparation for the mediation, the Company recorded an accrued liability of $1.0 million related to this complaint within general and administrative expenses in the statements of operations during the three months ended May 31, 2021, as the liability associated with a potential settlement became probable and reasonably estimable. The Company is unable to reasonably estimate the upper end of the range of possible loss. There can be no assurance of the actual liability associated with this complaint, which may be higher than the estimated amount accrued during the three months ended May 31, 2021. As the Company receives new information, it will reevaluate its estimated liability and the estimated liability may change significantly. The Company is involved from time to time in various legal proceedings that arise in the ordinary course of 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, excluding 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 | 9 Months Ended |
May 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The Company recorded income tax expense of $30 thousand and $1.2 million for the three months ended May 31, 2021 and May 31, 2020, respectively, and of $88 thousand and $1.2 million for the nine months ended May 31, 2021 and May 31, 2020, respectively. The Company’s effective tax rates for the three and nine months ended May 31, 2021 substantially differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company’s deferred tax assets. The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of its deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at May 31, 2021 was appropriate. On December 27, 2020, Congress passed, and the President signed into law, the Consolidated Appropriations Act, 2021 (the “Act”), which includes certain business tax provisions. The Company does not expect the Act to have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ending August 31, 2021. On March 11, 2021, Congress passed, and the President signed into law, the American Rescue Plan Act, 2021 (the “ARP”), which includes certain business tax provisions. The Company does not expect the ARP to have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ending August 31, 2021. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
May 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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, supply chains and financial markets globally. In response to this outbreak, many state and local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. As of May 31, 2021, the Company had all of its 31 restaurants operating at indoor dining capacities ranging from 50% to 100%. In June 2021, the Company opened one new restaurant in Bellevue, Washington. As of the filing date of this Quarterly Report on Form 10-Q, the Company had all of its 32 restaurants operating at 100% indoor capacity with no restrictions in place. In response to the ongoing COVID-19 pandemic, the Company prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained its 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 reduced capacities at its restaurants have caused a substantial decline in the Company’s comparable restaurant sales in the most recently completed fiscal quarter and year-to-date period compared to pre-pandemic levels. In response to the challenges posed by the COVID-19 pandemic, the Company focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, emphasizing mobile ordering and takeout, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. Currently, with the lift of all indoor dining restrictions at all of its restaurants, the Company has experienced a staffing shortage and has provided certain employee retention and new hire bonuses. 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”), the majority stockholder of the Company, 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. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million. In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, as well as amendments to the interest rate. For additional information, s Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed by the United States Congress and signed by the President, the Company is eligible for a refundable employee retention credit subject to certain criteria. The Company recognized a $6.3 million employee retention credit and a $1.6 million employee retention credit during the three months ended May 31, 2021 and May 31, 2020, respectively, and recognized an $8.9 million employee retention credit and a $1.6 million employee retention credit during the nine months ended May 31, 2021 and May 31, 2020, respectively. For the three months ended May 31, 2021, $ 5.8 million is 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 three and nine months ended May 31, 2021. Due to the current staffing shortage, the Company provided certain employee retention and new hire bonuses totaling $0.7 million in the three and nine months ended May 31, 2021. Due to the ongoing impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of May 31, 2021. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2020. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2021 or for any other future annual or interim period. |
Fiscal Year | Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2022”, “fiscal year 2021,” “fiscal year 2020” and “fiscal year 2019” refer to the Company’s fiscal years ending August 31, 2022 and August 31, 2021, and ended August 31, 2020 and August 31, 2019, 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. |
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. |
Recently Issued Accounting Pronouncements | 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 (Table
Balance Sheet Components (Tables) | 9 Months Ended |
May 31, 2021 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Accounts and Other Receivables | Accounts and Other Receivables May 31, 2021 August 31, 2020 (amounts in thousands) Lease receivable $ 1,694 $ 1,811 Credit card receivable 1,491 281 Other receivables 73 38 Total accounts and other receivables $ 3,258 $ 2,130 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets May 31, 2021 August 31, 2020 (amounts in thousands) Employee retention credit $ 10,697 $ 1,750 Prepaid expenses 1,046 885 Other current assets 230 375 Total prepaid expenses and other current assets $ 11,973 $ 3,010 |
Schedule of Property and Equipment - Net | Property and Equipment - net May 31, 2021 August 31, 2020 (amounts in thousands) Leasehold improvements $ 41,239 $ 30,497 Lease assets 6,102 6,117 Furniture and fixtures 12,359 7,908 Computer equipment 800 696 Vehicles 110 88 Software 761 689 Construction in progress 3,647 9,558 Property and equipment – gross 65,018 55,553 Less: accumulated depreciation and amortization (13,235 ) (10,012 ) Total property and equipment – net $ 51,783 $ 45,541 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities May 31, 2021 August 31, 2020 (amounts in thousands) Credit card payable $ 135 $ 84 Income taxes payable 143 56 Other current liabilities 1,360 580 Total accrued expenses and other current liabilities $ 1,638 $ 720 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Related Costs | Lease related costs recognized in the statements of operations for the three and nine months ended May 31, 2021 and May 31, 2020 are as follows: Three Months Ended May 31, Nine Months Ended May 31, May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 157 $ 141 $ 465 $ 419 Interest on lease liabilities Interest expense 20 30 69 95 Total finance lease cost $ 177 $ 171 $ 534 $ 514 Three Months Ended May 31, Nine Months Ended May 31, May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 1,571 $ 1,244 $ 4,687 $ 3,688 Variable lease cost Occupancy and related expenses, and general and administrative expenses 401 223 898 923 Total operating lease cost $ 1,972 $ 1,467 $ 5,585 $ 4,611 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: Operating Leases May 31, 2021 August 31, 2020 (amounts in thousands) Operating lease right-of-use assets $ 56,165 $ 56,119 Operating lease liabilities – current $ 5,159 $ 5,106 Operating lease liabilities – non-current 57,777 56,918 Total operating lease liabilities $ 62,936 $ 62,024 Finance Lease Assets – net May 31, 2021 August 31, 2020 (amounts in thousands) Finance lease assets $ 6,102 $ 6,117 Accumulated depreciation (2,644 ) (2,178 ) Total finance lease assets - net $ 3,458 $ 3,939 Finance Leases Liabilities May 31, 2021 August 31, 2020 (amounts in thousands) Finance lease liabilities - current $ 1,011 $ 1,004 Finance lease liabilities - non-current 696 1,481 Total finance lease liabilities $ 1,707 $ 2,485 May 31, 2021 May 31, 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.0 15.1 Finance leases 1.7 2.6 Weighted Average Discount Rate Operating leases 6.6 % 5.8 % Finance leases 4.5 % 4.5 % |
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases | Supplemental disclosures of cash flow information related to leases are as follows: Nine Months Ended May 31, May 31, 2021 May 31, 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 3,234 $ 2,644 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 2,952 $ 15,074 |
Summary of Maturities of Lease Liabilities Net of Lease Receivables | Maturities of lease liabilities, net of lease receivables, were as follows as of May 31, 2021: Operating Leases Finance Leases (amounts in thousands) Remainder of 2021 $ 428 $ 263 2022 3,828 1,005 2023 6,106 483 2024 6,237 17 2025 6,335 1 Thereafter 79,694 — Total lease payments 102,628 1,769 Less: imputed interest (39,692 ) (62 ) Present value of lease liabilities $ 62,936 $ 1,707 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
May 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions Due to and from Affiliates | Balances with Kura Japan as of May 31, 2021 and August 31, 2020 are as follows: May 31, 2021 August 31, 2020 (amounts in thousands) Due from affiliate $ 2 $ 12 Due to affiliate $ 60 $ 201 Loan from affiliate $ 17,000 $ — |
Schedule of Related Party Reimbursements and Other Payments | Reimbursements and other payments by the Company to Kura Japan for the three and nine months ended May 31, 2021 and May 31, 2020 were as follows: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ 4 $ 8 $ 76 $ 31 Expatriate salaries expense 30 34 92 106 Royalty payments 93 14 185 198 Travel and other administrative expenses — 23 17 73 Purchases of equipment 29 200 430 833 Interest expense 47 — 74 — Total related party transactions $ 203 $ 279 $ 874 $ 1,241 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
May 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity under Stock Incentive Plan | The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”) for the period from August 31, 2020 through May 31, 2021: Options Outstanding Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Per Share Outstanding—August 31, 2020 531,747 $ 9.51 Options granted 152,260 20.97 Options exercised (82,588 ) 5.31 Options canceled/forfeited (22,537 ) 10.88 Outstanding— May 31, 2021 578,882 $ 13.07 |
Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan | The total stock-based compensation expense recognized under the Stock Incentive Plan in the statements of operations is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 34 $ 23 $ 83 $ 59 Corporate-level stock-based compensation included in general and administrative expenses 357 225 883 521 Total stock-based compensation $ 391 $ 248 $ 966 $ 580 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 Class A Class B 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 $ 678 $ 92 $ (8,055 ) $ (1,097 ) $ (8,332 ) $ (1,129 ) $ (9,248 ) $ (1,261 ) Weighted average common shares outstanding - basic 7,383 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Net income (loss) per share attributable to common stockholders - basic $ 0.09 $ 0.09 $ (1.10 ) $ (1.10 ) $ (1.13 ) $ (1.13 ) $ (1.26 ) $ (1.26 ) Net income (loss) attributable to common stockholders - diluted $ 681 $ 89 $ (8,055 ) $ (1,097 ) $ (8,332 ) $ (1,129 ) $ (9,248 ) $ (1,261 ) Weighted average shares outstanding - basic 7,383 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Dilutive effect of stock-based awards 280 — — — — — — — Weighted average shares outstanding - diluted 7,663 1,000 7,341 1,000 7,381 1,000 7,337 1,000 Net income (loss) per share attributable to common stockholders - diluted $ 0.09 $ 0.09 $ (1.10 ) $ (1.10 ) $ (1.13 ) $ (1.13 ) $ (1.26 ) $ (1.26 ) |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Details) | Jul. 13, 2021Restaurant | May 31, 2021USD ($)Restaurant | Sep. 02, 2020USD ($) | Apr. 10, 2020USD ($) | May 31, 2021USD ($)Restaurant | May 31, 2020USD ($) | May 31, 2021USD ($)Restaurant | May 31, 2020USD ($) | Jun. 30, 2021Restaurant | Apr. 09, 2021USD ($) |
Revolving Credit Facility Agreement | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Revolving credit line | $ 28,000,000 | $ 28,000,000 | $ 28,000,000 | |||||||
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] | ||||||||||
Credit facility maximum borrowing capacity | $ 35,000,000 | |||||||||
Revolving credit line, termination date | Apr. 10, 2025 | |||||||||
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. | |||||||||
Kura Japan | Second Amendment | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Credit facility maximum borrowing capacity | $ 45,000,000 | |||||||||
COVID-19 | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Employee retention and new hire bonuses | $ 700,000 | $ 700,000 | $ 700,000 | |||||||
Impairment of long-lived assets | $ 0 | |||||||||
COVID-19 | Kura Japan | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Number of restaurants, total | Restaurant | 31 | 31 | 31 | |||||||
Revolving credit line | $ 20,000,000 | |||||||||
COVID-19 | Kura Japan | Revolving Credit Facility Agreement | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Credit facility maximum borrowing capacity | $ 45,000,000 | |||||||||
COVID-19 | Kura Japan | Subsequent Event | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Number of restaurants, total | Restaurant | 32 | |||||||||
Number of new restaurant opened | Restaurant | 1 | |||||||||
Reduced percentage of capacities | 100.00% | |||||||||
CARES Act | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Employee retention credit | $ 6,300,000 | $ 1,600,000 | $ 8,900,000 | $ 1,600,000 | ||||||
CARES Act | General and Administrative Expenses | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Employee retention credit | 500,000 | 900,000 | ||||||||
CARES Act | Labor and Related Costs | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Employee retention credit | $ 5,800,000 | $ 8,000,000 | ||||||||
Minimum | COVID-19 | Kura Japan | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Reduced percentage of capacities | 50.00% | |||||||||
Maximum | COVID-19 | Kura Japan | ||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||
Reduced percentage of capacities | 100.00% |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Receivables Net Current [Line Items] | ||
Accounts and other receivables | $ 3,258 | $ 2,130 |
Lease Receivable | ||
Receivables Net Current [Line Items] | ||
Accounts and other receivables | 1,694 | 1,811 |
Credit Card Receivable | ||
Receivables Net Current [Line Items] | ||
Accounts and other receivables | 1,491 | 281 |
Other Receivables | ||
Receivables Net Current [Line Items] | ||
Accounts and other receivables | $ 73 | $ 38 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Employee retention credit | $ 10,697 | $ 1,750 |
Prepaid expenses | 1,046 | 885 |
Other current assets | 230 | 375 |
Total prepaid expenses and other current assets | $ 11,973 | $ 3,010 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Property and Equipment - Net (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | $ 65,018 | $ 55,553 |
Less: accumulated depreciation and amortization | (13,235) | (10,012) |
Total property and equipment – net | 51,783 | 45,541 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 41,239 | 30,497 |
Lease Assets | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 6,102 | 6,117 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 12,359 | 7,908 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 800 | 696 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 110 | 88 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 761 | 689 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | $ 3,647 | $ 9,558 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Property Plant And Equipment Net [Abstract] | ||||
Depreciation and amortization expenses | $ 1,200 | $ 800 | $ 3,314 | $ 2,215 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Credit card payable | $ 135 | $ 84 |
Income taxes payable | 143 | 56 |
Other current liabilities | 1,360 | 580 |
Total accrued expenses and other current liabilities | $ 1,638 | $ 720 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | Jun. 01, 2021 | May 31, 2021 |
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease start range terms description | less than 1 year | |
Operating lease liabilities not yet commenced, liability | $ 22.8 | |
Operating lease liabilities not yet commenced, lease term | 20 years | |
Option to extend, existence, lease liabilities not yet commenced, operating lease | true | |
Subsequent Event | ||
Lessee Lease Description [Line Items] | ||
Operating lease liabilities not yet commenced, liability | $ 5.5 | |
Operating lease liabilities not yet commenced, lease term | 20 years | |
Option to extend, existence, lease liabilities not yet commenced, operating lease | true | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease terms | 20 years |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Finance lease cost | ||||
Amortization of right-of-use assets | $ 157 | $ 141 | $ 465 | $ 419 |
Interest on lease liabilities | 20 | 30 | 69 | 95 |
Total finance lease cost | 177 | 171 | 534 | 514 |
Operating lease cost | ||||
Operating lease cost | 1,571 | 1,244 | 4,687 | 3,688 |
Variable lease cost | 401 | 223 | 898 | 923 |
Total operating lease cost | $ 1,972 | $ 1,467 | $ 5,585 | $ 4,611 |
Leases - Summary of Operating L
Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 56,165 | $ 56,119 |
Operating lease liabilities – current | 5,159 | 5,106 |
Operating lease liabilities – non-current | 57,777 | 56,918 |
Total operating lease liabilities | $ 62,936 | $ 62,024 |
Leases - Summary of Finance Lea
Leases - Summary of Finance Lease Assets - Net (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Leases [Abstract] | ||
Finance lease assets | $ 6,102 | $ 6,117 |
Accumulated depreciation | (2,644) | (2,178) |
Total finance lease assets - net | $ 3,458 | $ 3,939 |
Leases - Summary of Finance L_2
Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Leases [Abstract] | ||
Finance lease liabilities - current | $ 1,011 | $ 1,004 |
Finance lease liabilities - non-current | 696 | 1,481 |
Total finance lease liabilities | $ 1,707 | $ 2,485 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details) | May 31, 2021 | May 31, 2020 |
Weighted Average Remaining Lease Term (Years) | ||
Operating leases | 16 years | 15 years 1 month 6 days |
Finance leases | 1 year 8 months 12 days | 2 years 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases | 6.60% | 5.80% |
Finance leases | 4.50% | 4.50% |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows paid for operating lease liabilities | $ 3,234 | $ 2,644 |
Operating right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,952 | $ 15,074 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities Net of Lease Receivables (Details) - USD ($) $ in Thousands | May 31, 2021 | Aug. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 428 | |
2022 | 3,828 | |
2023 | 6,106 | |
2024 | 6,237 | |
2025 | 6,335 | |
Thereafter | 79,694 | |
Total lease payments | 102,628 | |
Less: imputed interest | (39,692) | |
Present value of lease liabilities | 62,936 | $ 62,024 |
Finance Leases | ||
Remainder of 2021 | 263 | |
2022 | 1,005 | |
2023 | 483 | |
2024 | 17 | |
2025 | 1 | |
Total lease payments | 1,769 | |
Less: imputed interest | (62) | |
Present value of lease liabilities | $ 1,707 | $ 2,485 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019 | May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | Apr. 09, 2021 | Apr. 10, 2020 | |
Travel and Translation Expense | |||||||
Related Party Transaction [Line Items] | |||||||
Reimbursements by related party | $ 2,000 | $ 17,000 | $ 27,000 | $ 86,000 | |||
Revolving Credit Facility Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 20,000,000 | ||||||
Revolving Credit Facility Agreement | COVID-19 | |||||||
Related Party Transaction [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 45,000,000 | ||||||
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 | May 31, 2021 | Aug. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due from affiliate | $ 2 | $ 12 |
Due to affiliate | 60 | 201 |
Kura Japan | ||
Related Party Transaction [Line Items] | ||
Due from affiliate | 2 | 12 |
Due to affiliate | 60 | $ 201 |
Loan from affiliate | $ 17,000 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - Kura Japan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Total related party transactions | $ 203 | $ 279 | $ 874 | $ 1,241 |
Purchases of Administrative Supplies | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | 4 | 8 | 76 | 31 |
Expatriate Salaries Expense | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | 30 | 34 | 92 | 106 |
Royalty Payments | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | 93 | 14 | 185 | 198 |
Travel and Other Administrative Expenses | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | 23 | 17 | 73 | |
Purchases of Equipment | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | 29 | $ 200 | 430 | $ 833 |
Interest Expense | ||||
Related Party Transaction [Line Items] | ||||
Total related party transactions | $ 47 | $ 74 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan | 9 Months Ended |
May 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Outstanding, Number of Shares Underlying Outstanding Options, Beginning balance | shares | 531,747 |
Options Outstanding, Number of Shares Underlying Outstanding Options, Options granted | shares | 152,260 |
Options Outstanding, Number of Shares Underlying Outstanding Options, Options exercised | shares | (82,588) |
Options Outstanding, Number of Shares Underlying Outstanding Options, Options canceled/forfeited | shares | (22,537) |
Options Outstanding, Number of Shares Underlying Outstanding Options, Ending balance | shares | 578,882 |
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance | $ / shares | $ 9.51 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted | $ / shares | 20.97 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised | $ / shares | 5.31 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited | $ / shares | 10.88 |
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance | $ / shares | $ 13.07 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - Restricted Stock Awards - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares issued | 0 | 0 | 7,000 | 0 |
Stock-based compensation expense | $ 32 | $ 60 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 391 | $ 248 | $ 966 | $ 580 |
Restaurant-level Stock-based Compensation Included In Other Costs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 34 | 23 | 83 | 59 |
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 | $ 357 | $ 225 | $ 883 | $ 521 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Apr. 11, 2021 | Apr. 09, 2021 | Sep. 02, 2020 | Apr. 10, 2020 | May 31, 2021 |
Debt Instrument [Line Items] | |||||
Revolving credit line | $ 14,000,000 | ||||
Revolving credit line interest rate | 1.10% | ||||
Revolving Credit Facility Agreement | |||||
Debt Instrument [Line Items] | |||||
Revolving credit line | $ 3,000,000 | ||||
Revolving credit line interest rate | 2.80% | ||||
Remaining availability under credit agreement | $ 28,000,000 | ||||
Revolving Credit Facility Agreement | Kura Japan | |||||
Debt Instrument [Line Items] | |||||
Revolving credit line | $ 20,000,000 | ||||
Credit facility maximum borrowing capacity | $ 20,000,000 | ||||
Revolving credit line, termination date | Mar. 31, 2024 | ||||
First Amendment | Kura Japan | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 35,000,000 | ||||
Revolving credit line, termination date | Apr. 10, 2025 | ||||
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. | ||||
Second Amendment | Kura Japan | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 45,000,000 | ||||
First Amendment and Second Amendment | |||||
Debt Instrument [Line Items] | |||||
Revolving credit line interest rate | 130.00% | 1.10% | |||
Applicable federal rate | 2.82% |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Earnings Per Share Diluted [Line Items] | ||||
Weighted average common shares outstanding - basic | 8,383 | 8,341 | 8,381 | 8,337 |
Net income (loss) per share attributable to common stockholders - basic | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Weighted average shares outstanding - diluted | 8,663 | 8,341 | 8,381 | 8,337 |
Net income (loss) per share attributable to common stockholders - diluted | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Class A | ||||
Earnings Per Share Diluted [Line Items] | ||||
Net income (loss) attributable to common stockholders - basic | $ 678 | $ (8,055) | $ (8,332) | $ (9,248) |
Weighted average common shares outstanding - basic | 7,383 | 7,341 | 7,381 | 7,337 |
Net income (loss) per share attributable to common stockholders - basic | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Net income (loss) attributable to common stockholders - diluted | $ 681 | $ (8,055) | $ (8,332) | $ (9,248) |
Dilutive effect of stock-based awards | 280 | |||
Weighted average shares outstanding - diluted | 7,663 | 7,341 | 7,381 | 7,337 |
Net income (loss) per share attributable to common stockholders - diluted | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Class B | ||||
Earnings Per Share Diluted [Line Items] | ||||
Net income (loss) attributable to common stockholders - basic | $ 92 | $ (1,097) | $ (1,129) | $ (1,261) |
Weighted average common shares outstanding - basic | 1,000 | 1,000 | 1,000 | 1,000 |
Net income (loss) per share attributable to common stockholders - basic | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Net income (loss) attributable to common stockholders - diluted | $ 89 | $ (1,097) | $ (1,129) | $ (1,261) |
Weighted average shares outstanding - diluted | 1,000 | 1,000 | 1,000 | 1,000 |
Net income (loss) per share attributable to common stockholders - diluted | $ 0.09 | $ (1.10) | $ (1.13) | $ (1.26) |
Income (Loss) Per Share - Addit
Income (Loss) Per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Employee Stock Option | ||||
Earnings Per Share [Line Items] | ||||
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share | 87 | 21 | 586 | |
Restricted Stock | ||||
Earnings Per Share [Line Items] | ||||
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share | 137 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
May 31, 2021USD ($) | |
General and Administrative Expenses | |
Loss Contingencies [Line Items] | |
Accrued liability | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 30 | $ 1,153 | $ 88 | $ 1,179 |
Federal statutory tax rate | 21.00% | 21.00% |