0001564590-20-054401 | 10-K | XBRL Viewer

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Aug. 31, 2020	Nov. 11, 2020	Feb. 29, 2020
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Aug. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Non-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 Annual Report	true
Document Transition Report	false
Entity Public Float			$ 62
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this Form 10-K, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement for the 2021 annual meeting of stockholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended August 31, 2020.
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,342,272
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Current assets:
Cash and cash equivalents	$ 9,259	$ 38,044
Accounts receivable	2,130	948
Inventories	367	539
Due from affiliate	12	226
Prepaid expenses and other current assets	3,010	1,744
Total current assets	14,778	41,501
Non-current assets:
Property and equipment - net	45,541	31,917
Operating lease right-of-use assets	56,119
Deposits and other assets	1,941	1,865
Deferred tax assets		1,127
Total assets	118,379	76,410
Current liabilities:
Accounts payable	4,919	3,684
Accrued expenses and other current liabilities	720	1,635
Salaries and wages payable	1,786	1,348
Finance leases - current	1,004	994
Operating lease liabilities - current	5,106
Due to affiliate	201	83
Sales tax payable	189	547
Total current liabilities	13,925	8,291
Non-current liabilities:
Finance leases - non-current	1,481	2,424
Operating lease liabilities - non-current	56,918
Deferred rent		2,188
Tenant allowances		1,089
Other liabilities	342	237
Total liabilities	72,666	14,229
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock
Additional paid-in capital	60,332	59,442
Retained earnings (Accumulated deficit)	(14,627)	2,731
Total stockholders' equity	45,713	62,181
Total liabilities and stockholders' equity	118,379	76,410
Class A
Stockholders' equity:
Common stock	7	7
Class B
Stockholders' equity:
Common stock	$ 1	$ 1

Balance Sheets (Parenthetical) - $ / shares	Aug. 31, 2020	Aug. 31, 2019
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, authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	7,342,000	7,335,000
Common stock, outstanding	7,342,000	7,335,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, outstanding	1,000,000	1,000,000

Statements of Operations - USD ($)	12 Months Ended
Statements of Operations - USD ($)	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Sales	$ 45,168,000	$ 64,245,000	$ 51,744,000
Restaurant operating costs:
Depreciation and amortization expenses	2,980,000	2,055,000	1,624,000
Other costs	6,705,000	7,088,000	5,404,000
Total restaurant operating costs	49,422,000	54,726,000	43,629,000
General and administrative expenses	12,064,000	7,748,000	5,965,000
Depreciation and amortization expenses	180,000	110,000	51,000
Impairment of long-lived assets, net	0	0	236,000
Total operating expenses	61,666,000	62,584,000	49,881,000
Operating income (loss)	(16,498,000)	1,661,000	1,863,000
Other expense (income):
Interest expense	136,000	188,000	128,000
Interest income	(450,000)	(51,000)	(12,000)
Income (loss) before income taxes	(16,184,000)	1,524,000	1,747,000
Income tax expense	1,174,000	68,000	5,000
Net income (loss)	$ (17,358,000)	$ 1,456,000	$ 1,742,000
Net income (loss) per Class A and Class B shares
Basic	$ (2.08)	$ 0.28	$ 0.35
Diluted	$ (2.08)	$ 0.26	$ 0.34
Weighted average Class A and Class B shares
Basic	8,338	5,283	5,000
Diluted	8,338	5,512	5,050
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	$ 14,709,000	$ 21,048,000	$ 17,594,000
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	18,669,000	19,942,000	15,994,000
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 6,359,000	$ 4,593,000	$ 3,013,000

Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)
Beginning balances at Aug. 31, 2017	$ 14,658			$ 4	$ 1	$ 15,120	$ (467)
Beginning balance, shares at Aug. 31, 2017				4,000	1,000
Stock-based compensation	105					105
Additional capital investment from affiliate	5,000					5,000
Net income (loss)	1,742						1,742
Ending balances at Aug. 31, 2018	21,505			$ 4	$ 1	20,225	1,275
Ending balance, shares at Aug. 31, 2018				4,000	1,000
Stock-based compensation	590					590
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs	38,630			$ 3		38,627
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs, shares				3,335
Net income (loss)	1,456						1,456
Ending balances at Aug. 31, 2019	62,181			$ 7	$ 1	59,442	2,731
Ending balance, shares at Aug. 31, 2019		7,335	1,000	7,335	1,000
Stock-based compensation	860					860
Net income (loss)	(17,358)						(17,358)
Exercise of stock options	30					30
Exercise of stock options, shares				7
Ending balances at Aug. 31, 2020	$ 45,713			$ 7	$ 1	$ 60,332	$ (14,627)
Ending balance, shares at Aug. 31, 2020		7,342	1,000	7,342	1,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Cash flows from operating activities
Net income (loss)	$ (17,358)	$ 1,456	$ 1,742
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	3,160	2,165	1,675
Stock-based compensation	860	590	105
Loss on disposal of property and equipment	47		234
Deferred income taxes	1,121	(61)	(60)
Noncash lease expense	2,326
Inventory write-downs	50
Changes in operating assets and liabilities:
Accounts receivable	629	(427)	170
Inventories	122	(155)	(115)
Due from affiliate	214	(222)	3
Prepaid expenses and other current assets	(1,320)	(1,082)	66
Deposits and other assets	(548)	(816)	53
Accounts payable	(614)	1,646	250
Accrued expenses and other current liabilities	(1,024)	1,135	311
Sales tax payable	(358)	152	60
Salary and wages payable	438	531	124
Due to affiliate	(35)	(38)	28
Deferred rent and tenant allowances		1,119	597
Operating lease liabilities	(714)
Net cash (used in) provided by operating activities	(13,004)	5,993	5,243
Cash flows from investing activities
Redemption of short-term investment			12
Payments for property and equipment	(14,400)	(10,726)	(7,089)
Proceeds from disposal of property and equipment			502
Payments for initial direct costs	(319)
Payments for purchases of liquor licenses	(58)	(529)	(15)
Net cash used in investing activities	(14,777)	(11,255)	(6,590)
Cash flows from financing activities
Cash received for additional capital investment from affiliate			5,000
Proceeds from the initial public offering, net of discounts and commissions		43,422
Payments of costs related to the initial public offering		(4,792)
Proceeds from borrowings of debt		3,921
Repayment on debt		(3,921)
Proceeds from PPP loan	5,983
Repayment of PPP loan	(5,983)
Repayment of principal on finance leases	(1,034)	(1,035)	(824)
Proceeds from stock option exercises	30
Net cash (used in) provided by financing activities	(1,004)	37,595	4,176
Increase (decrease) in cash and cash equivalents	(28,785)	32,333	2,829
Cash and cash equivalents, beginning of year	38,044	5,711	2,882
Cash and cash equivalents, end of year	9,259	38,044	5,711
Supplemental disclosures of cash flow information
Cash paid for interest	8	189	116
Cash paid for income taxes (net of refunds)	132	56	4
Noncash investing activities
Acquisition of finance leases	101		1,733
Amounts unpaid for purchases of property and equipment	$ 2,219	$ 142	$ 57

Organization and Description of Business

12 Months Ended

Aug. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

Note 1—Organization and Description of Business

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.

Initial Public Offering

On August 5, 2019, the Company completed the initial public offering of its Class A common stock at a public offering price of $14.00 per share. The Company issued 3,335,000 shares, including 435,000 shares sold to the underwriters pursuant to their over-allotment option. After underwriter discounts and commissions and offering expenses, net proceeds from the offering were approximately $39 million.

Effects of COVID-19

In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus, which has continued to spread, 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. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. On March 18, 2020, the Company announced the temporary closure of all of its 25 restaurants located across five states at that time and has since furloughed certain of its employees. As restrictions lifted, the Company was able to reopen certain restaurants at reduced indoor dining capacities. The Company has also started offering outdoor dining at certain restaurants. As of the filing date of this Annual Report on Form 10-K, the Company has 28 restaurants with 12 restaurants operating with indoor dining at reduced capacities of 25% to 75% and 15 restaurants operating with outdoor dining or takeout only, depending on local requirements, and one restaurant temporarily closed.

To support the Company’s employees during this challenging time, the Company had maintained payroll for all employees through April 5, 2020 and all kitchen employees through May 9, 2020. The Company continued to maintain payroll for store managers and key kitchen staff during the time when their respective restaurants were temporarily closed. The Company also continued to pay the employee’s portion of health insurance for all furloughed employees through July 31, 2020. As the restaurants reopened, the Company was able to bring back certain furloughed employees.

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. Currently, due to local government restrictions, the California restaurants are not utilizing the revolving conveyor belt . All food is ordered from the tableside touchscreen and delivered to the customers’ tables by the restaurant employees for indoor dining. For outdoor dining, food is ordered and delivered by the restaurant employees. The Company has increased cleaning and sanitizing protocols of 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.

The temporary restaurant closures and the reduced capacities at the reopened restaurants have caused a substantial decline in the Company’s sales in the most recently completed fiscal year. In light of the challenges posed by the COVID-19 pandemic, the Company is focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. In line with the Company’s long-term growth strategy, it expects to continue to open new restaurants at locations where it believes the restaurants have the potential to achieve profitability. The future sales levels of the Company’s restaurants and its ability to implement it growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the date of this Annual Report on Form 10-K.

Recent Events Concerning the Company’s Financial Position

On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), a majority stockholder, entered into a Revolving Credit Agreement establishing a $35 million revolving credit line with a termination date of April 10, 2025 , to provide the Company with additional liquidity as may be necessary. On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment. See “Note 5. Related Party Transactions” and “Note 7. Debt”.

On April 14, 2020, the Company entered into a Promissory Note with Bank of the West, which provided for a loan in the amount of $6.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020. On April 29, 2020, the Company returned the proceeds received from the PPP Loan.

Under the provisions of the CARES Act, the Company is eligible for a refundable employee retention credit subject to certain criteria. In connection with the CARES Act, the Company adopted a policy to recognize the employee retention credit when earned and to offset the credit against the related expenditure. Accordingly, the Company recorded a $1.8 million employee retention credit during the twelve months ended August 31, 2020, which is included in Labor and related costs in the statements of operations.

The Company has received rent concessions from its landlords for certain of its restaurants in the form of rent abatements and rent deferrals which were immaterial for the twelve months ended August 31, 2020. The Company continues to have discussions with its landlords regarding potential future rent concessions.

Due to the impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of August 31, 2020. The Company also assessed the realizability of its deferred tax assets and recorded a valuation allowance of $5.6 million during the twelve months ended August 31, 2020. See “Note 10. Income Taxes”.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Aug. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2—Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2020”, “fiscal year 2019” and “fiscal year 2018” refer to the Company’s fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, 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.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with financial institutions and, at times, the balance may exceed the Federal Deposit Insurance Corporation federally insured limits. The Company has never experienced any losses related to these balances.

Concentration of Significant Suppliers

The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers. The Company is subject to supplier concentration risk as JFC International Inc., a subsidiary of Kikkoman Corporation and the Company’s largest supplier, accounted for approximately 59%, 55%, and 47% of total food and beverage costs for fiscal years 2020, 2019, and 2018, respectively. The Company also relies on Wismettac Asian Foods, Inc. (formerly Nishimoto Trading Co., Ltd.), a subsidiary of Nishimoto Co., Ltd., which provided food products and supplies equaling approximately 27% of total food and beverage cost for fiscal year 2020 and 28% of total food and beverage costs for fiscal years 2019 and 2018.

Segment Information

Management has determined that the Company has one operating segment and therefore one reportable segment. The Company’s chief operating decision maker, who is its Chief Executive Officer, reviews financial performance and allocates resources. All of the Company’s sales are derived in the United States of America.

Cash and Cash Equivalents

Cash and cash equivalents consist of primarily cash on hand, deposits with banks, and term deposits with maturities of three months or less. As of August 31, 2020 and August 31, 2019, cash equivalents consist of money market funds and time deposits of approximately $8.8 million and $37.0 million, respectively. Due to the short-term maturities and their relatively low interest rates, the carrying value of the money market accounts approximates their fair value. Cash and cash equivalents are maintained at financial institutions with strong credit ratings. The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents.

Accounts Receivable

Accounts receivable consist primarily of receivables from landlords for tenant allowances and credit card receivables. The Company does not extend credit to guests and thus does not have credit risk from guests. Accounts receivable balances are stated at the amounts management expects to collect from balances outstanding at fiscal year-end, accordingly no allowance for doubtful accounts is recorded as of August 31, 2020 and August 31, 2019.

Inventories

Inventories consist of food and beverages, and are stated at the lower of cost or net realizable value with cost determined on a first-in, first-out basis.

Property and Equipment

Property and equipment consists of computer equipment, vehicles, software, furniture and fixtures, leasehold improvements and leased assets. Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the improvements. The following table represents the various types of property and equipment and their respective useful lives:

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value.

Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets.

Asset Retirement Obligations

Asset retirement obligations (“ARO”) represents the estimated present value of future expenses the Company expects to incur at the end of a lease to restore the location to its original condition. The ARO is recorded as a liability at its estimated present value at inception with an offsetting increase in the carrying amount of the related property and equipment in the accompanying balance sheet. Periodic accretion of the discount of the estimated liability is recorded as an interest expense in the accompanying statements of operations. Asset retirement obligations are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the leasehold improvements. The Company’s ARO liability is approximately $0.3 million and $0.2 million as of August 31, 2020 and August 31, 2019 and is included in other liabilities in the accompanying balance sheets.

Impairment of Long-lived Assets

The Company assesses potential impairments of its long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment test is performed on an annual basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant-level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. Factors considered in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the fiscal year ended August 31, 2018, one of the Company’s restaurants exited a lease prior to the end of the lease term. As a result, the property and equipment held at that location were deemed to be not recoverable, which was determined by comparing the net carrying value of the assets to the undiscounted net cash flows from the eventual disposition of the assets. Given the property and equipment at the restaurant will no longer be in use, the net carrying value of the assets were deemed to have zero value. This impairment was offset by a reimbursement from the landlord of $0.5 million for the termination of the lease, hence resulting in a net impairment charge of $0.2 million, which is included in operating income. During the fiscal years ended August 31, 2020 and August 31, 2019, there were no impairment charges recognized.

Income Taxes

The provision for income taxes, income taxes payable, and deferred income taxes are determined using the asset and liability method. Deferred income tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income. Income tax expense or benefit is the income tax payable or refundable for the period, plus or minus the change during the period to deferred income tax assets and liabilities.

The Company regularly evaluates the likelihood of realizing the benefit for income tax positions it has taken in federal and state filings by considering all facts, circumstances, and information available. For those benefits that the Company believes it is more likely than not will be sustained, it recognizes the largest amount it believes is cumulatively greater than 50% likely to be realized.

Revenue Recognition

Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers.

Sales Taxes

Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the statements of operations as restaurant sales are recorded net of sales tax.

Operating and Finance Leases

At inception of a contract, the Company assesses whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options is reasonably assured at the inception of the lease.

Operating leases are accounted for on the balance sheet with the right-of-use (“ROU”) assets and lease liabilities recognized in “Operating lease right-of-use assets”, “Operating lease liabilities - current" and "Operating lease liabilities - noncurrent" on the balance sheet, respectively. Finance leases are accounted for on the balance sheet with ROU assets and lease liabilities recognized in "Property and equipment - net”, “Finance lease - current" and "Finance lease - noncurrent" on the balance sheet, respectively.

Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates corresponding to the maturities of the leases. As the Company has no outstanding debt, it estimates this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives. Depreciation of the finance lease ROU assets are subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization expense" on the statement of operations.

Related to the adoption of Topic 842, the Company’s policy elections were as follows:

Separation of lease and non-lease components		The Company has elected a policy to account for lease and non-lease components as a single component for its entire population of operating lease assets.
Short-term policy		The Company has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are not recorded on the balance sheet.

The Company recognizes expense for these leases on a straight-line basis over the lease term. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, such as common area maintenance, insurance and real estate taxes, which are recognized when the associated activity occurs. Additionally, contingent rental payments based on sales thresholds for certain of its restaurants are accrued based on estimated sales.

Other Costs

Other costs in restaurant operating costs in the accompanying statements of operations include utilities, repairs and maintenance, credit card fees, royalty payments, stock-based compensation for restaurant-level employees, and other restaurant-level expenses. The Company incurred approximately $6.7 million, $7.1 million and $5.4 million in other costs for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively.

Advertising Costs

Advertising costs are expensed as incurred and are included in other costs in the accompanying statements of operations. The Company incurred approximately $0.3 million, $0.4 million and $0.3 million in advertising expenses for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively.

Fair Value Measurements

The Company defines fair value as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows:

Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Observable inputs other than Level 1 prices, such as unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on the Company’s own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

The Company’s financial statements include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and salaries and wages payable for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of payments due to or from Kura Japan is not determinable due to its related-party nature.

Stock-based Compensation

Stock-based compensation consists of stock options issued to employees and non-employees. The Company measures and recognizes stock-based compensation for the estimated fair value of stock options based on the grant date fair value of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model and is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield.

The Company granted 157,539, 22,000, and 419,091 stock options for the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, respectively. For stock options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, which is typically the vesting period. Stock options granted in fiscal year 2020 have vesting periods ranging from 9 months to 46 months. The majority of stock options granted in fiscal 2019 and 2018 have a vesting period of approximately 45 months. The Company adopted the Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting in fiscal year 2018 and accounts for forfeitures as they occur.

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.

Earnings Per Share

Earnings per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted earnings per share assumes the conversion, exercise or issuance of all potential dilutive common stock equivalents outstanding for the period. For the purposes of this calculation, options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Diluted earnings per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method.

Recently Adopted Accounting Pronouncements

In April 2020, the staff of the Financial Accounting Standards Board (FASB) issued a question-and-answer document that stated that entities may elect to account for lease concessions related to the effects of the COVID-19 pandemic as though the rights and obligations for those concessions existed as of the commencement of the contract rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has made such election. The Company has received immaterial rent concessions that did not result in an extension of lease term. As such, this election did not have a material impact on the balance sheets, the statements of operations, statements of stockholders’ equity or statements of cash flows.

On September 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” (“Topic 842” or “ASC 842”), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. The Company elected the optional transition method to apply the standard as of the effective date and therefore, prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under previous lease guidance, ASC Topic 840: “Leases (Topic 840)”. The adoption of Topic 842 had a material impact on the balance sheet and an immaterial impact on the statement of operations, statement of stockholders’ equity and statement of cash flows.

The practical expedients were as follows:

Practical expedients		The Company has not reassessed whether any expired or existing contracts are, or contain, leases.
		The Company has not reassessed the lease classification for any expired or existing leases.
		The Company has not reassessed initial direct costs for any expired or existing leases.
Hindsight Practical Expedient		The Company has elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets.

The impact on the balance sheet is as follows:

	August 31, 2019		Adjustments Due to the Adoption of Topic 842			September 1, 2019
	(amounts in thousands)
Assets
Current assets:
Cash and cash equivalents	$	38,044	$	—		$	38,044
Accounts receivable		948		—			948
Inventories		539		—			539
Due from affiliate		226		—			226
Prepaid expenses and other current assets⁽¹⁾		1,744		(54	)		1,690
Total current assets		41,501		(54	)		41,447
Non-current assets:
Property and equipment - net		31,917					31,917
Operating lease right-of-use assets		—		35,935			35,935
Deposits and other assets⁽¹⁾		1,865		(530	)		1,335
Deferred tax assets		1,127		—			1,127
Total assets	$	76,410	$	35,351		$	111,761
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,684	$	—		$	3,684
Accrued expenses and other current liabilities⁽¹⁾		1,635		(97	)		1,538
Salaries and wages payable		1,348		—			1,348
Finance leases - current		994		—			994
Operating lease liabilities - current		—		3,606			3,606
Due to affiliate		83		—			83
Sales tax payable		547		—			547
Total current liabilities		8,291		3,509			11,800
Non-current liabilities:
Finance leases - non-current		2,424		—			2,424
Operating lease liabilities - non-current		—		35,119			35,119
Deferred rent⁽¹⁾		2,188		(2,188	)		—
Tenant allowances⁽¹⁾		1,089		(1,089	)		—
Other liabilities		237		—			237
Total liabilities		14,229		35,351			49,580
Stockholders' equity:
Preferred stock		—		—			—
Common stock - Class A		7		—			7
Common stock - Class B		1		—			1
Additional paid-in capital		59,442		—			59,442
Retained earnings		2,731		—			2,731
Total stockholders' equity		62,181		—			62,181
Total liabilities and stockholders' equity	$	76,410	$	35,351		$	111,761

⁽¹⁾	Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 is effective for the Company beginning in fiscal year 2022. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements.

Balance Sheet Components

12 Months Ended

Aug. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 3—Balance Sheet Components

Accounts Receivable

Accounts receivable as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Lease receivable	$	1,811	$	215
Credit card receivable		281		733
Other receivable		38		—
Total accounts receivable	$	2,130	$	948

Inventories

Inventories as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Food	$	320	$	491
Liquor and beverages		47		48
Total inventories	$	367	$	539

Prepaid expenses and other current assets

Prepaid expenses and other current assets as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Prepaid expenses	$	885	$	1,293
Other current assets		375		451
Employee retention credit		1,750		—
Total prepaid expenses and other current assets	$	3,010	$	1,744

Property and Equipment, net

Property and equipment, net as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020			2019
	(amounts in thousands)
Leasehold improvements	$	30,497		$	24,926
Lease assets		6,117			6,037
Furniture and fixtures		7,908			5,600
Computer equipment		696			599
Vehicles		88			75
Software		689			428
Construction in progress		9,558			1,127
Property and equipment, gross		55,553			38,792
Less: accumulated depreciation and amortization		(10,012	)		(6,875	)

Total property and equipment - net	$	45,541		$	31,917

Depreciation and amortization expense for property and equipment was approximately $3.2 million, $2.2 million and $1.7 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018, respectively. Amortization expense related to leased assets for the fiscal years ended August 31, 2019, and August 31, 2018 was immaterial. For amortization expense related to leased assets for the fiscal year ended August 31, 2020, please see “Note 4. Leases.”

Deposits and Other Assets

Deposits and other assets, as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Liquor license	$	696	$	638
Initial direct costs		—		530
Deposits		1,245		697
Total deposits and other assets	$	1,941	$	1,865

Leases

12 Months Ended

Aug. 31, 2020

Leases [Abstract]

Leases

Note 4—Leases

As a result of the COVID-19 pandemic and the economic uncertainty in the restaurant industry that has resulted, the Company contacted each of its landlords to potentially negotiate accommodations to preserve cash, and for certain leases was able to modify existing payment terms, in some cases through deferral of existing payments until future periods and in some cases through a reduction in payments due during this period. The Company elected the practical expedient to not evaluate whether a deferral of rent within the current term is a lease modification. Any concessions resulting in extension of the existing lease term were accounted for as a lease modification in accordance with Topic 842, Leases. Pursuant to such guidance, the Company remeasured the modified leases using the revised terms as of the modification dates. Adjustments were made to reflect the remeasured liability with the offset to the ROU asset.

Lease related costs recognized in the statements of operations for the twelve months ended August 31, 2020 are as follows:

		Fiscal Year Ended
		August 31, 2020
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expense	$	552
Interest on lease liabilities	Interest expense		120
Total finance lease cost		$	672


		Fiscal Year Ended
		August 31, 2020
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	5,194
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,059
Total operating lease cost		$	6,253

Supplemental balance sheet information related to leases was as follows:

Operating Leases

	As of August 31, 2020
	(amounts in thousands)
Right-of-use assets	$	56,119

Lease liabilities - current	$	5,106
Lease liabilities - non-current		56,918
Total lease liabilities	$	62,024

Finance Lease Assets, net

	As of August 31, 2020
	(amounts in thousands)
Property and equipment	$	6,117
Accumulated depreciation		(2,178	)
Total property and equipment - net	$	3,939

Finance Leases Liabilities

	As of August 31, 2020
	(amounts in thousands)
Finance lease - current	$	1,004
Finance lease - non-current		1,481
Total finance lease liabilities	$	2,485

	As of August 31, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases		16.3
Finance leases		2.4

Weighted Average Discount Rate
Operating leases		6.2	%
Finance leases		4.4	%

Supplemental disclosures of cash flow information related to leases were as follows:

	Fiscal Year Ended
	August 31, 2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	21,203

As of August 31, 2020, the Company has additional operating leases related to restaurants the Company has not yet taken possession of $13.7 million. These operating leases will commence in fiscal year 2021 with lease terms of 20 years.

Lease expense was approximately $4.7 million and $3.0 million, including contingent rent expenses of approximately $0.2 million for each of the fiscal years ended August 31, 2019 and August 31, 2018.

Maturities of lease liabilities were as follows as of August 31, 2020:

	Operating Leases			Finance Leases
	(amounts in thousands)
2021	$	2,313		$	1,102
2022		5,734			1,005
2023		5,722			483
2024		5,848			17
2025		5,981			2
Thereafter		72,913			—
Total lease payments		98,511			2,609
Less: imputed interest		(36,487	)		(124	)
Present value of lease liabilities	$	62,024		$	2,485

As previously disclosed in the Company’s fiscal year 2019 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of August 31, 2019:

	Operating Lease Payments		Capital Lease Payments
	(amounts in thousands)
2020	$	4,256	$	1,113
2021		4,435		1,075
2022		4,477		972
2023		4,465		476
2024		4,607		13
Thereafter		58,714		—
Total	$	80,954	$	3,649
Less interest				(231	)
Total capital lease obligation				3,418
Less current portion of capital lease obligation				(994	)
Non-current portion of capital lease obligation			$	2,424

Related Party Transactions

12 Months Ended

Aug. 31, 2020

Related Party Transactions

Note 5—Related Party Transactions

Kura Japan is a majority stakeholder of the Company and is incorporated and headquartered in Japan. In August 2019, in connection with the closing of the IPO, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan will provide 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, market research analyses and other additional services mutually agreed upon. In exchange for such services, supplies, parts and equipment, the parties will 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. The Company reimburses Kura Japan for purchases of supplies, expatriate salaries and travel and other administrative expenses. These expenses 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. Kura Japan reimburses the Company for a portion of the directors’ and officers’ (“D&O”) insurance, as well as travel and other administrative expenses, and are included in general and administrative expenses in the accompanying statements of operations.

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 will pay 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.

Kura Japan contributed $5.0 million to the Company in fiscal year 2018 and made no capital contributions in fiscal years 2020 and 2019. No additional shares were issued in exchange for the capital contribution.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement establishing a $20 million revolving credit line with a termination date of March 31, 2024, to provide the Company with additional liquidity. The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months.

On September 2, 2020, the Company entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) with Kura Japan. Pursuant to the terms of the First Amendment, the Revolving Credit Agreement was amended, among other things, to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment.

Balances with Kura Japan as of August 31, 2020 and August 31, 2019 are as follows:

	As of August 31,
	2020		2019
	(amounts in thousands)
Due from affiliate	$	12	$	226
Due to affiliate	201		83

Reimbursements by the Company to Kura Japan for fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 are as follows:

	Fiscal Years Ended August 31,
	2020		2019		2018
	(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	53	$	46	$	59
Expatriate salaries expense		141		147		95
Royalty payments		226		321		279
Travel and other administrative expenses		73		49		78
Purchases of equipment		1,129		685		650
Total related party transactions	$	1,622	$	1,248	$	1,161
Additional investment received	$	—	$	—	$	5,000

Reimbursements by Kura Japan to the Company for fiscal years ended August 31, 2020 and August 31, 2019 are $0.1 million for travel and other administrative expenses and $0.3 million for D&O insurance, travel and other administrative expenses, respectively. There were no reimbursements paid to the Company by Kura Japan for the fiscal year ended August 31, 2018.

Incentive Compensation Plan

12 Months Ended

Aug. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Incentive Compensation Plan

Note 6—Incentive Compensation Plan

The Company adopted the 2018 Incentive Compensation Plan (the “Stock Incentive Plan”) in January 2018. Under the Stock Incentive Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, as well as performance awards in the form of shares and cash. Stock options granted under the Stock Incentive Plan include both incentive stock options and non-qualified stock options. This plan authorizes 700,000 awards to be granted.

Activity under the Stock Incentive Plan is as follows:

	Options Outstanding
	Number of shares underlying outstanding options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
								(amounts in thousands)
Outstanding—August 31, 2018		417,272		$	4.26		9.8	$	1,665
Options granted		22,000			8.76
Options exercised		—			—
Options canceled/forfeited		(33,970	)		4.78
Outstanding—August 31, 2019		405,302		$	4.46		8.8	$	8,353
Options granted		157,539			22.08
Options exercised		(7,012	)		4.26
Options canceled/forfeited		(24,082	)		8.26
Outstanding—August 31, 2020		531,747		$	9.51		8.3	$	1,441
Options exercisable		257,145		$	6.59		8.0	$	1,446

Stock-based compensation related to the stock options issued under the Stock Incentive Plan was $0.9 million, $0.6 million, and 0.1 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 respectively, and is included in restaurant operating costs and in general and administrative expenses on the accompanying statements of operations. Before the IPO, the aggregate intrinsic value represented the difference between the exercise price of the options and the estimated fair value of the Company’s common stock as determined by its board of directors. Following the IPO, the aggregate intrinsic value represented the difference between the exercise price of the options and the closing price of the Company’s common stock on The Nasdaq Global Market as of the day prior to the date of exercise. The total intrinsic value of stock options exercised during fiscal year 2020 was $0.1 million.

The total fair value of options vested was approximately $0.6 million, $0.6 million, and $0.1 million for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018. As of August 31, 2020, unrecognized stock-based compensation of $2.0 million related to unvested stock options is expected to be recognized on a straight-line basis over a weighted average period of 2.54 years.

Stock-based Compensation

Stock-based compensation for restaurant-level employees is included in other costs and stock-based compensation for corporate-level employees is included in general and administrative expenses in the statements of operations. The total stock-based compensation recognized for stock options granted under the Stock Incentive Plan in the statements of operations is as follows:

	Fiscal Years Ended August 31,
	2020		2019		2018
	(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	86	$	80	$	14
Corporate-level stock-based compensation included in general and administrative expenses		774		510		91
Total stock-based compensation	$	860	$	590	$	105

Determination of Fair Value

For the fiscal years ended August 31, 2020, August 31, 2019 and August 31, 2018, the fair value of stock options granted to employees and non-employees was estimated on the grant date using the Black-Scholes valuation model with the following assumptions:

	Fiscal Years Ended August 31,
	2020		2019			2018
Expected term (in years)	5.23 - 5.98			5.96		5.50 - 5.96
Expected volatility	48% - 58.5%			64	%		64	%
Risk-free interest rate	0.40% - 1.67%			2.77	%	2.83% - 2.85%
Dividend rate		—		—			—
Weighted average grant date fair value	$	11.01	$	6.91		$	4.05

Expected Term - The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options.

Expected Volatility - Since the Company does not have a trading history of its common stock, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its business over a period equivalent to the expected term of the stock option grants.

Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term.

Dividend Rate - The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to do so.

Fair Value of Common Stock - Given the absence of a public trading market prior to the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of its common stock at each grant date, which was $10.75 and $6.70 for the fiscal years 2019 and 2018, respectively. These factors included, but were not limited to (i) independent contemporaneous third-party valuations of common stock; (ii) the lack of marketability of its common stock; and (iii) the likelihood of achieving a liquidity event, such as an initial public offering of the Company, given prevailing market conditions. Subsequent to the IPO, the fair value of common stock is based on the closing price of the Company’s common stock, as reported on The Nasdaq Global Market.

Debt

12 Months Ended

Aug. 31, 2020

Debt Disclosure [Abstract]

Debt

Note 7—Debt

On January 31, 2019, the Company secured a non-revolving line of credit with Bank of the West in the amount of up to $5 million (the “Credit Facility”) that expired on July 31, 2020. During fiscal year 2019, the Company drew down and paid off $3.9 million in aggregate from this credit facility. The Company did not draw down on this credit facility during fiscal year 2020.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) establishing a $20 million revolving credit line with a termination date of March 31, 2024, to provide the Company with additional liquidity. The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. In connection with the First Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment.

As of August 31, 2020, the Company had not drawn on the available revolving credit line. For further discussion, please see “Note 1. Organization and Basis of Presentation” and “Note 5. Related Party Transactions.” Subsequent to August 31, 2020 and through the filing date of this Annual Report on Form 10-K, the Company drew down $3 million under the Revolving Credit Agreement.

On April 14, 2020, the Company entered into a Promissory Note with Bank of the West, which provided for a loan in the amount of $6.0 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the CARES Act. On April 29, 2020, the Company returned the proceeds received from the PPP Loan.

Earnings Per Share

12 Months Ended

Aug. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Note 8—Earnings Per Share

The net income (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 income (loss) attributable to common stockholder is allocated on a proportionate basis.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share:

	Fiscal Years Ended August 31,
	2020						2019				2018
	Class A			Class B			Class A		Class B		Class A		Class B
		(amounts in thousands, except per share data)
Net income (loss) attributable to common stockholders - basic	$	(15,276	)	$	(2,082	)	$	1,180	$	276	$	1,394	$	348
Weighted average common shares outstanding - basic		7,338			1,000			4,283		1,000		4,000		1,000
Net income (loss) per share attributable to common stockholders - basic	$	(2.08	)	$	(2.08	)	$	0.28	$	0.28	$	0.35	$	0.35
Net income (loss) attributable to common stockholders - diluted	$	(15,276	)	$	(2,082	)	$	1,192	$	264	$	1,394	$	348
Weighted average shares outstanding - basic		7,338			1,000			4,283		1,000		4,000		1,000
Options to purchase common stock		—			—			229		—		50		—
Weighted average shares outstanding - diluted		7,338			1,000			4,512		1,000		4,050		1,000
Net income (loss) per share attributable to common stockholders - diluted	$	(2.08	)	$	(2.08	)	$	0.26	$	0.26	$	0.34	$	0.35

The Company computes basic income (loss) per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using net income 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 twelve months ended August 31, 2020 there were 115 thousand potentially dilutive shares that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. There was no antidilutive effect from stock options during the fiscal years ending August 31, 2019 and August 31, 2018.

Commitments and Contingencies

12 Months Ended

Aug. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9—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. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. The Company intends to defend itself vigorously in this matter. The Company is currently unable to estimate the range of possible losses associated with this proceeding.

The Company is involved from time to time in various legal proceedings that arise in the ordinary course of its 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, including 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

12 Months Ended

Aug. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 10—Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21% as of January 1, 2018 (25.3% applicable for fiscal year 2018 or 21.0% applicable for fiscal year 2019 and after), limits the deductibility of interest, changes the rules on utilization and carryover of net operating losses, limits the deductibility of officers’ compensation, allows for expensing of certain qualified fixed assets, and implements a modified territorial tax system that includes other U.S. international tax provisions.

The Company has re-measured the U.S. deferred tax assets and liabilities based on the enacted tax rates which will be in effect when these differences reverse, which is estimated to be either the blended tax rate of 25.3% for fiscal year 2018 or 21.0% for after fiscal year 2019 or after. The Company has completed its assessment and reflected the income tax effects of the Act on the Company’s financial statements.

The components of income (loss) before provision for taxes are as follows:

	Fiscal Years Ended August 31,
	2020			2019		2018
	(amounts in thousands)
US	$	(16,184	)	$	1,524	$	1,747
Total	$	(16,184	)	$	1,524	$	1,747

The components of the provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2020		2019			2018
	(amounts in thousands)
Current:
Federal	$	—	$	—		$	—
State		53		129			65
Total current		53		129			65
Deferred:
Federal		1,047		(47	)		(146	)
State		74		(14	)		86
Total deferred		1,121		(61	)		(60	)
Total	$	1,174	$	68		$	5

The Company had an effective tax rate of (7.3)%, 4.5%, and 0.3% for the fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 respectively. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:

	Fiscal Years Ended August 31,
	2020			2019			2018
Tax at federal statutory rate		21.0	%		21.0	%		25.3	%
Employer tip credit		0.9			(20.2	)		(23.5	)
Stock-based compensation		(0.8	)		—			—
Change in valuation allowance		(28.3	)		—			—
Other items		0.5			(2.2	)		(7.8	)
State tax, net of federal benefit		(0.6	)		5.9			6.3
Effective tax rate		(7.3	)%		4.5	%		0.3	%

The Company recorded an income tax provision of approximately $1.2 million and $0.1 million for the fiscal years ended August 31, 2020 and August 31, 2019, respectively. The income tax provision was immaterial for the fiscal year ended August 31, 2018. The primary difference between the effective tax rate and the federal statutory tax rate relates to the recognition of valuation allowance against deferred tax assets, employer tip credits, and non-deductible stock-based compensation.

The deferred income taxes reflect the tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes.

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

	As of August 31,
	2020			2019
	(amounts in thousands)
Deferred tax assets:
General business credit	$	6,472		$	1,789
NOL carryover		2,003			792
Lease liabilities		16,635			—
Deferred rent		—			602
Tenant allowance		—			324
State tax deduction		12			29
Other		535			14
Gross deferred tax assets		25,657			3,550
Deferred tax liabilities:
Basis difference on fixed assets		(4,593	)		(2,408	)
Right-of-use assets		(15,496	)		(15	)
Gross deferred tax liabilities		(20,089	)		(2,423	)
Valuation allowance		(5,568	)		—
Net deferred tax	$	—		$	1,127

As of August 31, 2020, the Company has U.S. federal net operating loss (“NOL”) carryover of approximately $27.0 million and federal tax credit carryover of approximately $2.0 million. If not utilized, $22.8 million of the federal NOL can be carried forward indefinitely, and the remainder will begin to expire in the fiscal year ending August 31, 2032. The federal tax credit will begin to expire in the fiscal year ending August 31, 2032. Utilization of the Company’s NOL and federal tax credit carryover may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended.

The Company has not recorded any unrecognized tax benefits as of August 31, 2020. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain positions. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as income tax expense.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establish valuation allowance when it is more likely than not that all or a portion of a deferred tax asset may not be realized. During the fiscal year ended August 31, 2020, the adverse effects of the COVID-19 pandemic have caused the Company to reassess the need for valuation allowances against deferred tax assets. As a result, the Company determined that it is no longer more likely than not that it will generate sufficient future U.S. taxable income to realize its deferred tax assets and, therefore, recorded valuation allowances against the net deferred tax assets. The total amount of the valuation allowances recorded was approximately $5.6 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Selected Quarterly Financial Data (unaudited)

12 Months Ended

Aug. 31, 2020

Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data (unaudited)

Note 11—Selected Quarterly Financial Data (unaudited)

The following table sets forth certain unaudited financial information for each quarter of fiscal years 2020 and 2019. The unaudited quarterly information has been prepared using unaudited financial statements and includes all adjustments consisting only of normal recurring adjustments necessary for a fair presentation of the results of the interim periods.

	Fiscal Quarter of 2020
	First			Second			Third			Fourth
	(amounts in thousands, except per share data)
Sales	$	17,440		$	19,388		$	2,812		$	5,528
Operating income (loss)		(1,391	)		(240	)		(8,028	)		(6,839	)
Net income (loss)		(1,224	)		(133	)		(9,152	)		(6,849	)
Basic income (loss) per share of Class A and Class B common stock	$	(0.15	)	$	(0.02	)	$	(1.10	)	$	(0.82	)
Diluted income (loss) per share of Class A and Class B common stock	$	(0.15	)	$	(0.02	)	$	(1.10	)	$	(0.82	)

	Fiscal Quarter of 2019
	First			Second		Third		Fourth
	(amounts in thousands, except per share data)
Sales	$	13,420		$	15,117	$	16,955	$	18,753
Operating income (loss)		(420	)		282		834		965
Net income (loss)		(391	)		212		719		916
Basic income (loss) per share of Class A and Class B common stock	$	(0.08	)	$	0.04	$	0.14	$	0.15
Diluted income (loss) per share of Class A and Class B common stock	$	(0.08	)	$	0.04	$	0.14	$	0.15

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Initial Public Offering

Effects of COVID-19

Recent Events Concerning the Company’s Financial Position

Basis of Presentation

Use of Estimates

Concentration of Credit Risk

Concentration of Significant Suppliers

Segment Information

Cash and Cash Equivalents

Accounts Receivable

Inventories

Inventories consist of food and beverages, and are stated at the lower of cost or net realizable value with cost determined on a first-in, first-out basis.

Property and Equipment

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets.

Asset Retirement Obligations

Impairment of Long-lived Assets

Income Taxes

Revenue Recognition

Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers.

Sales Taxes

Operating and Finance Leases

Related to the adoption of Topic 842, the Company’s policy elections were as follows:

Separation of lease and non-lease components		The Company has elected a policy to account for lease and non-lease components as a single component for its entire population of operating lease assets.
Short-term policy		The Company has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are not recorded on the balance sheet.

Other Costs

Advertising Costs

Fair Value Measurements

Stock-based Compensation

Comprehensive Income (Loss)

Earnings Per Share

Recently Adopted Accounting Pronouncements

The practical expedients were as follows:

Practical expedients		The Company has not reassessed whether any expired or existing contracts are, or contain, leases.
		The Company has not reassessed the lease classification for any expired or existing leases.
		The Company has not reassessed initial direct costs for any expired or existing leases.
Hindsight Practical Expedient		The Company has elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets.

The impact on the balance sheet is as follows:

	August 31, 2019		Adjustments Due to the Adoption of Topic 842			September 1, 2019
	(amounts in thousands)
Assets
Current assets:
Cash and cash equivalents	$	38,044	$	—		$	38,044
Accounts receivable		948		—			948
Inventories		539		—			539
Due from affiliate		226		—			226
Prepaid expenses and other current assets⁽¹⁾		1,744		(54	)		1,690
Total current assets		41,501		(54	)		41,447
Non-current assets:
Property and equipment - net		31,917					31,917
Operating lease right-of-use assets		—		35,935			35,935
Deposits and other assets⁽¹⁾		1,865		(530	)		1,335
Deferred tax assets		1,127		—			1,127
Total assets	$	76,410	$	35,351		$	111,761
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,684	$	—		$	3,684
Accrued expenses and other current liabilities⁽¹⁾		1,635		(97	)		1,538
Salaries and wages payable		1,348		—			1,348
Finance leases - current		994		—			994
Operating lease liabilities - current		—		3,606			3,606
Due to affiliate		83		—			83
Sales tax payable		547		—			547
Total current liabilities		8,291		3,509			11,800
Non-current liabilities:
Finance leases - non-current		2,424		—			2,424
Operating lease liabilities - non-current		—		35,119			35,119
Deferred rent⁽¹⁾		2,188		(2,188	)		—
Tenant allowances⁽¹⁾		1,089		(1,089	)		—
Other liabilities		237		—			237
Total liabilities		14,229		35,351			49,580
Stockholders' equity:
Preferred stock		—		—			—
Common stock - Class A		7		—			7
Common stock - Class B		1		—			1
Additional paid-in capital		59,442		—			59,442
Retained earnings		2,731		—			2,731
Total stockholders' equity		62,181		—			62,181
Total liabilities and stockholders' equity	$	76,410	$	35,351		$	111,761

⁽¹⁾	Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842.

Recently Issued Accounting Pronouncements

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2020

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Various Types of Property and Equipment and Their Useful Lives

The following table represents the various types of property and equipment and their respective useful lives:

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Accounting Standards Update 2016-02

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Impact on the Balance Sheet

The impact on the balance sheet is as follows:

	August 31, 2019		Adjustments Due to the Adoption of Topic 842			September 1, 2019
	(amounts in thousands)
Assets
Current assets:
Cash and cash equivalents	$	38,044	$	—		$	38,044
Accounts receivable		948		—			948
Inventories		539		—			539
Due from affiliate		226		—			226
Prepaid expenses and other current assets⁽¹⁾		1,744		(54	)		1,690
Total current assets		41,501		(54	)		41,447
Non-current assets:
Property and equipment - net		31,917					31,917
Operating lease right-of-use assets		—		35,935			35,935
Deposits and other assets⁽¹⁾		1,865		(530	)		1,335
Deferred tax assets		1,127		—			1,127
Total assets	$	76,410	$	35,351		$	111,761
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,684	$	—		$	3,684
Accrued expenses and other current liabilities⁽¹⁾		1,635		(97	)		1,538
Salaries and wages payable		1,348		—			1,348
Finance leases - current		994		—			994
Operating lease liabilities - current		—		3,606			3,606
Due to affiliate		83		—			83
Sales tax payable		547		—			547
Total current liabilities		8,291		3,509			11,800
Non-current liabilities:
Finance leases - non-current		2,424		—			2,424
Operating lease liabilities - non-current		—		35,119			35,119
Deferred rent⁽¹⁾		2,188		(2,188	)		—
Tenant allowances⁽¹⁾		1,089		(1,089	)		—
Other liabilities		237		—			237
Total liabilities		14,229		35,351			49,580
Stockholders' equity:
Preferred stock		—		—			—
Common stock - Class A		7		—			7
Common stock - Class B		1		—			1
Additional paid-in capital		59,442		—			59,442
Retained earnings		2,731		—			2,731
Total stockholders' equity		62,181		—			62,181
Total liabilities and stockholders' equity	$	76,410	$	35,351		$	111,761

⁽¹⁾	Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842.

Balance Sheet Components (Tables)

12 Months Ended

Aug. 31, 2020

Property Plant And Equipment Net [Abstract]

Schedule of Accounts Receivable

Accounts Receivable

Accounts receivable as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Lease receivable	$	1,811	$	215
Credit card receivable		281		733
Other receivable		38		—
Total accounts receivable	$	2,130	$	948

Schedule of Inventories

Inventories

Inventories as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Food	$	320	$	491
Liquor and beverages		47		48
Total inventories	$	367	$	539

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets

Prepaid expenses and other current assets as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Prepaid expenses	$	885	$	1,293
Other current assets		375		451
Employee retention credit		1,750		—
Total prepaid expenses and other current assets	$	3,010	$	1,744

Schedule of Property and Equipment, Net

Property and Equipment, net

Property and equipment, net as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020			2019
	(amounts in thousands)
Leasehold improvements	$	30,497		$	24,926
Lease assets		6,117			6,037
Furniture and fixtures		7,908			5,600
Computer equipment		696			599
Vehicles		88			75
Software		689			428
Construction in progress		9,558			1,127
Property and equipment, gross		55,553			38,792
Less: accumulated depreciation and amortization		(10,012	)		(6,875	)

Total property and equipment - net	$	45,541		$	31,917

Schedule of Deposits and Other Assets

Deposits and Other Assets

Deposits and other assets, as of August 31, 2020 and August 31, 2019 consists of the following:

	As of August 31,
	2020		2019
	(amounts in thousands)
Liquor license	$	696	$	638
Initial direct costs		—		530
Deposits		1,245		697
Total deposits and other assets	$	1,941	$	1,865

Leases (Tables)

12 Months Ended

Aug. 31, 2020

Leases [Abstract]

Summary of Lease Related Costs

Lease related costs recognized in the statements of operations for the twelve months ended August 31, 2020 are as follows:

		Fiscal Year Ended
		August 31, 2020
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expense	$	552
Interest on lease liabilities	Interest expense		120
Total finance lease cost		$	672


		Fiscal Year Ended
		August 31, 2020
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	5,194
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,059
Total operating lease cost		$	6,253

Summary of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows:

Operating Leases

	As of August 31, 2020
	(amounts in thousands)
Right-of-use assets	$	56,119

Lease liabilities - current	$	5,106
Lease liabilities - non-current		56,918
Total lease liabilities	$	62,024

Finance Lease Assets, net

	As of August 31, 2020
	(amounts in thousands)
Property and equipment	$	6,117
Accumulated depreciation		(2,178	)
Total property and equipment - net	$	3,939

Finance Leases Liabilities

	As of August 31, 2020
	(amounts in thousands)
Finance lease - current	$	1,004
Finance lease - non-current		1,481
Total finance lease liabilities	$	2,485

	As of August 31, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases		16.3
Finance leases		2.4

Weighted Average Discount Rate
Operating leases		6.2	%
Finance leases		4.4	%

Summary of Supplemental Disclosures of Cash Flow Information Related to Leases

Supplemental disclosures of cash flow information related to leases were as follows:

	Fiscal Year Ended
	August 31, 2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	21,203

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows as of August 31, 2020:

	Operating Leases			Finance Leases
	(amounts in thousands)
2021	$	2,313		$	1,102
2022		5,734			1,005
2023		5,722			483
2024		5,848			17
2025		5,981			2
Thereafter		72,913			—
Total lease payments		98,511			2,609
Less: imputed interest		(36,487	)		(124	)
Present value of lease liabilities	$	62,024		$	2,485

Summary of Future Minimum Lease Payments for Operating Lease and Capital Leases

As previously disclosed in the Company’s fiscal year 2019 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of August 31, 2019:

	Operating Lease Payments		Capital Lease Payments
	(amounts in thousands)
2020	$	4,256	$	1,113
2021		4,435		1,075
2022		4,477		972
2023		4,465		476
2024		4,607		13
Thereafter		58,714		—
Total	$	80,954	$	3,649
Less interest				(231	)
Total capital lease obligation				3,418
Less current portion of capital lease obligation				(994	)
Non-current portion of capital lease obligation			$	2,424

Related Party Transactions (Tables)

12 Months Ended

Aug. 31, 2020

Balances with Kura Japan as of August 31, 2020 and August 31, 2019 are as follows:

	As of August 31,
	2020		2019
	(amounts in thousands)
Due from affiliate	$	12	$	226
Due to affiliate	201		83

Reimbursements by the Company to Kura Japan for fiscal years ended August 31, 2020, August 31, 2019, and August 31, 2018 are as follows:

	Fiscal Years Ended August 31,
	2020		2019		2018
	(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	53	$	46	$	59
Expatriate salaries expense		141		147		95
Royalty payments		226		321		279
Travel and other administrative expenses		73		49		78
Purchases of equipment		1,129		685		650
Total related party transactions	$	1,622	$	1,248	$	1,161
Additional investment received	$	—	$	—	$	5,000

Incentive Compensation Plan (Tables)

12 Months Ended

Aug. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Activity under Stock Incentive Plan

Activity under the Stock Incentive Plan is as follows:

	Options Outstanding
	Number of shares underlying outstanding options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
								(amounts in thousands)
Outstanding—August 31, 2018		417,272		$	4.26		9.8	$	1,665
Options granted		22,000			8.76
Options exercised		—			—
Options canceled/forfeited		(33,970	)		4.78
Outstanding—August 31, 2019		405,302		$	4.46		8.8	$	8,353
Options granted		157,539			22.08
Options exercised		(7,012	)		4.26
Options canceled/forfeited		(24,082	)		8.26
Outstanding—August 31, 2020		531,747		$	9.51		8.3	$	1,441
Options exercisable		257,145		$	6.59		8.0	$	1,446

Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan

The total stock-based compensation recognized for stock options granted under the Stock Incentive Plan in the statements of operations is as follows:

	Fiscal Years Ended August 31,
	2020		2019		2018
	(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	86	$	80	$	14
Corporate-level stock-based compensation included in general and administrative expenses		774		510		91
Total stock-based compensation	$	860	$	590	$	105

Fair Value of Stock Options Granted to Employees and Non-employees Estimated on Grant Date

Determination of Fair Value

	Fiscal Years Ended August 31,
	2020		2019			2018
Expected term (in years)	5.23 - 5.98			5.96		5.50 - 5.96
Expected volatility	48% - 58.5%			64	%		64	%
Risk-free interest rate	0.40% - 1.67%			2.77	%	2.83% - 2.85%
Dividend rate		—		—			—
Weighted average grant date fair value	$	11.01	$	6.91		$	4.05

Earnings Per Share (Tables)

12 Months Ended

Aug. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share:

	Fiscal Years Ended August 31,
	2020						2019				2018
	Class A			Class B			Class A		Class B		Class A		Class B
		(amounts in thousands, except per share data)
Net income (loss) attributable to common stockholders - basic	$	(15,276	)	$	(2,082	)	$	1,180	$	276	$	1,394	$	348
Weighted average common shares outstanding - basic		7,338			1,000			4,283		1,000		4,000		1,000
Net income (loss) per share attributable to common stockholders - basic	$	(2.08	)	$	(2.08	)	$	0.28	$	0.28	$	0.35	$	0.35
Net income (loss) attributable to common stockholders - diluted	$	(15,276	)	$	(2,082	)	$	1,192	$	264	$	1,394	$	348
Weighted average shares outstanding - basic		7,338			1,000			4,283		1,000		4,000		1,000
Options to purchase common stock		—			—			229		—		50		—
Weighted average shares outstanding - diluted		7,338			1,000			4,512		1,000		4,050		1,000
Net income (loss) per share attributable to common stockholders - diluted	$	(2.08	)	$	(2.08	)	$	0.26	$	0.26	$	0.34	$	0.35

Income Taxes (Tables)

12 Months Ended

Aug. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Components of Income (Loss) Before Provision for Taxes

The components of income (loss) before provision for taxes are as follows:

	Fiscal Years Ended August 31,
	2020			2019		2018
	(amounts in thousands)
US	$	(16,184	)	$	1,524	$	1,747
Total	$	(16,184	)	$	1,524	$	1,747

Summary of Components of Provision for Income Taxes

The components of the provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2020		2019			2018
	(amounts in thousands)
Current:
Federal	$	—	$	—		$	—
State		53		129			65
Total current		53		129			65
Deferred:
Federal		1,047		(47	)		(146	)
State		74		(14	)		86
Total deferred		1,121		(61	)		(60	)
Total	$	1,174	$	68		$	5

Summary of Reconciliation of Statutory Federal Income Tax Rate

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:

	Fiscal Years Ended August 31,
	2020			2019			2018
Tax at federal statutory rate		21.0	%		21.0	%		25.3	%
Employer tip credit		0.9			(20.2	)		(23.5	)
Stock-based compensation		(0.8	)		—			—
Change in valuation allowance		(28.3	)		—			—
Other items		0.5			(2.2	)		(7.8	)
State tax, net of federal benefit		(0.6	)		5.9			6.3
Effective tax rate		(7.3	)%		4.5	%		0.3	%

Summary of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

	As of August 31,
	2020			2019
	(amounts in thousands)
Deferred tax assets:
General business credit	$	6,472		$	1,789
NOL carryover		2,003			792
Lease liabilities		16,635			—
Deferred rent		—			602
Tenant allowance		—			324
State tax deduction		12			29
Other		535			14
Gross deferred tax assets		25,657			3,550
Deferred tax liabilities:
Basis difference on fixed assets		(4,593	)		(2,408	)
Right-of-use assets		(15,496	)		(15	)
Gross deferred tax liabilities		(20,089	)		(2,423	)
Valuation allowance		(5,568	)		—
Net deferred tax	$	—		$	1,127

Selected Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Aug. 31, 2020

Quarterly Financial Data [Abstract]

Summary of Certain Unaudited Financial Information

	Fiscal Quarter of 2020
	First			Second			Third			Fourth
	(amounts in thousands, except per share data)
Sales	$	17,440		$	19,388		$	2,812		$	5,528
Operating income (loss)		(1,391	)		(240	)		(8,028	)		(6,839	)
Net income (loss)		(1,224	)		(133	)		(9,152	)		(6,849	)
Basic income (loss) per share of Class A and Class B common stock	$	(0.15	)	$	(0.02	)	$	(1.10	)	$	(0.82	)
Diluted income (loss) per share of Class A and Class B common stock	$	(0.15	)	$	(0.02	)	$	(1.10	)	$	(0.82	)

	Fiscal Quarter of 2019
	First			Second		Third		Fourth
	(amounts in thousands, except per share data)
Sales	$	13,420		$	15,117	$	16,955	$	18,753
Operating income (loss)		(420	)		282		834		965
Net income (loss)		(391	)		212		719		916
Basic income (loss) per share of Class A and Class B common stock	$	(0.08	)	$	0.04	$	0.14	$	0.15
Diluted income (loss) per share of Class A and Class B common stock	$	(0.08	)	$	0.04	$	0.14	$	0.15

Organization and Description of Business - Additional Information (Details)						12 Months Ended
	Nov. 12, 2020 Restaurant	Sep. 02, 2020 USD ($)	Apr. 10, 2020 USD ($)	Mar. 18, 2020 Restaurant State	Aug. 05, 2019 USD ($) $ / shares shares	Aug. 31, 2020 USD ($) shares	Aug. 31, 2019 USD ($)	Aug. 31, 2018 USD ($)	Apr. 14, 2020 USD ($)
Organization and Basis of Presentation [Line Items]
Impairment of long-lived assets						$ 0	$ 0	$ 236,000
Valuation allowance recorded						$ 5,568,000
PPP Loan \| Promissory Note with Bank of the West
Organization and Basis of Presentation [Line Items]
Loan amount									$ 6,000,000
Kura Japan
Organization and Basis of Presentation [Line Items]
Shares issued \| shares						0
Kura Japan \| Revolving Credit Facility Agreement
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity			$ 20,000,000
Revolving credit line, termination date			Mar. 31, 2024
Kura Japan \| First Amendment
Organization and Basis of Presentation [Line Items]
Revolving credit line, maturity date description						(i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025.
COVID-19
Organization and Basis of Presentation [Line Items]
Impairment of long-lived assets						$ 0
Valuation allowance recorded						$ 5,600,000
COVID-19 \| PPP Loan \| Promissory Note with Bank of the West
Organization and Basis of Presentation [Line Items]
Loan amount									$ 6,000,000
COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants temporary closure \| Restaurant				25
Number of states, temporary closure of restaurants located \| State				5
Revolving credit line			$ 35,000,000
COVID-19 \| Kura Japan \| Revolving Credit Facility Agreement
Organization and Basis of Presentation [Line Items]
Revolving credit line, termination date						Mar. 31, 2024
CARES Act
Organization and Basis of Presentation [Line Items]
Employee retention credit						$ 1,800,000
Subsequent Event \| Kura Japan \| First Amendment
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity		$ 35,000,000
Revolving credit line, termination date		Apr. 10, 2025
Subsequent Event \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants temporary closure \| Restaurant	1
Local Government Requirements \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Reduced percentage of capacities				25.00%
Local Government Requirements \| Subsequent Event \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants opened \| Restaurant	28
Number of restaurants opened with indoor dining \| Restaurant	12
Reduced percentage of capacities	75.00%
Number of restaurants opened with outdoor dining or takeout \| Restaurant	15
Common Stock \| Initial Public Offering
Organization and Basis of Presentation [Line Items]
Sale of stock, price per share \| $ / shares					$ 14.00
Shares issued \| shares					3,335,000
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs, shares \| shares					435,000
Proceeds from offering					$ 39,000,000

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Aug. 31, 2020 USD ($) Segment shares	Aug. 31, 2019 USD ($) shares	Aug. 31, 2018 USD ($) Restaurant shares
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of operating segment \| Segment	1
Number of reportable segment \| Segment	1
Cash and cash equivalents	$ 9,259,000	$ 38,044,000
Allowance for doubtful accounts	$ 0	0
Description of depreciation and amortization on property and equipment	Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years.
Depreciation and amortization on property and equipment calculated method	straight-line method
Number of restaurants exited lease prior to end of lease term \| Restaurant			1
Net carrying value of impairment on assets deemed			$ 0
Reimbursement for lease termination			500,000
Impairment of long-lived assets, net	$ 0	0	236,000
Operating and finance leases, remaining lease start range terms description	less than 1 year
Outstanding borrowings	$ 0
Other costs	6,705,000	7,088,000	5,404,000
Advertising expenses	$ 300,000	$ 400,000	$ 300,000
Stock options, granted \| shares	157,539	22,000	419,091
Stock options granted, vesting period		45 months	45 months
Lease, practical expedients, package	true
Lease, practical expedient, use of hindsight	true
Other Liabilities
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Asset retirement obligation liability	$ 300,000	$ 200,000
Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Income tax benefit being realized	50.00%
Stock options granted, vesting period	9 months
Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	20 years
Operating and finance leases, remaining lease terms	20 years
Stock options granted, vesting period	46 months
Money Market Funds and Time Deposits
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 8,800,000	$ 37,000,000
Product Concentration Risk \| Sales Revenue Net \| Food and Beverage Costs \| JFC International Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	59.00%	55.00%	47.00%
Product Concentration Risk \| Sales Revenue Net \| Food and Beverage Costs \| Wismettac Asian Foods, Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	27.00%	28.00%	28.00%

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Various Types of Property and Equipment and Their Useful Lives (Details)	12 Months Ended
	Aug. 31, 2020
Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	3 years
Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	20 years
Computer Equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	3 years
Computer Equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Software
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, useful life	10 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life	Shorter of useful life or remaining lease term
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life	Fixed lease term

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Impact on the Balance Sheet (Details) - USD ($)
$ in Thousands

Aug. 31, 2020

Sep. 01, 2019

Aug. 31, 2019

Aug. 31, 2018

Aug. 31, 2017

Current assets:

Cash and cash equivalents

$ 9,259

$ 38,044

Accounts receivable

2,130

948

Inventories

367

539

Due from affiliate

226

Prepaid expenses and other current assets

3,010

1,744

Total current assets

14,778

41,501

Non-current assets:

Property and equipment - net

45,541

31,917

Operating lease right-of-use assets

56,119

Deposits and other assets

1,941

1,865

Deferred tax assets

1,127

Total assets

118,379

76,410

Current liabilities:

Accounts payable

4,919

3,684

Accrued expenses and other current liabilities

720

1,635

Salaries and wages payable

1,786

1,348

Finance leases - current

1,004

994

Operating lease liabilities - current

5,106

Due to affiliate

201

Sales tax payable

189

547

Total current liabilities

13,925

8,291

Non-current liabilities:

Finance leases - non-current

1,481

2,424

Operating lease liabilities - non-current

56,918

Deferred rent

2,188

Tenant allowances

1,089

Other liabilities

342

237

Total liabilities

72,666

14,229

Stockholders' equity:

Preferred stock

Additional paid-in capital

60,332

59,442

Retained earnings

(14,627)

2,731

Total stockholders' equity

45,713

62,181

$ 21,505

$ 14,658

Total liabilities and stockholders' equity

118,379

76,410

Before Accounting Pronouncement Change

Current assets:

Cash and cash equivalents

38,044

Accounts receivable

948

Inventories

539

Due from affiliate

226

Prepaid expenses and other current assets

^[1]

1,744

Total current assets

41,501

Non-current assets:

Property and equipment - net

31,917

Deposits and other assets

^[1]

1,865

Deferred tax assets

1,127

Total assets

76,410

Current liabilities:

Accounts payable

3,684

Accrued expenses and other current liabilities

^[1]

1,635

Salaries and wages payable

1,348

Finance leases - current

994

Due to affiliate

Sales tax payable

547

Total current liabilities

8,291

Non-current liabilities:

Finance leases - non-current

2,424

Deferred rent

^[1]

2,188

Tenant allowances

^[1]

1,089

Other liabilities

237

Total liabilities

14,229

Stockholders' equity:

Preferred stock

Additional paid-in capital

59,442

Retained earnings

2,731

Total stockholders' equity

62,181

Total liabilities and stockholders' equity

76,410

Accounting Standards Update 2016-02

Current assets:

Cash and cash equivalents

$ 38,044

Accounts receivable

948

Inventories

539

Due from affiliate

226

Prepaid expenses and other current assets

^[1]

1,690

Total current assets

41,447

Non-current assets:

Property and equipment - net

31,917

Operating lease right-of-use assets

35,935

Deposits and other assets

^[1]

1,335

Deferred tax assets

1,127

Total assets

111,761

Current liabilities:

Accounts payable

3,684

Accrued expenses and other current liabilities

^[1]

1,538

Salaries and wages payable

1,348

Finance leases - current

994

Operating lease liabilities - current

3,606

Due to affiliate

Sales tax payable

547

Total current liabilities

11,800

Non-current liabilities:

Finance leases - non-current

2,424

Operating lease liabilities - non-current

35,119

Other liabilities

237

Total liabilities

49,580

Stockholders' equity:

Preferred stock

Additional paid-in capital

59,442

Retained earnings

2,731

Total stockholders' equity

62,181

Total liabilities and stockholders' equity

111,761

Accounting Standards Update 2016-02 | Restatement Adjustment

Current assets:

Prepaid expenses and other current assets

^[1]

(54)

Total current assets

(54)

Non-current assets:

Operating lease right-of-use assets

35,935

Deposits and other assets

^[1]

(530)

Total assets

35,351

Current liabilities:

Accrued expenses and other current liabilities

^[1]

(97)

Operating lease liabilities - current

3,606

Total current liabilities

3,509

Non-current liabilities:

Operating lease liabilities - non-current

35,119

Deferred rent

^[1]

(2,188)

Tenant allowances

^[1]

(1,089)

Total liabilities

35,351

Stockholders' equity:

Preferred stock

Total liabilities and stockholders' equity

35,351

Class A

Stockholders' equity:

Common stock

Class A | Before Accounting Pronouncement Change

Stockholders' equity:

Common stock

Class A | Accounting Standards Update 2016-02

Stockholders' equity:

Common stock

Class B

Stockholders' equity:

Common stock

$ 1

Class B | Before Accounting Pronouncement Change

Stockholders' equity:

Common stock

$ 1

Class B | Accounting Standards Update 2016-02

Stockholders' equity:

Common stock

$ 1

[1]	Adjustment to reclassify prepaid rent, initial direct costs, deferred rent and tenant allowance to right-of-use assets for operating leases upon the adoption of Topic 842.

Balance Sheet Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Receivables Net Current [Line Items]
Accounts receivable	$ 2,130	$ 948
Lease Receivable
Receivables Net Current [Line Items]
Accounts receivable	1,811	215
Credit Card Receivable
Receivables Net Current [Line Items]
Accounts receivable	281	$ 733
Other Receivable
Receivables Net Current [Line Items]
Accounts receivable	$ 38

Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Inventory [Line Items]
Total inventories	$ 367	$ 539
Food
Inventory [Line Items]
Total inventories	320	491
Liquor and Beverages
Inventory [Line Items]
Total inventories	$ 47	$ 48

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Prepaid Expense And Other Assets Current [Abstract]
Prepaid expenses	$ 885	$ 1,293
Other current assets	375	451
Employee retention credit	1,750
Total prepaid expenses and other current assets	$ 3,010	$ 1,744

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 55,553	$ 38,792
Less: accumulated depreciation and amortization	(10,012)	(6,875)
Total property and equipment - net	45,541	31,917
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	30,497	24,926
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment, gross	6,117	6,037
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	7,908	5,600
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	696	599
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment, gross	88	75
Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	689	428
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 9,558	$ 1,127

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Property Plant And Equipment Net [Abstract]
Depreciation and amortization expenses	$ 3,160	$ 2,165	$ 1,675

Balance Sheet Components - Schedule of Deposits and Other Assets (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Deposits And Other Assets [Line Items]
Total deposits and other assets	$ 1,941	$ 1,865
Liquor License
Deposits And Other Assets [Line Items]
Total deposits and other assets	696	638
Initial Direct Costs
Deposits And Other Assets [Line Items]
Total deposits and other assets		530
Deposits
Deposits And Other Assets [Line Items]
Total deposits and other assets	$ 1,245	$ 697

Leases - Summary of Lease Related Costs (Details) $ in Thousands	12 Months Ended
	Aug. 31, 2020 USD ($)
Finance lease cost
Amortization of right-of-use assets	$ 552
Interest on lease liabilities	120
Total finance lease cost	672
Operating lease cost
Operating lease cost	5,194
Variable lease cost	1,059
Total operating lease cost	$ 6,253

Leases - Summary of Operating Leases (Details) $ in Thousands	Aug. 31, 2020 USD ($)
Leases [Abstract]
Right-of-use assets	$ 56,119
Lease liabilities - current	5,106
Lease liabilities - non-current	56,918
Total lease liabilities	$ 62,024

Leases - Summary of Finance Lease Assets, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Lessee Lease Description [Line Items]
Property and equipment, gross	$ 55,553	$ 38,792
Less: accumulated depreciation and amortization	(10,012)	(6,875)
Total property and equipment - net	45,541	$ 31,917
Finance Lease Assets
Lessee Lease Description [Line Items]
Property and equipment, gross	6,117
Less: accumulated depreciation and amortization	(2,178)
Total property and equipment - net	$ 3,939

Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Leases [Abstract]
Finance lease - current	$ 1,004	$ 994
Finance lease - non-current	1,481	$ 2,424
Total finance lease liabilities	$ 2,485

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Aug. 31, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases	16 years 3 months 18 days
Finance leases	2 years 4 months 24 days
Weighted Average Discount Rate
Operating leases	6.20%
Finance leases	4.40%

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) $ in Thousands	12 Months Ended
	Aug. 31, 2020 USD ($)
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$ 21,203

Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2019	Aug. 31, 2018	Aug. 31, 2020
Leases [Abstract]
Operating leases not yet commenced, liability			$ 13.7
Operating leases not yet commenced, lease term			20 years
Lease expense	$ 4.7	$ 3.0
Contingent rent expense	$ 0.2	$ 0.2

Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands	Aug. 31, 2020 USD ($)
Operating Leases
2021	$ 2,313
2022	5,734
2023	5,722
2024	5,848
2025	5,981
Thereafter	72,913
Total lease payments	98,511
Less: imputed interest	(36,487)
Present value of lease liabilities	62,024
Finance Leases
2021	1,102
2022	1,005
2023	483
2024	17
2025	2
Total lease payments	2,609
Less: imputed interest	(124)
Present value of lease liabilities	$ 2,485

Leases - Summary of Future Minimum Lease Payments for Operating Lease and Capital Leases (Details) $ in Thousands	Aug. 31, 2019 USD ($)
Operating Lease Payments
2020	$ 4,256
2021	4,435
2022	4,477
2023	4,465
2024	4,607
Thereafter	58,714
Total	80,954
Capital Lease Payments
2020	1,113
2021	1,075
2022	972
2023	476
2024	13
Total	3,649
Less interest	(231)
Total capital lease obligation	3,418
Less current portion of capital lease obligation	(994)
Non-current portion of capital lease obligation	$ 2,424

Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($)			1 Months Ended	12 Months Ended
	Sep. 02, 2020	Apr. 10, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Related Party Transaction [Line Items]
Capital contributions			$ 0	$ 0	$ 0	$ 5,000,000
Shares issued				0
Reimbursements by related party						$ 0
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Reimbursements by related party				$ 100,000
D&O Insurance, Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Reimbursements by related party					$ 300,000
Revolving Credit Facility Agreement
Related Party Transaction [Line Items]
Revolving credit line, termination date		Mar. 31, 2024
Revolving credit line, maturity date description				The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months.
Credit facility maximum borrowing capacity		$ 20,000,000
First Amendment
Related Party Transaction [Line Items]
Revolving credit line, maturity date description				(i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025.
First Amendment \| Subsequent Event
Related Party Transaction [Line Items]
Revolving credit line, termination date	Apr. 10, 2025
Credit facility maximum borrowing capacity	$ 35,000,000
COVID-19 \| Revolving Credit Facility Agreement
Related Party Transaction [Line Items]
Revolving credit line				$ 20,000,000
Revolving credit line, termination date				Mar. 31, 2024
Revolving credit line, maturity date description				The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months.
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales			0.50%

Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Related Party Transaction [Line Items]
Due from affiliate	$ 12	$ 226
Due to affiliate	201	83
Kura Japan
Related Party Transaction [Line Items]
Due from affiliate	12	226
Due to affiliate	$ 201	$ 83

Related Party Transactions - Schedule of Related Party Reimbursements (Details) - Kura Japan - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Related Party Transaction [Line Items]
Total related party transactions	$ 1,622	$ 1,248	$ 1,161
Additional investment received			5,000
Purchases of Administrative Supplies
Related Party Transaction [Line Items]
Total related party transactions	53	46	59
Expatriate Salaries Expense
Related Party Transaction [Line Items]
Total related party transactions	141	147	95
Royalty Payments
Related Party Transaction [Line Items]
Total related party transactions	226	321	279
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Total related party transactions	73	49	78
Purchases of Equipment
Related Party Transaction [Line Items]
Total related party transactions	$ 1,129	$ 685	$ 650

Incentive Compensation Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018	Jan. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total intrinsic value of stock options exercised	$ 100
Expected dividend	0.00%
Fair value of common stock		$ 10.75	$ 6.70
Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Plan authorized awards to be granted				700,000
Stock-based compensation expense	$ 860	$ 590	$ 105
Stock options outstanding	531,747	405,302	417,272
Weighted average grant date fair value of options granted	$ 11.01	$ 6.91	$ 4.05
Fair value of options vested	$ 600	$ 600	$ 100
Unrecognized stock-based compensation	$ 2,000
Unvested stock options expected to be recognized on a straight-line basis over a weighted average period	2 years 6 months 14 days

Incentive Compensation Plan - Summary of Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance	405,302	417,272
Options Outstanding, Number of shares underlying outstanding options, Options granted	157,539	22,000
Options Outstanding, Number of shares underlying outstanding options, Options exercised	(7,012)
Options Outstanding, Number of shares underlying outstanding options, Options canceled/forfeited	(24,082)	(33,970)
Options Outstanding, Number of shares underlying outstanding options, Ending balance	531,747	405,302	417,272
Options Outstanding, Number of shares underlying outstanding options, Options exercisable	257,145
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance	$ 4.46	$ 4.26
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted	22.08	8.76
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised	4.26
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited	8.26	4.78
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance	9.51	$ 4.46	$ 4.26
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercisable	$ 6.59
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	8 years 3 months 18 days	8 years 9 months 18 days	9 years 9 months 18 days
Options Outstanding, Weighted Average Remaining Contractual Term, Options exercisable (Years)	8 years
Options Outstanding, Aggregate Intrinsic Value	$ 1,441	$ 8,353	$ 1,665
Options Outstanding, Aggregate Intrinsic Value, Options exercisable	$ 1,446

Incentive Compensation Plan - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 860	$ 590	$ 105
Restaurant-level Stock-based Compensation Included In Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	86	80	14
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	$ 774	$ 510	$ 91

Incentive Compensation Plan - Fair Value of Stock Options Granted to Employees and Non-employees Estimated on Grant Date (Details) - $ / shares	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend rate	0.00%
Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)		5 years 11 months 15 days
Expected volatility		64.00%	64.00%
Expected volatility, Minimum	48.00%
Expected volatility, Maximum	58.50%
Risk-free interest rate		2.77%
Risk-free interest rate, Minimum	0.40%		2.83%
Risk-free interest rate, Maximum	1.67%		2.85%
Weighted average grant date fair value	$ 11.01	$ 6.91	$ 4.05
Stock Incentive Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	5 years 2 months 23 days		5 years 6 months
Stock Incentive Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	5 years 11 months 23 days		5 years 11 months 15 days

Debt - Additional Information (Details) - USD ($)				12 Months Ended
Debt - Additional Information (Details) - USD ($)	Sep. 02, 2020	Apr. 10, 2020	Jan. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Nov. 12, 2020	Apr. 14, 2020
Debt Instrument [Line Items]
Revolving credit line				$ 0
Revolving Credit Facility Agreement \| Kura Japan
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		$ 20,000,000
Revolving credit line		$ 20,000,000
Revolving credit line, termination date		Mar. 31, 2024
Revolving credit line, maturity date description				The maturity date for amounts borrowed under the Revolving Credit Agreement is twelve months after the disbursement date, unless renewed or extended by mutual agreement of both parties for an additional twelve months.
Revolving Credit Facility Agreement \| Kura Japan \| Subsequent Event
Debt Instrument [Line Items]
Revolving credit line						$ 3,000,000
First Amendment \| Kura Japan
Debt Instrument [Line Items]
Revolving credit line, maturity date description				(i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025.
First Amendment \| Kura Japan \| Subsequent Event
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity	$ 35,000,000
Revolving credit line, termination date	Apr. 10, 2025
PPP Loan \| Promissory Note with Bank of the West
Debt Instrument [Line Items]
Loan amount							$ 6,000,000
Bank of the West
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity			$ 5,000,000
Credit facility expiry date			Jul. 31, 2020
Credit facility amount paid off					$ 3,900,000
Revolving credit line				$ 0

Earnings Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding - basic									8,338	5,283	5,000
Net income (loss) per share attributable to common stockholders - basic	$ (0.82)	$ (1.10)	$ (0.02)	$ (0.15)	$ 0.15	$ 0.14	$ 0.04	$ (0.08)	$ (2.08)	$ 0.28	$ 0.35
Weighted average shares outstanding - diluted									8,338	5,512	5,050
Net income (loss) per share attributable to common stockholders - diluted	$ (0.82)	$ (1.10)	$ (0.02)	$ (0.15)	$ 0.15	$ 0.14	$ 0.04	$ (0.08)	$ (2.08)	$ 0.26	$ 0.34
Class A
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders - basic									$ (15,276)	$ 1,180	$ 1,394
Weighted average common shares outstanding - basic									7,338,000	4,283,000	4,000,000
Net income (loss) per share attributable to common stockholders - basic									$ (2.08)	$ 0.28	$ 0.35
Net income (loss) attributable to common stockholders - diluted									$ (15,276)	$ 1,192	$ 1,394
Options to purchase common stock										229,000	50,000
Weighted average shares outstanding - diluted									7,338,000	4,512,000	4,050,000
Net income (loss) per share attributable to common stockholders - diluted									$ (2.08)	$ 0.26	$ 0.34
Class B
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders - basic									$ (2,082)	$ 276	$ 348
Weighted average common shares outstanding - basic									1,000,000	1,000,000	1,000,000
Net income (loss) per share attributable to common stockholders - basic									$ (2.08)	$ 0.28	$ 0.35
Net income (loss) attributable to common stockholders - diluted									$ (2,082)	$ 264	$ 348
Weighted average shares outstanding - diluted									1,000,000	1,000,000	1,000,000
Net income (loss) per share attributable to common stockholders - diluted									$ (2.08)	$ 0.26	$ 0.35

Earnings Per Share - Additional Information (Details) - shares	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Employee Stock Option
Earnings Per Share [Line Items]
Potentially dilutive shares that were excluded from the calculation of diluted loss per share	115,000	0	0

Income Taxes - Additional Information (Details)			12 Months Ended
Income Taxes - Additional Information (Details)	Jan. 01, 2018	Dec. 22, 2017	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2018 USD ($)
Operating Loss Carryforwards [Line Items]
Percentage of effective income tax rate, tax cuts and jobs act	21	35		21.0
Effective income tax rate, federal tax rate			21.00%	21.00%	25.30%
Effective tax rate			(7.30%)	4.50%	0.30%
Income tax provision			$ 1,174,000	$ 68,000	$ 5,000
Federal net operating loss (“NOL”) carryover			27,000,000
Federal tax credit carryover			2,000,000
Unrecognized tax benefits			0
Valuation allowance recorded			5,568,000
Federal
Operating Loss Carryforwards [Line Items]
Federal NOL carried forward indefinitely, if not utilized			$ 22,800,000
Federal NOL carryforward remainder amount expiration date			Aug. 31, 2032
Federal tax credit expiration date			Aug. 31, 2032

Income Taxes - Summary of Components of Income (Loss) Before Provision for Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract]
US	$ (16,184)	$ 1,524	$ 1,747
Total	$ (16,184)	$ 1,524	$ 1,747

Income Taxes - Summary of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Current:
State	$ 53	$ 129	$ 65
Total current	53	129	65
Deferred:
Federal	1,047	(47)	(146)
State	74	(14)	86
Total deferred	1,121	(61)	(60)
Total	$ 1,174	$ 68	$ 5

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Rate (Details)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	21.00%	21.00%	25.30%
Employer tip credit	0.90%	(20.20%)	(23.50%)
Stock-based compensation	(0.80%)
Change in valuation allowance	(28.30%)
Other items	0.50%	(2.20%)	(7.80%)
State tax, net of federal benefit	(0.60%)	5.90%	6.30%
Effective tax rate	(7.30%)	4.50%	0.30%

Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019
Deferred tax assets:
General business credit	$ 6,472	$ 1,789
NOL carryover	2,003	792
Lease liabilities	16,635
Deferred rent		602
Tenant allowance		324
State tax deduction	12	29
Other	535	14
Gross deferred tax assets	25,657	3,550
Deferred tax liabilities:
Basis difference on fixed assets	(4,593)	(2,408)
Right-of-use assets	(15,496)	(15)
Gross deferred tax liabilities	(20,089)	(2,423)
Valuation allowance	$ (5,568)
Net deferred tax		$ 1,127

Selected Quarterly Financial Data (unaudited) - Summary of Certain Unaudited Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2018
Quarterly Financial Data [Abstract]
Sales	$ 5,528	$ 2,812	$ 19,388	$ 17,440	$ 18,753	$ 16,955	$ 15,117	$ 13,420	$ 45,168	$ 64,245	$ 51,744
Operating income (loss)	(6,839)	(8,028)	(240)	(1,391)	965	834	282	(420)	(16,498)	1,661	1,863
Net income (loss)	$ (6,849)	$ (9,152)	$ (133)	$ (1,224)	$ 916	$ 719	$ 212	$ (391)	$ (17,358)	$ 1,456	$ 1,742
Basic income (loss) per share of Class A and Class B common stock	$ (0.82)	$ (1.10)	$ (0.02)	$ (0.15)	$ 0.15	$ 0.14	$ 0.04	$ (0.08)	$ (2.08)	$ 0.28	$ 0.35
Diluted income (loss) per share of Class A and Class B common stock	$ (0.82)	$ (1.10)	$ (0.02)	$ (0.15)	$ 0.15	$ 0.14	$ 0.04	$ (0.08)	$ (2.08)	$ 0.26	$ 0.34

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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-Section 50
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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