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

15. 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 June 30, 2021 and had incorrectly stated the UK subsidiary’s balances as of and for the three and six month periods ended June 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 table sets forth the effects of the adjustment on affected items within the Company’s previously reported Condensed Consolidated Balance Sheet:

 

                         
    June 30, 2021  
(in thousands)   As reported     Adjustment     As restated  
Cash   $ 2,083     $ 179     $ 2,262  
Accounts and other receivables   $ 157     $ 5     $ 162  
Inventories   $ 154     $ 9     $ 163  
Property and equipment, net   $ 2,908     $ 272     $ 3,180  
Intangible assets, net   $ 2,541     $ (1 )   $ 2,540  
Accounts payable and accrued expenses   $ 8,168     $ 159     $ 8,327  
Accumulated deficit   $ (96,869 )   $ 307     $ (96,562 )

 

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 June 30, 2021  
(in thousands, except per share data)   As reported     Adjustment     As restated  
Restaurant sales, net   $ 4,738     $ 479     $ 5,217  
Restaurant cost of sales   $ 1,435     $ 182     $ 1,617  
Restaurant operating expenses   $ 3,180     $ 275     $ 3,455  
General and administrative expenses   $ 1,194     $ 14     $ 1,208  
Depreciation and amortization   $ 362     $ (135 )   $ 227  
Operating income   $ 256     $ 143     $ 399  
Other income   $ 144     $ 27     $ 171  
Consolidated net income   $ 327     $ 170     $ 497  
Net income attributable to Amergent Hospitality Group, Inc.   $ 267     $ 170     $ 437  
Net income attributable to Amergent Hospitality Group Inc. per common share, basic   $ 0.02     $ (0.01 )   $ 0.01  

 

                         
    Six months ended June 30, 2021  
(in thousands, except per share data)   As reported     Adjustment     As restated  
Restaurant sales, net   $ 9,182     $ 479     $ 9,661  
Restaurant cost of sales   $ 2,751     $ 182     $ 2,933  
Restaurant operating expenses   $ 6,426     $ 275     $ 6,701  
General and administrative expenses   $ 2,361     $ 14     $ 2,375  
Depreciation and amortization   $ 730     $ (271 )   $ 459  
Operating (loss) income   $ (2,533 )   $ 279     $ (2,254 )
Other income   $ 147     $ 27     $ 174  
Consolidated net (loss) income   $ (2,386 )   $ 306     $ (2,080 )
Net (loss) income attributable to Amergent Hospitality Group Inc.   $ (2,282 )   $ 306     $ (1,976 )
Net (loss) income attributable to Amergent Hospitality Group Inc. per common share, basic and diluted   $ (0.15 )   $ 0.02     $ (0.13 )

 

The following table sets forth the effects of the adjustments on affected items within the Company’s previously reported Condensed Consolidated Statement of Cash Flows:

 

                         
    Six months ended June 30, 2021  
(in thousands)   As reported     Adjustment     As restated  
Net cash flows from operating activities   $ (1,346 )   $ 179     $ (1,167 )
Net increase in cash and restricted cash   $ 595     $ 179     $ 774