Financials

v3.8.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 1,798,886 $ 1,597,782
Accounts receivable, net 5,062,652 4,959,822
Inventory 1,168,438 1,308,851
Other current assets 1,714,866 1,811,787
Due from related parties, net 26,367 415,773
Total current assets 9,771,209 10,094,015
Property and equipment, net 38,304,639 36,815,239
Investments 3,221,282 3,065,557
Deferred tax assets 43,854 51,031
Security deposits 2,212,589 2,203,837
Other assets 413,469 661,936
Total assets 53,967,042 52,891,615
Current liabilities:    
Cash overdraft 1,563,087 679,938
Long term debt, current portion 3,516,289 3,153,666
Accounts payable 5,945,871 3,761,823
Accrued expenses 7,025,229 5,549,638
Deferred license revenue 109,957 109,957
Deferred revenue 1,027,617 612,574
Total current liabilities 19,188,050 13,867,596
Deferred license revenue, long-term 1,495,865 1,109,635
Due to related parties, long term 1,197,375 1,197,375
Long term debt, net of current portion 10,923,862 13,167,867
Deferred rent 17,055,924 16,170,605
Total liabilities 49,861,076 45,513,078
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.0001 par value, 75,000,000 shares authorized; 25,228,278 and 25,050,628 shares issued and outstanding at September 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 September 30, 2017 (unaudited) and December 31, 2016 0 0
Additional paid-in capital 38,128,154 37,384,243
Accumulated deficit (31,631,481) (27,763,194)
Accumulated other comprehensive loss (1,353,631) (1,543,951)
Total stockholders’ equity 5,145,564 8,079,603
Noncontrolling interest (1,039,598) (701,066)
Total stockholders’ equity including noncontrolling interest 4,105,966 7,378,537
Total liabilities and stockholders’ equity $ 53,967,042 $ 52,891,615

Source

v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues:        
Owned unit net revenues $ 15,333,320 $ 16,317,636 $ 50,560,146 $ 45,980,270
Management and incentive fee revenue 2,478,052 2,061,964 7,576,427 6,019,967
Total revenue 17,811,372 18,379,600 58,136,573 52,000,237
Owned operating expenses:        
Food and beverage costs 3,878,359 4,119,652 12,933,570 11,427,202
Unit operating expenses 10,512,095 10,795,629 33,199,948 29,663,446
General and administrative 2,766,565 2,634,585 9,773,654 8,178,840
Depreciation and amortization 950,513 758,282 2,621,063 1,828,359
Lease termination expense 0 0 28,161 0
Transaction costs 0 505,000 254,011 505,000
Pre-opening expenses 495,884 2,035,541 2,141,239 4,481,144
Income of equity method investees (264,005) (178,342) (156,402) (492,130)
Derivative income 0 0 0 (100,000)
Interest expense, net of interest income 325,135 79,768 804,308 277,251
Other (income) expense (19,119) (1,973) (137,421) 127,000
Total costs and expenses 18,645,427 20,748,142 61,462,131 55,896,112
Loss from continuing operations before provision for income taxes (834,055) (2,368,542) (3,325,558) (3,895,875)
Provision (benefit) for income tax 178,807 (4,046,961) 365,264 (3,567,299)
(Loss) income from continuing operations (1,012,862) 1,678,419 (3,690,822) (328,576)
Income (loss) from discontinued operations, net of taxes 376 (2,885) (105,996) (1,287)
Net (loss) income (1,012,486) 1,681,304 (3,796,818) (327,289)
Less: net income attributable to noncontrolling interest 153,588 200,443 71,469 212,220
Net (loss) income attributable to The ONE Group Hospitality, Inc. (1,166,074) 1,480,861 (3,868,287) (539,509)
Amounts attributable to The ONE Group Hospitality, Inc.:        
(Loss) income from continuing operations, net of taxes (1,166,450) 1,477,976 (3,762,291) (540,796)
Income (loss) from discontinued operations, net of taxes 376 (2,885) (105,996) (1,287)
Net (loss) income attributable to The ONE Group Hospitality, Inc. (1,166,074) 1,480,861 (3,868,287) (539,509)
Other comprehensive income (loss):        
Currency translation adjustment 106,789 (132,236) 190,320 (150,616)
Comprehensive (loss) income $ (1,059,285) $ 1,348,625 $ (3,677,967) $ (690,125)
Basic and diluted (loss) income per share:        
Continuing operations (in dollars per share) $ (0.05) $ 0.06 $ (0.15) $ (0.02)
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) $ (0.05) $ 0.06 $ (0.15) $ (0.02)
Shares used in computing basic and diluted loss per share (in shares) 25,228,288 25,022,749 25,141,933 25,087,341

Source

v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Operating activities:    
Net loss $ (3,796,818) $ (327,289)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,621,063 1,828,359
Amortization of discounts on warrants 135,750 0
Deferred rent 885,319 2,155,300
Deferred taxes 1,209 (3,745,744)
Income of equity method investees (156,402) (492,130)
Derivative income 0 (100,000)
Stock-based compensation 743,928 723,433
Distributions from equity investees 676 268,770
Changes in operating assets and liabilities:    
Accounts receivable (206,004) (495,008)
Inventory 140,413 (10,815)
Other current assets 94,861 1,275,194
Due from related parties, net 375,349 604,690
Security deposits (12,403) (39,745)
Other assets 234,944 (317,050)
Accounts payable 2,232,871 1,080,069
Accrued expenses 1,603,193 640,926
Deferred revenue 801,273 555,662
Net cash provided by operating activities 5,699,222 3,604,622
Investing activities:    
Purchase of property and equipment (4,114,360) (8,601,376)
Net cash used in investing activities (4,114,360) (8,601,376)
Financing activities:    
Cash overdraft 883,149 (569,211)
Proceeds from promissory note 0 4,000,000
Proceeds from business loan and security agreement 1,000,000 0
Repayment of term loan (2,121,249) (1,787,916)
Repayment of equipment financing agreement (248,229) (154,232)
Repayment of business loan and security agreement (647,637) 0
Proceeds from rights offering 0 3,862,990
Distributions to noncontrolling interest (410,001) (252,985)
Net cash (used in) provided by financing activities (1,543,967) 5,098,646
Effect of exchange rate changes on cash and cash equivalents 160,209 (152,514)
Net increase (decrease) in cash and cash equivalents 201,104 (50,622)
Cash and cash equivalents, beginning of period 1,597,782 1,841,872
Cash and cash equivalents, end of period 1,798,886 1,791,250
Supplemental disclosure of cash flow data:    
Interest paid 746,953 585,138
Income taxes paid 0 149,065
Noncash investing and financing activities:    
Noncash property and equipment additions 0 991,141
Noncash loan discount attributable to issuance of warrant $ 0 $ 505,000

Source