UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
(Mark One) | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended | |
OR | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Commission File Number
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or |
| (I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
| Zip Code |
(Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ◻ | |
Non-accelerated filer ◻ | Smaller reporting company |
| Emerging growth company |
If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Number of shares of common stock outstanding as of April 30, 2025:
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE ONE GROUP HOSPITALITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share information)
March 30, | December 31, | |||||
| 2025 | 2024 | ||||
ASSETS |
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Current assets: |
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Cash and cash equivalents | $ | | $ | | ||
Credit card receivable | | | ||||
Restricted cash and cash equivalents | | | ||||
Accounts receivable |
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Inventory |
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Other current assets |
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Due from related parties |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use assets | | | ||||
Goodwill |
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Intangibles, net | | | ||||
Deferred tax assets, net |
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Other assets |
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Security deposits |
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Total assets | $ | | $ | | ||
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LIABILITIES, SERIES A PREFERRED STOCK AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable | $ | | $ | | ||
Accrued payroll expenses | | | ||||
Accrued expenses |
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Current portion of operating lease liabilities | | | ||||
Deferred gift card revenue and other |
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Current portion of long-term debt |
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Other current liabilities |
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Total current liabilities |
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Long-term debt, net of current portion, unamortized discount and debt issuance costs |
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Operating lease liabilities, net of current portion | | | ||||
Other long-term liabilities |
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Total liabilities |
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Commitments and contingencies (Note 17) |
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Series A preferred stock, $ | | | ||||
Stockholders’ equity: |
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Common stock, $ |
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Preferred stock, other than Series A preferred stock, $ |
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Treasury stock, at cost, |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total stockholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities, Series A preferred stock and equity | $ | | $ | | ||
See notes to the condensed consolidated financial statements.
3
THE ONE GROUP HOSPITALITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except income per share and related share information)
| For the three periods ended March 30, | For the three months ended March 31, | ||||
| 2025 |
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Revenues: |
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Owned restaurant net revenue | $ | | $ | | ||
Management, license, franchise and incentive fee revenue |
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Total revenues |
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Cost and expenses: |
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Owned operating expenses: |
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Owned restaurant cost of sales |
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Owned restaurant operating expenses |
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Total owned operating expenses |
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General and administrative (including stock-based compensation of $ |
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Depreciation and amortization |
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Transaction and exit costs |
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Transition and integration expenses |
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Pre-opening expenses |
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Lease termination expenses | | — | ||||
Other expenses |
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Total costs and expenses |
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Operating income (loss) |
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Other expenses, net: |
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Interest expense, net of interest income |
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Total other expenses, net |
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Income (loss) before provision (benefit) for income taxes |
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Provision (benefit) for income taxes |
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Net income (loss) |
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Less: net loss attributable to noncontrolling interest |
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Net income (loss) attributable to The ONE Group Hospitality, Inc. | $ | | $ | ( | ||
Series A Preferred Stock paid-in-kind dividend and accretion |
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Net loss available to common stockholders | $ | ( | $ | ( | ||
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Net loss per common share: |
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Basic | $ | ( | $ | ( | ||
Diluted | $ | ( | $ | ( | ||
Weighted average common shares outstanding: |
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Diluted |
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See notes to the condensed consolidated financial statements.
4
THE ONE GROUP HOSPITALITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited, in thousands)
For the three periods ended March 30, | For the three months ended March 31, | |||||
| 2025 |
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Net income (loss) | $ | | $ | ( | ||
Currency translation loss, net of tax |
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Comprehensive income (loss) | | ( | ||||
Less: comprehensive loss attributable to noncontrolling interest | ( | ( | ||||
Comprehensive income (loss) attributable to The ONE Group Hospitality, Inc. | | ( | ||||
Series A Preferred Stock paid-in-kind dividend and accretion | ( | — | ||||
Comprehensive loss attributable to common stockholders | $ | ( | $ | ( | ||
See notes to the condensed consolidated financial statements.
5
THE ONE GROUP HOSPITALITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND SERIES A PREFERRED STOCK
(Unaudited, in thousands, except share information)
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | Common stock | Treasury | paid-in | Retained | comprehensive | Stockholders’ | Noncontrolling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
| Amount | Shares |
| Par value |
| stock | capital |
| Earnings |
| loss |
| equity |
| interests |
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2024 | | $ | | | $ | | $ | ( | $ | | $ | — | $ | ( | $ | | $ | ( | $ | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — |
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Issuance of vested restricted shares, net of tax withholding | — |
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| — | — | ( | — | — |
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