ONE Group Hospitality, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>ONE Group Hospitality, Inc. (STKS) filed its Q1 2024 10-Q, detailing financial positions and a significant subsequent event involving Safflower Holdings Corp and HPS funds.</b>

AI Summary

ONE Group Hospitality, Inc. (STKS) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. The filing is a 10-Q for ONE Group Hospitality, Inc. (STKS) for the period ending March 31, 2024. The company's business address is 411 W. 14th Street, 2nd Floor, New York, NY 10014. The company was formerly known as COMMITTED CAPITAL ACQUISITION Corp and PLASTRON ACQUISITION CORP II. Key financial statement components like Treasury Stock, Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are detailed for March 31, 2024, and December 31, 2023. A subsequent event on May 1, 2024, involves Safflower Holdings Corp and various HPS funds, including HPS Special Situations Opportunity Fund II LP, HPS Corporate Lending Fund, and HPS Corporate Capital Solutions Fund, related to warrants and common stock.

Why It Matters

For investors and stakeholders tracking ONE Group Hospitality, Inc., this filing contains several important signals. The filing provides a snapshot of the company's financial health and equity structure as of Q1 2024, crucial for investors assessing current performance. The disclosure of a subsequent event on May 1, 2024, involving Safflower Holdings Corp and HPS funds highlights potential future impacts on the company's capital structure and operations.

Risk Assessment

Risk Level: low — ONE Group Hospitality, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags or significant negative disclosures, indicating a routine update on the company's financial status.

Analyst Insight

Monitor future filings for details on the impact of the May 1, 2024, subsequent event involving Safflower Holdings Corp and HPS funds on the company's financial performance and capital structure.

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-07 — Filing Date (Filed As Of Date)
• 2024-05-01 — Subsequent Event Date (Date of subsequent event involving Safflower Holdings Corp and HPS funds)

Key Players & Entities

• ONE Group Hospitality, Inc. (company) — Filer name
• STKS (company) — Ticker symbol
• 2024-03-31 (date) — Conformed period of report
• 2024-05-07 (date) — Filed as of date
• 411 W. 14th Street, 2nd Floor, New York, NY 10014 (address) — Business address
• COMMITTED CAPITAL ACQUISITION Corp (company) — Former company name
• PLASTRON ACQUISITION CORP II (company) — Former company name
• Safflower Holdings Corp (company) — Entity involved in subsequent event

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — Financial data presented in the 10-Q pertains to this date.
• 2024-05-07: Filing Date — Date the 10-Q was officially filed with the SEC.
• 2024-05-01: Subsequent Event — A significant event occurred involving Safflower Holdings Corp and HPS funds.

Filing Documents

• stks-20240331x10q.htm (10-Q) — 1522KB
• stks-20240331xex31d1.htm (EX-31.1) — 10KB
• stks-20240331xex31d2.htm (EX-31.2) — 10KB
• stks-20240331xex32d1.htm (EX-32.1) — 5KB
• stks-20240331xex32d2.htm (EX-32.2) — 5KB
• 0001558370-24-007045.txt (&nbsp;) — 6685KB
• stks-20240331.xsd (EX-101.SCH) — 48KB
• stks-20240331_cal.xml (EX-101.CAL) — 62KB
• stks-20240331_def.xml (EX-101.DEF) — 169KB
• stks-20240331_lab.xml (EX-101.LAB) — 388KB
• stks-20240331_pre.xml (EX-101.PRE) — 330KB
• stks-20240331x10q_htm.xml (XML) — 1088KB

– Financial Information

PART I – Financial Information

Financial Statements

Item 1. Financial Statements 3

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 27

– Other Information

PART II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 30

Signatures

Signatures 31 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements THE ONE GROUP HOSPITALITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share information) March 31, December 31, 2024 2023 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 15,374 $ 21,047 Accounts receivable 12,172 17,264 Inventory 5,395 6,184 Other current assets 4,646 1,809 Due from related parties 376 376 Total current assets 37,963 46,680 Property and equipment, net 147,304 139,908 Operating lease right-of-use assets 87,900 95,075 Deferred tax assets, net 15,141 14,757 Intangibles, net 15,305 15,306 Other assets 4,819 4,636 Security deposits 883 883 Total assets $ 309,315 $ 317,245 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,819 $ 19,089 Accrued expenses 31,525 28,333 Deferred gift card revenue and other 2,006 2,077 Current portion of operating lease liabilities 7,534 6,897 Current portion of long-term debt 1,856 1,500 Other current liabilities 310 266 Total current liabilities 59,050 58,162 Operating lease liabilities, net of current portion 113,191 120,481 Long-term debt, net of current portion 70,207 70,410 Other long-term liabilities 771 832 Total liabilities 243,219 249,885 Commitments and contingencies (Note 14) Stockholders' equity: Common stock, $ 0.0001 par value, 75,000,000 shares authorized; 33,584,949 issued and 31,308,496 outstanding at March 31, 2024 and 33,560,428 issued and 31,283,975 outstanding at December 31, 2023 3 3 Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively — — Treasury stock, 2,276,453 shares at cost at March 31, 2024 and December 31, 2023 ( 15,051 ) ( 15,051 ) Additional paid-in capital 59,504 58,270 Retained earnings 26,815 28,884 Accumulated other comprehensive

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View this 10-Q filing on SEC EDGAR