| Restatement |
In order to correct the items described above, the 2011 consolidated financial statements were restated as follows: Consolidated Balance Sheet December 31, 2011
| | | As
Originally
Reported | | | Other
Reclassifications | | | Effect of
Correction of
Error | | | As
Restated | |
| | | | | | | | | | | | | |
| Current assets | | $ | 5,612,436 | | | | | | | $ | (68,947 | ) | | $ | 5,543,489 | |
| Property and equipment, net | | $ | 20,701,603 | | | | | | | $ | (1,699,611 | ) | | $ | 19,001,992 | |
| Investments | | $ | 419,000 | | | | | | | $ | 1,412,531 | | | $ | 1,831,531 | |
| Other assets | | $ | 1,183,469 | | | | | | | $ | 1,470 | | | $ | 1,184,939 | |
| Total assets | | $ | 27,916,508 | | | | | | | $ | (354,557 | ) | | $ | 27,561,951 | |
| | | | | | | | | | | | | | | | | |
| Current liabilities | | $ | 6,170,115 | | | $ | 1,250,000 | | | $ | (41,848 | ) | | $ | 7,378,267 | |
| Other liabilities | | $ | 12,580,642 | | | $ | (1,250,000 | ) | | $ | - | | | $ | 11,330,642 | |
| Total liabilities | | $ | 18,750,757 | | | $ | - | | | $ | (41,848 | ) | | $ | 18,708,909 | |
| | | | | | | | | | | | | | | | | |
| Members' Equity: | | | | | | | | | | | | | | | | |
| The One Group LLC members' equity | | $ | 1,554,292 | | | | | | | $ | 200,971 | | | $ | 1,755,263 | |
| Noncontrolling interest | | $ | 7,611,459 | | | | | | | $ | (513,680 | ) | | $ | 7,097,779 | |
| Total equity | | $ | 9,165,751 | | | | | | | $ | (312,709 | ) | | $ | 8,853,042 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities and members equity | | $ | 27,916,508 | | | | | | | $ | (354,557 | ) | | $ | 27,561,951 | |
Consolidated Statement of Operations and Comprehensive Income Year Ended December 31, 2011
| | | As
Originally
Reported | | | Reclass-
ifications for
Discontinued
Operations | | | Other
Reclass-
ifications | | | Effect of
Correction of
Error | | | As
Restated | |
| | | | | | | | | | | | | | | | |
| Total revenues | | $ | 42,822,529 | | | | | | | $ | 3,269,132 | | | | | | | $ | 46,091,661 | |
| Food and beverage costs | | $ | (10,532,896 | ) | | | | | | $ | 20,492 | | | | | | | $ | (10,512,404 | ) |
| Unit operating expenses | | $ | (24,779,728 | ) | | | | | | $ | (2,090,205 | ) | | | | | | $ | (26,869,933 | ) |
| General and administrative , net | | $ | (4,154,520 | ) | | | | | | $ | 2,294,793 | | | $ | 14 | | | $ | (1,859,713 | ) |
| Management and royalty fees | | $ | 2,120,701 | | | | | | | $ | (2,436,279 | ) | | $ | (75,711 | ) | | $ | (391,289 | ) |
| Pre-opening expenses | | $ | (2,162,639 | ) | | $ | 322,061 | | | | | | | $ | 658,191 | | | $ | (1,182,387 | ) |
| Equity in (income) of Subsidiaries | | $ | - | | | | | | | | | | | $ | (95,202 | ) | | $ | (95,202 | ) |
| Other (income) expense | | $ | 1,073,896 | | | $ | (97,753 | ) | | $ | (1,057,933 | ) | | $ | - | | | $ | (81,790 | ) |
| Income (loss) from continuing operations before provision for income taxes | | $ | 2,239,314 | | | $ | 224,308 | | | | | | | $ | 487,291 | | | $ | 2,950,913 | |
| Income from continuing Operations | | $ | 2,043,081 | | | $ | 224,308 | | | | | | | $ | 487,291 | | | $ | 2,754,680 | |
| Discontinued operations | | $ | (663,373 | ) | | $ | (224,308 | ) | | | | | | | | | | $ | (887,681 | ) |
| Net income | | $ | 1,379,708 | | | | | | | | | | | $ | 487,291 | | | $ | 1,866,999 | |
| Less: net income attributable to noncontrolling interest | | $ | 577,706 | | | | | | | | | | | $ | 286,320 | | | $ | 864,026 | |
| Net income attributable to The One Group, LLC and Subsidiaries | | $ | 802,002 | | | | | | | | | | | $ | 200,971 | | | $ | 1,002,973 | |
Consolidated Statement of Changes in Members' Equity Year Ended December 31, 2011
| | | As
Originally
Reported | | | Effect of
Correction of
Error | | | As
Restated | |
| The One Group, LLC and Subsidiaries equity: | | | | | | | | | | | | |
| Net income | | $ | 802,002 | | | $ | 200,971 | | | $ | 1,002,973 | |
| Totals | | $ | 1,554,292 | | | $ | 200,971 | | | $ | 1,755,263 | |
| Noncontrolling interest: | | | | | | | | | | | | |
| Net income | | $ | 577,706 | | | $ | 286,320 | | | $ | 864,026 | |
| Members' contributions | | $ | 957,000 | | | $ | (800,000 | ) | | $ | 157,000 | |
| Totals | | $ | 7,611,459 | | | $ | (513,680 | ) | | $ | 7,097,779 | |
| | | | | | | | | | | | | |
| Total equity | | $ | 9,165,751 | | | $ | (312,709 | ) | | $ | 8,853,042 | |
Statement of Cash Flows Year Ended December 31, 2011
| | | As
Originally
Reported | | | Effect of
Correction
of Error | | | As
Restated | |
| Operating activities: | | | | | | | | | | | | |
| Net income | | $ | 1,379,708 | | | $ | 487,291 | | | $ | 1,866,999 | |
| Loss on equity method investment | | $ | - | | | $ | 95,202 | | | $ | 95,202 | |
| Changes in operating assets and liabilities: | | | | | | | | | | | | |
| Current assets | | $ | (252,252 | ) | | $ | 159,530 | | | $ | (92,722 | ) |
| Current liabilities | | $ | 1,746,005 | | | $ | (50,357 | ) | | $ | 1,695,648 | |
| Other assets | | $ | (30,501 | ) | | $ | 51,031 | | | $ | 20,530 | |
| Net cash provided by operating activities | | $ | 5,733,960 | | | $ | 742,697 | | | $ | 6,476,657 | |
| | | | | | | | | | | | | |
| Investing activities: | | | | | | | | | | | | |
| Purchase of property and equipment | | $ | (9,160,949 | ) | | $ | 1,699,611 | | | $ | (7,461,338 | ) |
| Investments in unconsolidated investees | | $ | 51,000 | | | $ | (1,507,733 | ) | | $ | (1,456,733 | ) |
| Due from related parties | | $ | (131,188 | ) | | $ | (98,667 | ) | | $ | (229,855 | ) |
| Other | | $ | 52,501 | | | $ | (52,501 | ) | | $ | - | |
| Net cash provided by (used in) investing activities | | $ | (9,188,636 | ) | | $ | 40,710 | | | $ | (9,147,926 | ) |
| | | | | | | | | | | | | |
| Financing activities: | | | | | | | | | | | | |
| Cash overdraft | | $ | 12,135 | | | $ | 8,510 | | | $ | 20,645 | |
| Contributions from members | | $ | 957,000 | | | $ | (800,000 | ) | | $ | 157,000 | |
| Net cash provided by (used in) financing activities | | $ | 2,908,338 | | | $ | (791,490 | ) | | $ | 2,116,848 | |
| | | | | | | | | | | | | |
| Net decrease in cash | | $ | (546,338 | ) | | $ | (8,083 | ) | | $ | (554,421 | ) |
| | | | | | | | | | | | | |
| Cash and cash equivalents, beginning of year | | $ | 2,291,165 | | | $ | - | | | $ | 2,291,165 | |
| | | | | | | | | | | | | |
| Cash and cash equivalents, end of year | | $ | 1,744,827 | | | $ | (8,083 | ) | | $ | 1,736,744 | |
|