Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.22.4
Segment Reporting
12 Months Ended
Dec. 31, 2022
Segment Reporting  
Segment Reporting

Note 13 – Segment Reporting

The Company has identified its reportable operating segments as follows:

STK. The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and pre-opening expenses associated with new restaurants under development.
Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations and pre-opening expenses associated with new restaurants under development.
ONE Hospitality. The ONE Hospitality segment is composed of the management, license and incentive fee revenue and results of operations generated from the Company’s other brands and venue concepts, which include ANGEL, Bao Yum, Heliot, Hideout, Marconi, Radio and Rivershore Bar & Grill. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations.
Corporate. The Corporate segment consists of the following: general and administrative costs, stock-based compensation, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs. The Corporate segment’s total assets primarily include cash and cash equivalents, the Kona Grill tradename, and deferred tax assets.

The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as revenues less operating expenses, related to the Company’s four operating segments. In the second quarter of 2022, the Company changed its financial information regularly reviewed by the CODM to include all cash and cash equivalents, the Kona Grill tradename and deferred tax assets in the Corporate segment. Previously, certain cash amounts were included in the STK and Kona Grill segments and the Kona Grill tradename and certain deferred tax assets were included in the Kona Grill segment. Fiscal 2021 figures have been reclassified for comparability. Total assets for each of the segments include operating lease liabilities for both existing and new venues under construction.

Certain financial information relating to the years ended December 31, 2022 and 2021 for each segment is provided below (in thousands).

    

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the year ended December 31, 2022

Total revenues

 

$

187,402

 

$

126,341

 

$

2,344

 

$

551

$

316,638

Operating income (loss)

40,343

7,217

1,282

(32,536)

16,306

Capital asset additions

$

19,116

$

10,496

$

139

$

2,878

$

32,629

As of December 31, 2022

Total assets

$

113,911

$

78,691

$

5,746

$

92,676

$

291,024

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the year ended December 31, 2021

Total revenues

$

151,436

$

123,181

$

1,725

$

836

$

277,178

Operating income (loss)

39,863

12,982

466

(33,926)

19,385

Capital asset additions

$

7,581

$

2,307

$

170

$

1,409

$

11,467

As of December 31, 2021

Total assets

$

95,579

$

69,006

$

5,735

$

59,515

$

229,835