ONE Group Hospitality, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ONE Group Hospitality, Inc. filed its 2023 10-K, detailing financial performance, equity changes, and operational expenses.</b>

AI Summary

ONE Group Hospitality, Inc. (STKS) filed a Annual Report (10-K) with the SEC on March 14, 2024. The company filed its 10-K for the fiscal year ending December 31, 2023. The filing includes data related to treasury stock, retained earnings, and additional paid-in capital for 2023, 2022, and 2021. Information on common stock, restricted stock units, and employee stock options is detailed for the 2022 and 2023 fiscal years. The report covers general and administrative expenses for the 2022 and 2023 fiscal years. Geographic revenue breakdown for US and Non-US operations is provided for 2022 and 2023.

Why It Matters

For investors and stakeholders tracking ONE Group Hospitality, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of ONE Group Hospitality's financial position and operational activities for the fiscal year 2023, crucial for investors assessing the company's health and future prospects. The detailed breakdown of equity, stock options, and expenses offers insights into management compensation, shareholder value, and cost management strategies.

Risk Assessment

Risk Level: medium — ONE Group Hospitality, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the lack of specific financial performance metrics like revenue or net income in the provided text means a deeper assessment of financial health and growth trends is not possible, necessitating a 'medium' risk rating.

Analyst Insight

Investors should review the full 10-K to understand the company's financial performance, debt structure, and any forward-looking statements.

Key Numbers

• 2023 — Fiscal Year (Reporting period)
• 2022 — Fiscal Year (Comparative period)
• 2021 — Fiscal Year (Comparative period)
• 1231 — Fiscal Year End (Year-end date)

Key Players & Entities

• ONE Group Hospitality, Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-14 (date) — Filing date
• 0001399520 (company) — Central Index Key
• 5812 (industry_code) — Standard Industrial Classification
• 411 W. 14TH STREET (address) — Business address
• NEW YORK (location) — Business address city
• 212 277 5351 (phone) — Business phone

FAQ

Industry Context

ONE Group Hospitality, Inc. operates within the RETAIL-EATING PLACES sector (SIC 5812). This sector encompasses businesses primarily engaged in preparing and serving meals, snacks, and beverages for immediate consumption.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies. It provides a comprehensive overview of the company's financial condition and operations.

What Investors Should Do

1. Review the full 10-K document for detailed financial statements, including revenue, net income, and balance sheet information.
2. Analyze the sections on executive compensation and equity awards to understand management incentives and potential dilution.
3. Examine the risk factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-14: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the provided 10-K filing data. No prior filing data was provided for comparison.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share STKS The NASDAQ Stock Mar
• $17.3 million — ast 18 months at December 31, 2023 were $17.3 million and $130, respectively. We are focused
• $130 — ecember 31, 2023 were $17.3 million and $130, respectively. We are focused on expan
• $5.2 million — 3, the average restaurant revenues were $5.2 million and average spend per transaction was $
• $63 — n and average spend per transaction was $63. We believe we can grow the Kona Grill
• $500,000 — ere we believe we can generate at least $500,000 of annual pre-tax income. We expect ou

Filing Documents

• stks-20231231x10k.htm (10-K) — 2151KB
• stks-20231231xex21d1.htm (EX-21.1) — 33KB
• stks-20231231xex23d1.htm (EX-23.1) — 3KB
• stks-20231231xex31d1.htm (EX-31.1) — 8KB
• stks-20231231xex31d2.htm (EX-31.2) — 8KB
• stks-20231231xex32d1.htm (EX-32.1) — 6KB
• stks-20231231xex32d2.htm (EX-32.2) — 5KB
• stks-20231231xex97d1.htm (EX-97.1) — 33KB
• stks-20231231x10k001.jpg (GRAPHIC) — 55KB
• 0001558370-24-003231.txt (&nbsp;) — 9066KB
• stks-20231231.xsd (EX-101.SCH) — 51KB
• stks-20231231_cal.xml (EX-101.CAL) — 87KB
• stks-20231231_def.xml (EX-101.DEF) — 181KB
• stks-20231231_lab.xml (EX-101.LAB) — 484KB
• stks-20231231_pre.xml (EX-101.PRE) — 399KB
• stks-20231231x10k_htm.xml (XML) — 1499KB

Business

Item 1. Business 2

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17

Cybersecurity

Item 1C. Cybersecurity 17

Properties

Item 2. Properties 18

Legal Proceedings

Item 3. Legal Proceedings 20

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21

[Reserved]

Item 6. [Reserved] 21

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 38

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 38

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 38

Controls and Procedures

Item 9A. Controls and Procedures 39

Other Information

Item 9B. Other Information 41

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 41 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 41

Executive Compensation

Item 11. Executive Compensation 41

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 41

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 41

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 41 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 42

Form 10-K Summary

Item 16. Form 10-K Summary 42 Table of Contents Cautionary Note Regarding Forward-Looking Statements: This Annual Report on Form 10-K and certain information incorporated herein by reference contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"). Forward-looking statements speak only as of the date thereof and involve risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risk and uncertainties include, but are not limited to, the risk factors discussed under Item 1A. "Risk Factors" of this Annual Report on Form 10-K. Factors that might cause actual events or results to differ materially from those indicated by these forward-looking statements include matters such as future economic performance, general economic conditions, consumer preferences and spending, costs, competition, new product execution, restaurant openings or closings, operating margins, the availability of acceptable real estate locations, the sufficiency of our cash balances and cash generated from operations and financing activities for our future liquidity and capital resource needs, the impact on our business of Federal and State legislation and local regulation, future litigation, the execution of our growth strategy and other matters. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "ongoing," "could," "estimates," "expects," "intends," "may," "appears," "suggests," "future," "likely," "goal," "plans," "potential," "projects," "predicts," "should," "targets," "would," "will" and similar expressions that convey the uncertainty of future events or outcomes. You should not place

Business

Item 1. Business Description of the Business We are an international restaurant company that develops, owns and operates, manages and licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage ("F&B") services and consulting service for hospitality venues including hotels, casinos and other high-end locations. Turn-key F&B services are food and beverage services that can be scaled, customized and implemented by us for the client at a particular hospitality venue. Our vision is to be a global market leader in the hospitality industry by melding high-quality service, ambiance, high-energy and cuisine into one great experience that we refer to as "Vibe Dining". We design all our restaurants, lounges and F&B services to create a social dining and high-energy entertainment experience within a destination location. We believe that this design and operating philosophy separates us from more traditional restaurant and foodservice competitors. Our primary restaurant brands are STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality and service of a traditional upscale steakhouse, and Kona Grill, a polished casual bar-centric grill concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. Our F&B hospitality management services are marketed as ONE Hospitality and include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities, private dining rooms, room service and mini bars tailored to the specific needs of high-end hotels and casinos. We also provide hospitality advisory and consulting services to certain clients. Our F&B hospitality clients operate global hospitality brands such as the W Hotel, ME Hotel, Hippodrome Casino, and Curio Collection by Hilton. For those restaurants and venues that are managed or licensed, we generate management fee revenue based o

Risk Factors

Item 1A. Risk Factors

View Full Filing

View this 10-K filing on SEC EDGAR