Financials

v3.7.0.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,540,936 $ 1,597,782
Accounts receivable, net 4,515,429 4,959,822
Inventory 1,412,091 1,308,851
Other current assets 1,743,819 1,811,787
Due from related parties, net 0 415,773
Total current assets 9,212,275 10,094,015
Property and equipment, net 39,067,118 36,815,239
Investments 2,957,278 3,065,557
Deferred tax assets 0 51,031
Security deposits 2,211,952 2,203,837
Other assets 733,593 661,936
Total assets 54,182,216 52,891,615
Current liabilities:    
Cash overdraft 620,905 679,938
Long term debt, current portion 3,745,901 3,153,666
Accounts payable 6,166,044 3,761,823
Accrued expenses 6,139,657 5,549,638
Deferred license revenue 109,957 109,957
Due to related parties 359,302 0
Deferred revenue 403,221 612,574
Total current liabilities 17,544,987 13,867,596
Deferred license revenue, long-term 1,523,354 1,109,635
Due to related parties, long term 1,197,375 1,197,375
Long term debt, net of current portion 11,671,400 13,167,867
Deferred rent payable 17,044,305 16,170,605
Total liabilities 48,981,421 45,513,078
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.0001 par value, 75,000,000 shares authorized; 25,228,278 and 25,050,628shares issued and outstanding at June 30, 2017 (unaudited) and December 31, 2016 2,522 2,505
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2017 (unaudited) and December 31, 2016 0 0
Additional paid-in capital 37,928,645 37,384,243
Accumulated deficit (30,465,407) (27,763,194)
Accumulated other comprehensive loss (1,460,419) (1,543,951)
Total stockholders’ equity 6,005,341 8,079,603
Noncontrolling interest (804,546) (701,066)
Total stockholders’ equity including noncontrolling interest 5,200,795 7,378,537
Total liabilities and stockholders’ equity $ 54,182,216 $ 52,891,615

Source

v3.7.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Revenues:        
Owned unit net revenues $ 17,113,844 $ 15,282,704 $ 35,226,826 $ 29,662,634
Management and incentive fee revenue 2,784,659 1,943,952 5,098,375 3,958,003
Total revenue 19,898,503 17,226,656 40,325,201 33,620,637
Owned operating expenses:        
Food and beverage costs 4,381,150 3,778,797 9,055,211 7,307,550
Unit operating expenses 11,180,079 9,509,838 22,687,853 18,757,493
General and administrative 4,086,192 2,813,056 7,007,089 5,496,752
Depreciation and amortization 804,680 547,438 1,670,550 1,070,077
Lease termination expense 0 0 28,161 0
Transaction costs 254,011 0 254,011 0
Pre-opening expenses 931,013 1,545,417 1,645,355 2,445,603
Equity in income of investee companies 152,914 (231,203) 107,603 (313,788)
Derivative income 0 0 0 (100,000)
Interest expense, net of interest income 220,183 99,314 479,173 197,483
Other expense (130,250) 61,766 (118,302) 286,800
Total costs and expenses 21,879,972 18,124,423 42,816,704 35,147,970
Loss from continuing operations before provision for income taxes (1,981,469) (897,767) (2,491,503) (1,527,333)
Provision for income tax 203,203 545,613 186,457 479,662
Loss from continuing operations (2,184,672) (1,443,380) (2,677,960) (2,006,995)
Loss (income) from discontinued operations, net of taxes 142 237 106,372 (1,598)
Net loss (2,184,814) (1,443,617) (2,784,332) (2,005,397)
Less: net loss attributable to noncontrolling interest (115,633) (116,654) 82,119 (11,777)
Net loss attributable to The ONE Group Hospitality, Inc. (2,300,447) (1,560,271) (2,702,213) (2,017,174)
Amounts attributable to The ONE Group Hospitality, Inc.:        
Loss from continuing operations (2,300,305) (1,560,034) (2,595,841) (2,018,772)
Loss (income) from discontinued operations, net of taxes (142) (237) (106,372) 1,598
Net loss attributable to The ONE Group Hospitality, Inc. (2,300,447) (1,560,271) (2,702,213) (2,017,174)
Other comprehensive loss        
Currency translation adjustment (56,178) 3,025 83,532 (18,380)
Comprehensive loss $ (2,356,625) $ (1,557,246) $ (2,618,681) $ (2,035,554)
Basic and diluted loss per share:        
Continuing operations (in dollars per share) $ (0.09) $ (0.06) $ (0.10) $ (0.08)
Discontinued operations (in dollars per share) 0.00 0.00 0.00 0.00
Net loss per share attributable to The ONE Group Hospitality, Inc. (in dollars per share) $ (0.09) $ (0.06) $ (0.11) $ (0.08)
Shares used in computing basic and diluted loss per share (in shares) 25,144,932 24,989,560 25,098,040 25,119,992

Source

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Operating activities:    
Net loss $ (2,784,332) $ (2,005,397)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,670,550 1,070,077
Amortization of discounts on warrants 92,572 0
Deferred rent payable 873,700 1,030,652
Deferred taxes 46,664 (125,862)
Equity in income of investee companies 107,603 (313,788)
Derivative income 0 (100,000)
Stock-based compensation 544,419 379,928
Distributions from equity investees 676 184,450
Changes in operating assets and liabilities:    
Accounts receivable 443,371 (88,159)
Inventory (103,240) 7,390
Other current assets 66,666 759,479
Due from related parties, net 815,993 632,062
Security deposits (8,115) (47,712)
Other assets (49,302) 69,384
Accounts payable 2,387,088 687,881
Accrued expenses 565,220 802,317
Deferred revenue 204,366 378,198
Net cash provided by (used in) operating activities 4,873,899 3,320,900
Investing activities:    
Purchase of property and equipment (3,924,909) (6,018,596)
Net cash used in investing activities (3,924,909) (6,018,596)
Financing activities:    
Cash overdraft (59,033) (353,533)
Proceeds from promissory note 0 1,000,000
Proceeds from business loan and security agreement 1,000,000 0
Repayment of term loan (1,415,972) (1,080,833)
Repayment of equipment financing agreement (164,838) (95,151)
Repayment of business loan and security agreement (415,984) 0
Proceeds from rights offering 0 3,862,990
Distributions to noncontrolling interest (21,361) (59,085)
Net cash provided by financing activities (1,077,188) 3,274,388
Effect of exchange rate changes on cash and cash equivalents 71,352 (19,563)
Net increase (decrease) in cash and cash equivalents (56,846) 557,129
Cash and cash equivalents, beginning of period 1,597,782 1,841,872
Cash and cash equivalents, end of period 1,540,936 2,399,001
Supplemental disclosure of cash flow data:    
Interest paid 308,595 330,959
Income taxes paid 0 228,353
Noncash investing and financing activities:    
Noncash property and equipment additions 0 278,955
Noncash loan discount attributable to issuance of warrant $ 0 $ 125,000

Source