The ONE Group Hospitality, Inc. (STKS) 10-Q 13 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 09, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Registrant Name	ONE Group Hospitality, Inc.
Entity Central Index Key	1,399,520
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	STKS
Entity Common Stock, Shares Outstanding		28,293,902
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 968	$ 1,548
Accounts receivable	6,129	5,514
Inventory	1,194	1,402
Other current assets	1,600	1,299
Due from related parties, net	27	0
Total current assets	9,918	9,763
Property & equipment, net	38,476	37,811
Investments	2,612	2,957
Deferred tax assets, net	72	69
Other assets	598	384
Security deposits	2,091	2,031
Total assets	53,767	53,015
Current liabilities:
Accounts payable	5,855	5,329
Accrued expenses	6,625	6,987
Deferred license revenue	241	115
Deferred gift card revenue and other	1,196	999
Due to related parties, net	0	256
Current portion of long-term debt	3,196	3,241
Total current liabilities	17,113	16,927
Deferred license revenue, long-term	1,663	1,222
Due to related parties, long-term	1,197	1,197
Deferred rent and tenant improvement allowances	17,072	17,001
Long-term debt, net of current portion	7,877	10,115
Total liabilities	44,922	46,462
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2018 and December 31, 2017	0	0
Common stock, $0.0001 par value, 75,000,000 shares authorized; 28,293,902 and 27,152,101 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	3	3
Additional paid-in capital	43,235	41,007
Accumulated deficit	(31,927)	(31,979)
Accumulated other comprehensive loss	(1,660)	(1,556)
Total The One Group Hospitality, Inc stockholders' equity	9,651	7,475
Noncontrolling interests	(806)	(922)
Total stockholders' equity	8,845	6,553
Total Liabilities and Stockholders' Equity	$ 53,767	$ 53,015

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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
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	28,293,902	27,152,101
Common stock, shares outstanding	28,293,902	27,152,101

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Owned restaurant net revenues	$ 15,312	$ 13,189	$ 45,908	$ 42,100
Owned food, beverage and other net revenues	1,960	2,144	6,048	8,460
Total owned revenues	17,272	15,333	51,956	50,560
Management, license and incentive fee revenue	2,688	2,479	7,832	7,577
Total revenues	19,960	17,812	59,788	58,137
Owned restaurants:
Owned restaurant cost of sales	4,050	3,436	12,121	11,150
Owned restaurant operating expenses	9,779	8,911	28,556	27,688
Total owned operating expenses	13,829	12,347	40,677	38,838
Owned food, beverage and other expenses	2,068	2,044	5,782	7,296
Total owned operating expenses	15,897	14,391	46,459	46,134
General and administrative (including stock-based compensation of $337, $200, $1,005 and $744, respectively)	2,266	2,267	7,937	8,479
Settlements	0	500	0	1,295
Depreciation and amortization	896	950	2,575	2,621
Lease termination expense and asset write-offs	78	402	168	883
Pre-opening expenses	449	94	1,330	1,286
Transaction costs	0	0	0	254
Equity in (income) of investee companies	0	(264)	(111)	(156)
Other income, net	38	(19)	(139)	(137)
Total costs and expenses	19,624	18,321	58,219	60,659
Income (loss) from operations	336	(509)	1,569	(2,522)
Interest expense, net of interest income	294	325	902	804
Income (loss) from continuing operations before provision for income taxes	42	(834)	667	(3,326)
Income tax provision	251	179	445	365
(Loss) income from continuing operations	(209)	(1,013)	222	(3,691)
(Loss) from discontinued operations, net of taxes	0	0	0	(106)
Net (loss) income	(209)	(1,013)	222	(3,797)
Less: net income attributable to noncontrolling interest	96	153	116	71
Net (loss) income attributable to The ONE Group Hospitality, Inc.	(305)	(1,166)	106	(3,868)
Currency translation adjustment	(170)	107	(104)	190
Comprehensive (loss) income	$ (475)	$ (1,059)	$ 2	$ (3,678)
Basic (loss) earnings per share:
Continuing operations	$ (0.01)	$ (0.05)	$ 0	$ (0.15)
Discontinued operations	0	0	0	0
Attributed to The ONE Group Hospitality, Inc.	(0.01)	(0.05)	0	(0.15)
Diluted (loss) earnings per share:
Continuing operations	(0.01)	(0.05)	0	(0.15)
Discontinued operations	0	0	0	0
Attributed to The ONE Group Hospitality, Inc.	$ (0.01)	$ (0.05)	$ 0	$ (0.15)
Weighted average number of common shares outstanding
Basic	27,751,632	25,228,288	27,437,269	25,141,933
Diluted	27,751,632	25,228,288	27,499,645	25,141,933

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation	$ 337	$ 200	$ 1,005	$ 744

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 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	1,005	$ 0	1,005	0	0	1,005	0
Stock based compensation expense (in shares)		49,179
Vesting of restricted shares	0	$ 0	0	0	0	0	0
Vesting of restricted shares (in shares)		342,622
Exercise of warrants	1,223	$ 0	1,223	0	0	1,223	0
Exercise of warrants (in shares)		750,000
Foreign currency translation, net	(2)	$ 0	0	0	(2)	(2)	0
Reclassification of realized gains	(102)	0	0	0	(102)	(102)	0
Net income	222	0	0	106	0	106	116
Balance at Sep. 30, 2018	$ 8,845	$ 3	$ 43,235	$ (31,927)	$ (1,660)	$ 9,651	$ (806)
Balance (in shares) at Sep. 30, 2018		28,293,902

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net income (loss)	$ 222	$ (3,797)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,575	2,621
Amortization of discount on warrants	150	136
Deferred rent and tenant improvement allowances	306	885
Deferred taxes	(1)	1
(Income) from equity method investments	(111)	(156)
Gain on disposition of cost method investment	(185)	0
Stock-based compensation	1,005	744
Changes in operating assets and liabilities:
Accounts receivable	(532)	(206)
Inventory	209	140
Prepaid expenses and other current assets	(301)	95
Due from related parties, net	(208)	375
Security deposits	(59)	(12)
Other assets	(213)	235
Accounts payable	496	3,117
Accrued expenses	(423)	1,603
Deferred revenue	477	801
Net cash provided by operating activities	3,407	6,582
Investing activities:
Purchase of property and equipment	(3,238)	(4,114)
Distribution from equity method investment	40	0
Proceeds from disposition of cost method investment	600	0
Net cash used in investing activities	(2,598)	(4,114)
Financing activities:
Proceeds from business loan and security agreement	0	1,000
Repayment of term loan	(2,108)	(2,121)
Repayment of equipment financing agreement	(264)	(248)
Repayment of business loan and security agreement	(62)	(648)
Issuance of common stock	1,223	0
Distributions to non-controlling interests	0	(410)
Net cash used in financing activities	(1,211)	(2,427)
Effect of exchange rate changes on cash	(178)	160
Net (decrease) increase in cash and cash equivalents	(580)	201
Cash and cash equivalents, beginning of period	1,548	1,598
Cash and cash equivalents, end of period	968	1,799
Supplemental disclosure of cash flow data:
Interest paid	722	747
Income taxes paid	458	0
Noncash investing and financing activities:
Noncash debt issuance costs	$ 0	$ 35

Basis of presentation

Basis of presentation	9 Months Ended
	Sep. 30, 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 month and nine month periods ended September 30, 2018 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished in 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 same quality of food and service as that of a traditional upscale steakhouse. As of September 30, 2018, the Company owns, operates or manages twenty-one venues across seven states and seven 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 September 30, 2018, under various management agreements, the Company services thirteen venues throughout the United States and 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	9 Months Ended
	Sep. 30, 2018
Liquidity [Abstract]
Liquidity [Text Block]	Note 2 - Liquidity As of September 30, 2018, the Company's accumulated deficit was $31.9 million and the Company's cash and cash equivalents was $1.0 million.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3 – Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. ASU 2016-02 also requires certain disclosures about the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company’s restaurants operate under lease agreements that provide for material future lease payments. These leases comprise the majority of the Company’s material lease agreements. The Company is currently evaluating the effect of this standard but expects the adoption of ASU 2016-02 to have a material effect on its consolidated financial statements by increasing both total assets and total liabilities. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 simplifies the accounting and reporting for share-based payments issued to non-employees by expanding the scope of ASC 718, “Compensation – Stock Compensation”, which currently only includes share-based compensation to employees, to also include share-based payments to nonemployees for goods and services. The amendments in ASU 2018-07 are effective for annual and interim periods beginning after December 15, 2018. The Company is evaluating the effect of this standard on its consolidated financial statements but does not expect the adoption of ASU 2018-07 to be material. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates, modifies and adds disclosure requirements for fair value measurements. The amendments in ASU 2018-13 are effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the effects of ASU 2018-13 on its consolidated financial statements but does not expect the adoption of ASU 2018-13 to be material. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. The Company is currently in the process of evaluating the effects of this pronouncement on its consolidated financial statements.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 4 - Inventory Inventory consists of the following (in thousands) as of: September 30, 2018 December 31, 2017 Food $ 206 $ 246 Beverages 988 1,156 Totals $ 1,194 $ 1,402

Other current assets

Other current assets	9 Months Ended
	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets [Text Block]	Note 5 – Other current assets Other current assets consists of the following (in thousands) as of: September 30, December 31, 2018 2017 Prepaid taxes $ 276 $ 255 Landlord receivable 258 258 Prepaid expenses 480 421 Insurance 217 90 Other 369 275 Totals $ 1,600 $ 1,299

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2018
Accruals [Abstract]
Accrued Liabilities Disclosure [Text Block]	Note 6 – Accrued expenses Accrued expenses consists of the following (in thousands) as of: September 30, 2018 December 31, 2017 VAT and Sales taxes $ 624 $ 739 Payroll and related 1,431 847 Income taxes 267 610 Due to hotels 778 1,168 Rent 1,461 1,471 Legal, professional and other services 1,140 1,007 Insurance 152 103 Other 772 1,042 Totals $ 6,625 $ 6,987

Related party transactions

Related party transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 7 - Related party transactions Net amounts due to related parties amounted to $1.2 million as of September 30, 2018 and $1.5 million as of December 31, 2017, respectively. The Company has not reserved any related party receivables as of September 30, 2018 and December 31, 2017. The Company incurred approximately $0 and $26,000 for the three months ended September 30, 2018 and 2017, respectively, and approximately $42,000 and $0.4 million for the nine months ended September 30, 2018 and 2017, respectively, of legal fees to The Giannuzzi Group, a law firm owned by a former director of the Company who resigned in 2017. The Company also receives rental income for office space subleased to this entity. Rental income of approximately $50,000 was recorded from this entity for each of the three months ended September 30, 2018 and 2017. Rental income of approximately $0.2 million was recorded from this entity for each of the nine months ended September 30, 2018, and 2017. Amounts due to related parties, net at September 30, 2018 and December 31, 2017, included approximately $0.1 million and $0.3 million, respectively, due to this entity for legal services. The Company incurred approximately $44,000 and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and approximately $0.3 million and $1.6 million for the nine months ended September 30, 2018 and 2017, respectively, for construction services to an entity owned by family members of one of the Company’s stockholders, who is also a former employee of the Company. Included in amounts due from related parties, net at September 30, 2018 and December 31, 2017, is a balance due to this entity of approximately $58,000 and $27,000, respectively. During the fourth quarter of 2016, the Company received approximately $1.2 million in cash advances from the TOG Liquidation Trust (the “Liquidation Trust”). The TOG Liquidation Trust is a trust that was set up in connection with a 2013 merger transaction to hold previously issued and outstanding warrants held by members of the predecessor company. Amounts due to the trust are non-interest bearing and are repayable in 2021 when the trust expires. Included in due to related parties, long term at September 30, 2018 and December 31, 2017 is a balance due to the Liquidation Trust of approximately $1.2 million. Please refer to Note 10 for details on other transactions with related parties.

Revenue from contracts with cus

Revenue from contracts with customers	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Note 8 – 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 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to the licensing of our restaurants and the amortization of fees associated with our license agreements. The changes were as follows (in thousands): Balance at December 31, 2017 ASC 606 Adjustments Balance at January 1, 2018 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, the Company has determined that the services it provides under its licensing agreements are primarily for initial license fees and upfront fees and do not contain separate and distinct performance obligations from the license right; therefore, these fees will be recognized on a straight-line basis over the term of the license 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 (loss) income. ASC 606 requires sales-based royalties to continue to be recognized as licensee restaurant sales occur. The impact of adopting ASC 606 as compared to the previous recognition guidance on our consolidated statement of operations and comprehensive (loss) income was as follows (in thousands): For the three months ended September 30, 2018 As Reported Balances Without Adoption of ASC 606 Adoption Impact of ASC 606 Revenues Management, license and incentive fee revenues $ 2,688 $ 3,014 $ (326 ) Net (loss) income $ (209 ) $ 117 $ (326 ) For the nine months ended September 30, 2018 As Reported Balances Without Adoption of ASC 606 Adoption Impact of ASC 606 Revenues Management, license and incentive fee revenues $ 7,832 $ 8,101 $ (269 ) Net income $ 222 $ 491 $ (269 ) Contract balances The following table provides information about receivables and contract liabilities (deferred license fees) from contracts with customers (in thousands): September 30, Receivables (a) $ 281 Deferred license fees $ 1,904 (a) Receivables are included in accounts receivable on the September 30, 2018 consolidated balance sheet. Significant changes in deferred license fees are as follows (in thousands): For the Nine Months Ended September 30, 2018 Deferred license fees - January 1, 2018 (a) $ 1,391 Additions to deferred revenue 694 Revenue recognized during the period (181 ) Deferred license fees - September 30, 2018 $ 1,904 (a) Includes the cumulative effect of adopting ASC 606 The following table reflects the estimated license fees to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2018 (in thousands): Remainder of 2018 (a) $ 60 2019 241 2020 241 2021 241 2022 241 Thereafter 880 Total $ 1,904 (a) Represents license fees expected to be recognized for the remainder of 2018.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation [Text Block]	Note 9 - Stock-based Compensation As of September 30, 2018, the Company had 597,608 shares available for issuance under the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2013 Equity Plan”). Stock-based compensation expense for the three months ended September 30, 2018 and 2017 was $0.3 million and $0.2 million, respectively, and is included in general and administrative expenses in the consolidated statement of operations and comprehensive (loss) income. Stock-based compensation expense for the nine months ended September 30, 2018 and 2017 was $1.0 million and $0.7 million, respectively, and is included in general and administrative expenses in the consolidated statement of operations and comprehensive (loss) income. The Company has not granted any stock options in 2018. The Company granted 49,179 shares of its common stock to independent members of the Board of Directors (the “Board”) in June 2018 as part of their compensation for serving on the Board. The Company recorded the $0.1 million of expense associated with these grants as a component of stock-based compensation expense. Stock Option Activity Changes in outstanding stock options for 2018 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Outstanding at December 31, 2017 2,315,035 3.41 2018 Grants — — Exercised — — Forfeited (285,527 ) 4.19 Outstanding at September 30, 2018 2,029,508 3.30 7.13 $ 1,743,600 Exercisable at September 30, 2018 940,357 4.41 5.81 $ 242,080 A summary of the status of the Company’s non-vested stock options as of September 30, 2018 and changes for the nine months then ended is presented below: Shares Weighted Average Grant Date Fair Value Non-vested shares at December 31, 2017 1,424,651 $ 0.99 Granted — — Vested (265,000 ) 1.27 Forfeited (70,500 ) 1.10 Non-vested shares at September 30, 2018 1,089,151 $ 0.92 As of September 30, 2018, there are 579,402 options outstanding that vest based on the achievement of Company and individual objectives as set by the Board. As of September 30, 2018, there is approximately $1.0 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 2.4 years. Restricted Stock Award Activity The fair value of restricted stock awards is determined based upon the closing fair market value of the Company’s common stock on the grant date. A summary of the status of restricted stock awards and changes for the six months ended September 30, 2018 is presented below: Shares Weighted Average Grant Date Per Share Fair Value Non-vested at December 31, 2017 985,000 $ 2.26 Granted 126,781 2.71 Vested (342,622 ) 1.85 Forfeited (15,000 ) 2.73 Non-vested at September 30, 2018 754,159 $ 2.51 As of September 30, 2018, 150,000 restricted shares subject to performance-based vesting were still outstanding. As of September 30, 2018, the Company had approximately $1.9 million of total unrecognized compensation costs related to restricted stock awards, which will be recognized over a weighted average period of 2.5 years.

Nonconsolidated variable intere

Nonconsolidated variable interest entities	9 Months Ended
	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Nonconsolidated variable interest entities [Text Block]	Note 10 – Nonconsolidated variable interest entities As of September 30, 2018 and December 31, 2017, the Company owned interests in the following companies, which directly or indirectly operate restaurants: · 31.24% interest in Bagatelle NY LA Investors, LLC (“Bagatelle Investors”) · 51.13% interest in Bagatelle Little West 12th, LLC (“Bagatelle NY”) · 10.00% interest in One 29 Park, LLC (“One 29 Park”) as of December 31, 2017 (0% as of September 30, 2018) Bagatelle Investors is a holding company that has an interest in Bagatelle NY. Both entities were formed in 2011. The Company accounts for its investments in these entities under the equity method of accounting based on management’s assessment that although it is not the primary beneficiary of these entities because it does not have the power to direct their day to day activities, 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 believed that it no longer had 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 sold its 10% interest in One 29 Park to the new ownership group for $0.6 million and recorded a gain of $0.2 million on the sale as a component of “other expenses, net” on the consolidated statement of operations and comprehensive (loss) income. At September 30, 2018 and December 31, 2017, the carrying values of these investments were (in thousands): September 30, 2018 December 31, 2017 Bagatelle Investors $ 47 $ 33 Bagatelle NY 2,565 2,509 One 29 Park — 415 Totals $ 2,612 $ 2,957 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Equity in (income) of investee companies $ — $ (264 ) $ (111 ) $ (156 ) The Company has entered into a management agreement with Bagatelle NY. Under this agreement, the Company recorded management fee revenue of approximately $42,000 and $47,000 for the three months ended September 30, 2018 and 2017, respectively, and $0.2 million and $0.1 million for the nine months ended September 30, 2018 and 2017, respectively. The Company also receives rental income from Bagatelle NY for restaurant space that it subleases to Bagatelle NY. Rental income of $0.1 million was recorded from this entity for each of the three months ended September 30, 2018 and 2017, respectively and $0.4 million was recorded from this entity for each of the nine months ended September 30, 2018 and 2017. The Company has also entered into a management agreement with One 29 Park. Under this agreement, the Company recorded management fee revenue of $0.1 million and $0.1 million for the three months ended September 30, 2018 and 2017, respectively and $0.3 million and $0.3 million for the six months ended September 30, 2018 and 2017, respectively. The management agreement with One 29 Park terminated on September 30, 2018. Net receivables of $ 0.2 million and

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 11 – Income taxes The Company’s effective income tax rate was 66.7 % for the nine months ended September 30, 2018, compared to - 11.0 % for the nine months ended September 30, 2017. The Company’s projected annual effective tax rate differs from the statutory U.S. tax rate of 21 % primarily for the following reasons: 1) availability of U.S. carryforward NOLs, which results in no federal or state taxes; 2) a full valuation allowance on the U.S. net deferred tax asset; 3) taxes owed in foreign jurisdictions such as the United Kingdom, Canada and Italy; and 4) New York City taxes owed. In December 2017 , the Tax Cuts and Jobs Act (the “TCJA”) was enacted. The TCJA included: · A one-time tax on the deemed repatriation of post- 1986 untaxed foreign earnings and profits (“E&P”); · A reduction in the corporate tax rate from 35 % to 21 % for tax years beginning after December 31, 2017 ; · 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 % for tax years beginning after December 31, 2017 (increasing to 13.125 % for tax years beginning after December 31, 2025 ) partially offset by foreign tax credits; and · Introduction of a territorial tax system beginning in 2018 by providing for a 100 % dividend received deduction on certain qualified dividends from foreign subsidiaries. In the fourth quarter of 2017, the Company recorded an adjustment of $2.9 million to revalue its net deferred tax asset based on a 21% corporate tax rate, which was entirely offset by a reduction in the Company’s valuation allowance. Additionally, the Company recorded a provisional amount of $1.9 million to account for the deemed repatriation of E&P. Due to the complexities involved in accounting for the enactment of the TCJA, SEC Staff Accounting Bulletin 118 allows companies to record provisional estimates of the impacts of the TCJA during a measurement period of up to one year from the enactment date. For its 2017 tax return, the Company conducted a comprehensive E&P analysis which reported a $1.4 million deemed repatriation of E&P. The adjustment to the provisional amount has been included in the tax provision for continuing operations in 2018. The impact of recording the finalized E&P is zero given the Company’s foreign tax credits, net operating loss carryforward and a full valuation allowance on domestic net deferred tax assets. FASB Staff Q&A, Topic 740 No. 5 , Accounting for Global Intangible Low-Taxed Income, states that an entity can elect 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 an 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.

(Loss) earnings per share

(Loss) earnings per share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net Income Per Share [Text Block]	Note 12 – (Loss) earnings per share Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted earnings (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, warrants and restricted share units. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands, except earnings per share and related share information) Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (305 ) $ (1,166 ) $ 106 $ (3,868 ) Basic weighted average shares outstanding 27,751,632 25,228,288 27,437,269 25,141,933 Dilutive effect of stock options, warrants and restricted share units - - 62,376 - Diluted weighted average shares outstanding 27,751,632 25,228,288 27,499,645 25,141,933 Net (loss) income available to common stockholders per share - Basic $ (0.01 ) $ (0.05 ) $ 0.00 $ (0.15 ) Net (loss) income available to common stockholders per share - Diluted $ (0.01 ) $ (0.05 ) $ 0.00 $ (0.15 ) For the three and nine months ended September 30, 2017 and for the three months ended September 30, 2018, all equivalent shares underlying options, warrants and restricted share units 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 for each of the three and nine months ended September 30, 2018 and 2017. Net 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	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies Disclosure [Text Block]	Note 13 – 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	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 14 – Segment reporting The Company’s Chief Executive Officer (“CEO”), who began serving as the Company’s CEO on October 30, 2017 and has been deemed the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and segment profit information (which is defined as revenues less operating expenses) related to the Company’s three sources of revenue, which are presented in their entirety within the consolidated statements of operations and comprehensive (loss) income. Beginning with the period ended December 31, 2017, the Company revised its segments to align with how it manages the business. Prior period segments have been restated to conform to the current segment presentation (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: Owned restaurants $ 15,312 $ 13,189 $ 45,908 $ 42,100 Owned food, beverage and other operations 1,960 2,144 6,048 8,460 Managed and licensed operations 2,688 2,479 7,832 7,577 $ 19,960 $ 17,812 $ 59,788 $ 58,137 Segment Profits: Owned restaurants $ 1,483 $ 842 $ 5,231 $ 3,262 Owned food, beverage and other operations (108 ) 100 266 1,164 Managed and licensed operations 2,688 2,479 7,832 7,577 Total segment profit 4,063 3,421 13,329 12,003 General and administrative 2,266 2,267 7,937 8,479 Depreciation and amortization 896 950 2,575 2,621 Interest expense, net of interest income 294 325 902 804 Equity in income of investee companies - (264 ) (111 ) (156 ) Other, net 565 977 1,359 3,581 Income (loss) from continuing operations before provision for income taxes $ 42 $ (834 ) $ 667 $ (3,326 ) September 30, 2018 December 31, 2017 Total assets: Owned restaurants $ 41,025 $ 40,570 Owned food, beverage and other operations* 7,067 7,385 Managed and licensed operations 5,675 5,060 Total $ 53,767 $ 53,015 * Includes corporate assets Nine Months Ended September 30, Capital asset additions: 2018 2017 Owned restaurants $ 2,792 $ 3,382 Owned food, beverage and other operations ** 446 732 Managed and licensed operations - - Total $ 3,238 $ 4,114 ** Includes corporate asset additions

Geographic information

Geographic information	9 Months Ended
	Sep. 30, 2018
Geographic Information [Abstract]
Geographic Information Disclosure [Text Block]	Note 15 – Geographic information The following table contains certain financial information by geographic location for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues United States: Owned restaurants $ 15,312 $ 13,189 $ 45,908 $ 42,100 Owned food, beverage and other operations 1,960 2,144 6,048 8,460 Managed and licensed operations 1,469 1,330 4,797 4,521 Total United States revenues $ 18,741 $ 16,663 $ 56,753 $ 55,081 Foreign: Owned restaurants $ - $ - $ - $ - Owned food, beverage and other operations - - - - Managed and licensed operations 1,219 1,149 3,035 3,056 Total foreign revenues $ 1,219 $ 1,149 $ 3,035 $ 3,056 Total revenues $ 19,960 $ 17,812 $ 59,788 $ 58,137 September 30, 2018 December 31, 2017 Long-lived Assets United States: Owned restaurants $ 38,215 $ 37,907 Owned food, beverage and other operations 5,164 5,088 Managed and licensed operations 84 109 Total United States long-lived assets $ 43,463 $ 43,104 Foreign: Owned restaurants $ - $ - Owned food, beverage and other operations 83 - Managed and licensed operations 303 148 Total foreign long-lived assets $ 386 $ 148 Total long-lived assets $ 43,849 $ 43,252

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	Note 16 – Stockholders’ Equity On July 18, 2018, an investor of the Company exercised 250,000 warrants to purchase shares of the Company’s common stock at an exercise price of $1.63 per share. The Company received proceeds of $0.4 million in connection with this transaction. On September 13, 2018, an investor of the Company exercised 500,000 warrants to purchase shares of the Company’s common stock at an exercise price of $1.63 per share. The Company received proceeds of $0.8 million in connection with this transaction.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory consists of the following (in thousands) as of: September 30, 2018 December 31, 2017 Food $ 206 $ 246 Beverages 988 1,156 Totals $ 1,194 $ 1,402

Other current assets (Tables)

Other current assets (Tables)	9 Months Ended
	Sep. 30, 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: September 30, December 31, 2018 2017 Prepaid taxes $ 276 $ 255 Landlord receivable 258 258 Prepaid expenses 480 421 Insurance 217 90 Other 369 275 Totals $ 1,600 $ 1,299

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses consists of the following (in thousands) as of: September 30, 2018 December 31, 2017 VAT and Sales taxes $ 624 $ 739 Payroll and related 1,431 847 Income taxes 267 610 Due to hotels 778 1,168 Rent 1,461 1,471 Legal, professional and other services 1,140 1,007 Insurance 152 103 Other 772 1,042 Totals $ 6,625 $ 6,987

Revenue from contracts with c_2

Revenue from contracts with customers (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block]	The changes were as follows (in thousands): Balance at December 31, 2017 ASC 606 Adjustments Balance at January 1, 2018 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 (loss) income was as follows (in thousands): For the three months ended September 30, 2018 As Reported Balances Without Adoption of ASC 606 Adoption Impact of ASC 606 Revenues Management, license and incentive fee revenues $ 2,688 $ 3,014 $ (326 ) Net (loss) income $ (209 ) $ 117 $ (326 ) For the nine months ended September 30, 2018 As Reported Balances Without Adoption of ASC 606 Adoption Impact of ASC 606 Revenues Management, license and incentive fee revenues $ 7,832 $ 8,101 $ (269 ) Net income $ 222 $ 491 $ (269 )
Receivables and Contract Liabilities [Table Text Block]	The following table provides information about receivables and contract liabilities (deferred license fees) from contracts with customers (in thousands): September 30, Receivables (a) $ 281 Deferred license fees $ 1,904 (a) Receivables are included in accounts receivable on the September 30, 2018 consolidated balance sheet.
Contract with Customer, Asset and Liability [Table Text Block]	Significant changes in deferred license fees are as follows (in thousands): For the Nine Months Ended September 30, 2018 Deferred license fees - January 1, 2018 (a) $ 1,391 Additions to deferred revenue 694 Revenue recognized during the period (181 ) Deferred license fees - September 30, 2018 $ 1,904 (a) Includes the cumulative effect of adopting ASC 606
Revenue Remaining Performance Obligations Expected Timing of Satisfaction [Table Text Block]	The following table reflects the estimated license fees to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2018 (in thousands): Remainder of 2018 (a) $ 60 2019 241 2020 241 2021 241 2022 241 Thereafter 880 Total $ 1,904 (a) Represents license fees expected to be recognized for the remainder of 2018.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity [Table Text Block]	Changes in outstanding stock options for 2018 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Outstanding at December 31, 2017 2,315,035 3.41 2018 Grants — — Exercised — — Forfeited (285,527 ) 4.19 Outstanding at September 30, 2018 2,029,508 3.30 7.13 $ 1,743,600 Exercisable at September 30, 2018 940,357 4.41 5.81 $ 242,080
Schedule of non-vested stock options [Table Text Block]	A summary of the status of the Company’s non-vested stock options as of September 30, 2018 and changes for the nine months then ended is presented below: Shares Weighted Average Grant Date Fair Value Non-vested shares at December 31, 2017 1,424,651 $ 0.99 Granted — — Vested (265,000 ) 1.27 Forfeited (70,500 ) 1.10 Non-vested shares at September 30, 2018 1,089,151 $ 0.92
Schedule of restricted stock awards and changes [Table Text Block]	A summary of the status of restricted stock awards and changes for the six months ended September 30, 2018 is presented below: Shares Weighted Average Grant Date Per Share Fair Value Non-vested at December 31, 2017 985,000 $ 2.26 Granted 126,781 2.71 Vested (342,622 ) 1.85 Forfeited (15,000 ) 2.73 Non-vested at September 30, 2018 754,159 $ 2.51

Nonconsolidated variable inte_2

Nonconsolidated variable interest entities (Tables)	9 Months Ended
	Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments [Table Text Block]	At September 30, 2018 and December 31, 2017, the carrying values of these investments were (in thousands): September 30, 2018 December 31, 2017 Bagatelle Investors $ 47 $ 33 Bagatelle NY 2,565 2,509 One 29 Park — 415 Totals $ 2,612 $ 2,957 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Equity in (income) of investee companies $ — $ (264 ) $ (111 ) $ (156 )

(Loss) earnings per share (Tabl

(Loss) earnings per share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted earnings (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, warrants and restricted share units. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands, except earnings per share and related share information) Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (305 ) $ (1,166 ) $ 106 $ (3,868 ) Basic weighted average shares outstanding 27,751,632 25,228,288 27,437,269 25,141,933 Dilutive effect of stock options, warrants and restricted share units - - 62,376 - Diluted weighted average shares outstanding 27,751,632 25,228,288 27,499,645 25,141,933 Net (loss) income available to common stockholders per share - Basic $ (0.01 ) $ (0.05 ) $ 0.00 $ (0.15 ) Net (loss) income available to common stockholders per share - Diluted $ (0.01 ) $ (0.05 ) $ 0.00 $ (0.15 )

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: Owned restaurants $ 15,312 $ 13,189 $ 45,908 $ 42,100 Owned food, beverage and other operations 1,960 2,144 6,048 8,460 Managed and licensed operations 2,688 2,479 7,832 7,577 $ 19,960 $ 17,812 $ 59,788 $ 58,137 Segment Profits: Owned restaurants $ 1,483 $ 842 $ 5,231 $ 3,262 Owned food, beverage and other operations (108 ) 100 266 1,164 Managed and licensed operations 2,688 2,479 7,832 7,577 Total segment profit 4,063 3,421 13,329 12,003 General and administrative 2,266 2,267 7,937 8,479 Depreciation and amortization 896 950 2,575 2,621 Interest expense, net of interest income 294 325 902 804 Equity in income of investee companies - (264 ) (111 ) (156 ) Other, net 565 977 1,359 3,581 Income (loss) from continuing operations before provision for income taxes $ 42 $ (834 ) $ 667 $ (3,326 ) September 30, 2018 December 31, 2017 Total assets: Owned restaurants $ 41,025 $ 40,570 Owned food, beverage and other operations* 7,067 7,385 Managed and licensed operations 5,675 5,060 Total $ 53,767 $ 53,015 * Includes corporate assets Nine Months Ended September 30, Capital asset additions: 2018 2017 Owned restaurants $ 2,792 $ 3,382 Owned food, beverage and other operations ** 446 732 Managed and licensed operations - - Total $ 3,238 $ 4,114 ** Includes corporate asset additions

Geographic information (Tables)

Geographic information (Tables)	9 Months Ended
	Sep. 30, 2018
Geographic Information [Abstract]
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues United States: Owned restaurants $ 15,312 $ 13,189 $ 45,908 $ 42,100 Owned food, beverage and other operations 1,960 2,144 6,048 8,460 Managed and licensed operations 1,469 1,330 4,797 4,521 Total United States revenues $ 18,741 $ 16,663 $ 56,753 $ 55,081 Foreign: Owned restaurants $ - $ - $ - $ - Owned food, beverage and other operations - - - - Managed and licensed operations 1,219 1,149 3,035 3,056 Total foreign revenues $ 1,219 $ 1,149 $ 3,035 $ 3,056 Total revenues $ 19,960 $ 17,812 $ 59,788 $ 58,137
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	September 30, 2018 December 31, 2017 Long-lived Assets United States: Owned restaurants $ 38,215 $ 37,907 Owned food, beverage and other operations 5,164 5,088 Managed and licensed operations 84 109 Total United States long-lived assets $ 43,463 $ 43,104 Foreign: Owned restaurants $ - $ - Owned food, beverage and other operations 83 - Managed and licensed operations 303 148 Total foreign long-lived assets $ 386 $ 148 Total long-lived assets $ 43,849 $ 43,252

Liquidity (Details Textual)

Liquidity (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accumulated deficit	$ (31,927)	$ (31,979)
Cash and cash equivalents	$ 968	$ 1,548	$ 1,799	$ 1,598

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Inventory	$ 1,194	$ 1,402
Food [Member]
Inventory [Line Items]
Inventory	206	246
Beverages [Member]
Inventory [Line Items]
Inventory	$ 988	$ 1,156

Other current assets (Details)

Other current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Prepaid taxes	$ 276	$ 255
Landlord receivable	258	258
Prepaid expenses	480	421
Insurance	217	90
Other	369	275
Totals	$ 1,600	$ 1,299

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accruals [Abstract]
VAT and Sales taxes	$ 624	$ 739
Payroll and related	1,431	847
Income taxes	267	610
Due to hotels	778	1,168
Rent	1,461	1,471
Legal, professional and other services	1,140	1,007
Insurance	152	103
Other	772	1,042
Totals	$ 6,625	$ 6,987

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Due to Related Parties	$ 1,200,000		$ 1,200,000		$ 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	58,000		58,000		27,000
Costs and Expenses, Related Party	44,000	$ 500,000	300,000	$ 1,600,000
Legal Fees [Member]
Costs and Expenses, Related Party	0	26,000	42,000	400,000
Entity Owned by Stockholder [Member]
Due to Related Parties	100,000		100,000		$ 300,000
Rental Income [Member]
Revenue from Related Parties	$ 50,000	$ 50,000	$ 200,000	$ 200,000

Revenue from contracts with c_3

Revenue from contracts with customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Liabilities
Deferred license revenue, current	$ 241		$ 241			$ 115
Deferred license revenue, long-term	1,663		1,663			1,222
Equity
Accumulated deficit	(31,927)		(31,927)			(31,979)
Revenues
Management, license and incentive fee revenues	2,688	$ 2,479	7,832	$ 7,577
Net (loss) income	(209)	$ (1,013)	222	$ (3,797)
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	2,688		7,832
Net (loss) income	(209)		222
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	3,014		8,101
Net (loss) income	117		491
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	(326)		(269)
Net (loss) income	$ (326)		$ (269)

Revenue from contracts with c_4

Revenue from contracts with customers (Details 1) - License [Member] - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017	[2]
Receivables	[1]	$ 281
Deferred license fees		$ 1,904	$ 1,391
[1]	Receivables are included in accounts receivable on the September 30, 2018 consolidated balance sheet.
[2]	Includes the cumulative effect of adopting ASC 606

Revenue from contracts with c_5

Revenue from contracts with customers (Details 2) - License [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Deferred license fees - January 1, 2018	$ 1,391	[1]
Additions to deferred revenue	694
Revenue recognized during the period	(181)
Deferred license fees - September 30, 2018	$ 1,904
[1]	Includes the cumulative effect of adopting ASC 606

Revenue from contracts with c_6

Revenue from contracts with customers (Details 3) - License [Member] $ in Thousands	Sep. 30, 2018USD ($)
Remainder of 2018	$ 60	[1]
2,019	241
2,020	241
2,021	241
2,022	241
Thereafter	880
Total	$ 1,904
[1]	Represents license fees expected to be recognized for the remainder of 2018.

Revenue from contracts with c_7

Revenue from contracts with customers (Details textual) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Retained Earnings (Accumulated Deficit)	$ (31,927)		$ (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)	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Shares
Outstanding at December 31, 2017 | shares	2,315,035
2018 Grants | shares	0
Exercised | shares	0
Forfeited | shares	(285,527)
Outstanding at September 30, 2018 | shares	2,029,508
Exercisable at September 30, 2018 | shares	940,357
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	4.19
Weighted Average Exercise Price Outstanding at September 30, 2018 | $ / shares	3.30
Weighted Average Exercise Price Exercisable at September 30, 2018 | $ / shares	$ 4.41
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life Outstanding at September 30, 2018	7 years 1 month 17 days
Weighted Average Remaining Contractual Life Exercisable at September 30, 2018	5 years 9 months 22 days
Intrinsic Value
Intrinsic Value Outstanding at September 30, 2018 | $	$ 1,743,600
Intrinsic Value Exercisable at September 30, 2018 | $	$ 242,080

Stock-based Compensation - Su_2

Stock-based Compensation - Summary of non-vested stock options (Details 1)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Shares
Non-vested shares at December 31, 2017 | shares	1,424,651
Granted | shares	0
Vested | shares	(265,000)
Forfeited | shares	(70,500)
Non-vested shares at September 30, 2018 | shares	1,089,151
Weighted Average Grant Date Per Share Fair Value
Weighted Average Grant Date Fair Value Non-vested shares at December 31, 2017 | $ / shares	$ 0.99
Weighted Average Grant Date Fair Value Granted | $ / shares	0
Weighted Average Grant Date Fair Value Vested | $ / shares	1.27
Weighted Average Grant Date Fair Value Forfeited | $ / shares	1.10
Weighted Average Grant Date Fair Value Non-vested shares at September 30, 2018 | $ / shares	$ 0.92

Stock-based Compensation - Su_3

Stock-based Compensation - Summary of Status of Company's Restricted Stock Option Activity (Details 2)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Shares
Forfeited | shares	(70,500)
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Per Share Fair Value Forfeited | $ / shares	$ 1.10
Restricted Stock [Member]
Shares
Non-vested at December 31, 2017 (in shares) | shares	985,000
Granted | shares	126,781
Vested | shares	(342,622)
Forfeited | shares	(15,000)
Non-vested at September 30, 2018 | shares	754,159
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Per Share Fair Value Non-vested at December 31, 2017 | $ / shares	$ 2.26
Weighted Average Grant Date Per Share Fair Value Granted | $ / shares	2.71
Weighted Average Grant Date Per Share Fair Value Vested | $ / shares	1.85
Weighted Average Grant Date Per Share Fair Value Forfeited | $ / shares	2.73
Weighted Average Grant Date Per Share Fair Value Non-vested at September 30, 2018 | $ / shares	$ 2.51

Stock-based Compensation (Detai

Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,029,508		2,029,508		2,315,035
Share-based Compensation	$ 337	$ 200	$ 1,005	$ 744
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			49,179
Allocated Share-based Compensation Expense			$ 100
General and Administrative Expense [Member]
Share-based Compensation	$ 300	$ 200	$ 1,000	$ 700
Equity Incentive Plan 2013 [Member]
Common Stock, Capital Shares Reserved for Future Issuance	597,608		597,608
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	579,402		579,402
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1,000		$ 1,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 4 months 24 days
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1,900		$ 1,900
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	150,000		150,000

Nonconsolidated variable inte_3

Nonconsolidated variable interest entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 2,612		$ 2,612		$ 2,957
Equity in (income) of investee companies	0	$ (264)	(111)	$ (156)
Bagatelle Investors [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	47		47		33
Bagatelle NY [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	2,565		2,565		2,509
One 29 Park [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 0		$ 0		$ 415

Nonconsolidated variable inte_4

Nonconsolidated variable interest entities (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		9 Months Ended
	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Due to Related Parties, Current		$ 0		$ 0		$ 0		$ 256,000
Bagatelle NY LA Investors, LLC (Bagatelle Investors) [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage		31.24%		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%		51.13%
Rental Income, Nonoperating		$ 100,000	$ 100,000			$ 400,000	$ 400,000
One 29 Park LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage		0.00%		0.00%		0.00%		10.00%
Due to Related Parties, Current		$ 200,000		$ 200,000		$ 200,000		$ 100,000
Gain (Loss) on Sale of Investments	$ 200,000
Noncontrolling Interest in Variable Interest Entity	$ 600,000
Revenue from Contract with Customer, Including Assessed Tax		100,000	100,000	$ 300,000	$ 300,000
Bagatelle [Member]
Schedule of Equity Method Investments [Line Items]
Revenue from Contract with Customer, Including Assessed Tax		$ 42,000	$ 47,000			$ 200,000	$ 100,000

Income taxes (Details Textual)

Income taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent		66.70%	11.00%
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%
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent					100.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount		$ 1.4			$ 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%

(Loss) earnings per share (Deta

(Loss) earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net (loss) income attributable to The ONE Group Hospitality, Inc.	$ (305)	$ (1,166)	$ 106	$ (3,868)
Basic weighted average shares outstanding	27,751,632	25,228,288	27,437,269	25,141,933
Dilutive effect of stock options, warrants and restricted share units	0	0	62,376	0
Diluted weighted average shares outstanding	27,751,632	25,228,288	27,499,645	25,141,933
Net (loss) income available to common stockholders per share - Basic	$ (0.01)	$ (0.05)	$ 0	$ (0.15)
Net (loss) income available to common stockholders per share - Diluted	$ (0.01)	$ (0.05)	$ 0	$ (0.15)

(Loss) earnings per share (De_2

(Loss) earnings per share (Details Textual) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share, Basic and Diluted	$ 0	$ 0	$ 0	$ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			1.9

Segment reporting (Details)

Segment reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenues	$ 19,960	$ 17,812	$ 59,788	$ 58,137
Operating Income (Loss)	336	(509)	1,569	(2,522)
General and administrative	2,266	2,267	7,937	8,479
Depreciation and amortization	896	950	2,575	2,621
Interest expense, net of interest income	294	325	902	804
Income (loss) from continuing operations before provision for income taxes	42	(834)	667	(3,326)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	19,960	17,812	59,788	58,137
Operating Income (Loss)	4,063	3,421	13,329	12,003
General and administrative	2,266	2,267	7,937	8,479
Depreciation and amortization	896	950	2,575	2,621
Interest expense, net of interest income	294	325	902	804
Equity in (income) loss of investee companies	0	(264)	(111)	(156)
Other, net	565	977	1,359	3,581
Income (loss) from continuing operations before provision for income taxes	42	(834)	667	(3,326)
Operating Segments [Member] | Owned restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	15,312	13,189	45,908	42,100
Operating Income (Loss)	1,483	842	5,231	3,262
Operating Segments [Member] | Owned food, beverage and other operations [Member]
Segment Reporting Information [Line Items]
Revenues	1,960	2,144	6,048	8,460
Operating Income (Loss)	(108)	100	266	1,164
Operating Segments [Member] | Managed and licensed operations [Member]
Segment Reporting Information [Line Items]
Revenues	2,688	2,479	7,832	7,577
Operating Income (Loss)	$ 2,688	$ 2,479	$ 7,832	$ 7,577

Segment reporting (Details 1)

Segment reporting (Details 1) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Total		$ 53,767	$ 53,015
Total		3,238		$ 4,114
Owned restaurants [Member]
Total		2,792		3,382
Owned food, beverage and other operations [Member]
Total	[1]	446		732
Managed and licensed operations [Member]
Total		0		$ 0
Operating Segments [Member]
Total		53,767	53,015
Operating Segments [Member] | Owned restaurants [Member]
Total		41,025	40,570
Operating Segments [Member] | Owned food, beverage and other operations [Member]
Total	[2]	7,067	7,385
Operating Segments [Member] | Managed and licensed operations [Member]
Total		$ 5,675	$ 5,060
[1]	Includes corporate asset additions
[2]	Includes corporate assets

Geographic information (Details

Geographic information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenues	$ 19,960	$ 17,812	$ 59,788	$ 58,137
Long-lived Assets	43,849		43,849		$ 43,252
UNITED STATES
Revenues	18,741	16,663	56,753	55,081
Long-lived Assets	43,463		43,463		43,104
UNITED STATES | Owned restaurants [Member]
Revenues	15,312	13,189	45,908	42,100
Long-lived Assets	38,215		38,215		37,907
UNITED STATES | Owned food, beverage and other operations [Member]
Revenues	1,960	2,144	6,048	8,460
Long-lived Assets	5,164		5,164		5,088
UNITED STATES | Managed and licensed operations [Member]
Revenues	1,469	1,330	4,797	4,521
Long-lived Assets	84		84		109
Non-US [Member]
Revenues	1,219	1,149	3,035	3,056
Long-lived Assets	386		386		148
Non-US [Member] | Owned restaurants [Member]
Revenues	0	0	0	0
Long-lived Assets	0		0		0
Non-US [Member] | Owned food, beverage and other operations [Member]
Revenues	0	0	0	0
Long-lived Assets	83		83		0
Non-US [Member] | Managed and licensed operations [Member]
Revenues	1,219	$ 1,149	3,035	$ 3,056
Long-lived Assets	$ 303		$ 303		$ 148

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Sep. 13, 2018	Jul. 18, 2018
Number of Warrant Exercised	500,000	250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.63	$ 1.63
Proceeds from Stock Options Exercised	$ 0.8	$ 0.4