| Segment Reporting |
Note 13 – Segment Reporting
The Company has identified its reportable operating segments as follows:
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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.
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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.
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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, 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.
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● |
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.
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The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), 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.
Certain financial information relating to the three and nine months ended September 30, 2023 and 2022 for each segment is provided below (in thousands).
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STK |
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Kona Grill |
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ONE Hospitality |
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Corporate |
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Total |
For the three months ended September 30, 2023 |
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Total revenues |
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$ |
43,709 |
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|
32,775 |
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|
345 |
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|
55 |
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|
76,884 |
Operating income (loss) |
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$ |
6,003 |
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(444) |
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(131) |
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(7,383) |
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|
(1,955) |
Capital asset additions(1) |
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$ |
8,775 |
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|
6,012 |
|
|
8 |
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(280) |
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|
14,515 |
For the nine months ended September 30, 2023 |
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|
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Total revenues |
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$ |
143,420 |
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|
97,961 |
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|
1,188 |
|
|
264 |
|
|
242,833 |
Operating income (loss) |
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$ |
26,957 |
|
|
910 |
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|
(174) |
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|
(23,325) |
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|
4,368 |
Capital asset additions(1) |
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$ |
19,730 |
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|
17,427 |
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|
34 |
|
|
1,220 |
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|
38,411 |
As of September 30, 2023 |
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|
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Total assets |
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$ |
132,050 |
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|
96,185 |
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|
5,361 |
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|
61,420 |
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|
295,016 |
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|
|
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STK |
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Kona Grill |
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ONE Hospitality |
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Corporate |
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Total |
For the three months ended September 30, 2022 |
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|
|
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|
|
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|
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|
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Total revenues |
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$ |
42,347 |
|
|
30,069 |
|
|
483 |
|
|
121 |
|
|
73,020 |
Operating income (loss) |
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$ |
6,448 |
|
|
259 |
|
|
216 |
|
|
(6,432) |
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|
491 |
Capital asset additions |
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$ |
5,788 |
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|
2,761 |
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|
58 |
|
|
611 |
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|
9,218 |
For the nine months ended September 30, 2022 |
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|
|
|
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|
|
|
|
|
|
|
|
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Total revenues |
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$ |
131,865 |
|
|
94,756 |
|
|
1,340 |
|
|
365 |
|
|
228,326 |
Operating income (loss) |
|
$ |
28,379 |
|
|
5,094 |
|
|
377 |
|
|
(23,404) |
|
|
10,446 |
Capital asset additions |
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$ |
13,122 |
|
|
6,029 |
|
|
111 |
|
|
2,047 |
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|
21,309 |
As of December 31, 2022 |
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Total assets |
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$ |
113,911 |
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|
78,691 |
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|
5,746 |
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|
92,676 |
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|
291,024 |
| (1) |
Capital asset additions for the Corporate segment include furniture, fixtures, and equipment for restaurants that the Company plans to open in the future. |
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