The ONE Group Hospitality, Inc. (STKS) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	ONE GROUP HOSPITALITY, INC.
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,828,675
Entity Central Index Key	0001399520
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Trading Symbol	stks

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 8,160	$ 12,344
Accounts receivable	5,189	10,351
Inventory	2,490	3,058
Other current assets	2,005	1,047
Due from related parties, net	376	341
Total current assets	18,220	27,141
Property and equipment, net	69,183	70,483
Operating lease right-of-use assets	80,228	81,097
Deferred tax assets, net	7,876	7,751
Intangibles, net	16,965	17,183
Other assets	2,372	1,622
Security deposits	1,337	1,308
Total assets	196,181	206,585
Current liabilities:
Accounts payable	7,397	8,274
Accrued expenses	7,642	11,198
Deferred license revenue	446	332
Deferred gift card revenue and other	2,691	3,183
Current portion of operating lease liabilities	4,454	4,397
Current portion of long-term debt	696	749
Total current liabilities	23,326	28,133
Deferred license revenue, long-term	869	1,036
Operating lease liabilities, net of current portion	97,492	98,278
Long-term debt, net of current portion	45,123	45,226
Total liabilities	166,810	172,673
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value, 75,000,000 shares authorized; 28,807,800 and 28,603,829 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	3	3
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
Additional paid-in capital	45,229	44,853
Accumulated deficit	(12,490)	(7,891)
Accumulated other comprehensive loss	(2,695)	(2,651)
Total stockholders’ equity	30,047	34,314
Noncontrolling interests	(676)	(402)
Total equity	29,371	33,912
Total liabilities and equity	$ 196,181	$ 206,585

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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	28,807,800	28,603,829
Common stock, shares outstanding	28,807,800	28,603,829
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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Owned restaurant net revenue	$ 38,557	$ 20,093
Management, license and incentive fee revenue	2,162	2,683
Total revenues	40,719	22,776
Owned operating expenses:
Owned restaurant cost of sales	10,113	5,026
Owned restaurant operating expenses	26,499	12,717
Total owned operating expenses	36,612	17,743
General and administrative (including stock-based compensation of $338 and $181 for the three months ended March 31, 2020 and 2019 respectively)	3,397	2,650
Depreciation and amortization	2,440	942
Transaction and integration costs	1,095
COVID-19 related expenses	1,348
Lease termination expenses	179
Pre-opening expenses		482
Other income, net	(1)	(175)
Total costs and expenses	45,070	21,642
Operating (loss) income	(4,351)	1,134
Other expenses, net:
Interest expense, net of interest income	1,175	269
Total other expenses, net	1,175	269
(Loss) income before (benefit) provision for income taxes	(5,526)	865
(Benefit) provision for income taxes	(653)	96
Net (loss) income	(4,873)	769
Less: net income attributable to noncontrolling interest	(274)	(85)
Net (loss) income attributable to The ONE Group Hospitality, Inc.	(4,599)	854
Currency translation loss	(44)	(160)
Comprehensive (loss) income	$ (4,643)	$ 694
Net (loss) income attributable to The ONE Group Hospitality, Inc. per share:
Basic net (loss) income per share	$ (0.16)	$ 0.03
Diluted net (loss) income per share	$ (0.16)	$ 0.03
Shares used in computing basic (loss) earnings per share (in shares)	28,636,325	28,314,820
Shares used in computing diluted (loss) earnings per share (in shares)	28,636,325	29,311,756

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Stock-based compensation	$ 338	$ 181

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2020 - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interests	Stockholders' equity	Total
Balance at Dec. 31, 2019		$ 44,853	$ (7,891)	$ (2,651)	$ (402)	$ 33,912	$ 34,314
Balance (in shares) at Dec. 31, 2019	28,603,829
Stock-based compensation, net of tax withholding		338				338	338
Stock-based compensation, net of tax withholding (in shares)	69,327
Exercise of stock options		38				38	$ 38
Exercise of stock options (in shares)	18,000						18,000
Vesting of restricted shares (in shares)	116,644
Loss on foreign currency translation, net				(44)		(44)	$ (44)
Net loss			(4,599)		(274)	(4,873)	(4,599)
Balance at Mar. 31, 2020	$ 3	$ 45,229	$ (12,490)	$ (2,695)	$ (676)	$ 29,371	$ 30,047
Balance (in shares) at Mar. 31, 2020	28,807,800

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net (loss) income	$ (4,873)	$ 769
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	2,440	942
Stock-based compensation	338	181
Amortization of discount on warrants and debt issuance costs	108	50
Deferred taxes	(125)	10
Changes in operating assets and liabilities:
Accounts receivable	5,092	1,147
Inventory	568	161
Other current assets	(958)	(96)
Due from related parties, net	(35)	(38)
Security deposits	(32)	(18)
Other assets	(807)	8
Accounts payable	(859)	270
Accrued expenses	(3,560)	(1,331)
Operating lease liabilities and right-of-use assets	140	321
Deferred revenue	(540)	137
Net cash (used in) provided by operating activities	(3,103)	2,513
Investing activities:
Purchase of property and equipment	(791)	(2,060)
Net cash used in investing activities	(791)	(2,060)
Financing activities:
Borrowings of long-term debt
Repayments of long-term debt	(216)	(798)
Debt issuance costs	(48)
Exercise of stock options	38
Net cash used in financing activities	(226)	(798)
Effect of exchange rate changes on cash	(64)	(168)
Net decrease in cash and cash equivalents	(4,184)	(513)
Cash and cash equivalents, beginning of year	12,344	1,592
Cash and cash equivalents, end of year	8,160	1,079
Supplemental disclosure of cash flow data:
Interest paid	704	235
Income taxes paid	85	191
Non-cash amortization of debt issuance costs	$ 108	$ 5

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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 and 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. 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. The Company’s primary restaurant brands are STK, a multi-unit steakhouse concept that combines a high-energy, social atmosphere with the quality and service of a traditional upscale steakhouse, and Kona Grill, a bar-centric grill concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. On October 4, 2019, the Company acquired substantially all of the assets of Kona Grill Inc. and its affiliates (“Kona Grill”), which is composed of 24 domestic restaurants. The Company purchased the assets for a contractual price of $25.0 million plus approximately $1.5 million of consideration paid primarily for the apportionment of rent and utilities. The Company also assumed approximately $7.7 million in current liabilities. The Company intends to integrate Kona Grill by leveraging its corporate infrastructure, bar-business knowledge and unique Vibe Dining program, to elevate the brand experience and drive improved performance. The results of operations of these restaurants are included in our consolidated financial statements from the date of acquisition. As of March 31, 2020, the Company owned, operated, managed or licensed 55 venues, including 20 STKs and 24 Kona Grills in major metropolitan cities in North America, Europe and the Middle East and 11 F&B venues including six hotels and casinos in the United States and Europe. Effects of COVID-19 In the first quarter of 2020, the negative effect of the novel coronavirus (“COVID-19”) on the Company’s business was significant. The Company experienced an initial decline in restaurant revenue that began in early March 2020 as business travel and social dining decreased. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic disease, and on March 13, 2020, President Trump declared a state of emergency for COVID-19. Public concerns about the spread of COVID-19 continues to be widespread. The Company has experienced a significant reduction in guest traffic at its restaurants as a result of restrictions mandated by state and local governments. In response to these conditions, and out of concern for our customers and partners, the Company has temporarily closed several restaurants and the Company has shifted operations at 30 of its restaurants to provide only take-out and delivery service. In addition to the decline in restaurant revenue, the Company has incurred approximately $1.3 million of costs directly related to COVID-19 in the three months ended March 31, 2020, composed primarily of payments to employees for paid-time off during restaurant closures, inventory waste, and rent and rent related costs for closed and limited-operations restaurants from the day that the dining room closed. The Company has implemented measures to reduce its costs during the COVID-19 pandemic, including significant reductions in employees, deferral of capital projects, and negotiations with suppliers and landlords regarding deferral or abatement of payments which could become significant. Given the present uncertainty surrounding the global economy due to the COVID-19 pandemic, the Company cannot reasonably predict when its closed restaurants will re-open and open restaurants will be able to return to normal dining room operations. The Company expects that its results of operations will be negatively affected by these actions in the second quarter of 2020. The Company’s re-opening of closed restaurants and resumption of normal dining operations is subject to events beyond its control, including the effectiveness of governmental efforts to halt the spread of COVID-19. Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2019, 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, 2019. 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. Prior Period Reclassifications Certain reclassifications of the 2019 financial statements amounts have been made to conform to the current year presentation. The Company has combined owned restaurant net revenues and owned food, beverage and other net revenues to be presented in total as owned restaurant net revenue. Additionally, the Company reclassified $0.5 million of owned food, beverage and other expenses to owned restaurant cost of sales and $1.8 million of owned food, beverage and other expenses to owned restaurant expenses on the accompanying consolidated statements of operations and comprehensive (loss) income. Certain reclassifications were also made to conform the prior period segment reporting to the current year segment presentation. Refer to Note 15 – Segment Reporting for additional information regarding the Company’s reportable operating segments. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” (“ASU 2019-12”) which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Accounting Standard Codification Topic 740, Income Taxes, and it clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The Company is evaluating the impact of the adoption of ASU 2019-12 on its financial statements but does not expect the adoption of ASU 2019-12 to be material. 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 adoption of ASU 2018-17 did not have a material impact on our financial position, results of operations or cash flows. 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 adoption of ASU 2018-15 did not have a material impact on our financial position, results of operations or cash flows. 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 adoption of ASU 2018-3 did not have a material impact on our disclosures of fair value measurement, which are included in Note 7 – Fair Value of Financial Instruments.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Business Combination	Note 2 – Business Combination On October 4, 2019, the Company acquired substantially all of the assets of Kona Grill Inc. and its affiliates comprising 24 domestic restaurants. The Company purchased the assets for a contractual price of $25.0 million plus $1.5 million of consideration paid primarily for the apportionment of rent and utilities. The Company also assumed approximately $7.7 million in current liabilities. The Company believes that Kona Grill is complementary to the Company’s business and will enable the Company to capture market share in the Vibe Dining segment. Kona Grill Inc. and its affiliates were purchased pursuant to a Chapter 11 bankruptcy. As a result, the Company recognized a bargain purchase gain of approximately $11.0 million in the consolidated statements of operation and comprehensive (loss) income for the year ended December 31, 2019, which represents the excess of the aggregate fair value of net assets acquired and liabilities assumed over the purchase price. The purchase accounting is preliminary and represents estimates and assumptions that are subject to change during the measurement period (up to one year from the acquisition date). The following table summarizes the preliminary fair value of identified assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): Net assets acquired: Cash $ 450 Current assets, excluding cash 2,830 Property and equipment 31,781 Operating lease right-of-use assets 42,398 Intangible assets 17,400 Other assets 692 Current liabilities (7,690) Deferred tax liability (4,044) Operating lease liabilities (46,364) Total net assets acquired $ 37,453 Purchase consideration: Contractual purchase price 25,000 Apportionment of rent and utilities 775 Assumption of real estate lease consultant contract 465 Escrow deposit 250 Consideration paid $ 26,490 Bargain purchase gain attributable to Kona Grill acquisition $ 10,963 Pro Forma Results of Operations (unaudited) The following pro forma results of operations for the three months ended March 31, 2019 have been prepared as though the acquisition occurred as of January 1, 2019. The pro forma financial information is not indicative of the results of operations that the Company would have attained had the acquisition occurred at the beginning of the periods presented, nor is the pro forma financial information indicative of the results of operations that may occur in the future. Amounts are in thousands, except earnings per share related data. Three months ended March 31, 2019 Total revenues $ 47,230 Net income attributable to The ONE Group Hospitality, Inc. $ 667 Net income attributable to The ONE Group Hospitality, Inc. per share: Basic net income per share $ 0.02 Diluted net income per share $ 0.02

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Note 3 – Property and Equipment, net Property and equipment, net consist of the following (in thousands): March 31, December 31, 2020 2019 Furniture, fixtures and equipment $ 20,907 $ 20,512 Leasehold improvements 70,110 69,925 Less: accumulated depreciation and amortization (24,218) (21,997) Subtotal 66,799 68,440 Construction in progress 438 97 Restaurant smallwares 1,946 1,946 Total $ 69,183 $ 70,483 Depreciation and amortization related to property and equipment amounted to $2.2 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. The Company does not depreciate construction in progress, assets not yet put into service or restaurant supplies.

Intangibles, net

Intangibles, net	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles, net	Note 4 – Intangibles, net Intangibles, net consists of the following (in thousands): March 31, December 31, 2020 2019 Kona Grill tradename $ 17,400 $ 17,400 Less: accumulated amortization (435) (217) Total intangibles, net $ 16,965 $ 17,183 The Kona Grill trade name is amortized using the straight-line method over its estimated useful life of 20 years. Amortization expense was $0.2 million for the three months ending March 31, 2020. The Company’s estimated aggregate amortization expense for each of the five succeeding fiscal years is approximately $0.9 million annually.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2020
Accrued Expenses [Abstract]
Accrued Expenses	Note 5 – Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2020 2019 Payroll and related $ 2,138 $ 4,519 Variable rent, including disputed rent amounts 1,770 1,796 Legal, professional and other services 1,081 1,103 VAT, sales and other taxes 689 1,488 Income taxes — 547 Insurance 118 100 Other 1,846 1,645 Total $ 7,642 $ 11,198

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-Term Debt	Note 6 – Long-Term Debt Long-term debt consists of the following (in thousands): March 31, December 31, 2020 2019 Term loan agreements $ 47,760 $ 47,880 Revolving credit facility — — Equipment financing agreements 284 380 Total long-term debt 48,044 48,260 Less: current portion of long-term debt (696) (749) Less: debt issuance costs (2,225) (2,285) Total long-term debt, net of current portion $ 45,123 $ 45,226 Interest expense for all the Company’s debt arrangements, excluding the amortization of debt issuance costs and other discounts and fees, was approximately $1.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the Company had $1.3 million in standby letters of credit outstanding for certain restaurants and $10.7 million available in its revolving credit facility. As of March 31, 2020 and December 31, 2019, the Company had $0.4 million of cash collateralized letters of credit, which are recorded as a component of security deposits on the consolidated balance sheet. Goldman Sachs Bank USA Credit and Guaranty 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”). 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. Additionally, the Company’s consolidated adjusted EBITDA as defined by the Goldman Sachs Credit Agreement for determining covenant compliance includes pro forma adjustments for the annualization of the Kona Grill restaurant performance which includes results before the acquisition date. 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. For purposes of calculating this ratio for the first four quarters, the agreement provides for a pro forma adjustment to reflect one full year of Kona Grill operations; · 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 Company’s ability to borrow under its revolving credit facility is dependent on several factors. The Company’s total borrowings cannot exceed a leverage incurrence multiple of (i) 2.50 to 1.00 as of the end of any fiscal quarters ending on or prior to June 30, 2020, (ii) 2.25 to 1.00 as of the fiscal quarters ending September 30, 2020 and December 31, 2020, (iii) 2.00 to 1.00 as of the fiscal quarter ending March 31, 2021 (iv) 1.75 to 1.00 as of the fiscal quarter ending June 30, 2021, (v) 1.70 to 1.00 as of the fiscal quarter ending September 30, 2021, (vi) 1.65 to 1.00 as of the fiscal quarter ending December 31, 2021, and (vii) 1.50 to 1.00 as of the end of any fiscal quarter thereafter. In addition, after giving effect to borrowings under the revolving credit facility, the Company’s cash and cash equivalents cannot exceed $4,000,000. 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, alter the organizational structure of the Company and its subsidiaries, 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. The Company has incurred approximately $2.5 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. As of March 31, 2020, the Company was in compliance with the covenants required by the Goldman Sachs Credit Agreement. Equipment Financing Agreements On June 5, 2015 and August 16, 2016, the Company entered into financing agreements with Sterling National Bank for $1.0 million and $0.7 million, respectively, to purchase equipment for the STKs in Orlando, Chicago, San Diego, and Denver. Each of these financing agreements have five- year terms and bear interest at a rate of 5% per annum, payable in equal monthly installments.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020. 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): March 31, December 31, 2020 2019 Carrying amount of long-term debt, including current portion (1) $ 48,044 $ 48,260 Fair value of long-term debt, including current portion $ 37,454 $ 35,471 (1) Excludes the discounts on warrants, net and debt issuance costs

Nonconsolidated Variable Intere

Nonconsolidated Variable Interest Entities and Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Nonconsolidated Variable Interest Entities and Related Party Transactions	Note 8 – Nonconsolidated Variable Interest Entities and Related Party Transactions As of March 31, 2020 and December 31, 2019, 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. The Company records its retained interests in Bagatelle Investors and Bagatelle NY as cost method investments as the Company has determined that it does not have the ability to exercise significant influence over its investees, Bagatelle Investors and Bagatelle NY. As of March 31, 2020 and December 31, 2019, the Company has zero carrying value in these cost method investments. 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 March 31, 2020 and 2019, 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 March 31, 2020 and 2019 , respectively. Net receivables from the Bagatelle Investors and Bagatelle NY included in due from related parties, net were approximately $0.4 million and $0.3 million as of March 31, 2020 and December 31, 2019, respectively. These receivables represent the Company’s maximum exposure to loss.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income taxes	Note 9 – Income taxes The Company’s effective income tax rate was 11.8% for the three months ended March 31, 2020 compared to 11.1% for the three months ended March 31, 2019. 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) taxes owed in foreign jurisdictions such as the United Kingdom, Canada and Italy; and, (iii) 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	3 Months Ended
	Mar. 31, 2020
Revenue From Contracts With Customer [Abstract]
Revenue from contracts with customers	Note 10 – Revenue from contracts with customers The following table provides information about contract receivables and liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue and the Konavore rewards program (in thousands): March 31, December 31, 2020 2019 Receivables (1) $ 125 $ 250 Deferred license revenue (2) $ 1,315 $ 1,368 Deferred gift card and gift certificate revenue (3) $ 2,594 $ 3,210 Konavore rewards program (4) $ 86 $ 84 (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 revenue is included in deferred gift card revenue and other on the consolidated balance sheets. (4) Konavore rewards program is included in accrued expenses on the consolidated balance sheets. Significant changes in deferred license revenue and deferred gift card revenue for the three months ended March 31, 2020 and 2019 are as follows (in thousands): March 31, March 31, 2020 2019 Revenue recognized from deferred license revenue $ 52 $ 55 Revenue recognized from deferred gift card revenue $ 746 $ 283 As of March 31, 2020, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of March 31, 2020 were as follows for each year ending (in thousands): 2020, nine months remaining $ 154 2021 206 2022 181 2023 169 2024 134 Thereafter 471 Total future estimated deferred license revenue $ 1,315

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 11 – Leases The components of lease expense for the period were as follows (in thousands): March 31, March 31, 2020 2019 Lease cost Operating lease cost $ 3,297 $ 1,726 Variable lease cost 1,156 674 Short-term lease cost 128 108 Sublease income (135) (203) Total lease cost $ 4,446 $ 2,305 Weighted average remaining lease term – operating leases 13 years 14 years Weighted average discount rate – operating leases 8.49 % 8.25 % The Company subleases one restaurant space and in 2019 subleased office space where it did not use the entire space for its operations. For the three months ended March 31, 2020 and 2019, sublease income was $0.1 million and $0.2 million, respectively, of which $0.1 million and $0.1 million, respectively, was from a related party, Bagatelle NY. Refer to Note 8 for details on transactions with this related party. The Company has entered into an operating lease for one future restaurant that has not yet commenced as of March 31, 2020. The aggregate future commitment related to this lease totals $4.8 million. The Company expects this lease to commence within the next twelve months and will have a lease term of 11 years. Supplemental cash flow information related to leases for the period was as follows (in thousands): March 31, March 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,161 $ 1,718 Right-of-use assets obtained in exchange for operating lease obligations $ 288 $ 281 As of March 31, 2020, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2020, nine months remaining $ 9,775 2021 12,843 2022 12,801 2023 13,087 2024 12,486 Thereafter 115,862 Total lease payments 176,854 Less: imputed interest (74,908) Present value of operating lease liabilities $ 101,946 For the nine months remaining in 2020, the Company’s operating lease liabilities does not include future rent abatements that have been or will be negotiated with landlords.

(Loss) earnings per share

(Loss) earnings per share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
(Loss) earnings per share	Note 12 – (Loss) earnings per share Basic (loss) earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted (loss) 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 months ended March 31, 2020 and 2019, the (loss) earnings per share was calculated as follows (in thousands, except earnings per share and related share data): Three months ended March 31, 2020 2019 Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (4,599) $ 854 Basic weighted average shares outstanding 28,636,325 28,314,820 Dilutive effect of stock options, warrants and restricted share units — 996,936 Diluted weighted average shares outstanding 28,636,325 29,311,756 Net (loss) income available to common stockholders per share - Basic $ (0.16) $ 0.03 Net (loss) income available to common stockholders per share - Diluted $ (0.16) $ 0.03 For the three months ended March 31, 2020, all equivalent shares underlying options, warrants and restricted share units were anti-dilutive as the Company was in a net loss position. For the three months ended March 31, 2019, 0.9 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 13 – Stockholders’ Equity Significant changes in stockholders’ equity for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2019 $ 3 $ 44,853 $ (7,891) $ (2,651) $ (402) $ 33,912 Stock-based compensation, net of tax withholding — 338 — — — 338 Exercise of stock options — 38 — — — 38 Vesting of restricted shares — — — — — — Loss on foreign currency translation, net — — — (44) — (44) Net loss — — (4,599) — (274) (4,873) Balance at March 31, 2020 $ 3 $ 45,229 $ (12,490) $ (2,695) $ (676) $ 29,371 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, net of tax withholding — 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

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Employee Benefit Plans [Abstract]
Stock-Based Compensation	Note 14 – Stock-Based Compensation As of March 31, 2020, the Company had 1,301,357 remaining shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan”). Stock-based compensation cost for the three months ended March 31, 2020 and 2019 was $0.3 million and $0.2 million, respectively, and is included in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. Included in stock-based compensation cost was $0.1 million of unrestricted stock granted to directors for the three months ended March 31, 2020. Such grants were awarded consistent with the Board’s compensation practices. Stock Option Activity Changes in outstanding stock options during the three months ended March 31, 2020 were as follows: Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2019 1,806,508 $ 3.37 5.87 years $ 1,428 Exercisable at December 31, 2019 1,270,508 $ 3.93 5.10 years $ 666 Exercised (18,000) 2.13 Cancelled, expired or forfeited (24,000) 4.85 Outstanding at March 31, 2020 1,764,508 $ 3.37 5.57 years $ — Exercisable at March 31, 2020 1,291,175 $ 3.84 4.91 years $ — A summary of the status of the Company’s non-vested stock options as of December 31, 2019 and March 31, 2020 and changes during the three months then ended, is presented below: Weighted average Shares grant date fair value Non-vested stock options at December 31, 2019 536,000 $ 0.87 Vested (62,667) 0.89 Non-vested stock options at March 31, 2020 473,333 $ 0.87 The fair value of options that vested in the three months ended March 31, 2020 were less than $0.1 million. As of March 31, 2020, 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 March 31, 2020, there is approximately $0.3 million of total unrecognized compensation cost related to non-vested awards, which will be recognized over a weighted-average period of 2.5 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 three months ended March 31, 2020 is presented below: Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2019 955,011 $ 2.69 Granted 1,240,599 1.19 Vested (116,644) 2.97 Cancelled, expired or forfeited (4,000) 3.25 Non-vested RSUs at March 31, 2020 2,074,966 $ 1.77 As of March 31, 2020, 150,000 RSUs subject to performance-based vesting were still outstanding, and there is approximately $0.4 million of unrecognized compensation cost related to these milestone-based options. As of March 31, 2020, the Company had approximately $2.9 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.5 years.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Reporting	Note 15 – Segment Reporting In the fourth quarter of 2019, in conjunction with the Kona Grill acquisition, the Company implemented certain organizational changes, including the reorganization of our internal reporting structure to better facilitate our strategy for growth and operational efficiency. As a result of these organizational changes, the Company has identified its reportable operating segments as follows: · STK . The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and operations of STK restaurant locations. · Kona Grill . The Kona Grill segment includes the results of operations of Kona Grill restaurant locations. · ONE Hospitality . The ONE Hospitality segment is composed of the management, license and incentive fee revenue and results of operations generated from the Company’s other brands and venue concepts, which include ANGEL, Bagatelle, Heliot, Hideout, Marconi, and Radio. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations. · Corporate . The Corporate segment consists of the following: general and administrative costs, stock-based compensation, depreciation and amortization, acquisition related gains and losses, pre-opening expenses, lease termination expenses, transaction costs, and other income and expenses. This segment also includes the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as revenues less operating expenses, related to the Company’s four operating segments. Certain financial information relating to the three months ended March 31, 2020 and 2019 for each segment is provided below (in thousands). Prior year amounts have been revised to conform to the current year segment presentation. STK Kona Grill ONE Hospitality Corporate Total For the three months ended March 31, 2020 Total revenues $ 17,383 $ 20,657 $ 2,679 $ — $ 40,719 Operating income (loss) 1,543 820 1,820 (8,534) (4,351) Capital asset additions $ 335 $ 410 $ 8 $ 38 $ 791 As of March 31, 2020 Total assets $ 79,512 $ 88,199 $ 6,116 $ 22,354 $ 196,181 STK Kona Grill ONE Hospitality Corporate Total For the three months ended March 31, 2019 Total revenues $ 19,245 $ — $ 3,060 $ 471 $ 22,776 Operating income (loss) 2,668 — 2,250 (3,784) 1,134 Capital asset additions $ 1,726 $ — $ 36 $ 298 $ 2,060 As of December 31, 2019 Total assets $ $ $ 8,252 $ $ 206,585

Geographic Information

Geographic Information	3 Months Ended
	Mar. 31, 2020
Geographic Information [Abstract]
Geographic Information	Note 16 – Geographic Information Certain financial information by geographic location is provided below (in thousands). For the three months ended March 31, 2020 2019 Domestic revenues $ 39,977 $ 21,780 International revenues 742 996 Total revenues $ 40,719 $ 22,776 March 31, December 31, 2020 2019 Domestic long-lived assets $ 177,684 $ 179,143 International long-lived assets 277 301 Total long-lived assets $ 177,961 $ 179,444

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 17 – Commitments and Contingencies The Company is party to claims in lawsuits incidental to its business, including lease disputes and employee-related matters. The Company is confident in its defenses and is vigorously defending these disputes. The Company has not recorded any liabilities for these unfounded claims, and the range of possible losses is zero to $2.2 million. 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	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 18 – Subsequent Events On May 4, 2020, Goldman Sachs Bank USA (“GSB”), as administrative agent, collateral agent and lead arranger under the Credit and Guaranty Agreement dated October 4, 2019 between The ONE Group Hospitality, Inc. (the “Company”) and certain of its subsidiaries, the lenders from time to time party thereto and GSB (the “Credit Agreement”), (1) consented to the CARES Act Loans described below and (2) agreed that the amount of the CARES Act Loans will not be counted toward the permitted amount of Consolidated Total Debt, as defined under the Credit Agreement, to the extent the amounts are retained as cash during the term of the CARES Act Loans in a segregated deposit account or used for purposes that are forgivable under the CARES Act, provided that the proceeds of the CARES Act Loans must be used only for “allowable uses” under the CARES Act (with at least 75% of the utilized proceeds to be used for purposes that result in the CARES Act Loans being eligible for forgiveness) or used for the repayment of the CARES Act Loans. On May 4, 2020, two subsidiaries of the Company entered into promissory notes (“CARES Act Loans”) with BBVA USA under the Paycheck Protection Program (“PPP”) created by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Repayment of the CARES Act Loans is guaranteed by the U.S. Small Business Administration (“SBA”). The ONE Group, LLC received a loan of $9.8 million related to the operations of STK restaurants, and Kona Grill Acquisition, LLC received a loan of $8.5 million related to the operation of Kona Grill restaurants. In accordance with the requirements of the CARES Act, the Company will use proceeds from the CARES Act Loans primarily for payroll costs. The CARES Act Loans are scheduled to mature on April 28, 2022 and have a 1.00% interest rate and are subject to the terms and conditions applicable to PPP loans. Among other terms, BBVA may declare a default of the CARES Act Loans if a guarantor disputes the validity of the guaranty of indebtedness, if a material adverse change occurs in our financial condition, or if BBVA believes the prospect of repayment of the CARES Act Loans or performance of obligations under the promissory notes is impaired. On an event of default, BBVA may declare principal and unpaid interest immediately due and payable, and it may charge default interest of 10%. On May 8, 2020, GSB and the Company and certain of its subsidiaries entered into an amendment to the Credit Agreement that: · Relaxes the fixed charge coverage ratio (decreasing the ratio for remaining measurement dates in 2020 to 1.20 to 1.00 from 1.35 to 1.00) and the leverage ratio (increasing the ratio at June 30, 2020 to 3.00 to 1.00 from 2.50 to 1.00, and the ratio at September 30 and December 31, 2020 to 2.75 to 1.00 from 2.25 to 1.00). · Requires minimum “Consolidated Liquidity” to be $4,000,000 for the balance of 2020 (from $1,500,000). As of May 10, 2020, the Company has re-opened eleven restaurant dining rooms and plans to open an additional five dining rooms on May 11, 2020. The Company expects to re-open an additional five to ten dining rooms in the next two weeks and anticipates re-opening the remaining restaurants and closed dining rooms as soon as conditions permit.

Summary of Business and Signi_2

Summary of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Effects of COVID-19	Effects of COVID-19 In the first quarter of 2020, the negative effect of the novel coronavirus (“COVID-19”) on the Company’s business was significant. The Company experienced an initial decline in restaurant revenue that began in early March 2020 as business travel and social dining decreased. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic disease, and on March 13, 2020, President Trump declared a state of emergency for COVID-19. Public concerns about the spread of COVID-19 continues to be widespread. The Company has experienced a significant reduction in guest traffic at its restaurants as a result of restrictions mandated by state and local governments. In response to these conditions, and out of concern for our customers and partners, the Company has temporarily closed several restaurants and the Company has shifted operations at 30 of its restaurants to provide only take-out and delivery service. In addition to the decline in restaurant revenue, the Company has incurred approximately $1.3 million of costs directly related to COVID-19 in the three months ended March 31, 2020, composed primarily of payments to employees for paid-time off during restaurant closures, inventory waste, and rent and rent related costs for closed and limited-operations restaurants from the day that the dining room closed. The Company has implemented measures to reduce its costs during the COVID-19 pandemic, including significant reductions in employees, deferral of capital projects, and negotiations with suppliers and landlords regarding deferral or abatement of payments which could become significant. Given the present uncertainty surrounding the global economy due to the COVID-19 pandemic, the Company cannot reasonably predict when its closed restaurants will re-open and open restaurants will be able to return to normal dining room operations. The Company expects that its results of operations will be negatively affected by these actions in the second quarter of 2020. The Company’s re-opening of closed restaurants and resumption of normal dining operations is subject to events beyond its control, including the effectiveness of governmental efforts to halt the spread of COVID-19.
Basis of Presentation	Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2019, 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, 2019. 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.
Prior Period Reclassifications	Prior Period Reclassifications Certain reclassifications of the 2019 financial statements amounts have been made to conform to the current year presentation. The Company has combined owned restaurant net revenues and owned food, beverage and other net revenues to be presented in total as owned restaurant net revenue. Additionally, the Company reclassified $0.5 million of owned food, beverage and other expenses to owned restaurant cost of sales and $1.8 million of owned food, beverage and other expenses to owned restaurant expenses on the accompanying consolidated statements of operations and comprehensive (loss) income. Certain reclassifications were also made to conform the prior period segment reporting to the current year segment presentation. Refer to Note 15 – Segment Reporting for additional information regarding the Company’s reportable operating segments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” (“ASU 2019-12”) which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Accounting Standard Codification Topic 740, Income Taxes, and it clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The Company is evaluating the impact of the adoption of ASU 2019-12 on its financial statements but does not expect the adoption of ASU 2019-12 to be material. 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 adoption of ASU 2018-17 did not have a material impact on our financial position, results of operations or cash flows. 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 adoption of ASU 2018-15 did not have a material impact on our financial position, results of operations or cash flows. 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 adoption of ASU 2018-3 did not have a material impact on our disclosures of fair value measurement, which are included in Note 7 – Fair Value of Financial Instruments.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Summary of preliminary fair value of identified assets acquired and liabilities assumed as of the acquisition date	The following table summarizes the preliminary fair value of identified assets acquired and liabilities assumed as of the acquisition date (amounts in thousands): Net assets acquired: Cash $ 450 Current assets, excluding cash 2,830 Property and equipment 31,781 Operating lease right-of-use assets 42,398 Intangible assets 17,400 Other assets 692 Current liabilities (7,690) Deferred tax liability (4,044) Operating lease liabilities (46,364) Total net assets acquired $ 37,453 Purchase consideration: Contractual purchase price 25,000 Apportionment of rent and utilities 775 Assumption of real estate lease consultant contract 465 Escrow deposit 250 Consideration paid $ 26,490 Bargain purchase gain attributable to Kona Grill acquisition $ 10,963
Schedule of information showing pro forma results of operations	Amounts are in thousands, except earnings per share related data. Three months ended March 31, 2019 Total revenues $ 47,230 Net income attributable to The ONE Group Hospitality, Inc. $ 667 Net income attributable to The ONE Group Hospitality, Inc. per share: Basic net income per share $ 0.02 Diluted net income per share $ 0.02

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	Property and equipment, net consist of the following (in thousands): March 31, December 31, 2020 2019 Furniture, fixtures and equipment $ 20,907 $ 20,512 Leasehold improvements 70,110 69,925 Less: accumulated depreciation and amortization (24,218) (21,997) Subtotal 66,799 68,440 Construction in progress 438 97 Restaurant smallwares 1,946 1,946 Total $ 69,183 $ 70,483

Intangibles, net (Tables)

Intangibles, net (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of intangibles, net	Intangibles, net consists of the following (in thousands): March 31, December 31, 2020 2019 Kona Grill tradename $ 17,400 $ 17,400 Less: accumulated amortization (435) (217) Total intangibles, net $ 16,965 $ 17,183

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2020
Accrued Expenses [Abstract]
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): March 31, December 31, 2020 2019 Payroll and related $ 2,138 $ 4,519 Variable rent, including disputed rent amounts 1,770 1,796 Legal, professional and other services 1,081 1,103 VAT, sales and other taxes 689 1,488 Income taxes — 547 Insurance 118 100 Other 1,846 1,645 Total $ 7,642 $ 11,198

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt consists of the following (in thousands): March 31, December 31, 2020 2019 Term loan agreements $ 47,760 $ 47,880 Revolving credit facility — — Equipment financing agreements 284 380 Total long-term debt 48,044 48,260 Less: current portion of long-term debt (696) (749) Less: debt issuance costs (2,225) (2,285) Total long-term debt, net of current portion $ 45,123 $ 45,226

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
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): March 31, December 31, 2020 2019 Carrying amount of long-term debt, including current portion (1) $ 48,044 $ 48,260 Fair value of long-term debt, including current portion $ 37,454 $ 35,471 (1) Excludes the discounts on warrants, net and debt issuance costs

Revenue from contracts with c_2

Revenue from contracts with customers (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue From Contracts With Customer [Abstract]
Schedule of contract receivables and liabilities	The following table provides information about contract receivables and liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue and the Konavore rewards program (in thousands): March 31, December 31, 2020 2019 Receivables (1) $ 125 $ 250 Deferred license revenue (2) $ 1,315 $ 1,368 Deferred gift card and gift certificate revenue (3) $ 2,594 $ 3,210 Konavore rewards program (4) $ 86 $ 84 (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 revenue is included in deferred gift card revenue and other on the consolidated balance sheets. (4) Konavore rewards program is included in accrued expenses on the consolidated balance sheets.
Schedule of changes in deferred license revenue and deferred gift card revenue	Significant changes in deferred license revenue and deferred gift card revenue for the three months ended March 31, 2020 and 2019 are as follows (in thousands): March 31, March 31, 2020 2019 Revenue recognized from deferred license revenue $ 52 $ 55 Revenue recognized from deferred gift card revenue $ 746 $ 283
Schedule of estimated deferred license revenue to be recognized in the future related to performance obligations	As of March 31, 2020, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of March 31, 2020 were as follows for each year ending (in thousands): 2020, nine months remaining $ 154 2021 206 2022 181 2023 169 2024 134 Thereafter 471 Total future estimated deferred license revenue $ 1,315

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of components of lease expense	The components of lease expense for the period were as follows (in thousands): March 31, March 31, 2020 2019 Lease cost Operating lease cost $ 3,297 $ 1,726 Variable lease cost 1,156 674 Short-term lease cost 128 108 Sublease income (135) (203) Total lease cost $ 4,446 $ 2,305 Weighted average remaining lease term – operating leases 13 years 14 years Weighted average discount rate – operating leases 8.49 % 8.25 %
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases for the period was as follows (in thousands): March 31, March 31, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,161 $ 1,718 Right-of-use assets obtained in exchange for operating lease obligations $ 288 $ 281
Schedule of maturities of operating lease liabilities	As of March 31, 2020, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2020, nine months remaining $ 9,775 2021 12,843 2022 12,801 2023 13,087 2024 12,486 Thereafter 115,862 Total lease payments 176,854 Less: imputed interest (74,908) Present value of operating lease liabilities $ 101,946

(Loss) earnings per share (Tabl

(Loss) earnings per share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	For the three months ended March 31, 2020 and 2019, the (loss) earnings per share was calculated as follows (in thousands, except earnings per share and related share data): Three months ended March 31, 2020 2019 Net (loss) income attributable to The ONE Group Hospitality, Inc. $ (4,599) $ 854 Basic weighted average shares outstanding 28,636,325 28,314,820 Dilutive effect of stock options, warrants and restricted share units — 996,936 Diluted weighted average shares outstanding 28,636,325 29,311,756 Net (loss) income available to common stockholders per share - Basic $ (0.16) $ 0.03 Net (loss) income available to common stockholders per share - Diluted $ (0.16) $ 0.03

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Schedule of changes in stockholders' equity	Significant changes in stockholders’ equity for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Accumulated Additional other Common paid-in Accumulated comprehensive Noncontrolling Stock capital deficit loss interests Total Balance at December 31, 2019 $ 3 $ 44,853 $ (7,891) $ (2,651) $ (402) $ 33,912 Stock-based compensation, net of tax withholding — 338 — — — 338 Exercise of stock options — 38 — — — 38 Vesting of restricted shares — — — — — — Loss on foreign currency translation, net — — — (44) — (44) Net loss — — (4,599) — (274) (4,873) Balance at March 31, 2020 $ 3 $ 45,229 $ (12,490) $ (2,695) $ (676) $ 29,371 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, net of tax withholding — 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 (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Employee Benefit Plans [Abstract]
Schedule of stock option activity	Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2019 1,806,508 $ 3.37 5.87 years $ 1,428 Exercisable at December 31, 2019 1,270,508 $ 3.93 5.10 years $ 666 Exercised (18,000) 2.13 Cancelled, expired or forfeited (24,000) 4.85 Outstanding at March 31, 2020 1,764,508 $ 3.37 5.57 years $ — Exercisable at March 31, 2020 1,291,175 $ 3.84 4.91 years $ —
Schedule of non-vested stock options	Weighted average Shares grant date fair value Non-vested stock options at December 31, 2019 536,000 $ 0.87 Vested (62,667) 0.89 Non-vested stock options at March 31, 2020 473,333 $ 0.87
Schedule of restricted stock awards and changes	Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2019 955,011 $ 2.69 Granted 1,240,599 1.19 Vested (116,644) 2.97 Cancelled, expired or forfeited (4,000) 3.25 Non-vested RSUs at March 31, 2020 2,074,966 $ 1.77

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of segment information	Certain financial information relating to the three months ended March 31, 2020 and 2019 for each segment is provided below (in thousands). Prior year amounts have been revised to conform to the current year segment presentation. STK Kona Grill ONE Hospitality Corporate Total For the three months ended March 31, 2020 Total revenues $ 17,383 $ 20,657 $ 2,679 $ — $ 40,719 Operating income (loss) 1,543 820 1,820 (8,534) (4,351) Capital asset additions $ 335 $ 410 $ 8 $ 38 $ 791 As of March 31, 2020 Total assets $ 79,512 $ 88,199 $ 6,116 $ 22,354 $ 196,181 STK Kona Grill ONE Hospitality Corporate Total For the three months ended March 31, 2019 Total revenues $ 19,245 $ — $ 3,060 $ 471 $ 22,776 Operating income (loss) 2,668 — 2,250 (3,784) 1,134 Capital asset additions $ 1,726 $ — $ 36 $ 298 $ 2,060 As of December 31, 2019 Total assets $ $ $ 8,252 $ $ 206,585

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2020
Geographic Information [Abstract]
Schedule of revenues by geographic location	Certain financial information by geographic location is provided below (in thousands). For the three months ended March 31, 2020 2019 Domestic revenues $ 39,977 $ 21,780 International revenues 742 996 Total revenues $ 40,719 $ 22,776
Schedule of long-lived assets by geographic location	March 31, December 31, 2020 2019 Domestic long-lived assets $ 177,684 $ 179,143 International long-lived assets 277 301 Total long-lived assets $ 177,961 $ 179,444

Summary of Business and Signi_3

Summary of Business and Significant Accounting Policies (Details) $ in Thousands	Oct. 04, 2019USD ($)restaurant	Mar. 31, 2020USD ($)itemrestaurant	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Contractual purchase price	$ 25,000
Current liabilities	7,690
Apportionment of rent and utilities	$ 775
Number of venues | restaurant		55
Number of restaurants with modified operations and service methods | restaurant		30
COVID-19 related expenses		$ 1,348
Owned restaurant cost of sales		10,113	$ 5,026
Owned restaurant operating expenses		$ 26,499	$ 12,717
Number of hotels provided F&B services | item		6
Adjustments | Reclassification of expenses
Owned restaurant cost of sales				$ 500
Owned restaurant operating expenses				$ 1,800
STK
Number of venues | restaurant		20
Kona Grill
Number of venues | restaurant		24
F&B Venues
Number of venues | restaurant		11
Kona Grill Inc.
Number of domestic restaurants acquired | restaurant	24
Contractual purchase price	$ 25,000
Current liabilities	7,700
Apportionment of rent and utilities	$ 1,500

Business Combination - Kona Gil

Business Combination - Kona Gill (Details) $ in Thousands	Oct. 04, 2019USD ($)
Net assets acquired:
Cash	$ 450
Current assets, excluding cash	2,830
Property and equipment	31,781
Operating lease right-of-use assets	42,398
Intangible assets	17,400
Other assets	692
Current liabilities	(7,690)
Deferred tax liability	(4,044)
Operating lease liabilities	(46,364)
Total net assets acquired	37,453
Contractual purchase price	25,000
Apportionment of rent and utilities	775
Assumption of real estate lease consultant contract	465
Escrow deposit	250
Consideration paid	26,490
Bargain purchase gain attributable to Kona Grill acquisition	10,963
Kona Grill Inc.
Net assets acquired:
Current liabilities	(7,700)
Contractual purchase price	25,000
Apportionment of rent and utilities	1,500
Bargain purchase gain attributable to Kona Grill acquisition	$ 11,000

Business Combination - Pro Form

Business Combination - Pro Forma Results of Operations (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)$ / shares
Business Combinations [Abstract]
Total revenues | $	$ 47,230
Net income attributable to The ONE Group Hospitality, Inc. | $	$ 667
Net income attributable to The ONE Group Hospitality, Inc. per share:
Basic net income per share | $ / shares	$ 0.02
Diluted net income per share | $ / shares	$ 0.02

Business Combination - Narrativ

Business Combination - Narrative (Details) $ in Thousands	Oct. 04, 2019USD ($)restaurant
Business Acquisition [Line Items]
Contractual purchase price	$ 25,000
Apportionment of rent and utilities	775
Current liabilities	7,690
Bargain purchase gain attributable to Kona Grill acquisition	$ 10,963
Kona Grill Inc.
Business Acquisition [Line Items]
Number of domestic restaurants acquired | restaurant	24
Contractual purchase price	$ 25,000
Apportionment of rent and utilities	1,500
Current liabilities	7,700
Bargain purchase gain attributable to Kona Grill acquisition	$ 11,000

Property and Equipment, net - T

Property and Equipment, net - Total PPE (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (24,218)	$ (21,997)
Property and equipment, net	69,183	70,483
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,907	20,512
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	70,110	69,925
Total amount net of accumulated depreciation and amortization
Property, Plant and Equipment [Line Items]
Property and equipment, net	66,799	68,440
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, net	438	97
Restaurant smallwares
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 1,946	$ 1,946

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 2,440	$ 942

Intangibles, net (Details)

Intangibles, net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Kona Grill tradename	$ 17,400	$ 17,400
Less: accumulated amortization	(435)	(217)
Total intangible, net	$ 16,965	$ 17,183

Intangibles, net - Narrative (D

Intangibles, net - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Useful life	20 years
Amortization expense	$ 0.2
2020	0.9
2021	0.9
2022	0.9
2023	0.9
2024	$ 0.9

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued Expenses [Abstract]
Payroll and related	$ 2,138	$ 4,519
Variable rent, including disputed rent amounts	1,770	1,796
Legal, professional and other services	1,081	1,103
VAT, sales and other taxes	689	1,488
Income taxes		547
Insurance	118	100
Other	1,846	1,645
Totals	$ 7,642	$ 11,198

Long-Term Debt - Debt and Matur

Long-Term Debt - Debt and Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 48,044	$ 48,260
Less: current portion of long-term debt	(696)	(749)
Less: debt issuance costs	(2,225)	(2,285)
Long-term debt, net of current portion	45,123	45,226
Medium-term Notes | Term Loan Agreements
Debt Instrument [Line Items]
Long-term debt	47,760	47,880
Construction Loans | Equipment Financing Agreements
Debt Instrument [Line Items]
Long-term debt	$ 284	$ 380

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details)	May 08, 2020USD ($)	Oct. 04, 2019USD ($)	Aug. 16, 2016USD ($)	Jun. 05, 2015USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Interest expense					$ 1,100,000	$ 200,000
Standby letters of credit outstanding					1,300,000
Cash collateral letter of credit					400,000		$ 400,000
Debt issuance costs					2,225,000		2,285,000
Debt instrument, term			5 years	5 years
Debt interest rate			5.00%	5.00%
Goldman Sachs Credit Agreement
Debt Instrument [Line Items]
Maximum cash and cash equivalents amount		$ 4,000,000
Basis spread on variable rate		4.75%
Debt issuance costs					2,500,000		$ 2,500,000
Goldman Sachs Credit Agreement | Minimum
Debt Instrument [Line Items]
Minimum consolidated liquidity		$ 1,500,000
Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2020
Debt Instrument [Line Items]
Consolidated leverage ratio		2.50
Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2020 | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio	3
Goldman Sachs Credit Agreement | Fiscal quarters ending September 30, 2020 and December 31, 2020,
Debt Instrument [Line Items]
Consolidated leverage ratio		2.25
Goldman Sachs Credit Agreement | Fiscal quarters ending September 30, 2020 and December 31, 2020, | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated leverage ratio	2.75
Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to June 30, 2021
Debt Instrument [Line Items]
Fixed charge coverage ratio		1.35
Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to March 31, 2020
Debt Instrument [Line Items]
Consolidated leverage ratio		2.75
Goldman Sachs Credit Agreement | Fiscal quarter ending March 31, 2021
Debt Instrument [Line Items]
Consolidated leverage ratio		2
Goldman Sachs Credit Agreement | Fiscal quarter ending September 30, 2021
Debt Instrument [Line Items]
Consolidated leverage ratio		1.70
Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2021
Debt Instrument [Line Items]
Consolidated leverage ratio		1.75
Goldman Sachs Credit Agreement | Fiscal quarter ending December 21, 2021
Debt Instrument [Line Items]
Consolidated leverage ratio		1.65
Goldman Sachs Credit Agreement | Fiscal quarter thereafter
Debt Instrument [Line Items]
Fixed charge coverage ratio		1.50
Consolidated leverage ratio		1.50
Goldman Sachs Credit Agreement | Fiscal year 2020 | Subsequent Event [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio	1.20
Goldman Sachs Credit Agreement | Fiscal year 2020 | Minimum | Subsequent Event [Member]
Debt Instrument [Line Items]
Minimum consolidated liquidity	$ 4,000,000
Goldman Sachs Credit Agreement | Fiscal year 2020 | Maximum
Debt Instrument [Line Items]
Maximum consolidated capital expenditures		$ 10,000,000
Goldman Sachs Credit Agreement | Fiscal year 2021 and every fiscal year thereafter | Maximum
Debt Instrument [Line Items]
Maximum consolidated capital expenditures		$ 8,000,000
Goldman Sachs Credit Agreement | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.75%
Goldman Sachs Credit Agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Goldman Sachs Credit Agreement | One Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Revolving Credit Facility
Debt Instrument [Line Items]
Available amount					$ 10,700,000
Secured revolving credit facility		$ 12,000,000
Term Loans
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 48,000,000
Term Loans | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		5.75%
Term Loans | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		6.75%
Term Loans | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		4.75%
Term Loans | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		5.75%
First Sterling Agreement | Construction Loans | Sterling National Bank
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 1,000,000
Second Sterling Agreement | Construction Loans | Sterling National Bank
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 700,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying amount of long-term debt, including current portion	$ 48,044	$ 48,260
Level 2
Fair value of long-term debt, including current portion	$ 37,454	$ 35,471

Nonconsolidated Variable Inte_2

Nonconsolidated Variable Interest Entities and Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Due from related parties, net	$ 376		$ 341
Bagatelle NY LA Investors, LLC (Bagatelle Investors)
Schedule of Equity Method Investments [Line Items]
Ownership percentage equity method investment	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]
Ownership percentage equity method investment	51.13%		51.13%
Rental income	$ 100	$ 100

Income taxes - Narrative (Detai

Income taxes - Narrative (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	11.80%	11.10%
U.S. statutory tax rate	21.00%

Revenue from contracts with c_3

Revenue from contracts with customers - Contract Receivables and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Receivables	$ 125	$ 250
Deferred license revenue
Deferred revenue	1,315	1,368
Deferred gift card and gift certificate revenue
Deferred revenue	2,594	3,210
Konavore rewards program
Deferred revenue	$ 86	$ 84

Revenue from contracts with c_4

Revenue from contracts with customers - Changes in Deferred Gift Card and Gift Certificate Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Deferred license revenue
Revenue recognized	$ 52	$ 55
Deferred gift card and gift certificate revenue
Revenue recognized	$ 746	$ 283

Revenue from contracts with c_5

Revenue from contracts with customers - Future Estimated Deferred License Revenue (Details) - Deferred license revenue $ in Thousands	Mar. 31, 2020USD ($)
2020, nine months remaining	$ 154
2021	206
2022	181
2023	169
2024	134
Thereafter	471
Total future estimated deferred license revenue	$ 1,315

Leases - Lease Expense (Details

Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lease cost
Operating lease cost	$ 3,297	$ 1,726
Variable lease cost	1,156	674
Short-term lease cost	128	108
Sublease income	(135)	(203)
Total lease cost	$ 4,446	$ 2,305
Weighted average remaining lease term - operating leases	13 years	14 years
Weighted average discount rate - operating leases	8.49%	8.25%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 3,161	$ 1,718
Right-of-use assets obtained in exchange for operating lease obligations	$ 288	$ 281

Leases - Operating Lease Liabil

Leases - Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2020, nine months remaining	$ 9,775
2021	12,843
2022	12,801
2023	13,087
2024	12,486
Thereafter	115,862
Total lease payments	176,854
Less: imputed interest	(74,908)
Present value of operating lease liabilities	$ 101,946

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 80,228		$ 81,097
Operating lease liability	101,946
Sublease income	135	$ 203
Aggregate future commitment	$ 4,800
Lease term	11 years
Bagatelle Little West 12th, LLC (Bagatelle NY)
Lessee, Lease, Description [Line Items]
Sublease income	$ 100	$ 100

(Loss) earnings per share - Cal

(Loss) earnings per share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net (loss) income attributable to The ONE Group Hospitality, Inc.	$ (4,599)	$ 854
Basic weighted average shares outstanding	28,636,325	28,314,820
Dilutive effect of stock options, warrants and restricted share units		996,936
Diluted weighted average shares outstanding	28,636,325	29,311,756
Net (loss) income available to common stockholders per share - Basic	$ (0.16)	$ 0.03
Net (loss) income available to common stockholders per share - Diluted	$ (0.16)	$ 0.03

(Loss) earnings per share - Nar

(Loss) earnings per share - Narrative (Details) shares in Millions	3 Months Ended
	Mar. 31, 2019shares
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	0.9
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted earnings per share	0.9
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	0.9

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Balance	$ 33,912	$ 12,062
Stock-based compensation, net of tax withholding	338	181
Exercise of stock options	38
Loss on foreign currency translation, net	(44)	(160)
Net income (loss)	(4,873)	769
Balance	29,371	12,852
Common stock
Balance	3	3
Balance	3	3
Additional paid-in capital
Balance	44,853	43,543
Stock-based compensation, net of tax withholding	338	181
Exercise of stock options	38
Balance	45,229	43,724
Accumulated deficit
Balance	(7,891)	(28,722)
Net income (loss)	(4,599)	854
Balance	(12,490)	(27,868)
Accumulated other comprehensive loss
Balance	(2,651)	(2,310)
Loss on foreign currency translation, net	(44)	(160)
Balance	(2,695)	(2,470)
Noncontrolling interests
Balance	(402)	(452)
Net income (loss)	(274)	(85)
Balance	$ (676)	$ (537)

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Status of Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Shares
Outstanding at the beginning (in shares)	1,806,508
Exercisable (in shares)	1,270,508
Exercise of stock options (in shares)	(18,000)
Cancelled, expired or forfeited (in shares)	(24,000)
Outstanding at the ending (in shares)	1,764,508	1,806,508
Exercisable (in shares)	1,291,175	1,270,508
Weighted Average Exercise Price
Outstanding at the beginning (in dollars per share)	$ 3.37
Exercisable (in dollars per share)	3.93
Exercised (in dollars per share)	2.13
Cancelled, expired or forfeited (in dollars per share)	4.85
Outstanding at the ending (in dollars per share)	3.37	$ 3.37
Exercisable (in dollars per share)	$ 3.84	$ 3.93
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life	5 years 6 months 26 days	5 years 10 months 13 days
Exercisable Weighted Average Remaining Contractual Life	4 years 10 months 28 days	5 years 1 month 6 days
Intrinsic Value
Intrinsic Value Outstanding	$ 0	$ 1,428
Intrinsic Value Exercisable	$ 0	$ 666

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Non-Vested Stock Options (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares
Non-vested stock options (in shares) | shares	536,000
Vested (in shares) | shares	(62,667)
Non-vested stock options (in shares) | shares	473,333
Weighted Average Grant Date Fair Value
Non-vested stock options (in dollars per share) | $ / shares	$ 0.87
Vested (in dollars per share) | $ / shares	0.89
Non-vested stock options (in dollars per share) | $ / shares	$ 0.87

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 338	$ 181
Options outstanding (in shares)	1,764,508		1,806,508
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options vested	$ 100
General and Administrative Expense.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 300	$ 200
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares outstanding	150,000
Unrecognized compensation cost related to milestone based options	$ 400
Unrecognized compensation cost related to non-vested awards	$ 2,900
Unrecognized compensation cost, recognition period	2 years 6 months
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 300
Unrecognized compensation cost, recognition period	2 years 6 months
Milestone-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	579,402
Unrecognized compensation cost related to milestone based options	$ 700
Equity Incentive Plan 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining shares available for issuance	1,301,357
Director | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 100

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Status of Company's Restricted Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares
Non-vested RSUs at December 31, 2018 (in shares) | shares	955,011
Granted (in shares) | shares	1,240,599
Vested (in shares) | shares	(116,644)
Cancelled, expired or forfeited (in shares) | shares	(4,000)
Non-vested RSUs at September 30, 2019 (in shares) | shares	2,074,966
Weighted Average Grant Date Fair Value
Non-vested RSUs at December 31, 2018 (in dollars per share) | $ / shares	$ 2.69
Granted (in dollars per share) | $ / shares	1.19
Vested (in dollars per share) | $ / shares	2.97
Cancelled, expired or forfeited (in dollars per share) | $ / shares	3.25
Non-vested RSUs at September 30, 2019 (in dollars per share) | $ / shares	$ 1.77

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)segment	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	4
Total revenues	$ 40,719	$ 22,776
Operating income (loss)	(4,351)	1,134
Capital asset additions	791	2,060
Total assets	196,181	206,585	$ 206,585
STK
Segment Reporting Information [Line Items]
Total revenues	17,383	19,245
Operating income (loss)	1,543	2,668
Capital asset additions	335	1,726
Total assets	79,512	82,691
Kona Grill
Segment Reporting Information [Line Items]
Total revenues	20,657
Operating income (loss)	820
Capital asset additions	410
Total assets	88,199	93,829
ONE Hospitality
Segment Reporting Information [Line Items]
Total revenues	2,679	3,060
Operating income (loss)	1,820	2,250
Capital asset additions	8	36
Total assets	6,116	8,252
Corporate
Segment Reporting Information [Line Items]
Total revenues		471
Operating income (loss)	(8,534)	(3,784)
Capital asset additions	38	298
Total assets	$ 22,354	$ 21,813

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 40,719	$ 22,776
Long-Lived Assets	177,961	179,444
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	39,977	21,780
Long-Lived Assets	177,684	179,143
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	742	996
Long-Lived Assets	$ 277	$ 301

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2020USD ($)
Minimum
Loss Contingencies [Line Items]
Possible loss	$ 0
Maximum
Loss Contingencies [Line Items]
Possible loss	$ 2.2

Subsequent Events (Details)

Subsequent Events (Details)	May 08, 2020USD ($)	May 04, 2020USD ($)subsidiary	Oct. 04, 2019USD ($)	May 31, 2020restaurant	May 11, 2020restaurant	May 10, 2020restaurant	Aug. 16, 2016	Jun. 05, 2015
Subsequent Event [Line Items]
Debt interest rate							5.00%	5.00%
Goldman Sachs Credit Agreement
Subsequent Event [Line Items]
Basis spread on variable rate			4.75%
Goldman Sachs Credit Agreement | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate			1.75%
Goldman Sachs Credit Agreement | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate			0.50%
Goldman Sachs Credit Agreement | One Month LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate			1.00%
Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to June 30, 2021
Subsequent Event [Line Items]
Fixed charge coverage ratio			1.35
Goldman Sachs Credit Agreement | Fiscal quarter thereafter
Subsequent Event [Line Items]
Fixed charge coverage ratio			1.50
Consolidated leverage ratio			1.50
Goldman Sachs Credit Agreement | Fiscal quarter ending on or prior to March 31, 2020
Subsequent Event [Line Items]
Consolidated leverage ratio			2.75
Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2020
Subsequent Event [Line Items]
Consolidated leverage ratio			2.50
Goldman Sachs Credit Agreement | Fiscal quarters ending September 30, 2020 and December 31, 2020,
Subsequent Event [Line Items]
Consolidated leverage ratio			2.25
Goldman Sachs Credit Agreement | Fiscal quarter ending March 31, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio			2
Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio			1.75
Goldman Sachs Credit Agreement | Fiscal quarter ending September 30, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio			1.70
Goldman Sachs Credit Agreement | Fiscal quarter ending December 21, 2021
Subsequent Event [Line Items]
Consolidated leverage ratio			1.65
Minimum | Goldman Sachs Credit Agreement
Subsequent Event [Line Items]
Minimum consolidated liquidity			$ 1,500,000
Maximum | Goldman Sachs Credit Agreement | Fiscal year 2020
Subsequent Event [Line Items]
Maximum consolidated capital expenditures			10,000,000
Maximum | Goldman Sachs Credit Agreement | Fiscal year 2021 and every fiscal year thereafter
Subsequent Event [Line Items]
Maximum consolidated capital expenditures			$ 8,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of operations re-opened | restaurant						11
Number of operations planned to re-open | restaurant					5
Subsequent Event [Member] | BBVA USA
Subsequent Event [Line Items]
Number of subsidiaries that entered in to loan agreements | subsidiary		2
Debt interest rate		1.00%
Default interest rate		10.00%
Subsequent Event [Member] | BBVA USA | ONE Group, LLC [Member]
Subsequent Event [Line Items]
Term loan		$ 9,800,000
Subsequent Event [Member] | BBVA USA | Kona Grill Acquisition, LLC [Member]
Subsequent Event [Line Items]
Term loan		$ 8,500,000
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal year 2020
Subsequent Event [Line Items]
Fixed charge coverage ratio	1.20
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarter ending June 30, 2020
Subsequent Event [Line Items]
Consolidated leverage ratio	3
Subsequent Event [Member] | Goldman Sachs Credit Agreement | Fiscal quarters ending September 30, 2020 and December 31, 2020,
Subsequent Event [Line Items]
Consolidated leverage ratio	2.75
Subsequent Event [Member] | Minimum
Subsequent Event [Line Items]
Number of operations expected to re-open | restaurant				5
Subsequent Event [Member] | Minimum | Goldman Sachs Credit Agreement | Fiscal year 2020
Subsequent Event [Line Items]
Minimum consolidated liquidity	$ 4,000,000
Subsequent Event [Member] | Maximum
Subsequent Event [Line Items]
Number of operations expected to re-open | restaurant				10