0001564590-21-018716 | 10-Q | XBRL Viewer

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Feb. 28, 2021	Apr. 07, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
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 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 Quarterly Report	true
Document Transition Report	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,417,556
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Condensed Balance Sheets - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,747	$ 9,259
Accounts receivable	2,457	2,130
Inventories	427	367
Due from affiliate	239	12
Prepaid expenses and other current assets	6,408	3,010
Total current assets	11,278	14,778
Non-current assets:
Property and equipment - net	50,944	45,541
Operating lease right-of-use assets	54,188	56,119
Deposits and other assets	1,999	1,941
Total assets	118,409	118,379
Current liabilities:
Accounts payable	2,968	4,919
Accrued expenses and other current liabilities	748	720
Salaries and wages payable	2,692	1,786
Finance leases - current	1,028	1,004
Operating lease liabilities - current	5,402	5,106
Due to affiliate	219	201
Sales tax payable	295	189
Total current liabilities	13,352	13,925
Non-current liabilities:
Loan from affiliate	12,000
Finance leases - non-current	939	1,481
Operating lease liabilities - non-current	55,347	56,918
Other liabilities	348	342
Total liabilities	81,986	72,666
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding
Additional paid-in capital	61,273	60,332
Accumulated deficit	(24,858)	(14,627)
Total stockholders' equity	36,423	45,713
Total liabilities and stockholders' equity	118,409	118,379
Class A
Stockholders' equity:
Common stock	7	7
Class B
Stockholders' equity:
Common stock	$ 1	$ 1

Condensed Balance Sheets (Parenthetical) - $ / shares	Feb. 28, 2021	Aug. 31, 2020
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, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	7,413,000	7,342,000
Common stock, shares outstanding	7,413,000	7,342,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Condensed Statements of Operations - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Sales	$ 9,082	$ 19,388	$ 18,496	$ 36,828
Restaurant operating costs:
Depreciation and amortization expenses	1,002	712	1,929	1,375
Other costs	2,051	2,210	4,130	4,257
Total restaurant operating costs	9,916	16,809	22,025	32,292
General and administrative expenses	2,874	2,783	6,395	6,109
Depreciation and amortization expenses	94	36	169	58
Total operating expenses	12,884	19,628	28,589	38,459
Operating loss	(3,802)	(240)	(10,093)	(1,631)
Other expense (income):
Interest expense	53	33	87	67
Interest income	(3)	(170)	(7)	(367)
Loss before income taxes	(3,852)	(103)	(10,173)	(1,331)
Income tax expense	29	30	58	26
Net loss	$ (3,881)	$ (133)	$ (10,231)	$ (1,357)
Net loss per Class A and Class B shares
Basic	$ (0.46)	$ (0.02)	$ (1.22)	$ (0.16)
Diluted	$ (0.46)	$ (0.02)	$ (1.22)	$ (0.16)
Weighted average Class A and Class B shares outstanding
Basic	8,379	8,336	8,363	8,335
Diluted	8,379	8,336	8,363	8,335
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	$ 3,175	$ 6,106	$ 6,228	$ 11,799
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	2,061	6,144	6,421	11,785
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 1,627	$ 1,637	$ 3,317	$ 3,076

Condensed 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, 2019	$ 62,181			$ 7	$ 1	$ 59,442	$ 2,731
Beginning balance, shares at Aug. 31, 2019				7,335	1,000
Stock-based compensation	121					121
Net loss	(1,224)						(1,224)
Ending balances at Nov. 30, 2019	61,078			$ 7	$ 1	59,563	1,507
Ending balance, shares at Nov. 30, 2019				7,335	1,000
Beginning balances at Aug. 31, 2019	62,181			$ 7	$ 1	59,442	2,731
Beginning balance, shares at Aug. 31, 2019				7,335	1,000
Net loss	(1,357)
Ending balances at Feb. 29, 2020	61,171			$ 7	$ 1	59,789	1,374
Ending balance, shares at Feb. 29, 2020				7,338	1,000
Beginning balances at Nov. 30, 2019	61,078			$ 7	$ 1	59,563	1,507
Beginning balance, shares at Nov. 30, 2019				7,335	1,000
Stock-based compensation	211					211
Net loss	(133)						(133)
Exercise of stock options	15					15
Exercise of stock options, shares				3
Ending balances at Feb. 29, 2020	61,171			$ 7	$ 1	59,789	1,374
Ending balance, shares at Feb. 29, 2020				7,338	1,000
Beginning balances at Aug. 31, 2020	45,713			$ 7	$ 1	60,332	(14,627)
Beginning balance, shares at Aug. 31, 2020		7,342	1,000	7,342	1,000
Stock-based compensation	266					266
Net loss	(6,350)						(6,350)
Exercise of stock options	94					94
Exercise of stock options, shares				22
Ending balances at Nov. 30, 2020	39,723			$ 7	$ 1	60,692	(20,977)
Ending balance, shares at Nov. 30, 2020				7,364	1,000
Beginning balances at Aug. 31, 2020	45,713			$ 7	$ 1	60,332	(14,627)
Beginning balance, shares at Aug. 31, 2020		7,342	1,000	7,342	1,000
Net loss	(10,231)
Ending balances at Feb. 28, 2021	36,423			$ 7	$ 1	61,273	(24,858)
Ending balance, shares at Feb. 28, 2021		7,413	1,000	7,413	1,000
Beginning balances at Nov. 30, 2020	39,723			$ 7	$ 1	60,692	(20,977)
Beginning balance, shares at Nov. 30, 2020				7,364	1,000
Stock-based compensation	309					309
Net loss	(3,881)						(3,881)
Exercise of stock options	272					272
Exercise of stock options, shares				49
Ending balances at Feb. 28, 2021	$ 36,423			$ 7	$ 1	$ 61,273	$ (24,858)
Ending balance, shares at Feb. 28, 2021		7,413	1,000	7,413	1,000

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ 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

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Feb. 28, 2021	Feb. 29, 2020
Cash flows from operating activities
Net loss	$ (10,231)	$ (1,357)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	2,098	1,433
Stock-based compensation	575	332
Loss on disposal of property and equipment	29	4
Deferred income taxes		(5)
Non-cash lease expense	1,380	1,067
Changes in operating assets and liabilities:
Accounts receivable	(408)	131
Inventories	(60)	90
Due from affiliate	(227)	214
Prepaid expenses and other current assets	(2,872)	(9)
Deposits and other assets	53	(39)
Accounts payable	(67)	(1,245)
Accrued expenses and other current liabilities	240	(478)
Salary and wages payable	906	131
Operating lease liabilities	(646)	(585)
Due to affiliate	192	46
Sales tax payable	106	(2)
Net cash used in operating activities	(8,932)	(272)
Cash flows from investing activities
Payments for property and equipment	(9,793)	(7,072)
Payments for initial direct costs		(165)
Payments for purchase of liquor license	(111)	(58)
Net cash used in investing activities	(9,904)	(7,295)
Cash flows from financing activities
Proceeds from loan from affiliate	12,000
Repayment of principal on finance leases	(518)	(506)
Proceeds from exercise of stock options	366	15
Net cash provided by (used in) financing activities	11,848	(491)
Decrease in cash, cash equivalents and restricted cash	(6,988)	(8,058)
Cash, cash equivalents and restricted cash, beginning of period	9,259	38,044
Cash, cash equivalents and restricted cash, end of period	2,271	29,986
Noncash investing activities
Amounts included in accounts payable for purchases of property and equipment	160	483
Reconciliation of cash, cash equivalents and restricted cash within the condensed balance sheets to the amounts shown in the statements of cash flows above:
Cash and cash equivalents	1,747	29,986
Restricted cash included in prepaid expenses and other current assets	524
Cash, cash equivalents and restricted cash, end of period	$ 2,271	$ 29,986

Organization and Basis of Presentation

6 Months Ended

Feb. 28, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

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. “Kura Sushi USA,” “Kura Sushi,” “Kura,” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

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. As of February 28, 2021, the Company had 28 of its 30 restaurants open in some capacity: indoor dining, outdoor dining or takeout only. In April 2021, the Company opened one new restaurant in Sherman Oaks, California. As of the filing date of this Quarterly Report on Form 10-Q, the Company had all 31 restaurants operating at indoor capacities ranging from 25% to 100%, depending on local requirements.

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. The Company has maintained its 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 reduced capacities at open restaurants and the temporary closure of two restaurants during the quarter have caused a substantial decline in the Company’s sales in the most recently completed fiscal quarter and year-to-date period compared to the same quarter and year-to-date period last year. In response to the ongoing 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, emphasizing mobile ordering and takeout, 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 its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the filing date of this Quarterly Report on Form 10-Q.

Recent Events Concerning the Company’s Financial Position

On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), the majority stockholder of the Company, entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) whereby Kura Japan agreed to make available to the Company loans on a revolving credit basis in the principal amount of up to $20 million as evidenced by that certain Promissory Note dated as of the same date with the Company as maker and made payable to Kura Japan (the “Revolving Credit Note”). 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. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million. In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, as well as amendments to the interest rate. For additional information, see “Note 4. Related Party Transactions” and “Note 6. Debt.”

Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed by the United States Congress and signed by the President, the Company is eligible for a refundable employee retention credit subject to certain criteria. The Company recognized a $2.6 million employee retention credit during the three months ended February 28, 2021, of which $2.2 million is included in labor and related costs and $0.4 million is included in general and administrative expenses 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 three and six months ended February 28, 2021.

Due to the ongoing impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of February 28, 2021.

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2020. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2021 or for any other future annual or interim period.

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2021,” “fiscal year 2020” and “fiscal year 2019” refer to the Company’s fiscal year ending August 31, 2021, and fiscal years ended August 31, 2020 and August 31, 2019, 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.

Comprehensive Loss

Comprehensive 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 loss is the same as net loss for all periods presented. Therefore, a separate statement of comprehensive loss is not included in the accompanying financial statements.

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

6 Months Ended

Feb. 28, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 2. Balance Sheet Components

Accounts Receivable

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Lease receivable	$	1,731	$	1,811
Credit card receivable		644		281
Other receivables		82		38
Total accounts receivable	$	2,457	$	2,130

Prepaid Expenses and Other Current Assets

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Employee retention credit	$	4,385	$	1,750
Prepaid expenses		1,083		885
Restricted cash^(a)		524		—
Other current assets		416		375
Total prepaid expenses and other current assets	$	6,408	$	3,010

(a)	The restricted cash was pledged as a collateral for a standby letter of credit with Mizuho Bank, Ltd. related to one of the Company’s leased properties. For additional information, see “Note 4. Related Party Transactions.”

Property and Equipment - net

	February 28, 2021			August 31, 2020
	(amounts in thousands)
Leasehold improvements	$	38,555		$	30,497
Lease assets		6,102			6,117
Furniture and fixtures		11,665			7,908
Computer equipment		768			696
Vehicles		100			88
Software		819			689
Construction in progress		5,030			9,558
Property and equipment – gross		63,039			55,553
Less: accumulated depreciation and amortization		(12,095	)		(10,012	)
Total property and equipment – net	$	50,944		$	45,541

Depreciation and amortization expense for property and equipment was approximately $1.1 million and $0.7 million for the three months ended February 28, 2021 and February 29, 2020, respectively, and was approximately $2.1 million and $1.4 million for the six months ended February 28, 2021 and February 29, 2020, respectively.

Accrued Expenses and Other Current Liabilities

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Credit card payable	$	86	$	84
Income taxes payable		114		56
Other current liabilities		548		580
Total accrued expenses and other current liabilities	$	748	$	720

Leases

6 Months Ended

Feb. 28, 2021

Leases [Abstract]

Leases

Note 3. 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 Company’s 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 within 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 – non-current,” respectively. Finance leases are accounted for on the balance sheet within ROU assets and lease liabilities recognized in “Property and equipment – net,” “Finance lease – current” and “Finance lease – non-current,” respectively.

Lease assets and liabilities are recognized at the lease commencement date. 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 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 statements of operations.

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 the Company’s restaurants are accrued based on estimated sales.

Lease related costs recognized in the statements of operations for the three and six months ended February 28, 2021 and February 29, 2020 are as follows:

		Three Months Ended				Six Months Ended
		February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(amounts in thousands)				(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expenses	$	157	$	145	$	308	$	278
Interest on lease liabilities	Interest expense		26		33		49		67
Total finance lease cost		$	183	$	178	$	357	$	345


		Three Months Ended				Six Months Ended
		February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(amounts in thousands)				(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	1,549	$	1,283	$	3,116	$	2,444
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		252		386		497		700
Total operating lease cost		$	1,801	$	1,669	$	3,613	$	3,144

Supplemental balance sheet information related to leases is as follows:

Operating Leases

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Right-of-use assets	$	54,188	$	56,119

Lease liabilities – current	$	5,402	$	5,106
Lease liabilities – non-current		55,347		56,918
Total lease liabilities	$	60,749	$	62,024

Finance Lease Assets – net

	February 28, 2021			August 31, 2020
	(amounts in thousands)
Finance lease assets	$	6,102		$	6,117
Accumulated depreciation		(2,486	)		(2,178	)
Total finance lease assets - net	$	3,616		$	3,939

Finance Leases Liabilities

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Finance lease liabilities - current	$	1,028	$	1,004
Finance lease liabilities - non-current		939		1,481
Total finance lease liabilities	$	1,967	$	2,485


	February 28, 2021			February 29, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases		15.9			15.3
Finance leases		2.0			2.9

Weighted Average Discount Rate
Operating leases		6.4	%		5.8	%
Finance leases		4.5	%		4.4	%

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

	Six Months Ended
	February 28, 2021		February 29, 2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	1,918	$	1,917
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	15,074

As of February 28, 2021, the Company had additional operating leases liabilities related to restaurants of which the Company has not yet taken possession of $16.6 million. These operating leases are expected to commence in fiscal years 2021 and 2022 with lease terms of 20 years. Subsequent to February 28, 2021, the Company has entered into an additional operating lease related to a restaurant of which the Company has not yet taken possession. The lease liabilities associated with the lease are $2.9 million. The operating lease is expected to commence in fiscal year 2021 with a lease term of 20 years.

Maturities of lease liabilities were as follows as of February 28, 2021:

	Operating Leases			Finance Leases
	(amounts in thousands)
Remainder of 2021	$	925		$	541
2022		4,609			1,005
2023		5,840			483
2024		5,962			17
2025		6,052			1
Thereafter		73,665			—
Total lease payments		97,053			2,047
Less: imputed interest		(36,304	)		(80	)
Present value of lease liabilities	$	60,749		$	1,967

Related Party Transactions

6 Months Ended

Feb. 28, 2021

Related Party Transactions

Note 4. Related Party Transactions

Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company, and is incorporated and headquartered in Japan. In August 2019 the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides 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 and market research analyses. In exchange for such services, supplies, parts and equipment, the parties 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 net settles transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses from Kura Japan 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.

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 pays 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.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, which was subsequently amended on September 2, 2020 and April 9, 2021, to provide the Company a credit line of $45 million. For additional information, see “Note 6. Debt.”

Balances with Kura Japan as of February 28, 2021 and August 31, 2020 are as follows:

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Due from affiliate	$	239	$	12
Due to affiliate	$	219	$	201
Loan from affiliate	$	12,000	$	—

Reimbursements by the Company to Kura Japan for the three and six months ended February 28, 2021 and February 29, 2020 were as follows:

	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
	(amounts in thousands)				(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	7	$	16	$	72	$	23
Expatriate salaries expense		31		33		62		72
Royalty payments		45		97		92		184
Travel and other administrative expenses		4		15		17		50
Purchases of equipment		35		290		401		633
Interest expense		27		—		27		—
Total related party transactions	$	149	$	451	$	671	$	962

Reimbursements by Kura Japan to the Company were $20 thousand and $35 thousand for the three months ended February 28, 2021 and February 29, 2020, respectively, and were $25 thousand and $69 thousand for the six months ended February 28, 2021 and February 29, 2020, respectively. The reimbursements were for travel and audit expenses.

As of February 28, 2021, the Company had $0.5 million of restricted cash included in prepaid expenses and other current assets on the condensed balance sheet pledged as collateral for a standby letter of credit with Mizuho Bank, Ltd. related to one of the Company’s leased properties. Subsequent to February 28, 2021 and as of the filing date of this Quarterly Report on Form 10-Q, Mizuho Bank, Ltd. entered into an agreement with Kura Japan, pursuant to which Kura Japan provided a guaranty on the standby letter of credit, which released the restricted cash.

Stock-based Compensation

6 Months Ended

Feb. 28, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

Note 5. Stock-based Compensation

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”) for the period from August 31, 2020 through February 28, 2021:

	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding—August 31, 2020		531,747		$	9.51
Options granted		146,260			20.54
Options exercised		(71,339	)		5.12
Options canceled/forfeited		(13,508	)		10.94
Outstanding—February 28, 2021		593,160		$	12.73

The Company issued seven thousand restricted stock awards during the three and six months ended February 28, 2021 in addition to the option awards stated below, amounting to an expense of $28 thousand for the three and six months ended February 28, 2021. No restricted stock awards were issued during the three and six months ended February 29, 2020.

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

	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
	(amounts in thousands)				(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	26	$	20	$	49	$	36
Corporate-level stock-based compensation included in general and administrative expenses		283		191		526		296
Total stock-based compensation	$	309	$	211	$	575	$	332

Debt

6 Months Ended

Feb. 28, 2021

Debt Disclosure [Abstract]

Debt

Note 6. Debt

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement establishing a $20 million revolving credit line for the Company. 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. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million.

In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, and additionally, amending the interest rate for advances disbursed prior to April 10, 2021 to be fixed at 1.1% and the interest rate for advances disbursed on or after April 10, 2021 to be fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. The AFR as of February 28, 2021 was 1.9%. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

As of February 28, 2021, the Company had borrowed $12.0 million under the Revolving Credit Agreement at a fixed interest rate of 1.1%. Interest expense for the three and six months ended February 28, 2021 was immaterial. Subsequent to February 28, 2021 and as of the filing date of this Quarterly Report on Form 10-Q, the Company borrowed an additional $2.0 million and has $31.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

Loss Per Share

6 Months Ended

Feb. 28, 2021

Earnings Per Share [Abstract]

Loss Per Share

Note 7. Loss Per Share

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to common stockholders is allocated on a proportionate basis.

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

	Three Months Ended												Six Months Ended
	February 28, 2021						February 29, 2020						February 28, 2021						February 29, 2020
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders - basic and diluted	$	(3,418	)	$	(463	)	$	(117	)	$	(16	)	$	(9,008	)	$	(1,223	)	$	(1,194	)	$	(163	)

Weighted average common shares outstanding - basic and diluted		7,379			1,000			7,336			1,000			7,363			1,000			7,335			1,000
Net loss per share attributable to common stockholders - basic and diluted	$	(0.46	)	$	(0.46	)	$	(0.02	)	$	(0.02	)	$	(1.22	)	$	(1.22	)	$	(0.16	)	$	(0.16	)

The Company computes basic loss per common share using net loss and the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed using net loss 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 and restricted stock awards.

For the three months ended February 28, 2021 and February 29, 2020, there were 600 thousand and 241 thousand shares of common stock subject to outstanding employee stock options and restricted stock awards, respectively, that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. For the six months ended February 28, 2021 and February 29, 2020, there were approximately 600 thousand and 208 thousand shares of common stock subject to outstanding employee stock options and restricted stock awards, respectively, that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

Commitments and Contingencies

6 Months Ended

Feb. 28, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. 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 including a cause of action brought under the California Private Attorney General Act. 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 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

6 Months Ended

Feb. 28, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The Company recorded income tax expense of $29 thousand and $30 thousand for the three months ended February 28, 2021 and February 29, 2020, respectively, and of $58 thousand and $26 thousand for the six months ended February 28, 2021 and February 29, 2020, respectively. The Company’s effective tax rates for the three and six months ended February 28, 2021 and February 29, 2020, substantially differed from the federal statutory tax rate of 21 percent primarily due to a valuation allowance for the Company’s deferred tax assets.

The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at February 28, 2021 was appropriate.

On December 27, 2020, Congress passed, and the President signed into law, the Consolidated Appropriations Act, 2021 (the “CAA”), which includes certain business tax provisions. The Company does not expect the CAA to have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ending August 31, 2021.

On March 11, 2021, Congress passed, and the President signed into law, the American Rescue Plan Act, 2021 (the “ARP”), which includes certain business tax provisions. The Company does not expect the ARP to have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ending August 31, 2021.

- 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

Organization and Basis of Presentation (Policies)	6 Months Ended
Organization and Basis of Presentation (Policies)	Feb. 28, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Effects of COVID-19	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. As of February 28, 2021, the Company had 28 of its 30 restaurants open in some capacity: indoor dining, outdoor dining or takeout only. In April 2021, the Company opened one new restaurant in Sherman Oaks, California. As of the filing date of this Quarterly Report on Form 10-Q, the Company had all 31 restaurants operating at indoor capacities ranging from 25% to 100%, depending on local requirements. 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. The Company has maintained its 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 reduced capacities at open restaurants and the temporary closure of two restaurants during the quarter have caused a substantial decline in the Company’s sales in the most recently completed fiscal quarter and year-to-date period compared to the same quarter and year-to-date period last year. In response to the ongoing 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, emphasizing mobile ordering and takeout, 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 its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the filing date of this Quarterly Report on Form 10-Q.
Recent Events Concerning the Company’s Financial Position	Recent Events Concerning the Company’s Financial Position On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), the majority stockholder of the Company, entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) whereby Kura Japan agreed to make available to the Company loans on a revolving credit basis in the principal amount of up to $20 million as evidenced by that certain Promissory Note dated as of the same date with the Company as maker and made payable to Kura Japan (the “Revolving Credit Note”). 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. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million. In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, as well as amendments to the interest rate. For additional information, see “Note 4. Related Party Transactions” and “Note 6. Debt.” Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed by the United States Congress and signed by the President, the Company is eligible for a refundable employee retention credit subject to certain criteria. The Company recognized a $2.6 million employee retention credit during the three months ended February 28, 2021, of which $2.2 million is included in labor and related costs and $0.4 million is included in general and administrative expenses 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 three and six months ended February 28, 2021. Due to the ongoing impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of February 28, 2021.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2020. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending August 31, 2021 or for any other future annual or interim period.
Fiscal Year	Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2021,” “fiscal year 2020” and “fiscal year 2019” refer to the Company’s fiscal year ending August 31, 2021, and fiscal years ended August 31, 2020 and August 31, 2019, respectively.
Use of Estimates	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.
Comprehensive Loss	Comprehensive Loss Comprehensive 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 loss is the same as net loss for all periods presented. Therefore, a separate statement of comprehensive loss is not included in the accompanying financial statements.
Recently Issued Accounting Pronouncements	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 (Tables)

6 Months Ended

Feb. 28, 2021

Property Plant And Equipment Net [Abstract]

Schedule of Accounts Receivable

Accounts Receivable

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Lease receivable	$	1,731	$	1,811
Credit card receivable		644		281
Other receivables		82		38
Total accounts receivable	$	2,457	$	2,130

Schedule of Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Employee retention credit	$	4,385	$	1,750
Prepaid expenses		1,083		885
Restricted cash^(a)		524		—
Other current assets		416		375
Total prepaid expenses and other current assets	$	6,408	$	3,010

(a)	The restricted cash was pledged as a collateral for a standby letter of credit with Mizuho Bank, Ltd. related to one of the Company’s leased properties. For additional information, see “Note 4. Related Party Transactions.”

Schedule of Property and Equipment - Net

Property and Equipment - net

	February 28, 2021			August 31, 2020
	(amounts in thousands)
Leasehold improvements	$	38,555		$	30,497
Lease assets		6,102			6,117
Furniture and fixtures		11,665			7,908
Computer equipment		768			696
Vehicles		100			88
Software		819			689
Construction in progress		5,030			9,558
Property and equipment – gross		63,039			55,553
Less: accumulated depreciation and amortization		(12,095	)		(10,012	)
Total property and equipment – net	$	50,944		$	45,541

Schedule of Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Credit card payable	$	86	$	84
Income taxes payable		114		56
Other current liabilities		548		580
Total accrued expenses and other current liabilities	$	748	$	720

Leases (Tables)

6 Months Ended

Feb. 28, 2021

Leases [Abstract]

Summary of Lease Related Costs

Lease related costs recognized in the statements of operations for the three and six months ended February 28, 2021 and February 29, 2020 are as follows:

		Three Months Ended				Six Months Ended
		February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(amounts in thousands)				(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expenses	$	157	$	145	$	308	$	278
Interest on lease liabilities	Interest expense		26		33		49		67
Total finance lease cost		$	183	$	178	$	357	$	345


		Three Months Ended				Six Months Ended
		February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(amounts in thousands)				(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	1,549	$	1,283	$	3,116	$	2,444
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		252		386		497		700
Total operating lease cost		$	1,801	$	1,669	$	3,613	$	3,144

Summary of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:

Operating Leases

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Right-of-use assets	$	54,188	$	56,119

Lease liabilities – current	$	5,402	$	5,106
Lease liabilities – non-current		55,347		56,918
Total lease liabilities	$	60,749	$	62,024

Finance Lease Assets – net

	February 28, 2021			August 31, 2020
	(amounts in thousands)
Finance lease assets	$	6,102		$	6,117
Accumulated depreciation		(2,486	)		(2,178	)
Total finance lease assets - net	$	3,616		$	3,939

Finance Leases Liabilities

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Finance lease liabilities - current	$	1,028	$	1,004
Finance lease liabilities - non-current		939		1,481
Total finance lease liabilities	$	1,967	$	2,485


	February 28, 2021			February 29, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases		15.9			15.3
Finance leases		2.0			2.9

Weighted Average Discount Rate
Operating leases		6.4	%		5.8	%
Finance leases		4.5	%		4.4	%

Summary of Supplemental Disclosures of Cash Flow Information Related to Leases

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

	Six Months Ended
	February 28, 2021		February 29, 2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	1,918	$	1,917
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	15,074

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows as of February 28, 2021:

	Operating Leases			Finance Leases
	(amounts in thousands)
Remainder of 2021	$	925		$	541
2022		4,609			1,005
2023		5,840			483
2024		5,962			17
2025		6,052			1
Thereafter		73,665			—
Total lease payments		97,053			2,047
Less: imputed interest		(36,304	)		(80	)
Present value of lease liabilities	$	60,749		$	1,967

Related Party Transactions (Tables)

6 Months Ended

Feb. 28, 2021

Balances with Kura Japan as of February 28, 2021 and August 31, 2020 are as follows:

	February 28, 2021		August 31, 2020
	(amounts in thousands)
Due from affiliate	$	239	$	12
Due to affiliate	$	219	$	201
Loan from affiliate	$	12,000	$	—

Reimbursements by the Company to Kura Japan for the three and six months ended February 28, 2021 and February 29, 2020 were as follows:

	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
	(amounts in thousands)				(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	7	$	16	$	72	$	23
Expatriate salaries expense		31		33		62		72
Royalty payments		45		97		92		184
Travel and other administrative expenses		4		15		17		50
Purchases of equipment		35		290		401		633
Interest expense		27		—		27		—
Total related party transactions	$	149	$	451	$	671	$	962

Stock-based Compensation (Tables)

6 Months Ended

Feb. 28, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity under Stock Incentive Plan

	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding—August 31, 2020		531,747		$	9.51
Options granted		146,260			20.54
Options exercised		(71,339	)		5.12
Options canceled/forfeited		(13,508	)		10.94
Outstanding—February 28, 2021		593,160		$	12.73

Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan

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

	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
	(amounts in thousands)				(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	26	$	20	$	49	$	36
Corporate-level stock-based compensation included in general and administrative expenses		283		191		526		296
Total stock-based compensation	$	309	$	211	$	575	$	332

Loss Per Share (Tables)

6 Months Ended

Feb. 28, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

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

	Three Months Ended												Six Months Ended
	February 28, 2021						February 29, 2020						February 28, 2021						February 29, 2020
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders - basic and diluted	$	(3,418	)	$	(463	)	$	(117	)	$	(16	)	$	(9,008	)	$	(1,223	)	$	(1,194	)	$	(163	)

Weighted average common shares outstanding - basic and diluted		7,379			1,000			7,336			1,000			7,363			1,000			7,335			1,000
Net loss per share attributable to common stockholders - basic and diluted	$	(0.46	)	$	(0.46	)	$	(0.02	)	$	(0.02	)	$	(1.22	)	$	(1.22	)	$	(0.16	)	$	(0.16	)

Organization and Basis of Presentation - Additional Information (Details)				3 Months Ended	6 Months Ended
	Apr. 13, 2021 Restaurant	Sep. 02, 2020 USD ($)	Apr. 10, 2020 USD ($)	Feb. 28, 2021 USD ($) Restaurant	Feb. 28, 2021 USD ($) Restaurant	Apr. 09, 2021 USD ($)	Mar. 01, 2021 USD ($)
Subsequent Event \| Revolving Credit Facility Agreement
Organization and Basis of Presentation [Line Items]
Revolving credit line							$ 31,000,000
Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants, total \| Restaurant				30	30
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]
Credit facility maximum borrowing capacity		$ 35,000,000
Revolving credit line, termination date		Apr. 10, 2025
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.
Kura Japan \| Subsequent Event \| Second Amendment
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity						$ 45,000,000
COVID-19
Organization and Basis of Presentation [Line Items]
Impairment of long-lived assets					$ 0
COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants opened \| Restaurant				28	28
Number of restaurants temporary closure \| Restaurant				2	2
Revolving credit line			$ 20,000,000
COVID-19 \| Kura Japan \| Subsequent Event
Organization and Basis of Presentation [Line Items]
Number of restaurants, total \| Restaurant	31
Number of new restaurant opened \| Restaurant	1
COVID-19 \| Kura Japan \| Subsequent Event \| Revolving Credit Facility Agreement
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity						$ 45,000,000
CARES Act
Organization and Basis of Presentation [Line Items]
Employee retention credit				$ 2,600,000
CARES Act \| General and Administrative Expenses
Organization and Basis of Presentation [Line Items]
Employee retention credit				400,000
CARES Act \| Labor and Related Costs
Organization and Basis of Presentation [Line Items]
Employee retention credit				$ 2,200,000
Local Government Requirements \| Minimum \| COVID-19 \| Kura Japan \| Subsequent Event
Organization and Basis of Presentation [Line Items]
Reduced percentage of capacities	25.00%
Local Government Requirements \| Maximum \| COVID-19 \| Kura Japan \| Subsequent Event
Organization and Basis of Presentation [Line Items]
Reduced percentage of capacities	100.00%

Balance Sheet Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Receivables Net Current [Line Items]
Accounts receivable	$ 2,457	$ 2,130
Lease Receivable
Receivables Net Current [Line Items]
Accounts receivable	1,731	1,811
Credit Card Receivable
Receivables Net Current [Line Items]
Accounts receivable	644	281
Other Receivables
Receivables Net Current [Line Items]
Accounts receivable	$ 82	$ 38

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Prepaid Expense And Other Assets Current [Abstract]
Employee retention credit	$ 4,385	$ 1,750
Prepaid expenses	1,083	885
Restricted cash	524
Other current assets	416	375
Total prepaid expenses and other current assets	$ 6,408	$ 3,010

Balance Sheet Components - Schedule of Property and Equipment - Net (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 63,039	$ 55,553
Less: accumulated depreciation and amortization	(12,095)	(10,012)
Total property and equipment – net	50,944	45,541
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment - gross	38,555	30,497
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment - gross	6,102	6,117
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment - gross	11,665	7,908
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment - gross	768	696
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment - gross	100	88
Software
Property Plant And Equipment [Line Items]
Property and equipment - gross	819	689
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 5,030	$ 9,558

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Property Plant And Equipment Net [Abstract]
Depreciation and amortization expenses	$ 1,100	$ 700	$ 2,098	$ 1,433

Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Credit card payable	$ 86	$ 84
Income taxes payable	114	56
Other current liabilities	548	580
Total accrued expenses and other current liabilities	$ 748	$ 720

Leases - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2021	Mar. 01, 2021
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease start range terms description	less than 1 year
Operating lease liabilities not yet commenced, liability	$ 16.6
Operating lease liabilities not yet commenced, lease term	20 years
Option to extend, existence, lease liabilities not yet commenced, operating lease	true
Subsequent Event
Lessee Lease Description [Line Items]
Operating lease liabilities not yet commenced, liability		$ 2.9
Operating lease liabilities not yet commenced, lease term		20 years
Maximum
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease terms	20 years

Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Finance lease cost
Amortization of right-of-use assets	$ 157	$ 145	$ 308	$ 278
Interest on lease liabilities	26	33	49	67
Total finance lease cost	183	178	357	345
Operating lease cost
Operating lease cost	1,549	1,283	3,116	2,444
Variable lease cost	252	386	497	700
Total operating lease cost	$ 1,801	$ 1,669	$ 3,613	$ 3,144

Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Leases [Abstract]
Right-of-use assets	$ 54,188	$ 56,119
Lease liabilities – current	5,402	5,106
Lease liabilities – non-current	55,347	56,918
Total lease liabilities	$ 60,749	$ 62,024

Leases - Summary of Finance Lease Assets - Net (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Leases [Abstract]
Finance lease assets	$ 6,102	$ 6,117
Accumulated depreciation	(2,486)	(2,178)
Total finance lease assets - net	$ 3,616	$ 3,939

Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Leases [Abstract]
Finance lease liabilities - current	$ 1,028	$ 1,004
Finance lease liabilities - non-current	939	1,481
Total finance lease liabilities	$ 1,967	$ 2,485

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Feb. 28, 2021	Feb. 29, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases	15 years 10 months 24 days	15 years 3 months 18 days
Finance leases	2 years	2 years 10 months 24 days
Weighted Average Discount Rate
Operating leases	6.40%	5.80%
Finance leases	4.50%	4.40%

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 1,918	$ 1,917
Operating right-of-use assets obtained in exchange for new operating lease liabilities		$ 15,074

Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2021	Aug. 31, 2020
Operating Leases
Remainder of 2021	$ 925
2022	4,609
2023	5,840
2024	5,962
2025	6,052
Thereafter	73,665
Total lease payments	97,053
Less: imputed interest	(36,304)
Present value of lease liabilities	60,749	$ 62,024
Finance Leases
Remainder of 2021	541
2022	1,005
2023	483
2024	17
2025	1
Total lease payments	2,047
Less: imputed interest	(80)
Present value of lease liabilities	$ 1,967	$ 2,485

Related Party Transactions - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020	Apr. 09, 2021	Apr. 10, 2020
Related Party Transaction [Line Items]
Restricted cash		$ 524,000		$ 524,000
Kura Japan \| Travel and Translation Expense
Related Party Transaction [Line Items]
Reimbursements by related party		$ 20,000	$ 35,000	$ 25,000	$ 69,000
Kura Japan \| Revolving Credit Facility Agreement
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity							$ 20,000,000
Kura Japan \| Revolving Credit Facility Agreement \| Subsequent Event \| COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity						$ 45,000,000
Kura Japan \| 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	Feb. 28, 2021	Aug. 31, 2020
Related Party Transaction [Line Items]
Due from affiliate	$ 239	$ 12
Due to affiliate	219	201
Kura Japan
Related Party Transaction [Line Items]
Due from affiliate	239	12
Due to affiliate	219	$ 201
Loan from affiliate	$ 12,000

Related Party Transactions - Schedule of Related Party Reimbursements (Details) - Kura Japan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Related Party Transaction [Line Items]
Total related party transactions	$ 149	$ 451	$ 671	$ 962
Purchases of Administrative Supplies
Related Party Transaction [Line Items]
Total related party transactions	7	16	72	23
Expatriate Salaries Expense
Related Party Transaction [Line Items]
Total related party transactions	31	33	62	72
Royalty Payments
Related Party Transaction [Line Items]
Total related party transactions	45	97	92	184
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Total related party transactions	4	15	17	50
Purchases of Equipment
Related Party Transaction [Line Items]
Total related party transactions	35	$ 290	401	$ 633
Interest Expense
Related Party Transaction [Line Items]
Total related party transactions	$ 27		$ 27

Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan	6 Months Ended
	Feb. 28, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of Shares Underlying Outstanding Options, Beginning balance \| shares	531,747
Options Outstanding, Number of Shares Underlying Outstanding Options, Options granted \| shares	146,260
Options Outstanding, Number of Shares Underlying Outstanding Options, Options exercised \| shares	(71,339)
Options Outstanding, Number of Shares Underlying Outstanding Options, Options canceled/forfeited \| shares	(13,508)
Options Outstanding, Number of Shares Underlying Outstanding Options, Ending balance \| shares	593,160
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance \| $ / shares	$ 9.51
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted \| $ / shares	20.54
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised \| $ / shares	5.12
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited \| $ / shares	10.94
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance \| $ / shares	$ 12.73

Stock-based Compensation - Additional Information (Details) - Restricted Stock Awards - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued	7,000	0	7,000	0
Stock-based compensation expense	$ 28		$ 28

Stock-based Compensation - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 309	$ 211	$ 575	$ 332
Restaurant-level Stock-based Compensation Included In Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	26	20	49	36
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	$ 283	$ 191	$ 526	$ 296

Debt - Additional Information (Details) - USD ($)					6 Months Ended
Debt - Additional Information (Details) - USD ($)	Apr. 11, 2021	Apr. 09, 2021	Sep. 02, 2020	Apr. 10, 2020	Feb. 28, 2021	Mar. 01, 2021
Debt Instrument [Line Items]
Revolving credit line interest rate					1.10%
Revolving Credit Facility Agreement
Debt Instrument [Line Items]
Revolving credit line					$ 12,000,000
Revolving Credit Facility Agreement \| Subsequent Event
Debt Instrument [Line Items]
Revolving credit line						$ 2,000,000
Remaining availability under credit agreement						$ 31,000,000
Revolving Credit Facility Agreement \| Kura Japan
Debt Instrument [Line Items]
Revolving credit line				$ 20,000,000
Credit facility maximum borrowing capacity				$ 20,000,000
Revolving credit line, termination date				Mar. 31, 2024
First Amendment \| Kura Japan
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity			$ 35,000,000
Revolving credit line, termination date			Apr. 10, 2025
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.
Second Amendment \| Kura Japan \| Subsequent Event
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		$ 45,000,000
First Amendment and Second Amendment
Debt Instrument [Line Items]
Applicable federal rate					1.90%
First Amendment and Second Amendment \| Subsequent Event
Debt Instrument [Line Items]
Revolving credit line interest rate	130.00%	1.10%

Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Class A
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders - basic and diluted	$ (3,418)	$ (117)	$ (9,008)	$ (1,194)
Weighted average common shares outstanding - basic and diluted	7,379	7,336	7,363	7,335
Net loss per share attributable to common stockholders - basic and diluted	$ (0.46)	$ (0.02)	$ (1.22)	$ (0.16)
Class B
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders - basic and diluted	$ (463)	$ (16)	$ (1,223)	$ (163)
Weighted average common shares outstanding - basic and diluted	1,000	1,000	1,000	1,000
Net loss per share attributable to common stockholders - basic and diluted	$ (0.46)	$ (0.02)	$ (1.22)	$ (0.16)

Loss Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Employee Stock Option
Earnings Per Share [Line Items]
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted loss per share	600		600
Restricted Stock
Earnings Per Share [Line Items]
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted loss per share		241		208

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Feb. 28, 2021	Feb. 29, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 29	$ 30	$ 58	$ 26
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%

- Definition

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

+ References + Details