Kura Sushi USA (KRUS) 10-Q 6 Jan 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Nov. 30, 2021	Jan. 03, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	KRUS
Security Exchange Name	NASDAQ
Entity Registrant Name	KURA SUSHI USA, INC.
Entity Central Index Key	0001772177
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity File Number	001-39012
Entity Tax Identification Number	26-3808434
Entity Address, Address Line One	17461 Derian Avenue
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Address, Postal Zip Code	92614
City Area Code	657
Local Phone Number	333-4100
Document Quarterly Report	true
Document Transition Report	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		8,711,619
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 44,421	$ 40,430
Accounts and other receivables	2,040	2,019
Inventories	820	733
Due from affiliate		329
Prepaid expenses and other current assets	5,654	13,957
Total current assets	52,935	57,468
Non-current assets:
Property and equipment – net	59,893	53,885
Operating lease right-of-use assets	63,680	64,158
Deposits and other assets	2,311	2,158
Total assets	178,819	177,669
Current liabilities:
Accounts payable	6,222	4,920
Accrued expenses and other current liabilities	3,167	2,820
Salaries and wages payable	4,755	4,612
Finance leases – current	845	932
Operating lease liabilities – current	6,534	5,650
Due to affiliate	326	244
Sales tax payable	899	869
Total current liabilities	22,748	20,047
Non-current liabilities:
Finance leases – non-current	374	546
Operating lease liabilities – non-current	65,265	65,834
Other liabilities	401	398
Total liabilities	88,788	86,825
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding
Additional paid-in capital	116,218	115,756
Accumulated deficit	(26,197)	(24,922)
Total stockholders' equity	90,031	90,844
Total liabilities and stockholders' equity	178,819	177,669
Class A
Stockholders' equity:
Class A common stock, $0.001 par value; 50,000 shares authorized, 8,713 and 8,700 shares issued and outstanding as of November 30, 2021 and August 31, 2021, respectively	9	9
Class B
Stockholders' equity:
Class A common stock, $0.001 par value; 50,000 shares authorized, 8,713 and 8,700 shares issued and outstanding as of November 30, 2021 and August 31, 2021, respectively	$ 1	$ 1

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Nov. 30, 2021	Aug. 31, 2021
Preferred stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	8,713,000	8,700,000
Common stock, shares outstanding	8,713,000	8,700,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

Condensed Statements of Operati

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Sales	$ 29,832	$ 9,414
Restaurant operating costs:
Depreciation and amortization expenses	1,171	927
Other costs	3,610	2,079
Total restaurant operating costs	25,648	12,109
General and administrative expenses	5,360	3,521
Depreciation and amortization expenses	88	75
Total operating expenses	31,096	15,705
Operating loss	(1,264)	(6,291)
Other expense (income):
Interest expense	25	34
Interest income	(26)	(4)
Loss before income taxes	(1,263)	(6,321)
Income tax expense	12	29
Net loss	$ (1,275)	$ (6,350)
Net loss per Class A and Class B shares
Basic	$ (0.13)	$ (0.76)
Diluted	$ (0.13)	$ (0.76)
Weighted average Class A and Class B shares outstanding
Basic	9,710	8,348
Diluted	9,710	8,348
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	$ 8,957	$ 3,053
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	9,710	4,360
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 2,200	$ 1,690

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A	Class B	Common StockClass A	Common StockClass B	Additional Paid-in-Capital	Accumulated Deficit
Beginning balances at Aug. 31, 2020	$ 45,713			$ 7	$ 1	$ 60,332	$ (14,627)
Beginning balance, shares at Aug. 31, 2020				7,342	1,000
Stock-based compensation	266					266
Employee stock plan	94					94
Employee stock plan, shares				22
Net loss	(6,350)						(6,350)
Ending balances at Nov. 30, 2020	39,723			$ 7	$ 1	60,692	(20,977)
Ending balance, shares at Nov. 30, 2020				7,364	1,000
Beginning balances at Aug. 31, 2021	90,844			$ 9	$ 1	115,756	(24,922)
Beginning balance, shares at Aug. 31, 2021		8,700	1,000	8,700	1,000
Stock-based compensation	443					443
Employee stock plan	19					19
Employee stock plan, shares				13
Net loss	(1,275)						(1,275)
Ending balances at Nov. 30, 2021	$ 90,031			$ 9	$ 1	$ 116,218	$ (26,197)
Ending balance, shares at Nov. 30, 2021		8,713	1,000	8,713	1,000

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Cash flows from operating activities
Net loss	$ (1,275)	$ (6,350)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	1,259	1,002
Stock-based compensation	443	266
Loss on disposal of property and equipment		29
Non-cash lease expense	709	682
Changes in operating assets and liabilities:
Accounts and other receivables	84	(19)
Inventories	(87)	(87)
Due from affiliate	329	(227)
Prepaid expenses and other current assets	8,303	(64)
Deposits and other assets	(69)	(1)
Accounts payable	194	801
Accrued expenses and other current liabilities	241	482
Salaries and wages payable	143	823
Operating lease liabilities	205	(238)
Due to affiliate	67	44
Sales tax payable	30	126
Net cash provided by (used in) operating activities	10,576	(2,731)
Cash flows from investing activities
Payments for property and equipment	(6,036)	(6,519)
Payments for initial direct costs	(225)
Payments for purchases of liquor licenses	(84)	(100)
Net cash used in investing activities	(6,345)	(6,619)
Cash flows from financing activities
Proceeds from loan from affiliate		3,000
Repayment of principal on finance leases	(259)	(258)
Proceeds from exercise of stock options	19	94
Net cash (used in) provided by financing activities	(240)	2,836
Increase (decrease) in cash and cash equivalents	3,991	(6,514)
Cash and cash equivalents, beginning of period	40,430	9,259
Cash and cash equivalents, end of period	44,421	2,745
Supplemental disclosures of cash flow information
Cash paid for income taxes	45
Noncash investing activities
Amounts unpaid for purchases of property and equipment	$ 2,394	$ 1,214

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Nov. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	Note 1. Organization and Basis of Presentation Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires. Effects of COVID-19 The negative effects of the COVID-19 pandemic on the Company’s business have been significant. In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus continues to spread, including recent acceleration of the spread of the Delta and Omicron variants of COVID-19 in the areas in which the Company operates. This has adversely affected workforces, customers, economies and financial markets globally. In response to this outbreak, many state and local authorities mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities during the Company’s previous two fiscal years. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. During the three months ended November 30, 2021, the Company opened one new restaurant in San Francisco, California, and was able to operate all of its 33 restaurants with no government restrictions on indoor dining capacity. Subsequent to November 30, 2021, the Company opened two new restaurants in Phoenix, Arizona and Chandler, Arizona. As of the filing date of this Quarterly Report on Form 10-Q, all of the Company’s 35 restaurants were operating with no government restrictions on indoor dining capacity. In response to the ongoing COVID-19 pandemic, the Company has prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained cleaning and sanitizing protocols for its restaurants and has implemented additional training and operational manuals for its restaurant employees, as well as increased handwashing procedures. The Company also provides each restaurant employee with face masks and gloves, and requires each employee to pass a health screening process, which includes a temperature check, before the start of each shift. Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020, and the subsequent extension of the CARES Act, the Company was eligible for refundable employee retention credits subject to certain criteria through the fiscal year ended August 31, 2021. The Company has filed for refunds of the employee retention credits and during the three months ended November 30, 2021, and as of the date of this Quarterly Report on Form 10-Q, has received $8.0 million in refunds and cannot reasonably estimate when it will receive any or all of the remaining $4.1 million in refunds. Consistent with the Company’s long-term growth strategy, the Company expects to continue to open new restaurants in locations where it believes such restaurants have the potential to achieve profitability. The future sales levels of the Company’s restaurants and its ability to implement its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the filing date of this Quarterly Report on Form 10-Q, including the recent acceleration of the spread of the Delta and Omicron variants of COVID-19. Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2021. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2021. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2022 or for any other future annual or interim period. Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2022” and “fiscal year 2021” refer to the Company’s fiscal years ending August 31, 2022 and August 31, 2021, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements . Recently Issued Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which provides guidance on disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. ASU 2021-10 is effective for the Company beginning in fiscal year 2023. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The Company adopted this update effective September 1, 2021. The adoption of this update did not impact the consolidated financial statements.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Nov. 30, 2021
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Note 2. Accounts and Other Receivables November 30, 2021 August 31, 2021 (amounts in thousands) Lease receivables $ 1,532 $ 1,431 Credit card receivables 498 575 Other receivables 10 13 Total accounts and other receivables $ 2,040 $ 2,019 Prepaid Expenses and Other Current Assets November 30, 2021 August 31, 2021 (amounts in thousands) Employee retention credit $ 4,056 $ 12,007 Prepaid expenses 1,391 1,732 Other current assets 207 218 Total prepaid expenses and other current assets $ 5,654 $ 13,957 Property and Equipment - net November 30, 2021 August 31, 2021 (amounts in thousands) Leasehold improvements $ 45,318 $ 43,181 Lease assets 6,131 6,128 Furniture and fixtures 14,258 13,324 Computer equipment 1,024 905 Vehicles 110 110 Software 831 773 Construction in progress 7,923 3,907 Property and equipment – gross 75,595 68,328 Less: accumulated depreciation and amortization (15,702 ) (14,443 ) Total property and equipment – net $ 59,893 $ 53,885 Depreciation and amortization expense for property and equipment was approximately $1.3 million and $1.0

Leases

Leases	3 Months Ended
	Nov. 30, 2021
Leases [Abstract]
Leases	Note 3. Leases The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. Lease related costs recognized in the statements of operations for the three months ended November 30, 2021 and 2020 are as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 136 $ 151 Interest on lease liabilities Interest expense 13 23 Total finance lease cost $ 149 $ 174 Three Months Ended November 30, 2021 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 1,832 $ 1,567 Variable lease cost Occupancy and related expenses, and general and administrative expenses 436 245 Total operating lease cost $ 2,268 $ 1,812 Supplemental balance sheet information related to leases is as follows: Operating Leases November 30, 2021 August 31, 2021 (amounts in thousands) Right-of-use assets $ 63,680 $ 64,158 Lease liabilities – current $ 6,534 $ 5,650 Lease liabilities – non-current 65,265 65,834 Total lease liabilities $ 71,799 $ 71,484 Finance Lease Assets – net November 30, 2021 August 31, 2021 (amounts in thousands) Property and equipment $ 6,131 $ 6,128 Accumulated depreciation (2,915 ) (2,778 ) Total property and equipment – net $ 3,216 $ 3,350 Finance Leases Liabilities November 30, 2021 August 31, 2021 (amounts in thousands) Finance lease – current $ 845 $ 932 Finance lease – non-current 374 546 Total finance lease liabilities $ 1,219 $ 1,478 Three months ended November 30, 2021 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.2 16.2 Finance leases 1.3 2.2 Weighted Average Discount Rate Operating leases 6.4 % 6.4 % Finance leases 4.5 % 4.4 % Supplemental disclosures of cash flow information related to leases are as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 1,478 $ 907 Operating right-of-use assets obtained in exchange for new operating lease liabilities — — As of November 30, 2021, the Company had additional operating lease liabilities related to restaurants of which the Company has not yet taken possession of $30.8 million. These operating leases are expected to commence in fiscal years 2022 and 2023, with lease terms of 20 years. Maturities of lease liabilities, net of lease receivables, were as follows as of November 30, 2021: Operating Leases Finance Leases (amounts in thousands) Remainder of 2022 $ 3,156 $ 735 2023 5,952 492 2024 6,840 24 2025 6,966 2 2026 6,865 — Thereafter 85,450 — Total lease payments 115,229 1,253 Less: imputed interest (43,430 ) (34 ) Present value of lease liabilities $ 71,799 $ 1,219

Related Party Transactions

Related Party Transactions	3 Months Ended
	Nov. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Note 4. Related Party Transactions Kura Sushi, Inc. (“Kura Japan”) is the majority shareholder of the Company, and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statements of operations. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets. In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks “Kura Sushi” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant-level in the accompanying statements of operations. On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, to provide the Company a revolving credit line of $45 million. For additional information, see “Note 6. Debt.” Balances with Kura Japan as of November 30, 2021 and August 31, 2021 are as follows: November 30, 2021 August 31, 2021 (amounts in thousands) Due from affiliate $ — $ 329 Due to affiliate $ 326 $ 244 Reimbursements and other payments by the Company to Kura Japan for the three months ended November 30, 2021 and 2020 were as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ — $ 65 Expatriate salaries expense 42 31 Royalty payments 149 47 Travel and other administrative expenses 2 13 Purchases of equipment 280 366 Total related party transactions $ 473 $ 522 Reimbursements by Kura Japan to the Company were $17 thousand and $5 thousand for the three months ended November 30, 2021 and November 30, 2020, respectively. The reimbursements were for travel and other administrative expenses.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Nov. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	Note 5. Stock-based Compensation The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”): Options Outstanding Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Per Share Outstanding — August 31, 2021 625,378 $ 17.13 Options granted 20,000 $ 45.75 Options exercised (4,330 ) $ 4.35 Options canceled/forfeited (18,449 ) $ 32.80 Outstanding — November 30, 2021 622,599 $ 17.68 During the three months ended November 30, 2021, nine thousand restricted stock awards were issued, in addition to the option grants stated above, for which the Company incurred an expense of $38 thousand for the three months ended November 30, 2021. Stock-based compensation for stock options issued under the Stock Incentive Plan was $0.4 million and $0.3 million for the three months ended November 30, 2021 and November 30, 2020, respectively. The total stock-based compensation expense recognized under the Stock Incentive Plan in the statements of operations is as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 35 $ 23 Corporate-level stock-based compensation included in general and administrative expenses 408 243 Total stock-based compensation $ 443 $ 266

Debt

Debt	3 Months Ended
	Nov. 30, 2021
Debt Disclosure [Abstract]
Debt	Note 6. Debt On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, establishing a $45 million revolving credit line for the Company. from the date of disbursement and the last day of the period of availability for the advances is April 10, 2025. The Revolving Credit Note under the Revolving Credit Agreement has an interest rate for advances fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply. As of November 30, 2021, the Company had no outstanding balance and $45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

Loss Per Share

Loss Per Share	3 Months Ended
	Nov. 30, 2021
Earnings Per Share [Abstract]
Loss Per Share	Note 7. Loss Per Share The net loss per share attributable to common stockholder is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to all common stockholders is allocated on a proportionate basis . The following table sets forth the computation of the Company’s basic and diluted net loss per share: Three Months Ended November 30, 2021 2020 Class A Class B Class A Class B (amounts in thousands, except per share data) Net loss attributable to common stockholders – basic $ (1,144 ) $ (131 ) $ (5,589 ) $ (761 ) Weighted average common shares outstanding – basic 8,710 1,000 7,348 1,000 Net loss per share attributable to common stockholders – basic $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.76 ) Net loss attributable to common stockholders – diluted $ (1,144 ) $ (131 ) $ (5,589 ) $ (761 ) Weighted average common shares outstanding – basic 8,710 1,000 7,348 1,000 Dilutive effect of stock-based awards — — — — Weighted average common shares outstanding – diluted 8,710 1,000 7,348 1,000 Net loss per share attributable to common stockholders – diluted $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.76 ) The Company computes basic loss per common share using net income and the weighted average number of common shares outstanding during the period, and computes diluted loss per common share using net loss and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options. For the three months ended November 30, 2021 and November 30, 2020, there were 623 thousand and 506 thousand shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Nov. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies On May 31, 2019, a putative class action complaint was filed by a former employee, Brandy Gomes, in Los Angeles County Superior Court, alleging violations of California wage and hour laws. On July 9, 2020, plaintiff’s counsel filed a first amended class action complaint to add Jamar Spencer, another former employee, as a plaintiff to this action. In addition, the first amended class action complaint added new causes of action alleging violations of California wage and hour laws including a cause of action brought under the California Private Attorney General Act. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. In May 2021, a joint stipulation was filed requesting a delay in the class certification hearing date to March 3, 2022, and a mediation was scheduled for September 24, 2021. During the mediation, a settlement was agreed upon in the amount of $1.75 million. The Company recorded an accrued liability of $1.78 million, including an estimated $30 thousand in employer payroll taxes, related to this settlement within general and administrative expenses in the statements of operations during the fiscal year ended August 31, 2021. A court hearing to seek preliminary approval of the settlement has been scheduled for May 9, 2022. The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee-related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings, excluding the putative class action matter referenced above, will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.

Income Taxes

Income Taxes	3 Months Ended
	Nov. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The Company recorded income tax expense of $12 thousand and $29 thousand for the three months ended November 30, 2021 and November 30, 2020, respectively. The Company’s effective tax rates for the three months ended November 30, 2021 substantially differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company’s deferred tax assets. The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at November 30, 2021 was appropriate.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	3 Months Ended
	Nov. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Effects of COVID-19	Effects of COVID-19 The negative effects of the COVID-19 pandemic on the Company’s business have been significant. In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus continues to spread, including recent acceleration of the spread of the Delta and Omicron variants of COVID-19 in the areas in which the Company operates. This has adversely affected workforces, customers, economies and financial markets globally. In response to this outbreak, many state and local authorities mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities during the Company’s previous two fiscal years. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. During the three months ended November 30, 2021, the Company opened one new restaurant in San Francisco, California, and was able to operate all of its 33 restaurants with no government restrictions on indoor dining capacity. Subsequent to November 30, 2021, the Company opened two new restaurants in Phoenix, Arizona and Chandler, Arizona. As of the filing date of this Quarterly Report on Form 10-Q, all of the Company’s 35 restaurants were operating with no government restrictions on indoor dining capacity. In response to the ongoing COVID-19 pandemic, the Company has prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained cleaning and sanitizing protocols for its restaurants and has implemented additional training and operational manuals for its restaurant employees, as well as increased handwashing procedures. The Company also provides each restaurant employee with face masks and gloves, and requires each employee to pass a health screening process, which includes a temperature check, before the start of each shift. Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020, and the subsequent extension of the CARES Act, the Company was eligible for refundable employee retention credits subject to certain criteria through the fiscal year ended August 31, 2021. The Company has filed for refunds of the employee retention credits and during the three months ended November 30, 2021, and as of the date of this Quarterly Report on Form 10-Q, has received $8.0 million in refunds and cannot reasonably estimate when it will receive any or all of the remaining $4.1 million in refunds. Consistent with the Company’s long-term growth strategy, the Company expects to continue to open new restaurants in locations where it believes such restaurants have the potential to achieve profitability. The future sales levels of the Company’s restaurants and its ability to implement its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the filing date of this Quarterly Report on Form 10-Q, including the recent acceleration of the spread of the Delta and Omicron variants of COVID-19.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2021. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2021. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2022 or for any other future annual or interim period.
Fiscal Year	Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2022” and “fiscal year 2021” refer to the Company’s fiscal years ending August 31, 2022 and August 31, 2021, respectively.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements .
Recently Issued/Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which provides guidance on disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. ASU 2021-10 is effective for the Company beginning in fiscal year 2023. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The Company adopted this update effective September 1, 2021. The adoption of this update did not impact the consolidated financial statements.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Nov. 30, 2021
Property Plant And Equipment Net [Abstract]
Schedule of Accounts and Other Receivables	Accounts and Other Receivables November 30, 2021 August 31, 2021 (amounts in thousands) Lease receivables $ 1,532 $ 1,431 Credit card receivables 498 575 Other receivables 10 13 Total accounts and other receivables $ 2,040 $ 2,019
Schedule of Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets November 30, 2021 August 31, 2021 (amounts in thousands) Employee retention credit $ 4,056 $ 12,007 Prepaid expenses 1,391 1,732 Other current assets 207 218 Total prepaid expenses and other current assets $ 5,654 $ 13,957
Schedule of Property and Equipment - Net	Property and Equipment - net November 30, 2021 August 31, 2021 (amounts in thousands) Leasehold improvements $ 45,318 $ 43,181 Lease assets 6,131 6,128 Furniture and fixtures 14,258 13,324 Computer equipment 1,024 905 Vehicles 110 110 Software 831 773 Construction in progress 7,923 3,907 Property and equipment – gross 75,595 68,328 Less: accumulated depreciation and amortization (15,702 ) (14,443 ) Total property and equipment – net $ 59,893 $ 53,885

Leases (Tables)

Leases (Tables)	3 Months Ended
	Nov. 30, 2021
Leases [Abstract]
Summary of Lease Related Costs	Lease related costs recognized in the statements of operations for the three months ended November 30, 2021 and 2020 are as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 136 $ 151 Interest on lease liabilities Interest expense 13 23 Total finance lease cost $ 149 $ 174 Three Months Ended November 30, 2021 2020 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 1,832 $ 1,567 Variable lease cost Occupancy and related expenses, and general and administrative expenses 436 245 Total operating lease cost $ 2,268 $ 1,812
Summary of Supplemental Balance Sheet Information	Supplemental balance sheet information related to leases is as follows: Operating Leases November 30, 2021 August 31, 2021 (amounts in thousands) Right-of-use assets $ 63,680 $ 64,158 Lease liabilities – current $ 6,534 $ 5,650 Lease liabilities – non-current 65,265 65,834 Total lease liabilities $ 71,799 $ 71,484 Finance Lease Assets – net November 30, 2021 August 31, 2021 (amounts in thousands) Property and equipment $ 6,131 $ 6,128 Accumulated depreciation (2,915 ) (2,778 ) Total property and equipment – net $ 3,216 $ 3,350 Finance Leases Liabilities November 30, 2021 August 31, 2021 (amounts in thousands) Finance lease – current $ 845 $ 932 Finance lease – non-current 374 546 Total finance lease liabilities $ 1,219 $ 1,478 Three months ended November 30, 2021 2020 Weighted Average Remaining Lease Term (Years) Operating leases 16.2 16.2 Finance leases 1.3 2.2 Weighted Average Discount Rate Operating leases 6.4 % 6.4 % Finance leases 4.5 % 4.4 %
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases	Supplemental disclosures of cash flow information related to leases are as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 1,478 $ 907 Operating right-of-use assets obtained in exchange for new operating lease liabilities — —
Summary of Maturities of Lease Liabilities Net of Lease Receivables	Maturities of lease liabilities, net of lease receivables, were as follows as of November 30, 2021: Operating Leases Finance Leases (amounts in thousands) Remainder of 2022 $ 3,156 $ 735 2023 5,952 492 2024 6,840 24 2025 6,966 2 2026 6,865 — Thereafter 85,450 — Total lease payments 115,229 1,253 Less: imputed interest (43,430 ) (34 ) Present value of lease liabilities $ 71,799 $ 1,219

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Nov. 30, 2021
Related Party Transactions [Abstract]
Schedule of Related Party Transactions Due to and from Affiliates	Balances with Kura Japan as of November 30, 2021 and August 31, 2021 are as follows: November 30, 2021 August 31, 2021 (amounts in thousands) Due from affiliate $ — $ 329 Due to affiliate $ 326 $ 244
Schedule of Related Party Reimbursements and Other Payments	Reimbursements and other payments by the Company to Kura Japan for the three months ended November 30, 2021 and 2020 were as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Related party transactions: Purchases of administrative supplies $ — $ 65 Expatriate salaries expense 42 31 Royalty payments 149 47 Travel and other administrative expenses 2 13 Purchases of equipment 280 366 Total related party transactions $ 473 $ 522

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Nov. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Option Activity under Stock Incentive Plan	The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”): Options Outstanding Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Per Share Outstanding — August 31, 2021 625,378 $ 17.13 Options granted 20,000 $ 45.75 Options exercised (4,330 ) $ 4.35 Options canceled/forfeited (18,449 ) $ 32.80 Outstanding — November 30, 2021 622,599 $ 17.68
Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan	The total stock-based compensation expense recognized under the Stock Incentive Plan in the statements of operations is as follows: Three Months Ended November 30, 2021 2020 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 35 $ 23 Corporate-level stock-based compensation included in general and administrative expenses 408 243 Total stock-based compensation $ 443 $ 266

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Nov. 30, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of the Company’s basic and diluted net loss per share: Three Months Ended November 30, 2021 2020 Class A Class B Class A Class B (amounts in thousands, except per share data) Net loss attributable to common stockholders – basic $ (1,144 ) $ (131 ) $ (5,589 ) $ (761 ) Weighted average common shares outstanding – basic 8,710 1,000 7,348 1,000 Net loss per share attributable to common stockholders – basic $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.76 ) Net loss attributable to common stockholders – diluted $ (1,144 ) $ (131 ) $ (5,589 ) $ (761 ) Weighted average common shares outstanding – basic 8,710 1,000 7,348 1,000 Dilutive effect of stock-based awards — — — — Weighted average common shares outstanding – diluted 8,710 1,000 7,348 1,000 Net loss per share attributable to common stockholders – diluted $ (0.13 ) $ (0.13 ) $ (0.76 ) $ (0.76 )

Organization and Basis of Pre_3

Organization and Basis of Presentation - Additional Information (Details) $ in Millions	3 Months Ended
	Nov. 30, 2021USD ($)Restaurant	Jan. 06, 2022Restaurant
COVID-19 | Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants, total	33
COVID-19 | Kura Japan | San Francisco, California
Organization and Basis of Presentation [Line Items]
Number of new restaurant opened	1
COVID-19 | Subsequent Event | Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants, total		35
COVID-19 | Subsequent Event | Kura Japan | Phoenix, Arizona and Chandler, Arizona
Organization and Basis of Presentation [Line Items]
Number of new restaurant opened		2
C A R E S Act
Organization and Basis of Presentation [Line Items]
Employee retention credits refunds | $	$ 8
Employee retention credits remaining refunds | $	$ 4.1

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Receivables Net Current [Line Items]
Accounts and other receivables	$ 2,040	$ 2,019
Lease Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	1,532	1,431
Credit Card Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	498	575
Other Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	$ 10	$ 13

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Prepaid Expense And Other Assets Current [Abstract]
Employee retention credit	$ 4,056	$ 12,007
Prepaid expenses	1,391	1,732
Other current assets	207	218
Total prepaid expenses and other current assets	$ 5,654	$ 13,957

Balance Sheet Components - Sc_3

Balance Sheet Components - Schedule of Property and Equipment - Net (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 75,595	$ 68,328
Less: accumulated depreciation and amortization	(15,702)	(14,443)
Total property and equipment – net	59,893	53,885
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment - gross	45,318	43,181
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment - gross	6,131	6,128
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment - gross	14,258	13,324
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment - gross	1,024	905
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment - gross	110	110
Software
Property Plant And Equipment [Line Items]
Property and equipment - gross	831	773
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 7,923	$ 3,907

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Property Plant And Equipment Net [Abstract]
Depreciation and amortization expenses	$ 1,259	$ 1,002

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	Jan. 06, 2022	Nov. 30, 2021
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease start range terms description		less than 1 year
Operating lease liabilities not yet commenced, liability		$ 30.8
Operating lease liabilities not yet commenced, lease term		20 years
Option to extend, existence, lease liabilities not yet commenced, operating lease		true
Subsequent Event
Lessee Lease Description [Line Items]
Operating lease liabilities not yet commenced, liability	$ 8.6
Operating lease liabilities not yet commenced, lease term	15 years
Option to extend, existence, lease liabilities not yet commenced, operating lease	true
Maximum
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease terms		20 years

Leases - Summary of Lease Relat

Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Finance lease cost
Amortization of right-of-use assets	$ 136	$ 151
Interest on lease liabilities	13	23
Total finance lease cost	149	174
Operating lease cost
Operating lease cost	1,832	1,567
Variable lease cost	436	245
Total operating lease cost	$ 2,268	$ 1,812

Leases - Summary of Operating L

Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Leases [Abstract]
Right-of-use assets	$ 63,680	$ 64,158
Lease liabilities – current	6,534	5,650
Lease liabilities – non-current	65,265	65,834
Total lease liabilities	$ 71,799	$ 71,484

Leases - Summary of Finance Lea

Leases - Summary of Finance Lease Assets - Net (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Lessee Lease Description [Line Items]
Property and equipment	$ 75,595	$ 68,328
Total property and equipment – net	59,893	53,885
Finance Lease Assets
Lessee Lease Description [Line Items]
Property and equipment	6,131	6,128
Accumulated depreciation	(2,915)	(2,778)
Total property and equipment – net	$ 3,216	$ 3,350

Leases - Summary of Finance L_2

Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Leases [Abstract]
Finance lease – current	$ 845	$ 932
Finance lease – non-current	374	546
Total finance lease liabilities	$ 1,219	$ 1,478

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Nov. 30, 2021	Nov. 30, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases	16 years 2 months 12 days	16 years 2 months 12 days
Finance leases	1 year 3 months 18 days	2 years 2 months 12 days
Weighted Average Discount Rate
Operating leases	6.40%	6.40%
Finance leases	4.50%	4.40%

Leases - Summary of Supplementa

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 1,478	$ 907

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Liabilities Net of Lease Receivables (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Operating Leases
Remainder of 2022	$ 3,156
2023	5,952
2024	6,840
2025	6,966
2026	6,865
Thereafter	85,450
Total lease payments	115,229
Less: imputed interest	(43,430)
Present value of lease liabilities	71,799	$ 71,484
Finance Leases
Remainder of 2022	735
2023	492
2024	24
2025	2
Total lease payments	1,253
Less: imputed interest	(34)
Present value of lease liabilities	$ 1,219	$ 1,478

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2019	Nov. 30, 2021	Nov. 30, 2020
Travel and Translation Expense
Related Party Transaction [Line Items]
Reimbursements by related party		$ 17	$ 5
Revolving Credit Facility Agreement | COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity		$ 45,000
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales	0.50%

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - USD ($) $ in Thousands	Nov. 30, 2021	Aug. 31, 2021
Related Party Transaction [Line Items]
Due from affiliate		$ 329
Due to affiliate	$ 326	244
Kura Japan
Related Party Transaction [Line Items]
Due from affiliate		329
Due to affiliate	$ 326	$ 244

Related Party Transactions - _2

Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - Kura Japan - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Related Party Transaction [Line Items]
Total related party transactions	$ 473	$ 522
Purchases of Administrative Supplies
Related Party Transaction [Line Items]
Total related party transactions		65
Expatriate Salaries Expense
Related Party Transaction [Line Items]
Total related party transactions	42	31
Royalty Payments
Related Party Transaction [Line Items]
Total related party transactions	149	47
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Total related party transactions	2	13
Purchases of Equipment
Related Party Transaction [Line Items]
Total related party transactions	$ 280	$ 366

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan	3 Months Ended
	Nov. 30, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance | shares	625,378
Options Outstanding, Number of shares underlying outstanding options, Options granted | shares	20,000
Options Outstanding, Number of shares underlying outstanding options, Options exercised | shares	(4,330)
Options Outstanding, Number of shares underlying outstanding options, Options canceled/forfeited | shares	(18,449)
Options Outstanding, Number of shares underlying outstanding options, Ending balance | shares	622,599
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance | $ / shares	$ 17.13
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted | $ / shares	45.75
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised | $ / shares	4.35
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited | $ / shares	32.80
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance | $ / shares	$ 17.68

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 443	$ 266
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued	9
Stock-based compensation expense	$ 38

Stock-based Compensation - Su_2

Stock-based Compensation - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 443	$ 266
Restaurant-level Stock-based Compensation Included In Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	35	23
Corporate-level Stock-based Compensation Included In General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 408	$ 243

Debt - Additional Information (

Debt - Additional Information (Details) - Revolving Credit Facility Agreement - USD ($)	3 Months Ended
	Nov. 30, 2021	Apr. 10, 2020
Debt Instrument [Line Items]
Outstanding balance	$ 0
Remaining availability under credit agreement	$ 45,000,000
Kura Japan
Debt Instrument [Line Items]
Revolving credit line		$ 45,000,000

Loss Per Share - Computation of

Loss Per Share - Computation of Basic and Diluted Net (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding – basic	9,710	8,348
Basic	$ (0.13)	$ (0.76)
Diluted	9,710	8,348
Diluted	$ (0.13)	$ (0.76)
Class A
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders – basic	$ (1,144)	$ (5,589)
Weighted average common shares outstanding – basic	8,710	7,348
Basic	$ (0.13)	$ (0.76)
Net loss attributable to common stockholders – diluted	$ (1,144)	$ (5,589)
Diluted	8,710	7,348
Diluted	$ (0.13)	$ (0.76)
Class B
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders – basic	$ (131)	$ (761)
Weighted average common shares outstanding – basic	1,000	1,000
Basic	$ (0.13)	$ (0.76)
Net loss attributable to common stockholders – diluted	$ (131)	$ (761)
Diluted	1,000	1,000
Diluted	$ (0.13)	$ (0.76)

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Employee Stock Option
Earnings Per Share [Line Items]
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share	623	506

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	3 Months Ended
	Nov. 30, 2021USD ($)
Loss Contingencies [Line Items]
Settlement amount	$ 1,750
General and Administrative Expenses
Loss Contingencies [Line Items]
Accrued liability	1,780
Payroll taxes	$ 30

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 12	$ 29
Federal statutory tax rate	21.00%