Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Condensed Consolidated and Combined Financial Statements (Unaudited)

v3.21.2
Restatement of Previously Issued Condensed Consolidated and Combined Financial Statements (Unaudited)
6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Restatement of Previously Issued Condensed Consolidated and Combined Financial Statements (Unaudited)

11. Restatement of Previously Issued Condensed Consolidated and Combined Financial Statements (Unaudited)

 

The Company, while undergoing the audit of its consolidated and combined financial statements as of December 31, 2020 and for the year then ended, re-evaluated the lease term for three restaurants that were permanently closed in 2020 due to the pandemic and determined that the lease terms should no longer have included periods subject to renewal options. Impairment charges had been recorded for these restaurants during the respective quarter that the restaurants were closed, but the 2020 interim unaudited financial statements did not reflect the revised lease terms. This impacted the previously reported amounts for operating lease assets, operating lease liabilities, and rent expense, among other line items in the condensed consolidated and combined interim financial statements.

 

The following table sets forth the effects of the adjustments on the affected items within the Company’s previously reported Condensed Consolidated and Combined Interim Balance Sheet as of June 30, 2020:

 

    June 30, 2020  
    As reported     Adjustment     As restated  
Operating lease assets   $ 11,007,038     $ (98,944 )   $ 10,908,094  
Long-term operating lease liabilities   $ 13,832,826     $ (458,154 )   $ 13,374,672  
Accumulated deficit   $ (85,658,825 )   $ 284,848     $ (85,373,977 )
Non-controlling interests   $ (310,801 )   $ 74,362     $ (236,439 )

 

 

Amergent Hospitality Group, Inc and Subsidiaries

Notes to the Condensed Consolidated and Combined Financial Statements

 

The following tables sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated and Combined Interim Statements of Operations for the three and six months ended June 30, 2020:

  

    Three Months Ended June 30, 2020  
    As reported     Adjustment     As restated  
Restaurant operating expenses   $ 3,261,393     $ (13,346 )   $ 3,247,957  
Asset impairment charges   $ 273,927     $ (121,457 )   $ 152,470  
Operating loss   $ (2,655,587 )   $ 134,893     $ (2,520,694 )
Other income   $ (70,748 )   $     $ (70,748 )
Consolidated and combined net loss   $ (9,210,911 )   $ 134,893     $ (9,076,018 )
Net loss attributable to non-controlling interests   $ 89,716     $     $ 89,716  
Net loss attributable to Amergent Hospitality Group Inc   $ (9,121,195 )   $ 134,893     $ (8,986,302 )
Net loss per common share, basic and diluted   $ (0.64 )   $ 0.01     $ (0.63 )

 

 

    Six Months Ended June 30, 2020  
    As reported     Adjustment     As restated  
Restaurant operating expenses   $ 6,887,237     $ (13,346 )   $ 6,873,801  
Asset impairment charges   $ 273,927     $ (121,457 )   $ 152,470  
Operating loss   $ (4,009,677 )   $ 134,893     $ (3,874,784 )
Other income (expense)   $ (48,009 )   $ 224,317     $ 176,308  
Consolidated and combined net loss   $ (11,003,437 )   $ 359,210     $ (10,644,227 )
Net income attributable to non-controlling interests   $ (39,327 )   $ (74,362 )   $ (113,689 )
Net loss attributable to Amergent Hospitality Group Inc   $ (11,042,764 )   $ 284,848     $ (10,757,916 )
Net loss per common share, basic and diluted   $ (0.85 )   $ 0.03     $ (0.82 )