Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

14. RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

The Company, while undergoing the audit of its consolidated financial statements as of December 31, 2021 and for the year then ended, determined that it had over-depreciated certain assets from January 1, 2021 through September 30, 2021 and had incorrectly stated the UK subsidiary’s balances as of and for the three and nine month periods ended September 30, 2021. This impacted the previously reported amounts for cash, property and equipment, intangible assets, accounts payable and accrued expenses, restaurant sales, restaurant cost of sales, restaurant operating expenses, and depreciation and amortization, among other line items, in the condensed consolidated interim financial statements.

 

The following tables set forth the effects of the adjustment on affected items within the Company’s previously reported Condensed Consolidated Statements of Operations:

 

                   
    Three months ended September 30, 2021  
(in thousands, except per share data)   As reported     Adjustment     As restated  
Restaurant sales, net   $ 6,106     $ (479 )   $ 5,627  
Restaurant cost of sales   $ 2,032     $ (182 )   $ 1,850  
Restaurant operating expenses   $ 3,675     $ (275 )   $ 3,400  
General and administrative expenses   $ 1,395     $ (14 )   $ 1,381  
Depreciation and amortization   $ 351     $ (137 )   $ 214  
Operating income   $ 137     $ 129     $ 266  
Other income   $ 18     $ (27 )   $ (9 )
Consolidated net income   $ (89 )   $ 102     $ 13  
Net income attributable to Amergent Hospitality Group, Inc.   $ (94 )   $ 102     $ 8  
Net income attributable to Amergent Hospitality Group Inc. per common share, basic   $ (0.01 )   $ 0.01     $ 0.00  

 

                   
    Nine months ended September 30, 2021  
(in thousands, except per share data)   As reported     Adjustment     As restated  
Depreciation and amortization   $ 1,081     $ (408 )   $ 673  
Operating (loss) income   $ (2,397 )   $ 408     $ (1,988 )
Consolidated net (loss) income   $ (2,475 )   $ 408     $ (2,067 )
Net (loss) income attributable to Amergent Hospitality Group Inc.   $ (2,376 )   $ 408     $ (1,968 )
Net (loss) income attributable to Amergent Hospitality Group Inc. per common share, basic and diluted   $ (0.16 )   $ 0.03     $ (0.13 )