Financials

v3.7.0.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,787,850 $ 1,597,782
Accounts receivable, net 5,326,175 4,959,822
Inventory 1,386,965 1,308,851
Other current assets 2,317,835 1,811,787
Due from related parties, net 708,411 415,773
Total current assets 11,527,236 10,094,015
Property and equipment, net 37,302,061 36,815,239
Investments 3,110,868 3,065,557
Deferred tax assets 51,890 51,031
Security deposits 2,210,346 2,203,837
Other assets 627,751 661,936
Total assets 54,830,152 52,891,615
Current liabilities:    
Cash overdraft 1,316,115 679,938
Long term debt, current portion 4,057,042 3,153,666
Accounts payable 6,146,020 3,761,823
Accrued expenses 4,279,913 5,549,638
Deferred license revenue 109,957 109,957
Deferred revenue 754,742 612,574
Total current liabilities 16,663,789 13,867,596
Deferred license revenue, long-term 1,550,843 1,109,635
Due to related parties, long term 1,197,375 1,197,375
Long term debt, net of current portion 12,429,710 13,167,867
Deferred rent payable 16,135,555 16,170,605
Total liabilities 47,977,272 45,513,078
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.0001 par value, 75,000,000 shares authorized; 25,050,628 shares issued and outstanding at March 31, 2017 (unaudited) and December 31, 2016 2,505 2,505
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2017 (unaudited) and December 31, 2016 0 0
Additional paid-in capital 37,537,582 37,384,243
Accumulated deficit (28,164,960) (27,763,194)
Accumulated other comprehensive loss (1,600,129) (1,543,951)
Total stockholders’ equity 7,774,998 8,079,603
Noncontrolling interest (922,118) (701,066)
Total stockholders’ equity including noncontrolling interest 6,852,880 7,378,537
Total liabilities and stockholders’ equity $ 54,830,152 $ 52,891,615

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v3.7.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues:    
Owned unit net revenues $ 18,112,982 $ 14,379,930
Management and incentive fee revenue 2,313,716 2,014,051
Total revenue 20,426,698 16,393,981
Owned operating expenses:    
Food and beverage costs 4,674,061 3,528,753
Unit operating expenses 11,507,774 9,247,655
General and administrative 2,920,897 2,683,696
Depreciation and amortization 865,870 522,639
Lease termination expense 28,161 0
Pre-opening expenses 714,342 900,186
Equity in income of investee companies (45,311) (82,585)
Derivative income 0 (100,000)
Interest expense, net of interest income 258,990 98,169
Other expense 11,948 225,034
Total costs and expenses 20,936,732 17,023,547
Loss from continuing operations before provision for income taxes (510,034) (629,566)
Income tax benefit (16,746) (65,951)
Loss from continuing operations (493,288) (563,615)
Loss (income) from discontinued operations, net of taxes 106,230 (1,835)
Net loss (599,518) (561,780)
Less: net loss attributable to noncontrolling interest (197,752) (104,877)
Net loss attributable to The ONE Group Hospitality, Inc. (401,766) (456,903)
Amounts attributable to The ONE Group Hospitality, Inc.:    
Loss from continuing operations (295,536) (458,738)
Loss (income) from discontinued operations, net of taxes 106,230 (1,835)
Net loss attributable to The ONE Group Hospitality, Inc. (401,766) (456,903)
Other comprehensive loss    
Currency translation adjustment (56,178) (21,405)
Comprehensive loss $ (457,944) $ (478,308)
Basic and diluted loss per share:    
Continuing operations (in dollars per share) $ (0.01) $ (0.02)
Discontinued operations (in dollars per share) 0.00 0.00
Net loss per share attributable to The ONE Group Hospitality, Inc. (in dollars per share) $ (0.02) $ (0.02)
Shares used in computing basic and diluted loss per share (in shares) 25,050,628 25,250,424

Source

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating activities:    
Net loss $ (599,518) $ (561,780)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 865,870 522,639
Amortization of discounts on warrants 47,312 0
Deferred rent payable (35,050) 206,711
Deferred taxes 0 341,503
Equity in income of investee companies (45,311) (82,585)
Derivative income 0 (100,000)
Stock-based compensation 153,339 143,967
Changes in operating assets and liabilities:    
Accounts receivable (386,185) (10,932)
Inventory (78,114) 41,909
Other current assets (506,444) (23,041)
Due from related parties, net (292,638) (105,276)
Security deposits (6,509) (3,225)
Other assets 32,018 (259,455)
Accounts payable 2,393,846 154,037
Accrued expenses (1,278,312) (773,854)
Deferred revenue 583,376 129,019
Net cash provided by (used in) operating activities 847,680 (380,363)
Investing activities:    
Purchase of property and equipment (1,353,441) (3,703,329)
Distributions from equity investees 0 105,401
Net cash used in investing activities (1,353,441) (3,597,928)
Financing activities:    
Cash overdraft 636,177 (7,948)
Proceeds from promissory note 1,000,000 0
Repayment of term loan (799,674) (373,750)
Repayment of equipment financing agreement (82,419) (49,341)
Proceeds from rights offering 0 3,862,990
Distributions to noncontrolling interest (23,300) (59,085)
Net cash provided by financing activities 730,784 3,372,866
Effect of exchange rate changes on cash and cash equivalents (34,955) (22,782)
Net increase (decrease) in cash and cash equivalents 190,068 (628,207)
Cash and cash equivalents, beginning of period 1,597,782 1,841,872
Cash and cash equivalents, end of period 1,787,850 1,213,665
Supplemental disclosure of cash flow data:    
Interest paid 137,513 175,014
Income taxes paid 0 108,624
Noncash investing and financing activities:    
Noncash property and equipment additions $ 0 $ 278,955

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