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:
SCHEDULE
OF PREVIOUSLY ISSUED INTERIM FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|