The ONE Group Hospitality, Inc. (STKS) 10-Q4 Aug 222022 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Jul. 31, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity File Number	001-37379
Entity Registrant Name	ONE GROUP HOSPITALITY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1961545
Entity Address, Address Line One	1624 Market Street
Entity Address, Address Line Two	Suite 311
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	646
Local Phone Number	624-2400
Title of 12(b) Security	Common Stock
Trading Symbol	STKS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,649,401
Entity Central Index Key	0001399520
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 24,417	$ 23,614
Accounts receivable	7,979	11,356
Inventory	4,732	3,915
Other current assets	2,281	3,666
Due from related parties	376	376
Total current assets	39,785	42,927
Property and equipment, net	77,213	69,638
Operating lease right-of-use assets	86,297	85,395
Deferred tax assets, net	11,727	12,313
Intangibles, net	15,284	15,505
Other assets	4,124	3,199
Security deposits	797	858
Total assets	235,227	229,835
Current liabilities:
Accounts payable	12,278	11,094
Accrued expenses	18,698	23,155
Deferred license revenue	79	90
Deferred gift card revenue and other	1,545	2,029
Current portion of operating lease liabilities	5,914	5,396
Current portion of long-term debt	500	500
Total current liabilities	39,014	42,264
Deferred license revenue, long-term	258	298
Operating lease liabilities, net of current portion	104,464	103,616
Long-term debt, net of current portion	23,004	23,132
Total liabilities	166,740	169,310
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock, $0.0001 par value, 75,000,000 shares authorized; 32,662,035 issued and 32,649,401 outstanding at June 30, 2022 and 32,138,396 issued and 32,125,762 outstanding at December 31, 2021	3	3
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
Treasury stock	(37)	(37)
Additional paid-in capital	53,743	53,481
Retained earnings	18,605	10,632
Accumulated other comprehensive loss	(2,906)	(2,645)
Total stockholders' equity	69,408	61,434
Noncontrolling interests	(921)	(909)
Total equity	68,487	60,525
Total liabilities and equity	$ 235,227	$ 229,835

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS
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	32,662,035	32,138,396
Common stock, shares outstanding	32,649,401	32,125,762
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 INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Owned restaurant net revenue	$ 76,930	$ 67,848	$ 147,446	$ 117,016
Management, license and incentive fee revenue	4,195	2,912	7,860	4,226
Total revenues	81,125	70,760	155,306	121,242
Owned operating expenses:
Owned restaurant cost of sales	19,851	17,191	37,950	29,192
Owned restaurant operating expenses	44,309	35,336	83,682	63,242
Total owned operating expenses	64,160	52,527	121,632	92,434
General and administrative (including stock-based compensation of $911, $1,137, $1,790 and $2,159 for the three and six months ended June 30, 2022 and 2021, respectively)	7,261	6,139	14,140	11,313
Depreciation and amortization	2,926	2,495	5,641	5,194
COVID-19 related expenses	221	1,088	2,534	2,645
Agreement restructuring expenses		494		494
Pre-opening expenses	804	154	1,149	255
Lease termination expenses		107	255	294
Total costs and expenses	75,372	63,004	145,351	112,629
Operating income	5,753	7,756	9,955	8,613
Other expenses, net:
Interest expense, net	444	1,235	952	2,481
Gain on CARES Act Loan forgiveness		8,561		8,561
Total other expenses, net	444	(7,326)	952	(6,080)
Income before provision for income taxes	5,309	15,082	9,003	14,693
Provision for income taxes	869	973	1,042	644
Net income	4,440	14,109	7,961	14,049
Less: net income (loss) attributable to noncontrolling interest	137	273	(12)	143
Net income attributable to The One Group Hospitality, Inc.	4,303	13,836	7,973	13,906
Currency translation (loss) gain	(169)	8	(261)	(10)
Comprehensive income attributable to The ONE Group Hospitality, Inc.	$ 4,134	$ 13,844	$ 7,712	$ 13,896
Net income attributable to The ONE Group Hospitality, Inc. per share:
Basic net income per share	$ 0.13	$ 0.44	$ 0.25	$ 0.46
Diluted net income per share	$ 0.13	$ 0.41	$ 0.23	$ 0.41
Shares used in computing basic income per share	32,601,203	31,248,677	32,411,570	30,239,364
Shares used in computing diluted income per share	33,959,991	34,028,735	34,123,142	33,683,652

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Stock-based compensation	$ 911	$ 1,137	$ 1,790	$ 2,159

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Treasury stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Stockholders' equity	Noncontrolling interests	Total
Balance at Dec. 31, 2020	$ 3		$ 46,538	$ (20,716)	$ (2,646)	$ 21,979	$ (1,200)	$ 23,179
Balance (in shares) at Dec. 31, 2020	29,083,183
Stock-based compensation			1,022			1,022		1,022
Stock-based compensation, in shares	25,643
Exercise of stock options and warrants (in shares)	450,971
Issuance of vested restricted shares, net of tax withholding			(154)			(154)		(154)
Issuance of vested restricted shares, net of tax withholding (in shares)	67,685
Purchase of noncontrolling interest			116			(75)	(191)	116
Gain/(Loss) on foreign currency translation, net					(18)	(18)		(18)
Net income (loss)				70		(60)	(130)	70
Balance at Mar. 31, 2021	$ 3		47,522	(20,646)	(2,664)	22,694	(1,521)	24,215
Balance (in shares) at Mar. 31, 2021	29,627,482
Balance at Dec. 31, 2020	$ 3		46,538	(20,716)	(2,646)	21,979	(1,200)	23,179
Balance (in shares) at Dec. 31, 2020	29,083,183
Net income (loss)								13,906
Balance at Jun. 30, 2021	$ 3		51,414	(6,810)	(2,656)	40,703	(1,248)	41,951
Balance (in shares) at Jun. 30, 2021	31,865,775
Balance at Mar. 31, 2021	$ 3		47,522	(20,646)	(2,664)	22,694	(1,521)	24,215
Balance (in shares) at Mar. 31, 2021	29,627,482
Stock-based compensation			741			741		741
Stock-based compensation, in shares	9,210
Exercise of stock options and warrants			3,151			3,151		3,151
Exercise of stock options and warrants (in shares)	931,558
Issuance of vested restricted shares, net of tax withholding (in shares)	1,297,525
Gain/(Loss) on foreign currency translation, net					8	8		8
Net income (loss)				13,836		14,109	273	13,836
Balance at Jun. 30, 2021	$ 3		51,414	(6,810)	(2,656)	40,703	(1,248)	41,951
Balance (in shares) at Jun. 30, 2021	31,865,775
Balance at Dec. 31, 2021	$ 3	$ (37)	53,481	10,632	(2,645)	60,525	(909)	61,434
Balance (in shares) at Dec. 31, 2021	32,125,762
Stock-based compensation			879			879		879
Stock-based compensation, in shares	7,162
Issuance of vested restricted shares, net of tax withholding			(314)			(314)		(314)
Issuance of vested restricted shares, net of tax withholding (in shares)	127,413
Gain/(Loss) on foreign currency translation, net					(92)	(92)		(92)
Net income (loss)				3,670		3,521	(149)	3,670
Balance at Mar. 31, 2022	$ 3	(37)	54,046	14,302	(2,737)	64,519	(1,058)	65,577
Balance (in shares) at Mar. 31, 2022	32,260,337
Balance at Dec. 31, 2021	$ 3	(37)	53,481	10,632	(2,645)	60,525	(909)	61,434
Balance (in shares) at Dec. 31, 2021	32,125,762
Net income (loss)								7,973
Balance at Jun. 30, 2022	$ 3	(37)	53,743	18,605	(2,906)	68,487	(921)	69,408
Balance (in shares) at Jun. 30, 2022	32,649,401
Balance at Mar. 31, 2022	$ 3	(37)	54,046	14,302	(2,737)	64,519	(1,058)	65,577
Balance (in shares) at Mar. 31, 2022	32,260,337
Stock-based compensation			911			911		911
Stock-based compensation, in shares	10,214
Exercise of stock options and warrants			28			28		28
Exercise of stock options and warrants (in shares)	13,261
Issuance of vested restricted shares, net of tax withholding			(1,242)			(1,242)		(1,242)
Issuance of vested restricted shares, net of tax withholding (in shares)	365,589
Gain/(Loss) on foreign currency translation, net					(169)	(169)		(169)
Net income (loss)				4,303		4,440	137	4,303
Balance at Jun. 30, 2022	$ 3	$ (37)	$ 53,743	$ 18,605	$ (2,906)	$ 68,487	$ (921)	$ 69,408
Balance (in shares) at Jun. 30, 2022	32,649,401

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 7,961	$ 14,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,641	5,194
Stock-based compensation	1,790	1,763
CARES Act loan forgiveness		(8,561)
Amortization of debt issuance costs	186	265
Deferred taxes	586	120
Changes in operating assets and liabilities:
Accounts receivable	3,436	(794)
Inventory	(817)	(181)
Other current assets	1,379	(210)
Security deposits	61	(26)
Other assets	(329)	(85)
Accounts payable	273	2,356
Accrued expenses	(5,154)	7,596
Operating lease liabilities and right-of-use assets	464	29
Deferred gift card and license revenue	(535)	(1,671)
Net cash provided by operating activities	14,942	19,844
Investing activities:
Purchase of property and equipment	(12,091)	(5,373)
Net cash used in investing activities	(12,091)	(5,373)
Financing activities:
Repayments of long-term debt	(250)	(321)
Debt issuance costs		(41)
Exercise of stock options and warrants	28	3,151
Tax-withholding obligation on stock-based compensation	(1,556)	(154)
Purchase of non-controlling interests		(75)
Net cash (used in) provided by financing activities	(1,778)	2,560
Effect of exchange rate changes on cash	(270)	(9)
Net increase in cash and cash equivalents	803	17,022
Cash and cash equivalents, beginning of period	23,614	24,385
Cash and cash equivalents, end of period	24,417	41,407
Supplemental disclosure of cash flow data:
Interest paid, net of capitalized interest	874	2,076
Income taxes paid	287	53
Non-cash CARES Act loan forgiveness		$ 8,561
Accrued purchases of property and equipment	$ 2,415

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	6 Months Ended
Summary of Business and Significant Accounting Policies	Jun. 30, 2022
Summary of Significant Accounting Policies
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 restaurant 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 and consulting 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 polished casual bar-centric grill concept featuring American favorites, award-winning sushi, and specialty cocktails in a polished casual atmosphere. As of June 30, 2022, the Company owned, operated, managed, or licensed 59 venues, including 22 STKs and 24 Kona Grills in major metropolitan cities in North America, Europe and the Middle East and 13 F&B venues in seven hotels and casinos in the United States and Europe. For those restaurants and venues that are managed or licensed, the Company generates management fees based on top-line revenues and incentive fee revenue based on a percentage of the location’s revenues and profits. COVID-19 The COVID-19 pandemic has significantly impacted our operations and financial results. The impact to our operations and financial results has been most notable in periods of accelerating COVID-19 case counts. In response to COVID-19, the Company has taken significant steps to adapt its business to increase sales while providing a safe environment for guests and employees. COVID-19 related expenses were $0.2 million and $2.5 million for the three and six months ended June 30, 2022, compared to $1.1 million and $2.6 million for the three and six months ended June 30, 2021, respectively, composed primarily of sanitation, supplies and safety precautions taken to prevent the spread of COVID-19. Currently, all restaurants are open for in-person dining. The continuation of normal dining operations is subject to events beyond the Company’s control, including the effectiveness of governmental efforts to halt the spread of COVID-19. Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and the accompanying unaudited interim condensed consolidated financial statements (“condensed 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 condensed 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, 2021. 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. Change in Accounting Estimate Effective April 1, 2022, the Company changed its estimated useful life of the Kona Grill trade name. Based upon the strong performance of the Kona Grill restaurants over the past twelve months, significant capital investments in both existing and new restaurants and the Company’s commitment to expand the Kona Grill brand with the opening of new restaurants, the Company has determined that the Kona Grill trade name has an indefinite life rather than the twenty-year life previously determined. The Company currently has two Kona Grill venues under construction in Riverton, Utah and Columbus, Ohio and plans to open three to five Kona Grills each year for the foreseeable future. The effect of this change in estimate will reduce depreciation and amortization expense by $0.9 million annually, increase net income by $0.9 million annually, and increase basic and diluted As a result of the above change, the Company updated its accounting policy for Intangible Assets and will test for impairment annually on November 1 st Prior Period Reclassifications Certain reclassifications of the 2021 amounts in the segment reporting footnote have been made to conform to the current year presentation. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB “) issued Accounting Standards Update (“ASU“) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for smaller reporting companies for fiscal years beginning after December 15, 2022. The Company is currently evaluating ASU 2016-13 and assessing the impact on its financial statements.

Property and Equipment, net

Property and Equipment, net	6 Months Ended
Property and Equipment, net	Jun. 30, 2022
Property and Equipment, net
Property and Equipment, net	Note 2 – Property and Equipment, net Property and equipment, net consist of the following (in thousands): June 30, December 31, 2022 2021 Furniture, fixtures and equipment $ 26,569 $ 24,942 Leasehold improvements 78,108 76,500 Less: accumulated depreciation (43,229) (39,425) Subtotal 61,448 62,017 Construction in progress 13,453 5,374 Restaurant smallwares 2,312 2,247 Total $ 77,213 $ 69,638 Depreciation related to property and equipment was $2.9 million and $2.3 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $4.8 million for the six months ended June 30, 2022 and 2021, respectively. The Company does not depreciate construction in progress until such assets are placed into service.

Intangibles, net

Intangibles, net	6 Months Ended
Intangibles, net	Jun. 30, 2022
Intangibles, net
Intangibles, net	Note 3 – Intangibles, net Intangibles, net consists of the following (in thousands): June 30, December 31, 2022 2021 Indefinite-lived intangible assets Kona Grill trade name $ 17,400 $ — Finite-lived intangible assets Kona Grill trade name — 17,400 Other finite-lived intangible assets 66 66 Total finite-lived intangible assets 66 17,466 Less: accumulated amortization (2,182) (1,961) Total intangibles, net $ 15,284 $ 15,505 Finite-lived intangible assets are amortized using the straight-line method over their estimated useful life of 10 years. Amortization expense was nominal and $0.2 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense was $0.2 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s estimated aggregate amortization expense for each of the five succeeding fiscal years is a nominal amount annually. Refer to Note 1 regarding the change in accounting estimate of the Kona Grill trade name.

Accrued Expenses

Accrued Expenses	6 Months Ended
Accrued Expenses	Jun. 30, 2022
Accrued Expenses
Accrued Expenses	Note 4 – Accrued Expenses Accrued expenses consist of the following (in thousands): June 30, December 31, 2022 2021 Payroll and related (1) $ 6,896 $ 6,554 Accrued lease exit costs (2) — 4,913 VAT and sales taxes 2,276 3,477 Amounts due to landlords 2,433 1,847 Legal, professional and other services 1,030 458 Income taxes and related 180 — Construction on new restaurants 622 359 Insurance 305 642 Interest 128 132 Other (3) 4,828 4,773 Total $ 18,698 $ 23,155 (1) Payroll and related includes $1.2 million in employer payroll taxes for which payment has been deferred under the CARES Act as of June 30, 2022 and December 31, 2021, respectively. (2) Amount relates to lease exit costs for 2016 leases for restaurants never built. All amounts have been paid as of June 30, 2022. (3) Amount primarily relates to recurring restaurant operating expenses.

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2022
Long-Term Debt.
Long-Term Debt	Note 5 – Long-Term Debt Long-term debt consists of the following (in thousands): June 30, December 31, 2022 2021 Term loan agreements $ 24,500 $ 24,750 Revolving credit facility — — Total long-term debt 24,500 24,750 Less: current portion of long-term debt (500) (500) Less: debt issuance costs (996) (1,118) Total long-term debt, net of current portion $ 23,004 $ 23,132 Interest expense for the Company’s debt arrangements, excluding the amortization of debt issuance costs and fees, was $0.4 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $0.8 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively. Capitalized interest was $0.1 million for the three and six months ended June 30, 2022. As of June 30, 2022, the Company had $1.4 million in standby letters of credit outstanding for certain restaurants and $10.6 million available in its revolving credit facility, subject to certain conditions. Credit and Guaranty Agreement On October 4, 2019, in conjunction with the acquisition of Kona Grill, the Company entered into a credit agreement with Goldman Sachs Bank USA (the “Credit Agreement”). On August 6, 2021, the Company entered into the Third Amendment to the Credit Agreement to extend the maturity date for both the term loan and revolving credit facility to August 2026, to eliminate all financial covenants except a maximum net leverage ratio of 2.00 to 1.00, and to eliminate restrictions on the maximum amount of capital expenditures, the maximum number of Company-owned new locations, and credit extensions under the revolving credit facility. As amended, the Credit Agreement provides for a secured revolving credit facility of $12.0 million and a $25.0 million term loan (reduced from $48.0 million). The term loan is payable in quarterly installments of $0.1 million, with the final payment due in August 2026. The amended Credit Agreement has several borrowing and interest rate options, including the following: (a) a LIBOR rate (or a comparable successor rate) subject to a 1.00% floor from 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) 4.00%. Loans under the amended Credit Agreement bear interest at a rate per annum using the applicable indices plus an interest rate margin of 5.00% from a variable interest rate margin of 5.75 to 6.75% (for LIBOR rate loans) and 4.00% from 4.75% to 5.75% (for base rate loans). Upon the cessation of LIBOR, the amended Credit Agreement provides for the use of a benchmark replacement as defined in the amended Credit Agreement. In conjunction with the amended Credit Agreement, the Company made a pre-payment on the loan of $22.2 million and incurred $0.9 million in debt issuance costs. The Company accounted for the amendment as a debt modification with a partial extinguishment and recognized a loss on early debt extinguishment of $0.6 million for the year ended December 31, 2021 and $0.1 million in transaction costs. The Company’s weighted average interest rate on the borrowings under the amended Credit Agreement as of June 30, 2022 and December 31, 2021 was 6.00%. The 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 amended Credit Agreement, which also are secured by liens on substantially all of the assets of the Company and its subsidiaries. As of June 30, 2022, the Company had $1.0 million of debt issuance costs related to the amended Credit Agreement, which were capitalized and are recorded as a direct deduction to long-term debt and $0.5 million in debt issuance costs recorded in Other Assets on the condensed consolidated balance sheets. As of June 30, 2022, the Company was in compliance with the financial covenants required by the Credit Agreement.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
Fair Value of Financial Instruments	Jun. 30, 2022
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 6 – 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 June 30, 2022. The Company’s long-term debt, including the current portion, is carried at cost on the condensed consolidated balance sheets. Fair value of long-term debt, including the current portion, is valued using Level 2 inputs including current applicable rates for similar instruments and approximates the carrying value of such obligations.

Income taxes

Income taxes	6 Months Ended
Income taxes	Jun. 30, 2022
Income taxes
Income taxes	Note 7 – Income taxes Income taxes for the three and six months ended June 30, 2022 are recorded at the Company’s estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur. The Company’s effective income tax rate including discrete events was 16.4% and 11.6% for the three and six months ended June 30, 2022 compared to 6.5% and 4.4% for the three and six months ended June 30, 2021. The Company’s annualized effective tax rate is estimated at approximately 19.0% for 2022. The Company’s projected annual effective tax rate differs from the statutory U.S. tax rate of 21% primarily due to the following: (i) tax credits for FICA taxes on certain employees’ tips (ii) taxes owed in foreign jurisdictions with tax rates that differ from the U.S. statutory rate; (iii) taxes owed in state and local jurisdictions; and (iv) the tax effect of non-deductible compensation. Income tax provision recorded for the six months ended June 30, 2022 and 2021 included the discrete period tax benefits resulting from the vesting of restricted stock units. The CARES Act includes provisions allowing for the carryback of net operating losses generated for specific periods and technical amendments regarding the expensing of qualified improvement property. The CARES Act also allows for the deferral of the employer-paid portion of social security taxes, which the Company has elected to defer and will pay by December 31, 2022. The Company is subject to U.S. federal, state, local and various foreign income taxes for the 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. There are no ongoing federal, state, local, or foreign tax examinations as of June 30, 2022.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Jun. 30, 2022
Revenue from Contracts with Customers
Revenue from Contracts with Customers	Note 8 – Revenue from Contracts with Customers The following table provides information about liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue, the Konavore rewards program and deposits from customers for future events (in thousands): June 30, December 31, 2022 2021 Deferred license revenue (1) $ 337 $ 388 Deferred gift card and gift certificate revenue (2) $ 1,033 $ 1,769 Advanced party deposits (2) $ 512 $ 260 Konavore rewards program (3) $ 153 $ 136 (1) Includes the current and long-term portion of deferred license revenue. (2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the condensed consolidated balance sheets. (3) Konavore rewards program is included in accrued expenses on the condensed consolidated balance sheets. Revenue recognized during the period from contract liabilities is as follows (in thousands): June 30, June 30, 2022 2021 Revenue recognized from deferred license revenue $ 40 $ 105 Revenue recognized from deferred gift card revenue $ 1,196 $ 958 Revenue recognized from advanced party deposits $ 198 $ 60 The estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of June 30, 2022 were as follows for each year ending (in thousands): 2022, six months remaining $ 39 2023 79 2024 45 2025 44 2026 37 Thereafter 93 Total future estimated deferred license revenue $ 337

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2022
Leases
Leases	Note 9 – Leases The components of lease expense for the six months ended June 30, 2022 and 2021 are as follows (in thousands): June 30, June 30, 2022 2021 Lease cost Operating lease cost $ 7,317 $ 6,621 Variable lease cost 5,597 2,622 Short-term lease cost 521 322 Total lease cost $ 13,435 $ 9,565 Weighted average remaining lease term – operating leases 13 years 13 years Weighted average discount rate – operating leases 8.40 % 8.49 % Due to the negative effects of COVID-19, the Company implemented measures to reduce its costs, including negotiations with landlords regarding rent concessions. As the rent concessions received do not result in a significant increase in cash payments, the Company elected to account for these concessions as a variable lease payment in accordance with ASC Topic 842. The Company’s right-of-use assets and operating lease liabilities have not been remeasured for lease concessions received. Variable lease cost is comprised of percentage rent and common area maintenance, offset by rent concessions received as a result of COVID-19. Supplemental cash flow information related to leases for the period was as follows (in thousands): June 30, June 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,531 $ 5,682 Right-of-use assets obtained in exchange for operating lease obligations $ 3,709 $ 34 As of June 30, 2022, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2022, six months remaining $ 3,164 2023 15,164 2024 14,663 2025 13,705 2026 13,636 Thereafter 131,925 Total lease payments 192,257 Less: imputed interest (81,879) Present value of operating lease liabilities $ 110,378

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2022
Earnings Per Share
Earnings Per Share	Note 10 – Earnings Per Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of potential shares of common stock including common stock issuable pursuant to stock options, warrants, and restricted stock units. For the three and six months ended June 30, 2022 and 2021, the net income per share was calculated as follows (in thousands, except net income per share and related share data): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Net income attributable to The One Group Hospitality, Inc. $ 4,303 $ 13,836 $ 7,973 $ 13,906 Basic weighted average shares outstanding 32,601,203 31,248,677 32,411,570 30,239,364 Dilutive effect of stock options, warrants and restricted share units 1,358,788 2,780,058 1,711,572 3,444,288 Diluted weighted average shares outstanding 33,959,991 34,028,735 34,123,142 33,683,652 Net income available to common stockholders per share - Basic $ 0.13 $ 0.44 $ 0.25 $ 0.46 Net income available to common stockholders per share - Diluted $ 0.13 $ 0.41 $ 0.23 $ 0.41 For the six months ended June 30, 2022 and 2021, zero and 0.1 million stock options, warrants and restricted share

Stock-Based Compensation and Wa

Stock-Based Compensation and Warrants	6 Months Ended
Stock-Based Compensation and Warrants	Jun. 30, 2022
Stock-Based Compensation and Warrants
Stock-Based Compensation and Warrants	Note 11 – Stock-Based Compensation and Warrants At the 2022 Annual Meeting of Shareholders, the Company’s shareholders approved a 4,500,000 increase in the number of shares available for issuance under the 2019 Equity Plan. As of June 30, 2022, the Company had 4,407,088 shares available for issuance under the 2019 Equity Incentive Plan (“2019 Equity Plan”). Stock-based compensation cost for the three months ended June 30, 2022 and 2021 was $0.9 million and $1.1 million, respectively, and $1.8 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively. Stock-based compensation is included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. Included in stock-based compensation cost was $0.1 million and $0.2 million of stock granted to directors for both the three and six months ended June 30, 2022 and 2021, respectively. Such grants were awarded consistent with the Board of Director’s compensation practices. Stock-based compensation expense for the six months ended June 30, 2021 included $0.3 million of compensation costs for the vesting of market condition based options and RSUs. Stock Option Activity Stock options in the table below include both time based and market condition based awards. Changes in stock options during the six months ended June 30, 2022 were as follows: Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2021 1,252,352 $ 3.36 3.92 years $ 11,581 Exercisable at December 31, 2021 1,126,685 $ 3.48 3.72 years $ 10,283 Granted — $ — Exercised (13,261) $ 2.13 Cancelled, expired or forfeited — $ — Outstanding at June 30, 2022 1,239,091 $ 3.38 3.41 years $ 4,912 Exercisable at June 30, 2022 1,239,091 $ 3.38 3.41 years $ 4,912 A summary of the status of the Company’s non-vested stock options as of June 30, 2022 and changes during the six months then ended, is presented below: Weighted average Shares grant date fair value Non-vested stock options at December 31, 2021 125,667 $ 1.00 Vested (125,667) 1.00 Non-vested stock options at June 30, 2022 — $ — The fair value of options that vested in the six months ended June 30, 2022 was $0.1 million. As of June 30, 2022, all outstanding stock options have vested. 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 six months ended June 30, 2022 is presented below: Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2021 1,690,010 $ 4.98 Granted 316,147 9.61 Vested (597,281) 2.55 Cancelled, expired or forfeited (79,987) 5.99 Non-vested RSUs at June 30, 2022 1,328,889 $ 7.11 As of June 30, 2022, the Company had approximately $8.1 million of total unrecognized compensation costs related to RSUs, which will be recognized over a weighted average period of 2.6 years. Warrants As of June 30, 2022 and December 31, 2021, there were outstanding warrants to purchase 125,000 shares of common stock at an exercise price of $1.63.

Segment Reporting

Segment Reporting	6 Months Ended
Segment Reporting	Jun. 30, 2022
Segment Reporting
Segment Reporting	Note 12 – Segment Reporting 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 pre-opening expenses associated with new restaurants under development. ● Kona Grill . The Kona Grill segment includes the results of operations of Kona Grill restaurant locations and pre-opening expenses associated with new restaurants under development. ● 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, Bao Yum Heliot, Hideout, Marconi, Radio, and Rivershore Bar & Grill. 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, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs. The Corporate segment’s total assets primarily include cash and cash equivalents, the Kona Grill tradename, and deferred tax assets. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), 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. In the second quarter of 2022, the Company changed its financial information regularly reviewed by the CODM to include all cash and cash equivalents, the Kona Grill tradename and deferred tax assets in the Corporate segment. Previously, certain cash amounts were included in the STK and Kona Grill segments and the Kona Grill tradename and certain deferred tax assets were included in the Kona Grill segment. Fiscal 2021 figures have been reclassified for comparability. Certain financial information relating to the three and six months ended June 30, 2022 and 2021 for each segment is provided below (in thousands). STK Kona Grill ONE Hospitality Corporate Total For the three months ended June 30, 2022 Total revenues $ 47,019 33,475 514 117 81,125 Operating income (loss) $ 11,213 1,798 170 (7,428) 5,753 Capital asset additions $ 5,055 1,465 16 1,105 7,641 For the six months ended June 30, 2022 Total revenues $ 89,518 64,687 857 244 155,306 Operating income (loss) $ 21,931 4,835 161 (16,972) 9,955 Capital asset additions $ 7,334 3,268 53 1,436 12,091 As of June 30, 2022 Total assets $ 98,389 71,786 5,377 59,675 235,227 STK Kona Grill ONE Hospitality Corporate Total For the three months ended June 30, 2021 Total revenues $ 37,786 32,247 380 347 70,760 Operating income (loss) $ 10,809 4,416 (66) (7,403) 7,756 Capital asset additions $ 1,749 375 58 576 2,758 For the six months ended June 30, 2021 Total revenues $ 62,477 57,824 413 528 121,242 Operating income (loss) $ 16,406 6,866 (184) (14,475) 8,613 Capital asset additions $ 3,225 904 73 1,171 5,373 As of December 31, 2021 Total assets $ 95,579 69,006 5,735 59,515 229,835

Geographic Information

Geographic Information	6 Months Ended
Geographic Information	Jun. 30, 2022
Geographic Information
Geographic Information	Note 13 – Geographic Information Certain financial information by geographic location is provided below (in thousands). For the three months ended June 30, For the six months ended June 30, 2022 2021 2022 2021 Domestic revenues $ 79,592 $ 69,910 $ 152,736 $ 120,198 International revenues 1,533 850 2,570 1,044 Total revenues $ 81,125 $ 70,760 $ 155,306 $ 121,242 June 30, December 31, 2022 2021 Domestic long-lived assets $ 194,777 $ 185,718 International long-lived assets 665 1,190 Total long-lived assets $ 195,442 $ 186,908

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2022
Commitments and Contingencies.
Commitments and Contingencies	Note 14 – Commitments and Contingencies The Company is party to claims in lawsuits incidental to its business, including lease disputes and employee-related matters. The Company has recorded accruals in its consolidated financial statements in accordance with ASC 450, Contingencies. While the resolution of a lawsuit, proceeding or claim may have an impact on the Company’s financial results for the period in which it is resolved, in the opinion of management, the ultimate outcome of such matters and judgements in which the Company is currently involved, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Summary of Business and Signi_2

Summary of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Summary of Significant Accounting Policies
COVID-19	COVID-19 The COVID-19 pandemic has significantly impacted our operations and financial results. The impact to our operations and financial results has been most notable in periods of accelerating COVID-19 case counts. In response to COVID-19, the Company has taken significant steps to adapt its business to increase sales while providing a safe environment for guests and employees. COVID-19 related expenses were $0.2 million and $2.5 million for the three and six months ended June 30, 2022, compared to $1.1 million and $2.6 million for the three and six months ended June 30, 2021, respectively, composed primarily of sanitation, supplies and safety precautions taken to prevent the spread of COVID-19. Currently, all restaurants are open for in-person dining. The continuation of normal dining operations is subject to events beyond the Company’s control, including the effectiveness of governmental efforts to halt the spread of COVID-19.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and the accompanying unaudited interim condensed consolidated financial statements (“condensed 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 condensed 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, 2021. 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.
Change in Accounting Estimate	Change in Accounting Estimate Effective April 1, 2022, the Company changed its estimated useful life of the Kona Grill trade name. Based upon the strong performance of the Kona Grill restaurants over the past twelve months, significant capital investments in both existing and new restaurants and the Company’s commitment to expand the Kona Grill brand with the opening of new restaurants, the Company has determined that the Kona Grill trade name has an indefinite life rather than the twenty-year life previously determined. The Company currently has two Kona Grill venues under construction in Riverton, Utah and Columbus, Ohio and plans to open three to five Kona Grills each year for the foreseeable future. The effect of this change in estimate will reduce depreciation and amortization expense by $0.9 million annually, increase net income by $0.9 million annually, and increase basic and diluted As a result of the above change, the Company updated its accounting policy for Intangible Assets and will test for impairment annually on November 1 st
Prior Period Reclassifications	Prior Period Reclassifications Certain reclassifications of the 2021 amounts in the segment reporting footnote have been made to conform to the current year presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB “) issued Accounting Standards Update (“ASU“) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for smaller reporting companies for fiscal years beginning after December 15, 2022. The Company is currently evaluating ASU 2016-13 and assessing the impact on its financial statements.

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
Property and Equipment, net (Tables)	Jun. 30, 2022
Property and Equipment, net
Schedule of property and equipment, net	Property and equipment, net consist of the following (in thousands): June 30, December 31, 2022 2021 Furniture, fixtures and equipment $ 26,569 $ 24,942 Leasehold improvements 78,108 76,500 Less: accumulated depreciation (43,229) (39,425) Subtotal 61,448 62,017 Construction in progress 13,453 5,374 Restaurant smallwares 2,312 2,247 Total $ 77,213 $ 69,638

Intangibles, net (Tables)

Intangibles, net (Tables)	6 Months Ended
Intangibles, net (Tables)	Jun. 30, 2022
Intangibles, net
Schedule of intangibles, net	Intangibles, net consists of the following (in thousands): June 30, December 31, 2022 2021 Indefinite-lived intangible assets Kona Grill trade name $ 17,400 $ — Finite-lived intangible assets Kona Grill trade name — 17,400 Other finite-lived intangible assets 66 66 Total finite-lived intangible assets 66 17,466 Less: accumulated amortization (2,182) (1,961) Total intangibles, net $ 15,284 $ 15,505

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2022
Accrued Expenses
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): June 30, December 31, 2022 2021 Payroll and related (1) $ 6,896 $ 6,554 Accrued lease exit costs (2) — 4,913 VAT and sales taxes 2,276 3,477 Amounts due to landlords 2,433 1,847 Legal, professional and other services 1,030 458 Income taxes and related 180 — Construction on new restaurants 622 359 Insurance 305 642 Interest 128 132 Other (3) 4,828 4,773 Total $ 18,698 $ 23,155 (1) Payroll and related includes $1.2 million in employer payroll taxes for which payment has been deferred under the CARES Act as of June 30, 2022 and December 31, 2021, respectively. (2) Amount relates to lease exit costs for 2016 leases for restaurants never built. All amounts have been paid as of June 30, 2022. (3) Amount primarily relates to recurring restaurant operating expenses.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2022
Long-Term Debt.
Schedule of long-term debt	Long-term debt consists of the following (in thousands): June 30, December 31, 2022 2021 Term loan agreements $ 24,500 $ 24,750 Revolving credit facility — — Total long-term debt 24,500 24,750 Less: current portion of long-term debt (500) (500) Less: debt issuance costs (996) (1,118) Total long-term debt, net of current portion $ 23,004 $ 23,132

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Jun. 30, 2022
Revenue from Contracts with Customers
Schedule of contract liabilities	The following table provides information about liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue, the Konavore rewards program and deposits from customers for future events (in thousands): June 30, December 31, 2022 2021 Deferred license revenue (1) $ 337 $ 388 Deferred gift card and gift certificate revenue (2) $ 1,033 $ 1,769 Advanced party deposits (2) $ 512 $ 260 Konavore rewards program (3) $ 153 $ 136 (1) Includes the current and long-term portion of deferred license revenue. (2) Deferred gift card revenue and advance party deposits on goods and services yet to be provided are included in deferred gift card revenue and other on the condensed consolidated balance sheets. (3) Konavore rewards program is included in accrued expenses on the condensed consolidated balance sheets.
Revenue recognized during the period from contract liabilities	Revenue recognized during the period from contract liabilities is as follows (in thousands): June 30, June 30, 2022 2021 Revenue recognized from deferred license revenue $ 40 $ 105 Revenue recognized from deferred gift card revenue $ 1,196 $ 958 Revenue recognized from advanced party deposits $ 198 $ 60
Schedule of estimated deferred license revenue to be recognized in the future related to performance obligations	The estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of June 30, 2022 were as follows for each year ending (in thousands): 2022, six months remaining $ 39 2023 79 2024 45 2025 44 2026 37 Thereafter 93 Total future estimated deferred license revenue $ 337

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2022
Leases
Schedule of components of lease expense	The components of lease expense for the six months ended June 30, 2022 and 2021 are as follows (in thousands): June 30, June 30, 2022 2021 Lease cost Operating lease cost $ 7,317 $ 6,621 Variable lease cost 5,597 2,622 Short-term lease cost 521 322 Total lease cost $ 13,435 $ 9,565 Weighted average remaining lease term – operating leases 13 years 13 years Weighted average discount rate – operating leases 8.40 % 8.49 %
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases for the period was as follows (in thousands): June 30, June 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,531 $ 5,682 Right-of-use assets obtained in exchange for operating lease obligations $ 3,709 $ 34
Schedule of maturities of operating lease liabilities	As of June 30, 2022, maturities of the Company’s operating lease liabilities are as follows (in thousands): 2022, six months remaining $ 3,164 2023 15,164 2024 14,663 2025 13,705 2026 13,636 Thereafter 131,925 Total lease payments 192,257 Less: imputed interest (81,879) Present value of operating lease liabilities $ 110,378

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2022
Earnings Per Share
Schedule of earnings per share, basic and diluted	For the three and six months ended June 30, 2022 and 2021, the net income per share was calculated as follows (in thousands, except net income per share and related share data): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Net income attributable to The One Group Hospitality, Inc. $ 4,303 $ 13,836 $ 7,973 $ 13,906 Basic weighted average shares outstanding 32,601,203 31,248,677 32,411,570 30,239,364 Dilutive effect of stock options, warrants and restricted share units 1,358,788 2,780,058 1,711,572 3,444,288 Diluted weighted average shares outstanding 33,959,991 34,028,735 34,123,142 33,683,652 Net income available to common stockholders per share - Basic $ 0.13 $ 0.44 $ 0.25 $ 0.46 Net income available to common stockholders per share - Diluted $ 0.13 $ 0.41 $ 0.23 $ 0.41

Stock-Based Compensation and _2

Stock-Based Compensation and Warrants (Tables)	6 Months Ended
Stock-Based Compensation and Warrants (Tables)	Jun. 30, 2022
Stock-Based Compensation and Warrants
Schedule of stock option activity	Weighted Weighted average Intrinsic average exercise remaining value Shares price contractual life (thousands) Outstanding at December 31, 2021 1,252,352 $ 3.36 3.92 years $ 11,581 Exercisable at December 31, 2021 1,126,685 $ 3.48 3.72 years $ 10,283 Granted — $ — Exercised (13,261) $ 2.13 Cancelled, expired or forfeited — $ — Outstanding at June 30, 2022 1,239,091 $ 3.38 3.41 years $ 4,912 Exercisable at June 30, 2022 1,239,091 $ 3.38 3.41 years $ 4,912
Schedule of non-vested stock options	Weighted average Shares grant date fair value Non-vested stock options at December 31, 2021 125,667 $ 1.00 Vested (125,667) 1.00 Non-vested stock options at June 30, 2022 — $ —
Schedule of restricted stock awards and changes	Weighted average Shares grant date fair value Non-vested RSUs at December 31, 2021 1,690,010 $ 4.98 Granted 316,147 9.61 Vested (597,281) 2.55 Cancelled, expired or forfeited (79,987) 5.99 Non-vested RSUs at June 30, 2022 1,328,889 $ 7.11

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
Segment Reporting (Tables)	Jun. 30, 2022
Segment Reporting
Schedule of segment information	Certain financial information relating to the three and six months ended June 30, 2022 and 2021 for each segment is provided below (in thousands). STK Kona Grill ONE Hospitality Corporate Total For the three months ended June 30, 2022 Total revenues $ 47,019 33,475 514 117 81,125 Operating income (loss) $ 11,213 1,798 170 (7,428) 5,753 Capital asset additions $ 5,055 1,465 16 1,105 7,641 For the six months ended June 30, 2022 Total revenues $ 89,518 64,687 857 244 155,306 Operating income (loss) $ 21,931 4,835 161 (16,972) 9,955 Capital asset additions $ 7,334 3,268 53 1,436 12,091 As of June 30, 2022 Total assets $ 98,389 71,786 5,377 59,675 235,227 STK Kona Grill ONE Hospitality Corporate Total For the three months ended June 30, 2021 Total revenues $ 37,786 32,247 380 347 70,760 Operating income (loss) $ 10,809 4,416 (66) (7,403) 7,756 Capital asset additions $ 1,749 375 58 576 2,758 For the six months ended June 30, 2021 Total revenues $ 62,477 57,824 413 528 121,242 Operating income (loss) $ 16,406 6,866 (184) (14,475) 8,613 Capital asset additions $ 3,225 904 73 1,171 5,373 As of December 31, 2021 Total assets $ 95,579 69,006 5,735 59,515 229,835

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
Geographic Information (Tables)	Jun. 30, 2022
Geographic Information
Schedule of revenues by geographic location	Certain financial information by geographic location is provided below (in thousands). For the three months ended June 30, For the six months ended June 30, 2022 2021 2022 2021 Domestic revenues $ 79,592 $ 69,910 $ 152,736 $ 120,198 International revenues 1,533 850 2,570 1,044 Total revenues $ 81,125 $ 70,760 $ 155,306 $ 121,242
Schedule of long-lived assets by geographic location	June 30, December 31, 2022 2021 Domestic long-lived assets $ 194,777 $ 185,718 International long-lived assets 665 1,190 Total long-lived assets $ 195,442 $ 186,908

Summary of Business and Signi_3

Summary of Business and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) restaurant item $ / shares	Jun. 30, 2021 USD ($) $ / shares	Jun. 30, 2022 USD ($) restaurant item $ / shares	Jun. 30, 2021 USD ($) $ / shares
Number of venues \| restaurant	59		59
Number of hotels provided F&B services \| item	7		7
COVID-19 related expenses	$ 221	$ 1,088	$ 2,534	$ 2,645
Number of restaurants under construction			two
Depreciation and amortization	(2,926)	(2,495)	$ (5,641)	(5,194)
Net income	$ 4,440	$ 14,109	$ 7,961	$ 14,049
Basic net income per share \| $ / shares	$ 0.13	$ 0.44	$ 0.25	$ 0.46
Diluted net income per share \| $ / shares	$ 0.13	$ 0.41	$ 0.23	$ 0.41
Intangible Assets, Amortization Period \| Kona Grill Trade Name
Depreciation and amortization			$ 900
Net income			$ 900
Basic net income per share \| $ / shares			$ 0.03
Diluted net income per share \| $ / shares			$ 0.03
Intangible Assets, Amortization Period \| Kona Grill Trade Name \| Minimum [Member]
Number of restaurants planned to be opened in future			three
Intangible Assets, Amortization Period \| Kona Grill Trade Name \| Maximum [Memeber]
Number of restaurants planned to be opened in future			five
STK
Number of venues \| restaurant	22		22
Kona Grill
Number of venues \| restaurant	24		24
F&B Venues
Number of venues \| restaurant	13		13

Property and Equipment, net - T

Property and Equipment, net - Total PPE (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (43,229)	$ (39,425)
Property and equipment, net	77,213	69,638
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	26,569	24,942
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	78,108	76,500
Total amount net of accumulated depreciation and amortization
Property, Plant and Equipment [Line Items]
Property and equipment, net	61,448	62,017
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, net	13,453	5,374
Restaurant smallwares
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 2,312	$ 2,247

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property and Equipment, net
Depreciation	$ 2.9	$ 2.3	$ 5.4	$ 4.8

Intangibles, net (Details)

Intangibles, net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Indefinite-lived intangible assets
Kona Grill trade name	$ 17,400
Finite-lived intangible assets
Kona Grill trade name		$ 17,400
Other finite-lived intangible assets	66	66
Total finite-lived intangible assets	66	17,466
Less: accumulated amortization	(2,182)	(1,961)
Total intangibles, net	$ 15,284	$ 15,505

Intangibles, net - Narrative (D

Intangibles, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 0.2	$ 0.2	$ 0.2	$ 0.4
Maximum [Memeber]
Finite-Lived Intangible Assets [Line Items]
Useful life			10 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accrued Expenses
Payroll and related	$ 6,896	$ 6,554
Accrued lease exit costs		4,913
VAT and sales taxes	2,276	3,477
Amounts due to landlords	2,433	1,847
Legal, professional and other services	1,030	458
Income taxes and related	180
Construction on new restaurants	622	359
Insurance	305	642
Interest	128	132
Other	4,828	4,773
Total	18,698	23,155
Employer payroll taxes, deferred	$ 1,200	$ 1,200

Long-Term Debt - Debt and Matur

Long-Term Debt - Debt and Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Aug. 06, 2021
Debt Instrument [Line Items]
Long-term debt	$ 24,500	$ 24,750
Less: current portion of long-term debt	(500)	(500)
Less: debt issuance costs	(996)	(1,118)	$ (900)
Long-term debt, net of current portion	23,004	23,132
Medium-term Notes \| Term Loan Agreements
Debt Instrument [Line Items]
Long-term debt	$ 24,500	$ 24,750

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 06, 2021	Aug. 05, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Interest expense			$ 400	$ 1,100	$ 800	$ 2,200
Weighted average interest rate			6%		6%		6%
Standby letters of credit outstanding			$ 1,400		$ 1,400
Debt issuance costs	$ 900		996		996		$ 1,118
CARES Act loan forgiveness						$ (8,561)
Debt interest rate	4%
Unamortized Debt Issuance Expense							100
Prepayment of outstanding balances	$ 22,200
Interest costs capitalized			100		100
Loss on early debt extinguishment							$ 600
Other Assets
Debt Instrument [Line Items]
Debt issuance costs			500		500
Maximum [Memeber]
Debt Instrument [Line Items]
Maximum net leverage ratio	2%
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	5%
LIBOR \| Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	5.75%
LIBOR \| Maximum [Memeber]
Debt Instrument [Line Items]
Basis spread on variable rate	6.75%
Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	4%
Base Rate \| Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	4.75%
Base Rate \| Maximum [Memeber]
Debt Instrument [Line Items]
Basis spread on variable rate	5.75%
One Month LIBOR
Debt Instrument [Line Items]
Basis spread on derivative rate	1%
LIBOR Floor
Debt Instrument [Line Items]
Basis spread on variable rate	1%	1.75%
Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Goldman Sachs Credit Agreement
Debt Instrument [Line Items]
Debt issuance costs			1,000		1,000
Revolving Credit Facility
Debt Instrument [Line Items]
Available amount			$ 10,600		$ 10,600
Secured revolving credit facility	$ 12,000
Term Loans
Debt Instrument [Line Items]
Face value of debt	25,000	$ 48,000
Principal payments	$ 100

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details)	Jun. 30, 2022 USD ($)
Fair Value of Financial Instruments
Long-lived assets measured at fair value	$ 0

Income taxes - Narrative (Detai

Income taxes - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
Income taxes - Narrative (Details)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2022
Income taxes
Effective income tax rate	16.40%	6.50%	11.60%	4.40%	19%
Foreign rate differential			21%

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deferred license revenue
Deferred revenue	$ 337	$ 388
Deferred gift card and gift certificate revenue
Deferred revenue	1,033	1,769
Advanced party deposits
Deferred revenue	512	260
Konavore rewards program
Deferred revenue	$ 153	$ 136

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Changes in Deferred Gift Card and Gift Certificate Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Deferred license revenue
Revenue recognized	$ 40	$ 105
Deferred gift card and gift certificate revenue
Revenue recognized	1,196	958
Advanced party deposits
Revenue recognized	$ 198	$ 60

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Future Estimated Deferred License Revenue (Details) - Deferred license revenue $ in Thousands	Jun. 30, 2022 USD ($)
2022, six months remaining	$ 39
2023	79
2024	45
2025	44
2026	37
Thereafter	93
Total future estimated deferred license revenue	$ 337

Leases - Lease Expense (Details

Leases - Lease Expense (Details) - USD ($) $ in Thousands	6 Months Ended
Leases - Lease Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Lease cost
Operating lease cost	$ 7,317	$ 6,621
Variable lease cost	5,597	2,622
Short-term lease cost	521	322
Total lease cost	$ 13,435	$ 9,565
Weighted average remaining lease term - operating leases	13 years	13 years
Weighted average discount rate - operating leases	8.40%	8.49%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Leases
Cash paid for amounts included in the measurement of operating lease liabilities	$ 6,531	$ 5,682
Right-of-use assets obtained in exchange for operating lease obligations	$ 3,709	$ 34

Leases - Operating Lease Liabil

Leases - Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2022, six months remaining	$ 3,164
2023	15,164
2024	14,663
2025	13,705
2026	13,636
Thereafter	131,925
Total lease payments	192,257
Less: imputed interest	(81,879)
Present value of operating lease liabilities	$ 110,378

Earnings Per Share - Calculatio

Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share
Net income attributable to The One Group Hospitality, Inc.	$ 4,303	$ 3,670	$ 13,836	$ 70	$ 7,973	$ 13,906
Basic weighted average shares outstanding	32,601,203		31,248,677		32,411,570	30,239,364
Dilutive effect of stock options, warrants and restricted share units	1,358,788		2,780,058		1,711,572	3,444,288
Diluted weighted average shares outstanding	33,959,991		34,028,735		34,123,142	33,683,652
Net income available to common stockholders per share - Basic	$ 0.13		$ 0.44		$ 0.25	$ 0.46
Net income available to common stockholders per share - Diluted	$ 0.13		$ 0.41		$ 0.23	$ 0.41

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
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	0.1
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	0.1
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	0.1

Stock-Based Compensation and _3

Stock-Based Compensation and Warrants - Summary of Status of Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Shares
Outstanding at the beginning (in shares)	1,252,352
Exercisable (in shares)	1,126,685
Exercised (in shares)	(13,261)
Outstanding at the ending (in shares)	1,239,091	1,252,352
Exercisable (in shares)	1,239,091	1,126,685
Weighted average exercise price
Outstanding at the beginning (in dollars per share)	$ 3.36
Exercisable (in dollars per share)	3.48
Exercised (in dollars per share)	2.13
Outstanding at the ending (in dollars per share)	3.38	$ 3.36
Exercisable (in dollars per share)	$ 3.38	$ 3.48
Weighted average remaining contractual life (Years)
Weighted average remaining contractual life	3 years 4 months 28 days	3 years 11 months 1 day
Exercisable weighted average remaining contractual life	3 years 4 months 28 days	3 years 8 months 19 days
Intrinsic value
Intrinsic value, Outstanding	$ 4,912	$ 11,581
Intrinsic value, Exercisable	$ 4,912	$ 10,283

Stock-Based Compensation and _4

Stock-Based Compensation and Warrants - Summary of Non-Vested Stock Options (Details)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Shares
Non-vested stock options (in shares) \| shares	125,667
Vested (in shares) \| shares	(125,667)
Weighted average grant date fair value
Non-vested stock options (in dollars per share) \| $ / shares	$ 1
Vested (in dollars per share) \| $ / shares	$ 1

Stock-Based Compensation and _5

Stock-Based Compensation and Warrants - Summary of Status of Company's Restricted Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Shares
Non-vested RSUs at beginning of period (in shares) \| shares	1,690,010
Granted (in shares) \| shares	316,147
Vested (in shares) \| shares	(597,281)
Cancelled, expired or forfeited (in shares) \| shares	(79,987)
Non-vested RSUs at ending of period (in shares) \| shares	1,328,889
Weighted Average Grant Date Fair Value
Non-vested RSUs at beginning of period (in dollars per share) \| $ / shares	$ 4.98
Granted (in dollars per share) \| $ / shares	9.61
Vested (in dollars per share) \| $ / shares	2.55
Cancelled, expired or forfeited (in dollars per share) \| $ / shares	5.99
Non-vested RSUs at ending of period (in dollars per share) \| $ / shares	$ 7.11

Stock-Based Compensation and _6

Stock-Based Compensation and Warrants - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation			$ 1,790	$ 1,763
Warrants available	125,000		125,000		125,000
Warrants minimum exercise price			$ 1.63		$ 1.63
Maximum [Memeber]
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	$ 900	$ 1,100	1,800	2,200
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested awards	$ 8,100		$ 8,100
Unrecognized compensation cost, recognition period			2 years 7 months 6 days
Milestone-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation				300
Equity Incentive Plan 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	4,407,088		4,407,088
Increase in authorized shares (in shares)			4,500,000
Director \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 100	$ 200	$ 100	$ 200

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Reporting (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			4
Total revenues	$ 81,125	$ 70,760	$ 155,306	$ 121,242
Operating income (loss)	5,753	7,756	9,955	8,613
Capital asset additions	7,641	2,758	12,091	5,373
Total assets	235,227		235,227		$ 229,835
STK
Segment Reporting Information [Line Items]
Total revenues	47,019	37,786	89,518	62,477
Operating income (loss)	11,213	10,809	21,931	16,406
Capital asset additions	5,055	1,749	7,334	3,225
Total assets	98,389		98,389		95,579
Kona Grill
Segment Reporting Information [Line Items]
Total revenues	33,475	32,247	64,687	57,824
Operating income (loss)	1,798	4,416	4,835	6,866
Capital asset additions	1,465	375	3,268	904
Total assets	71,786		71,786		69,006
ONE Hospitality
Segment Reporting Information [Line Items]
Total revenues	514	380	857	413
Operating income (loss)	170	(66)	161	(184)
Capital asset additions	16	58	53	73
Total assets	5,377		5,377		5,735
Corporate
Segment Reporting Information [Line Items]
Total revenues	117	347	244	528
Operating income (loss)	(7,428)	(7,403)	(16,972)	(14,475)
Capital asset additions	1,105	$ 576	1,436	$ 1,171
Total assets	$ 59,675		$ 59,675		$ 59,515

Geographic Information (Details

Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 81,125	$ 70,760	$ 155,306	$ 121,242
Long-lived assets	195,442		195,442		$ 186,908
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	79,592	69,910	152,736	120,198
Long-lived assets	194,777		194,777		185,718
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,533	$ 850	2,570	$ 1,044
Long-lived assets	$ 665		$ 665		$ 1,190