The ONE Group Hospitality, Inc. (STKS) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 08, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	ONE Group Hospitality, Inc.
Entity Central Index Key	1,399,520
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	STKS
Entity Common Stock, Shares Outstanding		27,352,601

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,143	$ 1,548
Accounts receivable	5,252	5,514
Inventory	1,288	1,402
Other current assets	1,509	1,299
Total current assets	9,192	9,763
Property & equipment, net	37,338	37,811
Investments	2,519	2,957
Deferred tax assets, net	69	69
Other assets	422	384
Security deposits	2,083	2,031
Total assets	51,623	53,015
Current liabilities:
Accounts payable	5,095	5,329
Accrued expenses	6,206	6,987
Deferred license revenue	215	115
Deferred gift card revenue and other	797	999
Due to related parties, net	220	256
Current portion of long-term debt	3,187	3,241
Total current liabilities	15,720	16,927
Deferred license revenue, long-term	1,477	1,222
Due to related parties, long-term	1,197	1,197
Deferred rent and tenant improvement allowances	16,985	17,001
Long-term debt, net of current portion	9,378	10,115
Total liabilities	44,757	46,462
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value, 75,000,000 shares authorized; 27,252,101 and 27,152,101 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	3	3
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2018 and December 31, 2017	0	0
Additional paid-in capital	41,331	41,007
Accumulated deficit	(31,802)	(31,979)
Accumulated other comprehensive loss	(1,631)	(1,556)
Total stockholders’ equity	7,901	7,475
Noncontrolling interests	(1,035)	(922)
Total equity	6,866	6,553
Total Liabilities and Equity	$ 51,623	$ 53,015

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Common stock, par value per share (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	27,252,101	27,152,101
Common stock, shares outstanding	27,252,101	27,152,101
Preferred stock, par value per share (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Owned restaurant net revenues	$ 15,076	$ 14,228
Owned food, beverage and other net revenues	2,005	3,885
Total owned revenue	17,081	18,113
Management, license and incentive fee revenue	2,436	2,314
Total revenues	19,517	20,427
Owned restaurants:
Owned restaurant cost of sales	4,034	3,876
Owned restaurant operating expenses	9,378	9,369
Total owned restaurant expenses	13,412	13,245
Owned food, beverage and other expenses	1,689	2,937
Total owned operating expenses	15,101	16,182
General and administrative (including stock-based compensation of $324 and $153, respectively)	3,055	2,921
Depreciation and amortization	778	866
Lease termination expense and asset write-offs	0	273
Pre-opening expenses	210	470
Equity in loss (income) of investee companies	23	(45)
Other (income) expense, net	(111)	12
Total costs and expenses	19,056	20,679
Operating income (loss)	461	(252)
Interest expense, net of interest income	318	259
Income (loss) from continuing operations before provision for income taxes	143	(511)
Income tax provision (benefit)	25	(17)
Income (loss) from continuing operations	118	(494)
Loss from discontinued operations	0	(106)
Net income (loss)	118	(600)
Less: net loss attributable to noncontrolling interest	(113)	(198)
Net income (loss) attributable to The ONE Group Hospitality, Inc.	231	(402)
Currency translation adjustment	(75)	(56)
Comprehensive income (loss)	$ 156	$ (458)
Basic earnings (loss) per share:
Continuing operations	$ 0.01	$ (0.01)
Discontinued operations	0	0
Attributable to The ONE Group Hospitality, Inc.	0.01	(0.02)
Diluted earnings (loss) per share:
Continuing operations	0.01	(0.01)
Discontinued operations	0	0
Attributable to The ONE Group Hospitality, Inc.	$ 0.01	$ (0.02)
Weighted average number of common shares outstanding:
Basic	27,187,657	25,050,628
Diluted	27,388,498	25,050,628

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation	$ 324	$ 153

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Common stock [Member]	Additional paid-in capital [Member]	Accumulated deficit [Member]	Accumulated other comprehensive loss [Member]	Stockholders' equity [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2017	$ 6,553	$ 3	$ 41,007	$ (31,979)	$ (1,556)	$ 7,475	$ (922)
Balance (in shares) at Dec. 31, 2017		27,152,101
Adoption of ASC 606 “Revenue from contract with customers”	(54)	$ 0	0	(54)	0	(54)	0
Stock based compensation expense	324	0	324	0	0	324	0
Vesting of restricted shares	0	$ 0	0	0	0	0	0
Vesting of restricted shares (in shares)		100,000
Loss on foreign currency translation, net	(75)	$ 0	0	0	(75)	(75)	0
Net income	118	0	0	231	0	231	(113)
Balance at Mar. 31, 2018	$ 6,866	$ 3	$ 41,331	$ (31,802)	$ (1,631)	$ 7,901	$ (1,035)
Balance (in shares) at Mar. 31, 2018		27,252,101

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities:
Net income (loss)	$ 118	$ (600)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	778	866
Amortization of discount on warrants	51	47
Deferred rent	(18)	(35)
Deferred taxes	(2)	0
Loss (income) from equity method investments	23	(45)
Gain on disposition of cost method investment	(185)	0
Share-based Compensation	324	153
Changes in operating assets and liabilities:
Accounts receivable	190	(386)
Inventory	115	(78)
Prepaid expenses and other current assets	(211)	(506)
Due from related parties, net	(99)	(293)
Security deposits	(54)	(7)
Other assets	(37)	32
Accounts payable	(203)	2,394
Accrued expenses	(718)	(1,278)
Deferred revenue	100	583
Net cash provided by operating activities	172	847
Investing activities:
Purchase of property and equipment	(306)	(1,353)
Proceeds from disposition of cost method investment	600	0
Net cash (used in) provided by financing activities	294	(1,353)
Financing activities:
Proceeds from business loan and security agreement	0	1,000
Repayment of term loan	(694)	(800)
Repayment of equipment financing agreement	(87)	(82)
Repayment of business loan and security agreement	(62)	0
Distributions to non-controlling interests	0	(23)
Net cash (used in) provided by financing activities	(843)	95
Effect of exchange rate changes on cash	(28)	(35)
Net decrease in cash and cash equivalents	(405)	(446)
Cash and cash equivalents, beginning of year	1,548	918
Cash and cash equivalents, end of year	1,143	472
Supplemental disclosure of cash flow data:
Interest Paid, Net	142	138
Income taxes paid	26	0
Noncash investing and financing activities:
Noncash debt issuance costs	$ 0	$ 35

Basis of presentation

Basis of presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation [Text Block]	Note 1 - Basis of presentation The accompanying consolidated balance sheet as of December 31, 2017, which has been derived from audited financial statements, and the unaudited consolidated financial statements of The ONE Group Hospitality, Inc. and its subsidiaries (collectively, "the Company") as of and for the three months ended March 31, 2018 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished within this Form 10-Q reflects all adjustments (consisting only of normal recurring accruals and adjustments), which are, in the Company’s opinion, necessary to fairly state the interim operating results for the respective periods. The Company is a global hospitality company that develops, owns, operates and manages upscale restaurants and lounges. The Company’s primary restaurant brand is STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality food and service of a traditional upscale steakhouse. As of March 31, 2018, the Company owned, operated or managed eighteen venues across seven states and six countries. The Company also provides turn-key food and beverage (“F&;B”) services 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 the Company at a particular hospitality venue and customized per the requirements of the client. As of March 31, 2018, under various management agreements, the Company services thirteen venues throughout the United States and in Europe. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s annual report on Form 10-K for the year ended December 31, 2017. The Company believes that the disclosures are sufficient for interim financial reporting purposes. However, these operating results are not necessarily indicative of the results expected for the full year. Certain prior year amounts have been reclassified to conform to current year presentation in the consolidated financial statements.

Liquidity

Liquidity	3 Months Ended
	Mar. 31, 2018
Liquidity [Abstract]
Liquidity [Text Block]	Note 2 - Liquidity As of March 31, 2018, the Company's accumulated deficit was $ 31.8 1.1

Inventory

Inventory	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 3 - Inventory March 31, December 31, Food $ 206 $ 246 Beverages 1,082 1,156 Totals $ 1,288 $ 1,402

Other current assets

Other current assets	3 Months Ended
	Mar. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets [Text Block]	Note 4 – Other current assets Other current assets consists of the following (in thousands) as of: March 31, December 31, 2018 2017 Prepaid taxes $ 274 $ 255 Landlord receivable 258 258 Prepaid expenses 531 421 Other 446 365 Totals $ 1,509 $ 1,299

Accrued expenses

Accrued expenses	3 Months Ended
	Mar. 31, 2018
Accruals [Abstract]
Accrued Liabilities Disclosure [Text Block]	Note 5 – Accrued expenses March 31, December 31, VAT and Sales taxes $ 528 $ 739 Payroll and related 742 847 Income taxes 573 610 Due to hotels 1,190 1,168 Rent 1,384 1,471 Legal, professional and other services 374 1,007 Insurance 302 103 Other 1,113 1,042 Totals $ 6,206 $ 6,987

Related party transactions

Related party transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 6 - Related party transactions Net amounts due to related parties amounted to $ 1.4 1.5 The Company incurred legal fees of $ 31,000 0.1 50,000 0.2 0.3 The Company incurred approximately $ 0.1 0.8 14,000 11,000 During the fourth quarter of 2016, the Company received approximately $ 1.2 1.2 1.2 Please refer to Note 9 for details on other transactions with related parties.

Revenue from contracts with cus

Revenue from contracts with customers	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Note 7 – Revenue from contracts with customers On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606 – “Revenue from Contracts with Customers” (“ASC 606”), using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. The Company recorded a net decrease to opening accumulated deficit of $ 0.1 Balance at ASC 606 Adjustments Balance at Liabilities Deferred license revenue, current $ 115 $ 100 $ 215 Deferred license revenue, long-term 1,222 (46) 1,176 Equity Accumulated deficit (31,979) (54) (32,033) Under ASC 606, because the services we provide that are related to initial license fees and upfront fees related to our license agreements do not contain separate and distinct performance obligations from the license right, these fees will be recognized on a straight line basis over the term of the licensee agreement. Under previous guidance, initial license fees were recognized when the related services had been provided, which was generally upon the opening of the restaurant, and upfront fees were recognized on a pro-rata basis as restaurants under the development agreement were opened. These fees will continue to be recorded as a component of management, license and incentive fee revenue on the consolidated statement of operations and comprehensive income (loss). ASC 606 requires sales-based royalties to continue to be recognized as licensee restaurant sales occur. For the quarter ended March 31, 2018 As Reported Balances Without Adoption Impact Revenues Management, license and incentive fee revenues 2,436 2,407 29 Net income 118 89 29

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation [Text Block]	Note 8 - Stock-based Compensation As of March 31, 2018, the Company had 499,207 Stock-based compensation cost for the three months ended March 31, 2018 and 2017 was $ 0.3 0.2 Stock Option Activity Changes in outstanding stock options for 2018 were as follows: Shares Weighted Weighted Intrinsic Outstanding at December 31, 2017 2,315,035 3.41 2018 Grants — — Exercised — — Forfeited (80,000) 3.76 Outstanding at March 31, 2018 2,235,035 3.40 7.07 $ 888,040 Exercisable at March 31, 2018 849,384 4.84 4.54 $ 2,360 A summary of the status of the Company’s non-vested stock options as of March 31, 2018 and changes for the quarter then ended is presented below: Shares Weighted Non-vested shares at December 31, 2017 1,424,651 $ 0.99 Granted — — Vested — — Forfeited (39,000) 1.08 Non-vested shares at March 31, 2018 1,385,651 $ 0.99 As of March 31, 2018, there are 579,402 As of March 31, 2018, there is approximately $ 1.4 2.8 Restricted Stock Award Activity The Company issues restricted stock awards under the 2013 Equity Plan. The fair value of these awards is determined based upon the closing fair market value of the Company’s common stock on the grant date. Shares Weighted Non-vested at December 31, 2017 985,000 $ 2.26 Granted 59,834 2.75 Vested (100,000) 1.42 Forfeited (6,000) 2.73 Non-vested at March 31, 2018 938,834 $ 2.38 As of March 31, 2018, 250,000 $ 2.2 3.2

Nonconsolidated variable intere

Nonconsolidated variable interest entities	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Nonconsolidated variable interest entities [Text Block]	Note 9 – Nonconsolidated variable interest entities As of December 31, 2017 and March 31, 2018, the Company’s equity method and cost method investments, for which the Company has determined it is not the primary beneficiary, consist of interests in the following companies, which directly or indirectly operate restaurants: · 31.24 · 51.13 · 10.00 Bagatelle Investors is a holding company that has an interest in Bagatelle NY. Both entities were formed in 2011. The Company has determined that it is not the primary beneficiary of these entities as it does not have the power to direct their day to day activities, but the Company is able to exercise influence over these entities. The Company has provided no additional types of support to these entities than what is contractually required. One 29 Park, formed in 2009, operates a restaurant and manages the rooftop of a hotel located in New York, NY. Until the fourth quarter of 2017, the Company accounted for its investment in One 29 Park under the equity method of accounting based on management’s assessment that the Company had significant influence over One 29 Park’s operations. In the fourth quarter of 2017, the majority ownership of One 29 Park changed. As a result of this ownership change, the Company believes that it no longer has significant influence over the operations of One 29 Park, and subsequently began accounting for its investment in One 29 Park under the cost method of accounting. In March 2018, the Company entered into an agreement to sell its 10 0.6 0 0.2 At March 31, 2018 and December 31, 2017, the carrying values of these investments were (in thousands): March 31, December 31, Bagatelle Investors $ 30 $ 33 Bagatelle NY 2,489 2,509 One 29 Park — 415 Totals $ 2,519 $ 2,957 For the quarter ended 2018 2017 Equity in loss (income) of investee companies $ 23 $ (45) The Company has entered into management agreements with Bagatelle NY and One 29 Park. For Bagatelle, the Company recorded management fee revenue of approximately $ 37,000 48,000 0.1 0.1 43,000 0.1

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 10 – Income taxes The Company’s effective income tax rate was 17.5 14.7 In December 2017, the President signed The Tax Cuts and Jobs Act (the “TCJA”), which includes a broad range of provisions. The TCJA contains several key provisions including: ⋅ A one-time tax on the mandatory deemed repatriation of post-1986 untaxed foreign earnings and profits (“E&;P”); ⋅ A reduction in the corporate tax rate from 35 21 ⋅ The introduction of a new U.S. tax on certain off-shore earnings referred to as Global Intangible Low-Taxed Income (“GILTI”) at an effective tax rate of 10.5 13.125 ⋅ Introduction of a territorial tax system beginning in 2018 by providing for a 100 Pursuant to the enactment of the TCJA, in the fourth quarter of 2017, the Company recorded an adjustment of $ 2.9 21 1.9 As mentioned above, the TCJA subjects a U.S. shareholder to current tax on GILTI earned by certain foreign subsidiaries. Financial Accounting Standards Board (“FASB”) Staff Q&;A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. The Company has elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred and expects to incur no tax for the year ended December 31, 2018 due to the availability of foreign tax credits and net operating losses.

Net Income per share

Net Income per share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Net Income Per Share [Text Block]	Note 11 – Net income per share Three Months Ended 2018 2017 (in thousands, except earnings per share Net income (loss) attributable to The ONE Group Hospitality, Inc. $ 231 $ (402) Basic weighted average shares outstanding 27,187,657 25,050,628 Dilutive effect of stock options, warrants and restricted share units 200,841 — Diluted weighted average shares outstanding 27,388,498 25,050,628 Net income (loss) available to common stockholders per share - Basic $ 0.01 $ (0.02) Net income (loss) available to common stockholders per share - Diluted $ 0.01 $ (0.02) Anti-dilutive stock options, warrants and restricted share units 2,114,437 — For the three months ended March 31, 2017, all equivalent shares underlying options and warrants were excluded from the calculation of diluted earnings per share as the Company was in a net loss position. Basic and diluted earnings per share for discontinued operations was $ 0.00 Net income (loss) per share amounts for continuing operations and discontinued operations are computed independently. As a result, the sum of per share amounts may not equal the total.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies Disclosure [Text Block]	Note 12 – Litigation The Company is subject to claims and legal actions in the ordinary course of business, including claims by or against its licensees, employees, former employees and others. The Company does not believe any currently pending or threatened matter would have a material adverse effect on its business, results of operations or financial condition.

Segment reporting

Segment reporting	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 13 – Segment reporting Three Months Ended 2018 2017 Revenues: Owned restaurants $ 15,076 $ 14,228 Owned food, beverage and other operations 2,005 3,885 Managed and licensed operations 2,436 2,314 $ 19,517 $ 20,427 Segment Profits: Owned restaurants $ 1,664 $ 983 Owned food, beverage and other operations 316 948 Managed and licensed operations 2,436 2,314 Total segment profit 4,416 4,245 General and administrative 3,055 2,921 Depreciation and amortization 778 866 Interest expense, net of interest income 318 259 Equity in loss (income) of investee companies 23 (45) Other, net 99 755 Income (loss) from continuing operations before provision for income taxes $ 143 $ (511) Total assets: March 31, December 31, Owned restaurants $ 40,285 $ 40,570 Owned food, beverage and other operations* 6,501 7,385 Managed and licensed operations 4,837 5,060 Total $ 51,623 $ 53,015 Capital asset additions: Three Months Ended 2018 2017 Owned restaurants $ 301 $ 1,236 Owned food, beverage and other operations** 5 117 Managed and licensed operations — — Total $ 306 $ 1,353

Geographic information

Geographic information	3 Months Ended
	Mar. 31, 2018
Geographic Information [Abstract]
Geographic Information Disclosure [Text Block]	Note 14 – Geographic information The following table contains certain financial information by geographic location for the periods indicated (in thousands): Three Months Ended 2018 2017 United States: Owned restaurants $ 15,076 $ 14,228 Owned food, beverage and other operations 2,005 3,885 Managed and licensed operations 1,687 1,687 Total United States revenues $ 18,768 $ 19,800 Foreign: Owned restaurants $ — $ — Owned food, beverage and other operations — — Managed and licensed operations 749 627 Total foreign revenues $ 749 $ 627 Total revenues $ 19,517 $ 20,427 March 31, December 31, United States: Owned restaurants $ 37,451 $ 37,907 Owned food, beverage and other operations*** 4,768 5,088 Managed and licensed operations 92 109 Total United States long-lived assets $ 42,311 $ 43,104 Foreign: Owned restaurants $ — $ — Owned food, beverage and other operations — — Managed and licensed operations 120 148 Total foreign long-lived assets $ 120 $ 148 Total long-lived assets $ 42,431 $ 43,252 *** Includes corporate assets

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory consists of the following (in thousands) as of: March 31, December 31, Food $ 206 $ 246 Beverages 1,082 1,156 Totals $ 1,288 $ 1,402

Other current assets (Tables)

Other current assets (Tables)	3 Months Ended
	Mar. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets [Table Text Block]	Other current assets consists of the following (in thousands) as of: March 31, December 31, 2018 2017 Prepaid taxes $ 274 $ 255 Landlord receivable 258 258 Prepaid expenses 531 421 Other 446 365 Totals $ 1,509 $ 1,299

Accrued expenses (Tables)

Accrued expenses (Tables)	3 Months Ended
	Mar. 31, 2018
Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	March 31, December 31, VAT and Sales taxes $ 528 $ 739 Payroll and related 742 847 Income taxes 573 610 Due to hotels 1,190 1,168 Rent 1,384 1,471 Legal, professional and other services 374 1,007 Insurance 302 103 Other 1,113 1,042 Totals $ 6,206 $ 6,987

Revenue from contracts with c25

Revenue from contracts with customers (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]	Balance at ASC 606 Adjustments Balance at Liabilities Deferred license revenue, current $ 115 $ 100 $ 215 Deferred license revenue, long-term 1,222 (46) 1,176 Equity Accumulated deficit (31,979) (54) (32,033) The impact of adopting ASC 606 as compared to the previous recognition guidance on our consolidated statement of operations and comprehensive income (loss) was as follows (in thousands): For the quarter ended March 31, 2018 As Reported Balances Without Adoption Impact Revenues Management, license and incentive fee revenues 2,436 2,407 29 Net income 118 89 29

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity [Table Text Block]	Shares Weighted Weighted Intrinsic Outstanding at December 31, 2017 2,315,035 3.41 2018 Grants — — Exercised — — Forfeited (80,000) 3.76 Outstanding at March 31, 2018 2,235,035 3.40 7.07 $ 888,040 Exercisable at March 31, 2018 849,384 4.84 4.54 $ 2,360
Schedule of non-vested stock options [Table Text Block]	Shares Weighted Non-vested shares at December 31, 2017 1,424,651 $ 0.99 Granted — — Vested — — Forfeited (39,000) 1.08 Non-vested shares at March 31, 2018 1,385,651 $ 0.99
Schedule of restricted stock awards and changes [Table Text Block]	A summary of the status of restricted stock awards and changes for the three months ended March 31, 2018 are presented below: Shares Weighted Non-vested at December 31, 2017 985,000 $ 2.26 Granted 59,834 2.75 Vested (100,000) 1.42 Forfeited (6,000) 2.73 Non-vested at March 31, 2018 938,834 $ 2.38

Nonconsolidated variable inte27

Nonconsolidated variable interest entities (Tables)	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments [Table Text Block]	March 31, December 31, Bagatelle Investors $ 30 $ 33 Bagatelle NY 2,489 2,509 One 29 Park — 415 Totals $ 2,519 $ 2,957 For the quarter ended 2018 2017 Equity in loss (income) of investee companies $ 23 $ (45)

Net income per share (Tables)

Net income per share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options and warrants. Three Months Ended 2018 2017 (in thousands, except earnings per share Net income (loss) attributable to The ONE Group Hospitality, Inc. $ 231 $ (402) Basic weighted average shares outstanding 27,187,657 25,050,628 Dilutive effect of stock options, warrants and restricted share units 200,841 — Diluted weighted average shares outstanding 27,388,498 25,050,628 Net income (loss) available to common stockholders per share - Basic $ 0.01 $ (0.02) Net income (loss) available to common stockholders per share - Diluted $ 0.01 $ (0.02) Anti-dilutive stock options, warrants and restricted share units 2,114,437 —

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended 2018 2017 Revenues: Owned restaurants $ 15,076 $ 14,228 Owned food, beverage and other operations 2,005 3,885 Managed and licensed operations 2,436 2,314 $ 19,517 $ 20,427 Segment Profits: Owned restaurants $ 1,664 $ 983 Owned food, beverage and other operations 316 948 Managed and licensed operations 2,436 2,314 Total segment profit 4,416 4,245 General and administrative 3,055 2,921 Depreciation and amortization 778 866 Interest expense, net of interest income 318 259 Equity in loss (income) of investee companies 23 (45) Other, net 99 755 Income (loss) from continuing operations before provision for income taxes $ 143 $ (511) Total assets: March 31, December 31, Owned restaurants $ 40,285 $ 40,570 Owned food, beverage and other operations* 6,501 7,385 Managed and licensed operations 4,837 5,060 Total $ 51,623 $ 53,015 Capital asset additions: Three Months Ended 2018 2017 Owned restaurants $ 301 $ 1,236 Owned food, beverage and other operations** 5 117 Managed and licensed operations — — Total $ 306 $ 1,353

Geographic information (Tables)

Geographic information (Tables)	3 Months Ended
	Mar. 31, 2018
Geographic Information [Abstract]
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Revenues Three Months Ended 2018 2017 United States: Owned restaurants $ 15,076 $ 14,228 Owned food, beverage and other operations 2,005 3,885 Managed and licensed operations 1,687 1,687 Total United States revenues $ 18,768 $ 19,800 Foreign: Owned restaurants $ — $ — Owned food, beverage and other operations — — Managed and licensed operations 749 627 Total foreign revenues $ 749 $ 627 Total revenues $ 19,517 $ 20,427
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Long-lived Assets March 31, December 31, United States: Owned restaurants $ 37,451 $ 37,907 Owned food, beverage and other operations*** 4,768 5,088 Managed and licensed operations 92 109 Total United States long-lived assets $ 42,311 $ 43,104 Foreign: Owned restaurants $ — $ — Owned food, beverage and other operations — — Managed and licensed operations 120 148 Total foreign long-lived assets $ 120 $ 148 Total long-lived assets $ 42,431 $ 43,252 *** Includes corporate assets

Liquidity (Details Textual)

Liquidity (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accumulated deficit	$ (31,802)	$ (31,979)
Cash and cash equivalents	$ 1,143	$ 1,548	$ 472	$ 918

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory [Line Items]
Inventory	$ 1,288	$ 1,402
Food [Member]
Inventory [Line Items]
Inventory	206	246
Beverages [Member]
Inventory [Line Items]
Inventory	$ 1,082	$ 1,156

Other current assets (Details)

Other current assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Prepaid taxes	$ 274	$ 255
Landlord receivable	258	258
Prepaid expenses	531	421
Other	446	365
Totals	$ 1,509	$ 1,299

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accruals [Abstract]
VAT and Sales taxes	$ 528	$ 739
Payroll and related	742	847
Income taxes	573	610
Due to hotels	1,190	1,168
Rent	1,384	1,471
Legal, professional and other services	374	1,007
Insurance	302	103
Other	1,113	1,042
Totals	$ 6,206	$ 6,987

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Due to Related Parties	$ 1,400,000		$ 1,500,000
TOG Liquidation Trust [Member]
Related Party Transaction, Amounts of Transaction	1,200,000		1,200,000
Cash Advances [Member]
Due to Related Parties				$ 1,200,000
Construction Services [Member]
Due to Related Parties	14,000		11,000
Costs and Expenses, Related Party	100,000	$ 800,000
Legal Fees [Member]
Costs and Expenses, Related Party	31,000	100,000
Entity Owned by Stockholder [Member]
Due to Related Parties	200,000		$ 300,000
Revenue from Related Parties		$ 50,000
Rental Income [Member]
Revenue from Related Parties	$ 50,000

Revenue from contracts with c36

Revenue from contracts with customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 02, 2018	Dec. 31, 2017
Liabilities
Deferred license revenue, current	$ 215			$ 115
Deferred license revenue, long-term	1,477			1,222
Equity
Accumulated deficit	(31,802)			(31,979)
Revenues
Management, license and incentive fee revenues	2,436	$ 2,314
Net income	118	$ (600)
Previously Reported [Member]
Liabilities
Deferred license revenue, current				115
Deferred license revenue, long-term				1,222
Equity
Accumulated deficit				(31,979)
Revenues
Management, license and incentive fee revenues	2,436
Net income	118
Restatement Adjustment [Member]
Liabilities
Deferred license revenue, current			$ 215
Deferred license revenue, long-term			1,176
Equity
Accumulated deficit			(32,033)
Adoption of ASC 606 [Member]
Equity
Accumulated deficit			$ 100
Revenues
Management, license and incentive fee revenues	2,407
Net income	89
Asc 606 Adjustments [Member]
Liabilities
Deferred license revenue, current				100
Deferred license revenue, long-term				(46)
Equity
Accumulated deficit				$ (54)
Revenues
Management, license and incentive fee revenues	29
Net income	$ 29

Revenue from contracts with c37

Revenue from contracts with customers (Details textual) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 02, 2018	Dec. 31, 2017
Retained Earnings (Accumulated Deficit)	$ (31,802)		$ (31,979)
Adoption of ASC 606 [Member]
Retained Earnings (Accumulated Deficit)		$ 100

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Status of Company's Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Shares
Outstanding at December 31, 2017 | shares	2,315,035
2018 Grants | shares	0
Exercised | shares	0
Forfeited | shares	(80,000)
Outstanding at March 31, 2018 | shares	2,235,035
Exercisable at March 31, 2018 | shares	849,384
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding at December 31, 2017 | $ / shares	$ 3.41
Weighted Average Exercise Price 2018 Grants | $ / shares	0
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Forfeited | $ / shares	3.76
Weighted Average Exercise Price Outstanding at March 31, 2018 | $ / shares	3.40
Weighted Average Exercise Price Exercisable at March 31, 2018 | $ / shares	$ 4.84
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life Outstanding at March 31, 2018	7 years 25 days
Weighted Average Remaining Contractual Life Exercisable at March 31, 2018	4 years 6 months 14 days
Intrinsic Value
Intrinsic Value Outstanding at March 31, 2018 | $	$ 888,040
Intrinsic Value Exercisable at March 31, 2018 | $	$ 2,360

Stock-based Compensation - Su39

Stock-based Compensation - Summary of non-vested stock options (Details 1)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Shares
Non-vested shares at December 31, 2017 | shares	1,424,651
Granted | shares	0
Vested | shares	0
Forfeited | shares	(39,000)
Non-vested shares at March 31, 2018 | shares	1,385,651
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Valuet December 31, 2017 | $ / shares	$ 0.99
Weighted Average Grant Date Fair Value Granted | $ / shares	0
Weighted Average Grant Date Fair Value Vested | $ / shares	0
Weighted Average Grant Date Fair Value Forfeited | $ / shares	1.08
Weighted Average Grant Date Fair Value March 31, 2018 | $ / shares	$ 0.99

Stock-based Compensation - Su40

Stock-based Compensation - Summary of Status of Company's Restricted Stock Option Activity (Details 2)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Shares
Forfeited | shares	(39,000)
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value Forfeited | $ / shares	$ 1.08
Restricted Stock [Member]
Shares
Non-vested at December 31, 2017 (in shares) | shares	985,000
Granted | shares	59,834
Vested | shares	(100,000)
Forfeited | shares	(6,000)
Non-vested at March 31, 2018 | shares	938,834
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 | $ / shares	$ 2.26
Weighted Average Grant Date Fair Value Granted | $ / shares	2.75
Weighted Average Grant Date Fair Value Vested | $ / shares	1.42
Weighted Average Grant Date Fair Value Forfeited | $ / shares	2.73
Weighted Average Grant Date Fair Value Non-vested at March 31, 2018 | $ / shares	$ 2.38

Stock-based Compensation (Detai

Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,235,035		2,315,035
Share-based Compensation	$ 324	$ 153
Equity Incentive Plan 2013 [Member]
Common Stock, Capital Shares Reserved for Future Issuance	499,207
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	579,402
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1,400
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 9 months 18 days
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,200
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	250,000

Nonconsolidated variable inte42

Nonconsolidated variable interest entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 2,519		$ 2,957
Equity in loss (income) of investee companies	23	$ (45)
Bagatelle Investors [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	30		33
Bagatelle NY [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	2,489		2,509
One 29 Park [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 0		$ 415

Nonconsolidated variable inte43

Nonconsolidated variable interest entities (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Bagatelle NY LA Investors, LLC (Bagatelle Investors) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	31.24%		31.24%
Bagatelle Little West 12th, LLC (Bagatelle NY) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	51.13%		51.13%
One 29 Park LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	10.00%		10.00%
Management Fees Revenue	$ 100,000	$ 100,000
Other than Temporary Impairment Losses, Investments	0
Gain (Loss) on Sale of Investments	200,000
Noncontrolling Interest in Variable Interest Entity	600,000
Bagatelle La Cienega, LLC (Bagatelle LA) [Member]
Schedule of Equity Method Investments [Line Items]
Management Fees Revenue	37,000	$ 48,000
Due from Related Parties, Current	$ 43,000		$ 100,000

Income taxes (Details Textual)

Income taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent	17.50%		14.70%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		$ 2.9
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent		21.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability					$ 0
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent					100.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount					$ 1.9
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent					35.00%
Scenario, Plan [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				21.00%
Tax Year 2017 [Member]
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent					10.50%
Tax Year 2025 [Member]
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent					13.125%

Net income per share (Details)

Net income per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income (loss) attributable to The ONE Group Hospitality, Inc.	$ 231	$ (402)
Basic weighted average shares outstanding	27,187,657	25,050,628
Dilutive effect of stock options, warrants and restricted share units	200,841	0
Diluted weighted average shares outstanding	27,388,498	25,050,628
Net income (loss) available to common stockholders per share - Basic	$ 0.01	$ (0.02)
Net income (loss) available to common stockholders per share - Diluted	$ 0.01	$ (0.02)
Anti-dilutive stock options, warrants and restricted share units	2,114,437	0

Net income per share (Details T

Net income per share (Details Textual) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share, Basic and Diluted	$ 0.01	$ (0.02)

Segment reporting (Details)

Segment reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 19,517	$ 20,427
Operating Income (Loss)	461	(252)
General and administrative	3,055	2,921
Depreciation and amortization	778	866
Interest expense, net of interest income	318	259
Income (loss) from continuing operations before provision for income taxes	143	(511)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	19,517	20,427
Operating Income (Loss)	4,416	4,245
General and administrative	3,055	2,921
Depreciation and amortization	778	866
Interest expense, net of interest income	318	259
Equity in loss (income) of investee companies	23	(45)
Other, net	99	755
Income (loss) from continuing operations before provision for income taxes	143	(511)
Operating Segments [Member] | Owned restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	15,076	14,228
Operating Income (Loss)	1,664	983
Operating Segments [Member] | Owned food, beverage and other operations [Member]
Segment Reporting Information [Line Items]
Revenues	2,005	3,885
Operating Income (Loss)	316	948
Operating Segments [Member] | Managed and licensed operations [Member]
Segment Reporting Information [Line Items]
Revenues	2,436	2,314
Operating Income (Loss)	$ 2,436	$ 2,314

Segment reporting (Details 1)

Segment reporting (Details 1) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Total		$ 51,623	$ 53,015
Total		306		$ 1,353
Owned restaurants [Member]
Total		301		1,236
Owned food, beverage and other operations [Member]
Total	[1]	5		117
Managed and licensed operations [Member]
Total		0		$ 0
Operating Segments [Member]
Total		51,623	53,015
Operating Segments [Member] | Owned restaurants [Member]
Total		40,285	40,570
Operating Segments [Member] | Owned food, beverage and other operations [Member]
Total	[2]	6,501	7,385
Operating Segments [Member] | Managed and licensed operations [Member]
Total		$ 4,837	$ 5,060
[1]	Includes corporate capital asset additions
[2]	Includes corporate assets

Geographic information (Details

Geographic information (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues		$ 19,517	$ 20,427
Long-lived Assets		42,431		$ 43,252
UNITED STATES
Revenues		18,768	19,800
Long-lived Assets		42,311		43,104
UNITED STATES | Owned restaurants [Member]
Revenues		15,076	14,228
Long-lived Assets		37,451		37,907
UNITED STATES | Owned food, beverage and other operations [Member]
Revenues		2,005	3,885
Long-lived Assets	[1]	4,768		5,088
UNITED STATES | Managed and licensed operations [Member]
Revenues		1,687	1,687
Long-lived Assets		92		109
Non-US [Member]
Revenues		749	627
Long-lived Assets		120		148
Non-US [Member] | Owned restaurants [Member]
Revenues		0	0
Long-lived Assets		0		0
Non-US [Member] | Owned food, beverage and other operations [Member]
Revenues		0	0
Long-lived Assets		0		0
Non-US [Member] | Managed and licensed operations [Member]
Revenues		749	$ 627
Long-lived Assets		$ 120		$ 148
[1]	Includes corporate assets