The ONE Group Hospitality, Inc. (STKS) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	ONE GROUP HOSPITALITY, INC.
Entity Central Index Key	0001399520
Trading Symbol	stks
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,872,952

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,046	$ 1,592
Accounts receivable	6,083	7,029
Inventory	1,602	1,404
Other current assets	1,802	1,471
Due from related parties, net	336	45
Total current assets	11,869	11,541
Property and equipment, net	39,996	39,347
Operating lease right-of-use assets	39,751
Investments	2,684	2,684
Deferred tax assets, net	11	38
Other assets	362	349
Security deposits	747	2,020
Total assets	95,420	55,979
Current liabilities:
Accounts payable	4,934	5,408
Accrued expenses	4,302	8,093
Deferred license revenue	191	171
Deferred gift card revenue and other	599	947
Current portion of operating lease liabilities	2,488
Current portion of long-term debt	1,076	3,201
Total current liabilities	13,590	17,820
Deferred license revenue, long-term	951	1,008
Due to related parties, long-term		1,197
Operating lease liabilities, net of current portion	54,775
Deferred rent and tenant improvement allowances		16,774
Long-term debt, net of current portion	12,255	7,118
Total liabilities	81,571	43,917
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par value, 75,000,000 shares authorized; 28,577,487 and 28,313,017 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	3	3
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
Additional paid-in capital	44,584	43,543
Accumulated deficit	(27,730)	(28,722)
Accumulated other comprehensive loss	(2,639)	(2,310)
Total stockholders' equity	14,218	12,514
Noncontrolling interests	(369)	(452)
Total equity	13,849	12,062
Total liabilities and equity	$ 95,420	$ 55,979

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
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	28,577,487	28,313,017
Common stock, shares outstanding	28,577,487	28,313,017
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) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Owned restaurant net revenues	$ 17,120	$ 15,312	$ 53,749	$ 45,908
Owned food, beverage and other net revenues	2,065	1,960	6,472	6,048
Total owned revenue	19,185	17,272	60,221	51,956
Management, license and incentive fee revenue	2,921	2,688	8,260	7,832
Total revenues	22,106	19,960	68,481	59,788
Owned restaurants:
Owned restaurant cost of sales	4,472	4,050	14,109	12,121
Owned restaurant operating expenses	10,783	9,779	33,554	28,556
Total owned restaurant expenses	15,255	13,829	47,663	40,677
Owned food, beverage and other expenses	1,971	2,068	6,455	5,782
Total owned operating expenses	17,226	15,897	54,118	46,459
General and administrative (including stock-based compensation of $338, $337, $975 and $1,005 for the three and nine months ended September 30, 2019 and 2018 respectively)	2,352	2,266	7,706	7,937
Depreciation and amortization	1,103	896	3,049	2,575
Lease termination expenses	252	78	393	168
Pre-opening expenses		449	545	1,330
Transaction costs	358		510
Equity in income of investee companies				(111)
Other expense (income), net	40	38	(226)	(139)
Total costs and expenses	21,331	19,624	66,095	58,219
Operating income	775	336	2,386	1,569
Other expenses, net:
Interest expense, net of interest income	230	294	717	902
Loss on early debt extinguishment			437
Total other expenses, net	230	294	1,154	902
Income before provision for income taxes	545	42	1,232	667
Provision for income taxes	76	251	157	445
Net income (loss)	469	(209)	1,075	222
Less: net income attributable to noncontrolling interest	9	96	83	116
Net income (loss) attributable to The ONE Group Hospitality, Inc.	460	(305)	992	106
Currency translation loss	(40)	(170)	(329)	(104)
Comprehensive income (loss)	$ 420	$ (475)	$ 663	$ 2
Net income (loss) attributable to The ONE Group Hospitality, Inc. per share:
Basic net income (loss) per share	$ 0.02	$ (0.01)	$ 0.03	$ 0
Diluted net income (loss) per share	$ 0.02	$ (0.01)	$ 0.03	$ 0
Shares used in computing basic earnings per share (in shares)	28,537,477	27,751,632	28,429,074	27,437,269
Shares used in computing diluted earnings per share (in shares)	29,901,144	27,751,632	29,642,926	27,499,645

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Stock-based compensation	$ 338	$ 337	$ 975	$ 1,005

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Stockholders' equity	Noncontrolling Interests	Total
Balance at Dec. 31, 2017	$ 3	$ 41,007	$ (31,979)	$ (1,556)		$ (922)	$ 6,553
Stock-based compensation		324					324
Loss on foreign currency translation, net				(75)			(75)
Balance at Mar. 31, 2018	3	41,331	(31,802)	(1,631)		(1,035)	6,866
Balance at Dec. 31, 2017	3	41,007	(31,979)	(1,556)		(922)	6,553
Net income							222
Balance at Sep. 30, 2018	3	43,235	(31,927)	(1,660)		(806)	8,845
Balance at Mar. 31, 2018	3	41,331	(31,802)	(1,631)		(1,035)	6,866
Stock-based compensation		344					344
Loss on foreign currency translation, net				141			141
Balance at Jun. 30, 2018	3	41,675	(31,621)	(1,490)		(902)	7,665
Stock-based compensation		337					337
Exercise of warrants		1,223					1,223
Loss on foreign currency translation, net				(68)			(68)
Net income							(209)
Balance at Sep. 30, 2018	3	43,235	(31,927)	(1,660)		(806)	8,845
Balance at Dec. 31, 2018	$ 3	43,543	(28,722)	(2,310)	$ 12,514	(452)	12,062
Balance (in shares) at Dec. 31, 2018	28,313,017
Stock-based compensation		181					181
Loss on foreign currency translation, net				(160)			(160)
Balance at Mar. 31, 2019	$ 3	43,724	(27,868)	(2,470)		(537)	12,852
Balance at Dec. 31, 2018	$ 3	43,543	(28,722)	(2,310)	12,514	(452)	12,062
Balance (in shares) at Dec. 31, 2018	28,313,017
Stock-based compensation		975			975		975
Stock-based compensation (in shares)	47,469
Exercise of stock options		66			66		$ 66
Exercise of stock options (in shares)	30,000						30,000
Vesting of restricted shares (in shares)	187,001
Loss on foreign currency translation, net				(329)	(329)		$ (329)
Net income			992		992	83	1,075
Balance at Sep. 30, 2019	$ 3	44,584	(27,730)	(2,639)	14,218	(369)	13,849
Balance (in shares) at Sep. 30, 2019	28,577,487
Balance at Mar. 31, 2019	$ 3	43,724	(27,868)	(2,470)		(537)	12,852
Stock-based compensation		456					456
Loss on foreign currency translation, net				(120)			(120)
Balance at Jun. 30, 2019	3	44,180	(28,190)	(2,590)		(378)	13,025
Stock-based compensation		338					338
Exercise of stock options		66					66
Loss on foreign currency translation, net				(49)			(49)
Net income							469
Balance at Sep. 30, 2019	$ 3	$ 44,584	$ (27,730)	$ (2,639)	$ 14,218	$ (369)	$ 13,849
Balance (in shares) at Sep. 30, 2019	28,577,487

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 1,075	$ 222
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,049	2,575
Stock-based compensation	975	1,005
Loss on early debt extinguishment	437
Amortization of discount on warrants and debt issuance costs	103	150
Deferred rent and tenant improvement allowances		306
Deferred taxes	27	(1)
Income from equity method investments		(111)
Gain on disposition of cost method investment		(185)
Changes in operating assets and liabilities:
Accounts receivable	908	(532)
Inventory	(198)	209
Other current assets	(332)	(301)
Due from related parties, net	(291)	(208)
Security deposits	1,271	(59)
Other assets	(13)	(213)
Accounts payable	(441)	496
Accrued expenses	(3,951)	(423)
Operating lease liabilities and right-of-use assets	489
Deferred revenue	(130)	477
Net cash provided by operating activities	2,978	3,407
Investing activities:
Purchase of property and equipment	(3,509)	(3,238)
Distribution from equity method investment		40
Proceeds from disposition of cost method investment		600
Net cash used in investing activities	(3,509)	(2,598)
Financing activities:
Borrowings on revolving credit facility	4,750
Repayments of revolving credit facility	(1,000)
Borrowings of term loan	10,000
Repayment of term loans	(4,016)	(2,108)
Repayment of promissory notes	(6,250)
Repayment of due to related parties, long-term	(1,197)
Repayment of equipment financing agreement	(277)	(264)
Repayment of business loan and security agreement		(62)
Debt issuance costs	(734)
Issuance of common stock		1,223
Exercise of stock options	66
Net cash provided by (used in) financing activities	1,342	(1,211)
Effect of exchange rate changes on cash	(357)	(178)
Net increase (decrease) in cash and cash equivalents	454	(580)
Cash and cash equivalents, beginning of year	1,592	1,548
Cash and cash equivalents, end of year	2,046	968
Supplemental disclosure of cash flow data:
Interest paid	779	722
Income taxes paid	193	$ 458
Non-cash amortization of debt issuance costs	$ 35

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Business and Significant Accounting Policies	Note 1 – Summary of Business and Significant Accounting Policies Summary of Business The ONE Group Hospitality, Inc. and its subsidiaries (collectively, the “Company”) is a global hospitality company that develops, owns and operates, manages or licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (“F&B”) services for hospitality venues including hotels, casinos and other high-end locations globally. 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 for the client. As of September 30, 2019, the Company’s primary restaurant brand is STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality and service of a traditional upscale steakhouse. As of September 30, 2019, we owned, operated, managed or licensed 29 venues, including 19 STKs, in major metropolitan cities in North America, Europe and the Middle East and provided F&B services to three hotels and one casino in the United States and Europe. Acquisition of Kona Grill On October 4, 2019, the Company acquired substantially all of the assets of Kona Grill, Inc. and its affiliates (“Kona Grill”), comprising 24 Kona Grill domestic restaurants and one international franchise agreement. Kona Grill is a casual, bar-centric concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. The Company purchased the assets for $25.0 million in cash and the assumption of approximately $11.0 million in working capital liabilities. The purchase was financed with proceeds from a credit agreement the Company entered into with Goldman Sachs Bank USA in conjunction with the acquisition. Refer to Note 19 – Subsequent Events for additional details regarding the acquisition and related financing. Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual audited financial statements have been omitted pursuant to SEC rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. In the Company’s opinion, the accompanying unaudited interim financial statements reflect all adjustments (consisting only of normal recurring accruals and adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results expected for the full year. Additionally, the Company believes that the disclosures are sufficient for interim financial reporting purposes. Recent Accounting Pronouncements In July 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2019‑07, “Codification Updates to SEC Sections – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update)” (“ASU 2019‑07”). ASU 2019‑07 updates the accounting standards codification to reflect the amendments of various SEC disclosure requirements that the agency determined were redundant, duplicative, overlapping, outdated or superseded and aligns the guidance with the requirements of certain SEC final rules. ASU 2019‑07 is effective immediately. The adoption of ASU 2019-07 did not have a material impact on our financial position, results of operations or cash flows . In March 2019, the FASB issued ASU No. 2019‑01, “Leases (Topic 842): Codification Improvements” (“ASU 2019‑01”). ASU 2019‑01 provided clarification related to adopting Accounting Standard Codification Topic 842, Leases (“ASC Topic 842”). ASU 2019‑01 addresses fair value determinations of underlying assets by lessors, cash flow statement presentation for financing leases, and transition disclosures. The Company adopted ASC Topic 842 as of January 1, 2019 and considered the clarification guidance in ASU 2019‑01 as part of its adoption. Refer to Note 12 for additional details regarding the adoption of ASC Topic 842. In October 2018, the FASB issued ASU No. 2018‑17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU 2018‑17”). ASU 2018‑17 states that indirect interests held through related parties in common control arrangements should be considered on a proportional basis to determine whether fees paid to decision makers and service providers are variable interests. This is consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a variable interest entity. ASU 2018‑17 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Entities are required to adopt the new guidance retrospectively with a cumulative adjustment to retained earnings at the beginning of the earliest period presented. The Company is evaluating the effects of this pronouncement on its consolidated financial statements. 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 evaluating the effects of this pronouncement on its consolidated financial statements.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory	Note 2 – Inventory Inventory consists of the following (in thousands): September 30, December 31, 2019 2018 Food $ 317 $ 300 Beverages 1,285 1,104 Total $ 1,602 $ 1,404

Other Current Assets

Other Current Assets	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Note 3 – Other Current Assets Other current assets consist of the following (in thousands): September 30, December 31, 2019 2018 Prepaid taxes $ 587 $ 503 Landlord receivable 195 195 Prepaid expenses 926 680 Other 94 93 Total $ 1,802 $ 1,471

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Note 4 – Property and Equipment, net Property and equipment, net consist of the following (in thousands): September 30, December 31, 2019 2018 Furniture, fixtures and equipment $ 12,106 $ 10,425 Leasehold improvements 45,820 43,890 Less: accumulated depreciation and amortization (19,861) (16,969) Subtotal 38,065 37,346 Construction in progress — 336 Restaurant smallwares 1,931 1,665 Total $ 39,996 $ 39,347 Depreciation and amortization related to property and equipment amounted to $1.1 million and $0.9 million for the three months ended September 30, 2019 and 2018, respectively, and $3.0 million and $2.6 million for the nine months ended September 30, 2019 and 2018, respectively. The Company does not depreciate construction in progress, assets not yet put into service or restaurant supplies.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2019
Accrued [Abstract]
Accrued Expenses	Note 5 – Accrued Expenses Accrued expenses consist of the following (in thousands): September 30, December 31, 2019 2018 Variable rent, including disputed rent amounts $ 1,305 $ 1,766 Legal, professional and other services 658 645 Payroll and related 802 1,794 VAT and sales taxes 259 1,028 Insurance 212 212 Income taxes and related 340 685 Due to hotels — 203 Other 726 1,760 Total $ 4,302 $ 8,093

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Long-Term Debt	Note 6 – Long-Term Debt Long-term debt consists of the following (in thousands): September 30, December 31, 2019 2018 Term loan agreements $ 9,813 $ 3,828 Revolving credit facility 3,750 — Equipment financing agreements 475 752 Promissory notes — 6,250 Total long-term debt 14,038 10,830 Less: current portion of long-term debt (1,076) (3,201) Less: debt issuance costs (707) (32) Less: discounts on warrants, net — (479) Total long-term debt, net of current portion $ 12,255 $ 7,118 Interest expense for all the Company’s debt arrangements, excluding the loss on early debt extinguishment and the amortization of debt issuance costs, other discounts and fees, was approximately $0.2 million and $0.2 million for the three months ended September 30, 2019 and 2018 and $0.6 million and $0.8 million for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, the Company had $1.7 million in standby letters of credit outstanding for certain restaurants. As of December 31, 2018, the Company had $1.3 million of cash collateralized letters of credit, which are recorded as a component of security deposits on the consolidated balance sheet as of December 31, 2018. Bank of America, N.A. Credit Agreement On May 15, 2019, the Company entered into a Credit Agreement with Bank of America, N.A (“Bank of America Credit Agreement”). The Bank of America Credit Agreement was replaced with the Goldman Sachs Credit Agreement described below on October 4, 2019. The Bank of America Credit Agreement provided for a secured revolving credit facility of $10.0 million and a $10.0 million term loan. The term loan was payable in quarterly installments, with the final payment due in May 2024. The revolving credit facility also matured in May 2024. In conjunction with entering into the Bank of America Credit Agreement, the Company incurred $0.4 million of debt issuance costs, which were capitalized and are recorded as a direct deduction to the long-term debt, net of current portion, on the consolidated balance sheets. The Bank of America Credit Agreement contained several financial covenants, including (a) a maximum consolidated leverage ratio of (i) 4.75 to 1.00 as of the end of any fiscal quarter ending on or prior to June 30, 2020 and (ii) 4.50 to 1.00 as of the end of any fiscal quarter thereafter and (b) a minimum consolidated fixed charge coverage ratio of 1.35 to 1.00. The Bank of America Credit Agreement had several borrowing and interest rate options, including the following: (a) a LIBOR rate (or a comparable successor rate) or (b) a base rate equal to the greater of the prime rate, the federal funds rate plus 0.50% or the LIBOR rate for a one-month period plus 1.00%; provided that the base rate may not be less than zero. Loans under the Bank of America Credit Agreement bore interest at a rate per annum using the applicable indices plus a varying interest rate margin of between 2.75% and 3.50% (for LIBOR rate loans) and 1.75% and 2.50% (for base rate loans). The Bank of America Credit Agreement contained customary representations, warranties and conditions to borrowing including customary affirmative and negative covenants, which include covenants that limit or restrict the Company’s ability to incur indebtedness and other obligations, grant liens to secure obligations, make investments, merge or consolidate, and dispose of assets outside the ordinary course of business, in each case subject to customary exceptions for credit facilities of this size and type. As of September 30, 2019, the Company was in compliance with the covenants required by the Bank of America Credit Agreement. On October 4, 2019, in conjunction with the acquisition of Kona Grill, the Company entered into a Credit and Guaranty Agreement with Goldman Sachs Bank USA (“Goldman Sachs Credit Agreement”), which replaced the Company’s Bank of America Credit Agreement. In the three and nine months ended September 30, 2019, the Company incurred $0.3 million of debt issuance costs related to the Goldman Sachs Credit Agreement, which were capitalized and are recorded as a direct deduction to the long-term debt, net of current portion, on the consolidated balance sheets. Refer to Note 19 – Subsequent Events for additional details regarding the acquisition and related financing. Debt Extinguishment In conjunction with entering into the Bank of America Credit Agreement on May 15, 2019, the Company prepaid the outstanding debt balances to early extinguish the $2.6 million of outstanding term loans with BankUnited, the $5.3 million of outstanding promissory notes with Anson Investments Master Fund LP, and the $1.0 million outstanding promissory note with 2235570 Ontario Limited. The Company recognized a $0.4 million loss on early debt extinguishment within other expenses, net on the consolidated statements of operations and comprehensive income (loss), primarily caused by the recognition of the unamortized discounts related to warrants issued with the promissory notes and the recognition of unamortized debt issuance costs related to the debt extinguished. Additionally, the Company prepaid the $1.2 million of outstanding cash advances due to the TOG Liquidation Trust, a related party. Please refer to Note 9 for additional details on transactions with related parties.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 7 – Fair Value of Financial Instruments Cash and cash equivalents, accounts receivable, inventory, accounts payable and accrued expenses are carried at cost, which approximates fair value due to their short maturities. Long-lived assets are measured and disclosed at fair value on a nonrecurring basis if an impairment is identified. There were no long-lived assets measured at fair value as of September 30, 2019. The Company’s long-term debt, including the current portion, is carried at cost on the consolidated balance sheets. Fair value of long-term debt, including the current portion, is estimated based on Level 2 inputs, except the amount outstanding on the revolving credit facility for which the carrying value approximates fair value. Fair value is determined by discounting future cash flows using interest rates available for issues with similar terms and maturities. The estimated fair values of long-term debt, for which carrying values do not approximate fair value, are as follows (in thousands): September 30, December 31, 2019 2018 Carrying amount of long-term debt, including current portion (1) $ 10,288 $ 10,830 Fair value of long-term debt, including current portion $ 8,618 $ 7,648 (1) Excludes the discounts on warrants, net and debt issuance costs

Nonconsolidated Variable Intere

Nonconsolidated Variable Interest Entities	9 Months Ended
	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Nonconsolidated Variable Interest Entities	Note 8 – Nonconsolidated Variable Interest Entities As of September 30, 2019 and December 31, 2018, the Company owned interests in the following companies, which directly or indirectly operate a restaurant: · 31.24% interest in Bagatelle NY LA Investors, LLC (“Bagatelle Investors”) · 51.13% aggregate interest, held directly and indirectly through other entities, in Bagatelle Little West 12th, LLC (“Bagatelle NY”) Bagatelle Investors is a holding company that has an interest in Bagatelle NY. Both entities were formed in 2011. In the second quarter of 2019, Bagatelle NY notified the Company that it had no intent to renew its sublease with the Company for the restaurant space. As a result, the Company determined that it no longer had the ability to exercise significant influence over its investees, Bagatelle Investors and Bagatelle NY. On June 30, 2019, the Company recorded its retained interests in Bagatelle Investors and Bagatelle NY as cost method investments, with the initial basis being the previous carrying amounts of the investments. Prior to June 30, 2019, the Company had accounted for its investments in these entities under the equity method of accounting based on management’s assessment that it was not the primary beneficiary of these entities because it did not have the power to direct their day to day activities. The Company has provided no additional types of support to these entities other than what is contractually required. The carrying values of these investments were as follows (in thousands): September 30, December 31, 2019 2018 Bagatelle Investors $ 56 $ 56 Bagatelle NY 2,628 2,628 Total $ 2,684 $ 2,684 There was no equity in income of investee companies for the three and nine months ended September 30, 2019 and for the three months ended September 30, 2018. For the nine months ended September 30, 2018, the equity in income of investee companies for the equity method investments discussed above was approximately $0.1 million. Additionally, the Company has a management agreement with Bagatelle NY. Under this agreement, the Company recorded less than $0.1 million of management fee revenue in each of the three months ended September 30, 2019 and 2018, respectively, and $0.3 million and $0.2 million for the nine months ended September 30, 2019 and 2018, respectively. The Company also receives rental income from Bagatelle NY for restaurant space that it subleases to Bagatelle NY. Rental income of approximately $0.1 million was recorded from this entity for each of the three months ended September 30, 2019 and 2018 , respectively, and $0.4 million was recorded from this entity for the each of the nine months ended September 30, 2019 and 2018, respectively . Net receivables from the Bagatelle Investors and Bagatelle NY included in due from related parties, net were approximately $0.3 million and $0.1 million as of September 30, 2019 and December 31, 2018, respectively. These receivables, combined with the Company’s equity in each of these investments, represent the Company’s maximum exposure to loss. In the first quarter of 2018, the Company sold its 10% interest in a cost method investment, One 29 Park, LLC, for $0.6 million, resulting in a gain of $0.2 million. The gain is included as a component of other income, net on the consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2018. The investment was accounted for under the cost method of accounting. The Company had also entered into a management agreement with One 29 Park, LLC, under which the Company recorded management fee revenue of $0.1 million and $0.3 million for the three and nine months ended September 30, 2018. The management agreement with One 29 Park, LLC terminated on September 30, 2018.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 9 – Related Party Transactions Net amounts due from related parties were $0.3 million and due to related parties were $1.2 million as of September 30, 2019 and December 31, 2018, respectively. The Company has not reserved any related party receivables as of September 30, 2019 and December 31, 2018. During the fourth quarter of 2016, the Company received approximately $1.2 million in cash advances from the TOG 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 were non-interest bearing and were repayable in 2021 when the trust expires. In conjunction with entering into the Bank of America Credit Agreement on May 15, 2019, the Company prepaid the $1.2 million balance due to the TOG Liquidation Trust. As a result of the prepayment, there was no amount outstanding to the TOG Liquidation Trust as of September 30, 2019. As of December 31, 2018, the $1.2 million balance due to the Liquidation Trust was included in due to related parties, long-term. Please refer to Note 8 for details on other transactions with other related parties, and refer to Note 6 for details related to the Bank of America Credit Agreement.

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income taxes	Note 10 – Income taxes The Company’s effective income tax rate was 12.7% for the nine months ended September 30 2019 compared to 66.7% for the nine months ended September 30, 2018. The effective income tax rate for the nine months ended September 30, 2019 was lower compared to the nine months ended September 30, 2018 primarily due to the tax rates applied to domestic and foreign income (loss). Additionally, the Company’s projected annual effective tax rate differs from the statutory U.S. tax rate of 21% primarily due to the following: (i) availability of U.S. net operating loss carryforwards, resulting in no federal income taxes; (ii) a full valuation allowance on the U.S. deferred tax assets, net; (iii) taxes owed in foreign jurisdictions such as the United Kingdom, Canada and Italy; and, (iv) taxes owed in state and local jurisdictions. The Company is subject to income taxes in the U.S. federal jurisdiction, and the various states and local jurisdictions in which it operates. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In the normal course of business, the Company is subject to examination by the federal, state, local and foreign taxing authorities.

Revenue from contracts with cus

Revenue from contracts with customers	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from contracts with customers	Note 11 – Revenue from contracts with customers The following table provides information about contract receivables and liabilities, which include deferred license revenue and deferred gift card and gift certificate revenue, from contracts with customers (in thousands): September 30, December 31, 2019 2018 Receivables (1) $ 125 $ 174 Deferred license revenue (2) 1,142 1,179 Deferred gift card and gift certificate revenue (3) $ 137 $ 491 (1) Receivables are included in accounts receivable on the consolidated balance sheets. (2) Includes the current and long-term portion of deferred license revenue. (3) Deferred gift card and gift certificate revenue is included in deferred gift card revenue and other on the consolidated balance sheets. The Company determined that the services it provides under its licensing agreements are primarily the rights to access and derive benefit from our symbolic intellectual property. As a result, the initial license fees and upfront fees are recognized on a straight-line basis over the term of the license agreement as a component of management, license and incentive fee revenue on the consolidated statements of operations and comprehensive income (loss). Sales-based royalties are recognized as licensee restaurant sales occur. Significant changes in deferred license revenue for the nine months ended September 30, 2019 were as follows (in thousands): Deferred license revenue, as of December 31, 2018 $ 1,179 Additions to deferred license revenue 111 Revenue recognized during the period (148) Deferred license revenue, as of September 30, 2019 $ 1,142 As of September 30, 2019, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2019 was as follows (in thousands): 2019, nine months remaining $ 48 2020 191 2021 191 2022 166 2023 135 Thereafter 411 Total future estimated deferred license revenue $ 1,142 Proceeds from the sale of gift cards and gift certificates are recorded as deferred revenue and recognized as revenue when redeemed by the holder. There are no expiration dates on the Company’s gift card and gift certificates and the Company does not charge any service fees that would result in a decrease to a customer’s available balance. Although the Company will continue to honor all gift card and gift certificates presented for payment, it may determine the likelihood of redemption to be remote for certain gift cards and gift certificates due to, among other things, long periods of inactivity. In these circumstances, to the extent the Company determines there is no requirement for remitting balances to government agencies under unclaimed property laws, outstanding gift card and gift certificate balances may then be recognized as breakage in the consolidated statements of operations and comprehensive income (loss) as a component of owned food, beverage and other net revenues. Significant changes in deferred gift card and gift certificate revenue for the nine months ended September 30, 2019 were as follows (in thousands): Deferred gift card and gift certificate revenue, as of December 31, 2018 $ 491 Additions to deferred gift card and gift certificates revenue 353 Revenue recognized during the period related to redemptions (707) Deferred gift card and gift certificate revenue, as of September 30, 2019 $ 137 The Company recognized revenue of $0.2 million and $0.1 million related to our contract liabilities, which include deferred license revenue and deferred gift card and gift certificate revenue, in the three months ended September 30, 2019 and 2018, respectively, and $0.9 million and $0.6 million in the nine months ended September 30, 2019 and 2018, respectively.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Note 12 – Leases The Company adopted ASC Topic 842 as of January 1, 2019 using the optional transition method and has applied its transition provisions at the beginning of the period of adoption. As a result, the Company did not restate comparative periods. Under this transition provision, the Company has applied the legacy guidance under Accounting Standard Codification Topic 840, Leases, including its disclosure requirements, in the comparative periods presented. Under ASC Topic 842, a lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s contracts determined to be or contain a lease include explicitly or implicitly identified assets where the Company has the right to substantially all of the economic benefits of the assets and has the ability to direct how and for what purpose the assets are used during the lease term. Leases are classified as either operating or financing. For operating leases, the Company has recognized a lease liability equal to the present value of the remaining lease payments, and a right of use asset equal to the lease liability, subject to certain adjustments, such as prepaid rents, initial direct costs and lease incentives received from the lessor. The Company used its incremental borrowing rate to determine the present value of the lease payments. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. ASC Topic 842 includes practical expedient and policy election choices. The Company elected the practical expedient transition package available in ASC Topic 842 and, as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company has made an accounting policy election not to recognize right of use assets and lease liabilities for leases with a lease term of 12 months or less, including renewal options that are reasonably certain to be exercised, that also do not include an option to purchase the underlying asset that is reasonably certain of exercise. Instead, lease payments for these leases are recognized as lease cost on a straight-line basis over the lease term. Additionally, the Company has elected not to separate the accounting for lease components and non-lease components, for all leased assets. The Company did not elect the hindsight practical expedient, and therefore the Company did not reassess its historical conclusions with regards to whether renewal option periods should be included in the terms of its leases. Given the importance of each of its restaurant locations to its operations, the Company historically concluded that it was reasonably assured of exercising all renewal periods included in its leases as failure to exercise such options would result in an economic penalty. The Company also did not elect the portfolio approach practical expedient, which permits applying the standard to a portfolio of leases with similar characteristics. Upon adoption on January 1, 2019, the Company recognized right-of-use assets and lease liabilities for operating leases of $41.8 million and $58.9 million, respectively. The difference between the right-of-use asset and lease liability represents the net book value of deferred rent and tenant improvement allowances recognized by the Company as of December 31, 2018, which was adjusted against the right-of-use asset upon adoption of ASC Topic 842. There was no impact to the opening balance of retained earnings upon adoption. The changes due to the adoption of ASC Topic 842 were as follows (in thousands): ASC 842 December 31, 2018 Adjustments January 1, 2019 Assets Operating lease right-of-use assets $ — $ 41,868 $ 41,868 Liabilities Current portion of operating lease liabilities $ — $ 3,212 $ 3,212 Operating lease liability, net of current portion — 55,679 55,679 Deferred gift card revenue and other 947 (249) 698 Deferred rent and tenant improvement allowances $ 16,774 $ (16,774) $ — There was no impact to the Company’s consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018. The Company enters into contracts to lease office space, restaurant space and equipment with terms that expire at various dates through 2039. Under ASC Topic 842, the lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option, and periods covered by an option to extend (or not to terminate) the lease in which the exercise of the option is controlled by the lessor. The Company considered a number of factors when evaluating whether the options in its lease contracts were reasonably certain of exercise, such as length of time before option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to overall operations, costs to negotiate a new lease, and any contractual or economic penalties. Certain of the Company’s leases also provide for percentage rent, which are variable lease costs determined as a percentage of gross sales in excess of specified, minimum sales targets, as well as other variable lease costs to reimburse the lessor for real estate tax and insurance expenses, and certain non-lease components that transfer a distinct service to the Company, such as common area maintenance services. These percentage rents and other variable lease costs are not included in the calculation of lease payments when classifying a lease and in the measurement of the lease liability as they do not meet the definition of in-substance, fixed-lease payments under ASC Topic 842. The Company subleases portions of its office and restaurant space where it does not use the entire space for its operations. For the three and nine months ended September 30, 2019, sublease income was $0.1 million and $0.6 million, respectively, of which $0.1 million and $0.4 million, respectively, was from related party, Bagatelle NY. Refer to Note 8 for details on transactions with this related party. ASC Topic 842 includes a number of reassessment and re-measurement requirements for lessees based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and assessment of the discount rate. The Company reviewed the reassessment and re-measurement requirements and concluded that a lease for office space required reassessment as the Company had determined not to elect to exercise an option that it had previously determined it was reasonably certain to exercise. As a result, the Company remeasured the lease liability to reflect the change in lease payments, which resulted in a reduction in the operating lease liability and a corresponding adjustment to the operating lease right-of-use asset of $1.2 million in the nine months ended September 30, 2019. In addition, there were no impairment indicators identified during the nine months ended September 30, 2019 that required an impairment test for the Company’s right-of-use assets or other long-lived assets in accordance with Accounting Standard Codification Topic 360, Property, Plant, and Equipment. The components of lease expense for the period were as follows (in thousands): September 30, 2019 Lease cost Operating lease cost $ 5,040 Variable lease cost 1,811 Short-term lease cost 273 Sublease income (582) Total lease cost $ 6,542 Weighted average remaining lease term – operating leases 14 years Weighted average discount rate – operating leases 8.22 % Supplemental cash flow information related to leases for the period was as follows (in thousands): September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 5,212 Right-of-use assets obtained in exchange for operating lease obligations $ 1,076 As of September 30, 2019, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2019, three months remaining $ 1,844 2020 7,088 2021 6,839 2022 6,971 2023 7,117 Thereafter 69,929 Total lease payments 99,788 Less: imputed interest (42,525) Present value of operating lease liabilities $ 57,263

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings per share	Note 13 – Earnings per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of all potential shares of common stock including common stock issuable pursuant to stock options, warrants, and restricted stock units. For the three and nine months ended September 30, 2019 and 2018, the earnings per share was calculated as follows (in thousands, except earnings per share and related share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net income (loss) attributable to The ONE Group Hospitality, Inc. $ 460 $ (305) $ 992 $ 106 Basic weighted average shares outstanding 28,537,477 27,751,632 28,429,074 27,437,269 Dilutive effect of stock options, warrants and restricted share units 1,363,667 — 1,213,852 62,376 Diluted weighted average shares outstanding 29,901,144 27,751,632 29,642,926 27,499,645 Net income (loss) available to common stockholders per share - Basic $ 0.02 (0.01) $ 0.03 $ 0.00 Net income (loss) available to common stockholders per share - Diluted $ 0.02 $ (0.01) $ 0.03 $ 0.00 For the three and nine months ended September 30, 2019, 1.0 million stock options, warrants and restricted share units were determined to be anti-dilutive and were therefore excluded from the calculation of diluted earnings per share. For the nine months ended September 30, 2018, 1.9 million stock options, warrants and restricted share units were determined to be anti-dilutive and were therefore excluded from the calculation of diluted earnings per share. For the three months ended September 30, 2019, all equivalent shares underlying options, warrants and restricted share units were anti-dilutive as the Company was in a net loss position.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 14 – Stockholders’ Equity Significant changes in stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands): Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2018 $ 3 $ 43,543 $ (28,722) $ (2,310) $ (452) $ 12,062 Stock-based compensation — 181 — — — 181 Loss on foreign currency translation, net — — — (160) — (160) Net income (loss) — — 854 — (85) 769 Balance at March 31, 2019 3 43,724 (27,868) (2,470) (537) 12,852 Stock-based compensation — 456 — — — 456 Loss on foreign currency translation, net — — — (120) — (120) Net (loss) income — — (322) — 159 (163) Balance at June 30, 2019 3 44,180 (28,190) (2,590) (378) 13,025 Stock-based compensation — 338 — — — 338 Exercise of stock options — 66 — — — 66 Loss on foreign currency translation, net — — — (49) — (49) Net income — — 460 — 9 469 Balance at September 30, 2019 $ 3 $ 44,584 $ (27,730) $ (2,639) $ (369) $ 13,849 Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2017 $ 3 $ 41,007 $ (31,979) $ (1,556) $ (922) $ 6,553 Adoption of ASC 606 “Revenue from contracts with customers” — — (54) — — (54) Stock-based compensation — 324 — — — 324 Loss on foreign currency translation, net — — — (75) — (75) Net income (loss) — — 231 — (113) 118 Balance at March 31, 2018 3 41,331 (31,802) (1,631) (1,035) 6,866 Stock-based compensation — 344 — — — 344 Gain on foreign currency translation, net — — — 141 — 141 Net income — — 181 — 133 314 Balance at June 30, 2018 3 41,675 (31,621) (1,490) (902) 7,665 Stock-based compensation — 337 — — — 337 Exercise of warrants — 1,223 — — — 1,223 Loss on foreign currency translation, net — — — (68) — (68) Reclassification of realized gains — — — (102) — (102) Net (loss) income — — (306) — 96 (210) Balance at September 30, 2018 $ 3 $ 43,235 $ (31,927) $ (1,660) $ (806) $ 8,845

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 15 – Stock-Based Compensation Effective June 4, 2019, the Company’s stockholders approved amendments to the 2013 Employee, Director and Consultant Equity Incentive Plan (the “2019 Equity Plan”). Among other things, the amendments increased the number of shares of common stock authorized for issuance under the 2019 Equity Plan by 2,300,000 shares to a new maximum aggregate limit of 7,073,922 shares. As of September 30, 2019, the Company had 2,589,077, remaining shares available for issuance under the 2019 Equity Plan. Stock-based compensation cost was $0.3 million for each of the three months ended September 30, 2019 and 2018, respectively, and $1.0 million for each of the nine months ended September 30, 2019 and 2018, respectively. Stock-based compensation is included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Stock Option Activity Changes in outstanding stock options during the nine months ended September 30, 2019 were as follows: Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2018 2,001,008 $ 3.29 Granted 68,000 2.99 Exercised (30,000) 2.23 Cancelled, expired or forfeited (193,500) 2.74 Outstanding at September 30, 2019 1,845,508 $ 3.35 6.13 years $ 810 Exercisable at September 30, 2019 1,216,508 $ 4.04 5.19 years $ 302 The fair value of options granted in the nine months ended September 30, 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Expected life, in years 8.5 years Risk-free interest rate 2.62 % Volatility 42.0 % Dividend yield — % A summary of the status of the Company’s non-vested stock options as of December 31, 2018 and September 30, 2019 and changes during the nine months then ended, is presented below: Weighted average Shares grant date fair value Non-vested stock options at December 31, 2018 926,500 $ 0.91 Granted 68,000 2.99 Vested (215,500) 1.29 Cancelled, expired or forfeited (150,000) 0.95 Non-vested stock options at September 30, 2019 629,000 $ 0.84 As of September 30, 2019, there are 579,402 milestone-based options outstanding, and there is approximately $0.7 million of unrecognized compensation cost related to these milestone-based options. These options vest based on the achievement of Company and individual objectives as set by the Board. As of September 30, 2019, there is approximately $0.4 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 3.0 years. Restricted Stock Unit Activity The Company issues restricted stock units (“RSUs”) under the 2019 Equity Plan. The fair value of these RSUs 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 RSUs and changes during the nine months ended September 30, 2019 is presented below: Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2018 764,201 $ 2.54 Granted 466,905 3.05 Vested (187,001) 2.54 Cancelled, expired or forfeited (81,000) 2.48 Non-vested RSUs at September 30, 2019 963,105 $ 2.63 As of September 30, 2019, 150,000 RSUs subject to performance-based vesting were still outstanding. As of September 30, 2019, the Company had approximately $1.8 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.8 years.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Reporting	Note 16 – Segment Reporting The Company operates in three segments: “Owned restaurants,” “Owned food, beverage and other,” and “Managed and licensed operations.” The Owned restaurants segment consists of leased restaurant locations and competes in the full-service dining industry. The Owned food, beverage and other segment consists of hybrid operations, such as where the Company has a leased restaurant location and also has a food and beverage agreement at the same location, typically a hotel, and offsite banquet offerings. The Managed and licensed operations segment includes all operations for which a management, incentive or license fee is received. Management agreements generate management fees on net revenue and incentive fees on operating profit as defined in the applicable management agreement. License agreements generate revenue primarily through royalties earned on net revenue at each location. Revenues associated with developmental support for licensed locations are also included within this segment. The Company’s Chief Executive Officer (“CEO”), who 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 segments, or sources of revenues, which are presented in their entirety within the consolidated statements of operations and comprehensive income (loss). The Company’s operating results by segment were as follows (in thousands): For the three months ended September 30, 2019 For the three months ended September 30, 2018 Owned food, Managed and Owned food, Managed and Owned beverage and licensed Owned beverage and licensed restaurants other operations Total restaurants other operations Total Revenues: Owned net revenues $ 17,120 $ 2,065 $ — $ 19,185 $ 15,312 $ 1,960 $ — $ 17,272 Management, license and incentive fee revenue — — 2,921 2,921 — — 2,688 2,688 Total revenues 17,120 2,065 2,921 22,106 15,312 1,960 2,688 19,960 Cost and expenses: Owned operating expenses: Cost of sales 4,472 — — 4,472 4,050 — — 4,050 Other operating expenses 10,783 — — 10,783 9,779 — — 9,779 Owned food, beverage and other expenses — 1,971 — 1,971 — 2,068 — 2,068 Total owned operating expenses 15,255 1,971 — 17,226 13,829 2,068 — 15,897 Segment income (loss) $ 1,865 $ 94 $ 2,921 $ 4,880 $ 1,483 $ (108) $ 2,688 $ 4,063 General and administrative 2,352 2,266 Depreciation and amortization 1,103 896 Interest expense, net of interest income 230 294 Transaction costs 358 — Other 292 565 Income before provision for income taxes $ 545 $ 42 For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Owned food, Managed and Owned food, Managed and Owned beverage and licensed Owned beverage and licensed restaurants other operations Total restaurants other operations Total Revenues: Owned net revenues $ 53,749 $ 6,472 $ — $ 60,221 $ 45,908 $ 6,048 $ — $ 51,956 Management, license and incentive fee revenue — — 8,260 8,260 — — 7,832 7,832 Total revenues 53,749 6,472 8,260 68,481 45,908 6,048 7,832 59,788 Cost and expenses: Owned operating expenses: Cost of sales 14,109 — — 14,109 12,121 — — 12,121 Other operating expenses 33,554 — — 33,554 28,556 — — 28,556 Owned food, beverage and other expenses — 6,455 — 6,455 — 5,782 — 5,782 Total owned operating expenses 47,663 6,455 — 54,118 40,677 5,782 — 46,459 Segment income (loss) $ 6,086 $ 17 $ 8,260 $ 14,363 $ 5,231 $ 266 $ 7,832 $ 13,329 General and administrative 7,706 7,937 Depreciation and amortization 3,049 2,575 Interest expense, net of interest income 717 902 Transaction costs 510 — Loss on early debt extinguishment 437 — Equity in income of investee companies — (111) Other 712 1,359 Income before provision for income taxes $ 1,232 $ 667 The Company’s total assets by segment for the periods indicated were as follows (in thousands): September 30, December 31, 2019 2018 Total assets: Owned restaurants $ 73,753 $ 42,971 Owned food, beverage and other operations (1) 16,204 7,274 Managed and licensed operations 5,463 5,734 Total $ 95,420 $ 55,979 (1) Includes corporate assets and unallocated corporate assets The Company’s total assets increased $39.8 million as of September 30, 2019 compared to December 31, 2018 as a result of adopting ASC Topic 842 during the first quarter of 2019. Refer to Note 12 for additional information regarding the adoption of ASC Topic 842. The Company’s capital asset additions by segment for the periods indicated were as follows (in thousands): For the nine months ended September 30, 2019 2018 Capital assets additions: Owned restaurants $ 2,861 $ 2,792 Owned food, beverage and other operations (1) 648 446 Managed and licensed operations — — Total $ 3,509 $ 3,238 (1) Includes corporate capital asset additions and unallocated corporate additions

Geographic Information

Geographic Information	9 Months Ended
	Sep. 30, 2019
Geographic Information [Abstract]
Geographic Information	Note 17 – Geographic Information The following tables contain certain financial information by geographic location for the three and nine months ended September 30, 2019 and 2018 (in thousands): Revenues For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Domestic: Owned restaurants $ 17,120 $ 15,312 $ 53,749 $ 45,908 Owned food, beverage and other operations 2,065 1,960 6,472 6,048 Managed and licensed operations 1,545 1,469 4,827 4,797 Total domestic revenues $ 20,730 $ 18,741 $ 65,048 $ 56,753 International: Owned restaurants — — — — Owned food, beverage and other operations — — — — Managed and licensed operations 1,376 1,219 3,433 3,035 Total international revenues $ 1,376 $ 1,219 $ 3,433 $ 3,035 Total revenues $ 22,106 $ 19,960 $ 68,481 $ 59,788 Long-lived assets September 30, December 31, 2019 2018 Domestic: Owned restaurants $ 70,406 $ 38,958 Owned food, beverage and other operations 13,054 5,375 Managed and licensed operations 42 67 Total domestic long-lived assets $ 83,502 $ 44,400 International: Owned restaurants — — Owned food, beverage and other operations — — Managed and licensed operations 49 38 Total international long-lived assets $ 49 $ 38 Total long-lived assets $ 83,551 $ 44,438

Litigation

Litigation	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Litigation	Note 18 – Litigation The Company is party to claims in lawsuits incidental to its business, including lease disputes and employee-related matters. In the opinion of management, the ultimate outcome of such matters, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events
Subsequent Events	Note 19 – Subsequent Events On October 4, 2019, the Company acquired substantially all of the assets of Kona Grill, Inc. and its affiliates (“Kona Grill”), comprising 24 domestic restaurants and one international franchise agreement. The Company purchased the assets for $25.0 million in cash and the assumption of approximately $11.0 million in working capital liabilities. The purchase was financed with proceeds from a credit and guaranty agreement the Company entered into with Goldman Sachs Bank USA on October 4, 2019 (“Goldman Sachs Credit Agreement”), which replaced the Company’s Bank of America Credit Agreement . The Goldman Sachs Credit Agreement provides for a secured revolving credit facility of $12.0 million and a $48.0 million term loan. The term loan is payable in quarterly installments, with the final payment due in October 2024. The revolving credit facility also matures in October 2024. The Goldman Sachs Credit Agreement contains several financial covenants, including the following: · A minimum consolidated fixed charge coverage ratio of (i) 1.35 to 1.00 as of the end of any fiscal quarter ending on or prior to June 30, 2021 and (ii) 1.50 to 1.00 as of any fiscal quarter thereafter; · A maximum consolidated leverage ratio of (i) 2.75 to 1.00 as of the end of any fiscal quarter ending on or prior to March 31, 2020, (ii) 2.50 to 1.00 as of the fiscal quarter ending June 30, 2020, (iii) 2.25 to 1.00 as of the fiscal quarters ending September 30, 2020 and December 31, 2020, (iv) 2.00 to 1.00 as of the fiscal quarter ending March 31, 2021, (v) 1.75 to 1.00 as of the fiscal quarter ending June 30, 2021, (vi) 1.70 to 1.00 as of the fiscal quarter ending September 30, 2021, (vii) 1.65 to 1.00 as of the fiscal quarter ending December 21, 2021 and (viii) 1.50 to 1.00 as of the end of any fiscal quarter thereafter; · Maximum consolidated capital expenditures not to exceed (i) $10,000,000 in 2020 and (ii) $8,000,000 in 2021 and every fiscal year thereafter; and, · Minimum consolidated liquidity not to be less than $1,500,000 at any time. The Goldman Sachs Credit Agreement has several borrowing and interest rate options, including the following: (a) a LIBOR rate (or a comparable successor rate) subject to a 1.75% floor or (b) a base rate equal to the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, (iii) the LIBOR rate for a one-month period plus 1.00% or (iv) 4.75%. Loans under the Goldman Sachs Credit Agreement bear interest at a rate per annum using the applicable indices plus a varying interest rate margin of between 5.75% and 6.75% (for LIBOR rate loans) and 4.75% and 5.75% (for base rate loans). The Goldman Sachs Credit Agreement contains customary representations, warranties and conditions to borrowing including customary affirmative and negative covenants, which include covenants that limit or restrict the Company’s ability to incur indebtedness and other obligations, grant liens to secure obligations, make investments, merge or consolidate, and dispose of assets outside the ordinary course of business, in each case subject to customary exceptions for credit facilities of this size and type. The Company and certain operating subsidiaries of the Company guarantee the obligations under the Goldman Sachs Credit Agreement, which also are secured by liens on substantially all of the assets of the Company and its subsidiaries.

Summary of Business and Signi_2

Summary of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures normally included in annual audited financial statements have been omitted pursuant to SEC rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. In the Company’s opinion, the accompanying unaudited interim financial statements reflect all adjustments (consisting only of normal recurring accruals and adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of the results expected for the full year. Additionally, the Company believes that the disclosures are sufficient for interim financial reporting purposes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2019‑07, “Codification Updates to SEC Sections – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update)” (“ASU 2019‑07”). ASU 2019‑07 updates the accounting standards codification to reflect the amendments of various SEC disclosure requirements that the agency determined were redundant, duplicative, overlapping, outdated or superseded and aligns the guidance with the requirements of certain SEC final rules. ASU 2019‑07 is effective immediately. The adoption of ASU 2019-07 did not have a material impact on our financial position, results of operations or cash flows . In March 2019, the FASB issued ASU No. 2019‑01, “Leases (Topic 842): Codification Improvements” (“ASU 2019‑01”). ASU 2019‑01 provided clarification related to adopting Accounting Standard Codification Topic 842, Leases (“ASC Topic 842”). ASU 2019‑01 addresses fair value determinations of underlying assets by lessors, cash flow statement presentation for financing leases, and transition disclosures. The Company adopted ASC Topic 842 as of January 1, 2019 and considered the clarification guidance in ASU 2019‑01 as part of its adoption. Refer to Note 12 for additional details regarding the adoption of ASC Topic 842. In October 2018, the FASB issued ASU No. 2018‑17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU 2018‑17”). ASU 2018‑17 states that indirect interests held through related parties in common control arrangements should be considered on a proportional basis to determine whether fees paid to decision makers and service providers are variable interests. This is consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a variable interest entity. ASU 2018‑17 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Entities are required to adopt the new guidance retrospectively with a cumulative adjustment to retained earnings at the beginning of the earliest period presented. The Company is evaluating the effects of this pronouncement on its consolidated financial statements. 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 evaluating the effects of this pronouncement on its consolidated financial statements.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	Inventory consists of the following (in thousands): September 30, December 31, 2019 2018 Food $ 317 $ 300 Beverages 1,285 1,104 Total $ 1,602 $ 1,404

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other current assets	Other current assets consist of the following (in thousands): September 30, December 31, 2019 2018 Prepaid taxes $ 587 $ 503 Landlord receivable 195 195 Prepaid expenses 926 680 Other 94 93 Total $ 1,802 $ 1,471

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	Property and equipment, net consist of the following (in thousands): September 30, December 31, 2019 2018 Furniture, fixtures and equipment $ 12,106 $ 10,425 Leasehold improvements 45,820 43,890 Less: accumulated depreciation and amortization (19,861) (16,969) Subtotal 38,065 37,346 Construction in progress — 336 Restaurant smallwares 1,931 1,665 Total $ 39,996 $ 39,347

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2019
Accrued [Abstract]
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): September 30, December 31, 2019 2018 Variable rent, including disputed rent amounts $ 1,305 $ 1,766 Legal, professional and other services 658 645 Payroll and related 802 1,794 VAT and sales taxes 259 1,028 Insurance 212 212 Income taxes and related 340 685 Due to hotels — 203 Other 726 1,760 Total $ 4,302 $ 8,093

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following (in thousands): September 30, December 31, 2019 2018 Term loan agreements $ 9,813 $ 3,828 Revolving credit facility 3,750 — Equipment financing agreements 475 752 Promissory notes — 6,250 Total long-term debt 14,038 10,830 Less: current portion of long-term debt (1,076) (3,201) Less: debt issuance costs (707) (32) Less: discounts on warrants, net — (479) Total long-term debt, net of current portion $ 12,255 $ 7,118

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value of financial instruments	The estimated fair values of long-term debt, for which carrying values do not approximate fair value, are as follows (in thousands): September 30, December 31, 2019 2018 Carrying amount of long-term debt, including current portion (1) $ 10,288 $ 10,830 Fair value of long-term debt, including current portion $ 8,618 $ 7,648 (1) Excludes the discounts on warrants, net and debt issuance costs

Nonconsolidated Variable Inte_2

Nonconsolidated Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Schedule of equity investments	The carrying values of these investments were as follows (in thousands): September 30, December 31, 2019 2018 Bagatelle Investors $ 56 $ 56 Bagatelle NY 2,628 2,628 Total $ 2,684 $ 2,684

Revenue from contracts with c_2

Revenue from contracts with customers (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of receivables and contract liabilities	The following table provides information about contract receivables and liabilities, which include deferred license revenue and deferred gift card and gift certificate revenue, from contracts with customers (in thousands): September 30, December 31, 2019 2018 Receivables (1) $ 125 $ 174 Deferred license revenue (2) 1,142 1,179 Deferred gift card and gift certificate revenue (3) $ 137 $ 491 (1) Receivables are included in accounts receivable on the consolidated balance sheets. (2) Includes the current and long-term portion of deferred license revenue. (3) Deferred gift card and gift certificate revenue is included in deferred gift card revenue and other on the consolidated balance sheets.
Schedule of changes in deferred license revenue	Significant changes in deferred license revenue for the nine months ended September 30, 2019 were as follows (in thousands): Deferred license revenue, as of December 31, 2018 $ 1,179 Additions to deferred license revenue 111 Revenue recognized during the period (148) Deferred license revenue, as of September 30, 2019 $ 1,142
Schedule of estimated deferred license revenue to be recognized in the future related to performance obligations	As of September 30, 2019, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2019 was as follows (in thousands): 2019, nine months remaining $ 48 2020 191 2021 191 2022 166 2023 135 Thereafter 411 Total future estimated deferred license revenue $ 1,142
Schedule of changes in deferred gift certificate revenue	Significant changes in deferred gift card and gift certificate revenue for the nine months ended September 30, 2019 were as follows (in thousands): Deferred gift card and gift certificate revenue, as of December 31, 2018 $ 491 Additions to deferred gift card and gift certificates revenue 353 Revenue recognized during the period related to redemptions (707) Deferred gift card and gift certificate revenue, as of September 30, 2019 $ 137

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of changes due to the adoption of ASC Topic 842	The changes due to the adoption of ASC Topic 842 were as follows (in thousands): ASC 842 December 31, 2018 Adjustments January 1, 2019 Assets Operating lease right-of-use assets $ — $ 41,868 $ 41,868 Liabilities Current portion of operating lease liabilities $ — $ 3,212 $ 3,212 Operating lease liability, net of current portion — 55,679 55,679 Deferred gift card revenue and other 947 (249) 698 Deferred rent and tenant improvement allowances $ 16,774 $ (16,774) $ —
Schedule of components of lease expense	The components of lease expense for the period were as follows (in thousands): September 30, 2019 Lease cost Operating lease cost $ 5,040 Variable lease cost 1,811 Short-term lease cost 273 Sublease income (582) Total lease cost $ 6,542 Weighted average remaining lease term – operating leases 14 years Weighted average discount rate – operating leases 8.22 %
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases for the period was as follows (in thousands): September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 5,212 Right-of-use assets obtained in exchange for operating lease obligations $ 1,076
Schedule of maturities of operating lease liabilities	As of September 30, 2019, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2019, three months remaining $ 1,844 2020 7,088 2021 6,839 2022 6,971 2023 7,117 Thereafter 69,929 Total lease payments 99,788 Less: imputed interest (42,525) Present value of operating lease liabilities $ 57,263

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	For the three and nine months ended September 30, 2019 and 2018, the earnings per share was calculated as follows (in thousands, except earnings per share and related share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Net income (loss) attributable to The ONE Group Hospitality, Inc. $ 460 $ (305) $ 992 $ 106 Basic weighted average shares outstanding 28,537,477 27,751,632 28,429,074 27,437,269 Dilutive effect of stock options, warrants and restricted share units 1,363,667 — 1,213,852 62,376 Diluted weighted average shares outstanding 29,901,144 27,751,632 29,642,926 27,499,645 Net income (loss) available to common stockholders per share - Basic $ 0.02 (0.01) $ 0.03 $ 0.00 Net income (loss) available to common stockholders per share - Diluted $ 0.02 $ (0.01) $ 0.03 $ 0.00

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Schedule of changes in stockholders' equity	Significant changes in stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands): Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2018 $ 3 $ 43,543 $ (28,722) $ (2,310) $ (452) $ 12,062 Stock-based compensation — 181 — — — 181 Loss on foreign currency translation, net — — — (160) — (160) Net income (loss) — — 854 — (85) 769 Balance at March 31, 2019 3 43,724 (27,868) (2,470) (537) 12,852 Stock-based compensation — 456 — — — 456 Loss on foreign currency translation, net — — — (120) — (120) Net (loss) income — — (322) — 159 (163) Balance at June 30, 2019 3 44,180 (28,190) (2,590) (378) 13,025 Stock-based compensation — 338 — — — 338 Exercise of stock options — 66 — — — 66 Loss on foreign currency translation, net — — — (49) — (49) Net income — — 460 — 9 469 Balance at September 30, 2019 $ 3 $ 44,584 $ (27,730) $ (2,639) $ (369) $ 13,849 Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2017 $ 3 $ 41,007 $ (31,979) $ (1,556) $ (922) $ 6,553 Adoption of ASC 606 “Revenue from contracts with customers” — — (54) — — (54) Stock-based compensation — 324 — — — 324 Loss on foreign currency translation, net — — — (75) — (75) Net income (loss) — — 231 — (113) 118 Balance at March 31, 2018 3 41,331 (31,802) (1,631) (1,035) 6,866 Stock-based compensation — 344 — — — 344 Gain on foreign currency translation, net — — — 141 — 141 Net income — — 181 — 133 314 Balance at June 30, 2018 3 41,675 (31,621) (1,490) (902) 7,665 Stock-based compensation — 337 — — — 337 Exercise of warrants — 1,223 — — — 1,223 Loss on foreign currency translation, net — — — (68) — (68) Reclassification of realized gains — — — (102) — (102) Net (loss) income — — (306) — 96 (210) Balance at September 30, 2018 $ 3 $ 43,235 $ (31,927) $ (1,660) $ (806) $ 8,845

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2018 2,001,008 $ 3.29 Granted 68,000 2.99 Exercised (30,000) 2.23 Cancelled, expired or forfeited (193,500) 2.74 Outstanding at September 30, 2019 1,845,508 $ 3.35 6.13 years $ 810 Exercisable at September 30, 2019 1,216,508 $ 4.04 5.19 years $ 302
Schedule of fair value of options granted	Expected life, in years 8.5 years Risk-free interest rate 2.62 % Volatility 42.0 % Dividend yield — %
Schedule of non-vested stock options	Weighted average Shares grant date fair value Non-vested stock options at December 31, 2018 926,500 $ 0.91 Granted 68,000 2.99 Vested (215,500) 1.29 Cancelled, expired or forfeited (150,000) 0.95 Non-vested stock options at September 30, 2019 629,000 $ 0.84
Schedule of restricted stock awards and changes	Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2018 764,201 $ 2.54 Granted 466,905 3.05 Vested (187,001) 2.54 Cancelled, expired or forfeited (81,000) 2.48 Non-vested RSUs at September 30, 2019 963,105 $ 2.63

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of segment information	The Company’s operating results by segment were as follows (in thousands): For the three months ended September 30, 2019 For the three months ended September 30, 2018 Owned food, Managed and Owned food, Managed and Owned beverage and licensed Owned beverage and licensed restaurants other operations Total restaurants other operations Total Revenues: Owned net revenues $ 17,120 $ 2,065 $ — $ 19,185 $ 15,312 $ 1,960 $ — $ 17,272 Management, license and incentive fee revenue — — 2,921 2,921 — — 2,688 2,688 Total revenues 17,120 2,065 2,921 22,106 15,312 1,960 2,688 19,960 Cost and expenses: Owned operating expenses: Cost of sales 4,472 — — 4,472 4,050 — — 4,050 Other operating expenses 10,783 — — 10,783 9,779 — — 9,779 Owned food, beverage and other expenses — 1,971 — 1,971 — 2,068 — 2,068 Total owned operating expenses 15,255 1,971 — 17,226 13,829 2,068 — 15,897 Segment income (loss) $ 1,865 $ 94 $ 2,921 $ 4,880 $ 1,483 $ (108) $ 2,688 $ 4,063 General and administrative 2,352 2,266 Depreciation and amortization 1,103 896 Interest expense, net of interest income 230 294 Transaction costs 358 — Other 292 565 Income before provision for income taxes $ 545 $ 42 For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Owned food, Managed and Owned food, Managed and Owned beverage and licensed Owned beverage and licensed restaurants other operations Total restaurants other operations Total Revenues: Owned net revenues $ 53,749 $ 6,472 $ — $ 60,221 $ 45,908 $ 6,048 $ — $ 51,956 Management, license and incentive fee revenue — — 8,260 8,260 — — 7,832 7,832 Total revenues 53,749 6,472 8,260 68,481 45,908 6,048 7,832 59,788 Cost and expenses: Owned operating expenses: Cost of sales 14,109 — — 14,109 12,121 — — 12,121 Other operating expenses 33,554 — — 33,554 28,556 — — 28,556 Owned food, beverage and other expenses — 6,455 — 6,455 — 5,782 — 5,782 Total owned operating expenses 47,663 6,455 — 54,118 40,677 5,782 — 46,459 Segment income (loss) $ 6,086 $ 17 $ 8,260 $ 14,363 $ 5,231 $ 266 $ 7,832 $ 13,329 General and administrative 7,706 7,937 Depreciation and amortization 3,049 2,575 Interest expense, net of interest income 717 902 Transaction costs 510 — Loss on early debt extinguishment 437 — Equity in income of investee companies — (111) Other 712 1,359 Income before provision for income taxes $ 1,232 $ 667 The Company’s total assets by segment for the periods indicated were as follows (in thousands): September 30, December 31, 2019 2018 Total assets: Owned restaurants $ 73,753 $ 42,971 Owned food, beverage and other operations (1) 16,204 7,274 Managed and licensed operations 5,463 5,734 Total $ 95,420 $ 55,979 (1) Includes corporate assets and unallocated corporate assets The Company’s capital asset additions by segment for the periods indicated were as follows (in thousands): For the nine months ended September 30, 2019 2018 Capital assets additions: Owned restaurants $ 2,861 $ 2,792 Owned food, beverage and other operations (1) 648 446 Managed and licensed operations — — Total $ 3,509 $ 3,238 (1) Includes corporate capital asset additions and unallocated corporate additions

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2019
Geographic Information [Abstract]
Schedule of revenues by geographic location	The following tables contain certain financial information by geographic location for the three and nine months ended September 30, 2019 and 2018 (in thousands): Revenues For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Domestic: Owned restaurants $ 17,120 $ 15,312 $ 53,749 $ 45,908 Owned food, beverage and other operations 2,065 1,960 6,472 6,048 Managed and licensed operations 1,545 1,469 4,827 4,797 Total domestic revenues $ 20,730 $ 18,741 $ 65,048 $ 56,753 International: Owned restaurants — — — — Owned food, beverage and other operations — — — — Managed and licensed operations 1,376 1,219 3,433 3,035 Total international revenues $ 1,376 $ 1,219 $ 3,433 $ 3,035 Total revenues $ 22,106 $ 19,960 $ 68,481 $ 59,788
Schedule of long-lived assets by geographic location	September 30, December 31, 2019 2018 Domestic: Owned restaurants $ 70,406 $ 38,958 Owned food, beverage and other operations 13,054 5,375 Managed and licensed operations 42 67 Total domestic long-lived assets $ 83,502 $ 44,400 International: Owned restaurants — — Owned food, beverage and other operations — — Managed and licensed operations 49 38 Total international long-lived assets $ 49 $ 38 Total long-lived assets $ 83,551 $ 44,438

Summary of Business and Signi_3

Summary of Business and Significant Accounting Policies (Details) $ in Millions	Oct. 04, 2019USD ($)restaurantagreement	Sep. 30, 2019item
Number of venues		29
Number of venues including STK		19
Number of hotels provided F&B services		3
Number of casinos		1
Kona Grill
Purchase price | $	$ 25
Number of domestic restaurants acquired | restaurant	24
Number of international franchise agreements acquired | agreement	1
Working capital liabilities acquired | $	$ 11

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory [Line Items]
Inventory	$ 1,602	$ 1,404
Food
Inventory [Line Items]
Inventory	317	300
Beverages
Inventory [Line Items]
Inventory	$ 1,285	$ 1,104

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid taxes	$ 587	$ 503
Landlord receivable	195	195
Prepaid expenses	926	680
Other	94	93
Total	$ 1,802	$ 1,471

Property and Equipment, net - T

Property and Equipment, net - Total PPE (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (19,861)	$ (16,969)
Property and equipment, net	39,996	39,347
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,106	10,425
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	45,820	43,890
Total amount net of accumulated depreciation and amortization
Property, Plant and Equipment [Line Items]
Property and equipment, net	38,065	37,346
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, net		336
Restaurant smallwares
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 1,931	$ 1,665

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1.1	$ 0.9	$ 3	$ 2.6

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accrued [Abstract]
Variable rent, including disputed rent amounts	$ 1,305	$ 1,766
Legal, professional and other services	658	645
Payroll and related	802	1,794
VAT and sales taxes	259	1,028
Insurance	212	212
Income taxes and related	340	685
Due to hotels		203
Other	726	1,760
Totals	$ 4,302	$ 8,093

Long-Term Debt - Debt and Matur

Long-Term Debt - Debt and Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 14,038	$ 10,830
Less: current portion of long-term debt	(1,076)	(3,201)
Less: debt issuance costs	(707)	(32)
Less: discounts on warrants, net		(479)
Long-term debt, net of current portion	12,255	7,118
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	3,750
Medium-term Notes | Term Loan Agreements
Debt Instrument [Line Items]
Long-term debt	9,813	3,828
Construction Loans | Equipment Financing Agreements
Debt Instrument [Line Items]
Long-term debt	$ 475	752
Unsecured Debt | Promissory Notes
Debt Instrument [Line Items]
Long-term debt		$ 6,250

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) $ in Thousands	May 15, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Interest expense		$ 200	$ 200	$ 600	$ 800
Letters of credit outstanding		1,700		1,700
Cash collateral letter of credit						$ 1,300
Repayment of debt				4,016	$ 2,108
Loss on early debt extinguishment	$ 400			(437)
Repayments of related party debt				1,197
TOG Liquidation Trust
Debt Instrument [Line Items]
Repayments of related party debt	1,200
Credit Agreement with Bank of America, N.A. [Member]
Debt Instrument [Line Items]
Debt issuance cost	$ 400
Fixed charge coverage ratio	1.35
Credit Agreement with Bank of America, N.A. [Member] | Fiscal Quarter Ending on or Prior to June 30, 2020 [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio	4.75
Credit Agreement with Bank of America, N.A. [Member] | Fiscal quarter thereafter
Debt Instrument [Line Items]
Consolidated leverage ratio	4.50
Credit Agreement with Bank of America, N.A. [Member] | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Credit Agreement with Bank of America, N.A. [Member] | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.00%
Credit Agreement with Bank of America, N.A. [Member] | One Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Goldman Sachs Credit Agreement
Debt Instrument [Line Items]
Debt issuance cost		$ 300		$ 300
Revolving Credit Facility
Debt Instrument [Line Items]
Secured revolving credit facility	$ 10,000
Term Loans
Debt Instrument [Line Items]
Term loan	$ 10,000
Term Loans | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Term Loans | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
Term Loans | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Term Loans | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Second Term Loan Agreement [Member] | Medium-term Notes
Debt Instrument [Line Items]
Repayment of debt	$ 2,600
Promissory Notes | Unsecured Debt | Anson Investments Master Fund LP [Member]
Debt Instrument [Line Items]
Repayment of notes payable	5,300
Promissory Notes | Unsecured Debt | Ontario Limited [Member]
Debt Instrument [Line Items]
Repayment of notes payable	$ 1,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Carrying amount of long-term debt, including current portion	$ 10,288	$ 10,830
Level 2
Fair value of long-term debt, including current portion	$ 8,618	$ 7,648

Nonconsolidated Variable Inte_3

Nonconsolidated Variable Interest Entities - Information of Equity Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 2,684	$ 2,684
Bagatelle NY LA Investors, LLC (Bagatelle Investors)
Schedule of Equity Method Investments [Line Items]
Equity method investments	56	56
Bagatelle Little West 12th, LLC (Bagatelle NY)
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 2,628	$ 2,628

Nonconsolidated Variable Inte_4

Nonconsolidated Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 2,684			$ 2,684		$ 2,684
Due from related parties, net	336			336		45
Ownership percentage equity method investment			10.00%
Income from equity method investments					$ 111
Bagatelle NY LA Investors, LLC (Bagatelle Investors)
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 56			$ 56		$ 56
Ownership percentage equity method investment	31.24%			31.24%		31.24%
Bagatelle NY LA Investors, LLC (Bagatelle Investors) | Maximum
Schedule of Equity Method Investments [Line Items]
Management fee revenue	$ 100	$ 100
Bagatelle Little West 12th, LLC (Bagatelle NY)
Schedule of Equity Method Investments [Line Items]
Equity method investments	2,628			$ 2,628		$ 2,628
Management fee revenue				300	200
Rental income	$ 100	100		$ 400	400
Ownership percentage equity method investment	51.13%			51.13%		51.13%
One 29 Park, LLC (One 29 Park)
Schedule of Equity Method Investments [Line Items]
Management fee revenue		$ 100			$ 300
Gain on sale of investments			$ 200
Income from equity method investments			$ 600
Variable Interest Entity, Primary Beneficiary
Schedule of Equity Method Investments [Line Items]
Due from related parties, net	$ 300			$ 300		$ 100

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	May 15, 2019	Dec. 31, 2016	Sep. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Due to related parties			$ 300	$ 1,200
Repayment of due to related parties, long-term			1,197
TOG Liquidation Trust
Related Party Transaction [Line Items]
Due to related parties			$ 0	$ 1,200
Repayment of due to related parties, long-term	$ 1,200
Cash Advances
Related Party Transaction [Line Items]
Proceeds from cash advances from TOG Liquidation Trust		$ 1,200
Cash Advances | TOG Liquidation Trust
Related Party Transaction [Line Items]
Repayment of due to related parties, long-term	$ 1,200

Income taxes (Details)

Income taxes (Details)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	12.70%	66.70%
U.S. statutory tax rate	21.00%

Revenue from contracts with c_3

Revenue from contracts with customers - Receivables and Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deferred license revenue
Receivables	$ 125	$ 174
Deferred revenue	1,142	1,179
Deferred gift card and gift certificate revenue
Deferred revenue	$ 137	$ 491

Revenue from contracts with c_4

Revenue from contracts with customers - Changes in Deferred License Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue recognized during the period	$ 200	$ 100	$ 900	$ 600
Deferred license revenue
Deferred revenue, as of December 31, 2018			1,179
Additions to deferred license revenue			111
Revenue recognized during the period			(148)
Deferred revenue, as of September 30, 2019	$ 1,142		$ 1,142

Revenue from contracts with c_5

Revenue from contracts with customers - Future Estimated Deferred License Revenue (Details) - Deferred license revenue $ in Thousands	Sep. 30, 2019USD ($)
2019, nine months remaining	$ 48
2020	191
2021	191
2022	166
2023	135
Thereafter	411
Total future estimated deferred license revenue	$ 1,142

Revenue from contracts with c_6

Revenue from contracts with customers - Changes in Deferred Gift Card and Gift Certificate Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue recognized during the period related to redemptions	$ 200	$ 100	$ 900	$ 600
Deferred gift card and gift certificate revenue
Deferred revenue, as of December 31, 2018			491
Additions to deferred gift card and gift certificates revenue			353
Revenue recognized during the period related to redemptions			(707)
Deferred revenue, as of September 30, 2019	$ 137		$ 137

Revenue from contracts with c_7

Revenue from contracts with customers - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized during the period	$ 0.2	$ 0.1	$ 0.9	$ 0.6

Leases - Changes Due to the Ado

Leases - Changes Due to the Adoption of ASC Topic 842 (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 39,751	$ 41,868
Current portion of operating lease liabilities	2,488	3,212
Operating lease liability, net of current portion	54,775	55,679
Deferred gift card revenue and other	599	698	$ 947
Deferred rent and tenant improvement allowances			$ 16,774
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets		41,800
Adjustments | Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets		41,868
Current portion of operating lease liabilities		3,212
Operating lease liability, net of current portion		55,679
Deferred gift card revenue and other		(249)
Deferred rent and tenant improvement allowances		$ (16,774)
Reduction in operating lease liabilities	1,200
Reduction in operating lease right-of-use asset	$ 1,200

Leases - Lease Expense (Details

Leases - Lease Expense (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Lease cost
Operating lease cost		$ 5,040
Variable lease cost		1,811
Short-term lease cost		273
Sublease income	$ (100)	(582)
Total lease cost		$ 6,542
Weighted average remaining lease term - operating leases	14 years	14 years
Weighted average discount rate - operating leases	8.22%	8.22%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 5,212
Right-of-use assets obtained in exchange for operating lease obligations	$ 1,076

Leases - Operating Lease Liabil

Leases - Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2019, three months remaining	$ 1,844
2020	7,088
2021	6,839
2022	6,971
2023	7,117
Thereafter	69,929
Total lease payments	99,788
Less: imputed interest	(42,525)
Present value of operating lease liabilities	$ 57,263

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 39,751	$ 39,751	$ 41,868
Operating lease liability	57,263	57,263
Sublease income	100	582
Bagatelle Little West 12th, LLC (Bagatelle NY)
Lessee, Lease, Description [Line Items]
Sublease income	$ 100	$ 400
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets			41,800
Operating lease liability			$ 58,900

Earnings per share - Calculatio

Earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net (loss) income attributable to The ONE Group Hospitality, Inc.	$ 460	$ (305)	$ 992	$ 106
Basic weighted average shares outstanding	28,537,477	27,751,632	28,429,074	27,437,269
Dilutive effect of stock options, warrants and restricted share units	1,363,667		1,213,852	62,376
Diluted weighted average shares outstanding	29,901,144	27,751,632	29,642,926	27,499,645
Net (loss) income available to common stockholders per share - Basic	$ 0.02	$ (0.01)	$ 0.03	$ 0
Net (loss) income available to common stockholders per share - Diluted	$ 0.02	$ (0.01)	$ 0.03	$ 0

Earnings per share - Narrative

Earnings per share - Narrative (Details) - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted earnings per share	1	1	1.9
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted earnings per share		1	1.9
Restricted Share Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted earnings per share		1	1.9

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Balance	$ 13,025	$ 12,852	$ 12,062	$ 7,665	$ 6,866	$ 6,553	$ 12,062	$ 6,553
Stock-based compensation	338	456	181	337	344	324	975
Exercise of stock options	66						$ 66
Exercise of stock options (in shares)							30,000
Exercise of warrants				1,223
Loss on foreign currency translation, net	(49)	(120)	(160)	(68)	141	(75)	$ (329)
Reclassification of realized gains				(102)
Net income (loss)	469	(163)	769	(210)	314	118
Adoption of ASC 606 "Revenue from contracts with customers"						(54)
Balance	13,849	13,025	12,852	8,845	7,665	6,866	13,849	8,845
Issuance of common stock								1,223
Exercise of stock options							66
Common stock
Balance	3	3	$ 3	3	3	3	$ 3	3
Balance (in shares)			28,313,017				28,313,017
Exercise of stock options (in shares)							30,000
Vesting of restricted shares (in shares)							187,001
Balance	$ 3	3	$ 3	3	3	3	$ 3	3
Balance (in shares)	28,577,487						28,577,487
Additional paid-in capital
Balance	$ 44,180	43,724	43,543	41,675	41,331	41,007	$ 43,543	41,007
Stock-based compensation	338	456	181	337	344	324	975
Exercise of stock options	66						66
Exercise of warrants				1,223
Balance	44,584	44,180	43,724	43,235	41,675	41,331	44,584	43,235
Accumulated deficit
Balance	(28,190)	(27,868)	(28,722)	(31,621)	(31,802)	(31,979)	(28,722)	(31,979)
Net income (loss)	460	(322)	854	(306)	181	231
Adoption of ASC 606 "Revenue from contracts with customers"						(54)
Balance	(27,730)	(28,190)	(27,868)	(31,927)	(31,621)	(31,802)	(27,730)	(31,927)
Accumulated other comprehensive loss
Balance	(2,590)	(2,470)	(2,310)	(1,490)	(1,631)	(1,556)	(2,310)	(1,556)
Loss on foreign currency translation, net	(49)	(120)	(160)	(68)	141	(75)	(329)
Reclassification of realized gains				(102)
Balance	(2,639)	(2,590)	(2,470)	(1,660)	(1,490)	(1,631)	(2,639)	(1,660)
Noncontrolling Interests
Balance	(378)	(537)	(452)	(902)	(1,035)	(922)	(452)	(922)
Net income (loss)	9	159	(85)	96	133	(113)
Balance	$ (369)	$ (378)	$ (537)	$ (806)	$ (902)	$ (1,035)	$ (369)	$ (806)

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details)	9 Months Ended
	Sep. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected life (in years)	8 years 6 months
Risk-free interest rate	2.62%
Volatility	42.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Status of Company's Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Shares
Outstanding at December 31, 2018 (in shares) | shares	2,001,008
Granted (in shares) | shares	68,000
Exercise of stock options (in shares) | shares	30,000
Cancelled, expired or forfeited (in shares) | shares	(193,500)
Outstanding at September 30, 2019 (in shares) | shares	1,845,508
Exercisable at September 30, 2019 (in shares) | shares	1,216,508
Weighted Average Exercise Price
Outstanding at December 31, 2018 (in dollars per share) | $ / shares	$ 3.29
Granted (in dollars per share) | $ / shares	2.99
Exercised (in dollars per share) | $ / shares	2.23
Cancelled, expired or forfeited (in dollars per share) | $ / shares	2.74
Outstanding at September 30, 2019 (in dollars per share) | $ / shares	3.35
Exercisable at September 30, 2019 (in dollars per share) | $ / shares	$ 4.04
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life at September 30, 2019	6 years 1 month 17 days
Exercisable Weighted Average Remaining Contractual Life at September 30, 2019	5 years 2 months 9 days
Intrinsic Value
Intrinsic Value Outstanding at September 30, 2019 | $	$ 810
Intrinsic Value Exercisable at September 30, 2019 | $	$ 302

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Non-Vested Stock Options (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Shares
Non-vested stock options at December 31, 2018 (in shares) | shares	926,500
Granted | shares	68,000
Vested (in shares) | shares	(215,500)
Cancelled, expired or forfeited (in shares) | shares	(150,000)
Non-vested stock options at September 30, 2019 (in shares) | shares	629,000
Weighted Average Grant Date Fair Value
Non-vested stock options at December 31, 2018 (in dollars per share) | $ / shares	$ 0.91
Granted (in dollars per share) | $ / shares	2.99
Vested (in dollars per share) | $ / shares	1.29
Cancelled, expired or forfeited (in dollars per share) | $ / shares	0.95
Non-vested stock options at September 30, 2019 (in dollars per share) | $ / shares	$ 0.84

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Status of Company's Restricted Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Shares
Non-vested RSUs at December 31, 2018 (in shares) | shares	764,201
Granted (in shares) | shares	466,905
Vested (in shares) | shares	(187,001)
Cancelled, expired or forfeited (in shares) | shares	(81,000)
Non-vested RSUs at September 30, 2019 (in shares) | shares	963,105
Weighted Average Grant Date Fair Value
Non-vested RSUs at December 31, 2018 (in dollars per share) | $ / shares	$ 2.54
Granted (in dollars per share) | $ / shares	3.05
Vested (in dollars per share) | $ / shares	2.54
Cancelled, expired or forfeited (in dollars per share) | $ / shares	2.48
Non-vested RSUs at September 30, 2019 (in dollars per share) | $ / shares	$ 2.63

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 04, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 338	$ 337	$ 975	$ 1,005
Options outstanding (in shares)	1,845,508		1,845,508			2,001,008
General and Administrative Expense.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 300	$ 300	$ 1,000	$ 1,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 1,800		$ 1,800
Unrecognized compensation cost, recognition period			2 years 9 months 18 days
Restricted shares outstanding	150,000		150,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 400		$ 400
Unrecognized compensation cost, recognition period			3 years
Milestone-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	579,402		579,402
Unrecognized compensation cost related to non-vested awards	$ 700		$ 700
Equity Incentive Plan 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining shares available for issuance	2,589,077		2,589,077
Authorized shares (in shares)	7,073,922		7,073,922		2,300,000

Segment Reporting - Operating R

Segment Reporting - Operating Results by Segments (Details) $ in Thousands	May 15, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Segment reporting
Number of operating segments | segment				3
Increase in total assets				$ 39,800
Revenues:
Management, license and incentive fee revenue		$ 2,921	$ 2,688	8,260	$ 7,832
Total revenues		22,106	19,960	68,481	59,788
Owned operating expenses:
Cost of sales		4,472	4,050	14,109	12,121
Owned food, beverage and other expenses		1,971	2,068	6,455	5,782
Total owned operating expenses		17,226	15,897	54,118	46,459
General and administrative		2,352	2,266	7,706	7,937
Depreciation and amortization		1,103	896	3,049	2,575
Interest expense, net of interest income		230	294	717	902
Transaction costs		358		510
Loss on early debt extinguishment	$ (400)			437
Equity in income of investee companies					(111)
Other		40	38	(226)	(139)
Income before provision for income taxes		545	42	1,232	667
Operating segment
Revenues:
Owned net revenues		19,185	17,272	60,221	51,956
Management, license and incentive fee revenue		2,921	2,688	8,260	7,832
Total revenues		22,106	19,960	68,481	59,788
Owned operating expenses:
Cost of sales		4,472	4,050	14,109	12,121
Other operating expenses		10,783	9,779	33,554	28,556
Owned food, beverage and other expenses		1,971	2,068	6,455	5,782
Total owned operating expenses		17,226	15,897	54,118	46,459
Segment income (loss)		4,880	4,063	14,363	13,329
General and administrative		2,352	2,266	7,706	7,937
Depreciation and amortization		1,103	896	3,049	2,575
Interest expense, net of interest income		230	294	717	902
Transaction costs		358	0	510
Loss on early debt extinguishment				437
Equity in income of investee companies					(111)
Other		292	565	712	1,359
Income before provision for income taxes		545	42	1,232	667
Operating segment | Owned restaurants
Revenues:
Owned net revenues		17,120	15,312	53,749	45,908
Management, license and incentive fee revenue		0	0
Total revenues		17,120	15,312	53,749	45,908
Owned operating expenses:
Cost of sales		4,472	4,050	14,109	12,121
Other operating expenses		10,783	9,779	33,554	28,556
Owned food, beverage and other expenses		0	0
Total owned operating expenses		15,255	13,829	47,663	40,677
Segment income (loss)		1,865	1,483	6,086	5,231
Operating segment | Owned food, beverage and other operations
Revenues:
Owned net revenues		2,065	1,960	6,472	6,048
Management, license and incentive fee revenue		0	0
Total revenues		2,065	1,960	6,472	6,048
Owned operating expenses:
Cost of sales		0	0
Other operating expenses		0	0
Owned food, beverage and other expenses		1,971	2,068	6,455	5,782
Total owned operating expenses		1,971	2,068	6,455	5,782
Segment income (loss)		94	(108)	17	266
Operating segment | Managed and licensed operations
Revenues:
Owned net revenues		0	0
Management, license and incentive fee revenue		2,921	2,688	8,260	7,832
Total revenues		2,921	2,688	8,260	7,832
Owned operating expenses:
Cost of sales		0	0
Other operating expenses		0	0
Owned food, beverage and other expenses		0	0
Total owned operating expenses		0	0
Segment income (loss)		$ 2,921	$ 2,688	$ 8,260	$ 7,832

Segment Reporting - Total Asset

Segment Reporting - Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Segment reporting
Total assets	$ 95,420	$ 55,979
Operating segment
Segment reporting
Total assets	95,420	55,979
Total capital asset additions	3,509		$ 3,238
Operating segment | Owned restaurants
Segment reporting
Total assets	73,753	42,971
Total capital asset additions	2,861		2,792
Operating segment | Owned food, beverage and other operations
Segment reporting
Total assets	16,204	7,274
Total capital asset additions	648		446
Operating segment | Managed and licensed operations
Segment reporting
Total assets	5,463	$ 5,734
Total capital asset additions	$ 0		$ 0

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 22,106	$ 19,960	$ 68,481	$ 59,788
Long-Lived Assets	83,551		83,551		$ 44,438
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	20,730	18,741	65,048	56,753
Long-Lived Assets	83,502		83,502		44,400
Domestic | Owned restaurants
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17,120	15,312	53,749	45,908
Long-Lived Assets	70,406		70,406		38,958
Domestic | Owned food, beverage and other operations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,065	1,960	6,472	6,048
Long-Lived Assets	13,054		13,054		5,375
Domestic | Managed and licensed operations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,545	1,469	4,827	4,797
Long-Lived Assets	42		42		67
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,376	1,219	3,433	3,035
Long-Lived Assets	49		49		38
International | Owned restaurants
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	0	0	0	0
Long-Lived Assets	0		0		0
International | Owned food, beverage and other operations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	0	0	0	0
Long-Lived Assets	0		0		0
International | Managed and licensed operations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,376	$ 1,219	3,433	$ 3,035
Long-Lived Assets	$ 49		$ 49		$ 38

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 04, 2019USD ($)restaurantagreement	May 15, 2019USD ($)
Revolving Credit Facility
Subsequent Event [Line Items]
Secured revolving credit facility		$ 10,000,000
Term Loans
Subsequent Event [Line Items]
Term loan		$ 10,000,000
Kona Grill
Subsequent Event [Line Items]
Number of domestic restaurants acquired | restaurant	24
Number of international franchise agreements acquired | agreement	1
Purchase price	$ 25,000,000
Working capital liabilities acquired	11,000,000
Minimum | Term Loans | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate		2.75%
Minimum | Term Loans | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate		1.75%
Maximum | Term Loans | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate		3.50%
Maximum | Term Loans | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate		2.50%
Subsequent Event [Member] | Revolving Credit Facility
Subsequent Event [Line Items]
Secured revolving credit facility	12,000,000
Subsequent Event [Member] | Term Loans
Subsequent Event [Line Items]
Term loan	$ 48,000,000
Subsequent Event [Member] | Goldman Sachs Credit Agreement
Subsequent Event [Line Items]
Basis spread on variable rate	4.75%
Subsequent Event [Member] | Goldman Sachs Credit Agreement | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	1.75%
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate	0.50%
Subsequent Event [Member] | Goldman Sachs Credit Agreement | One Month LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	1.00%
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to June 30, 2021
Subsequent Event [Line Items]
Fixed charge coverage ratio	1.35
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter thereafter
Subsequent Event [Line Items]
Fixed charge coverage ratio	1.50
Consolidated leverage ratio	1.50
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to March 31, 2020
Subsequent Event [Line Items]
Consolidated leverage ratio	2.75
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2020
Subsequent Event [Line Items]
Consolidated leverage ratio	2.50
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarters ending September 30, 2020 and December 31, 2020,
Subsequent Event [Line Items]
Consolidated leverage ratio	2.25
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending March 31, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio	2
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio	1.75
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending September 30, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio	1.70
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending December 21, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio	1.65
Subsequent Event [Member] | Kona Grill
Subsequent Event [Line Items]
Number of domestic restaurants acquired | restaurant	24
Number of international franchise agreements acquired | agreement	1
Purchase price	$ 25,000,000
Working capital liabilities acquired	$ 11,000,000
Subsequent Event [Member] | Minimum | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate	4.75%
Subsequent Event [Member] | Minimum | Term Loans | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	5.75%
Subsequent Event [Member] | Minimum | Goldman Sachs Credit Agreement
Subsequent Event [Line Items]
Minimum consolidated liquidity	$ 1,500,000
Subsequent Event [Member] | Maximum | Term Loans | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	6.75%
Subsequent Event [Member] | Maximum | Term Loans | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate	5.75%
Subsequent Event [Member] | Maximum | Goldman Sachs Credit Agreement | Fiscal year 2020
Subsequent Event [Line Items]
Maximum consolidated capital expenditures	$ 10,000,000
Subsequent Event [Member] | Maximum | Goldman Sachs Credit Agreement | Fiscal year 2021 and every fiscal year thereafter
Subsequent Event [Line Items]
Maximum consolidated capital expenditures	$ 8,000,000