10-Q
2022falseQ30001772177--08-310001772177krus:CreditCardAndOtherReceivablesMember2022-05-310001772177krus:KuraJapanMemberkrus:TravelAndTranslationExpenseMember2021-09-012022-05-310001772177srt:MaximumMember2021-09-012022-05-3100017721772021-11-300001772177us-gaap:SubsequentEventMember2022-07-070001772177us-gaap:RetainedEarningsMember2021-08-3100017721772020-09-012021-05-310001772177krus:KuraJapanMemberkrus:RoyaltyPaymentsMember2022-03-012022-05-310001772177krus:KuraJapanMemberus-gaap:InterestExpenseMember2020-09-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-05-310001772177us-gaap:EmployeeStockOptionMember2021-03-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-02-280001772177us-gaap:AdditionalPaidInCapitalMember2021-12-012022-02-280001772177krus:KuraJapanMemberkrus:RoyaltyPaymentsMember2020-09-012021-05-3100017721772020-12-012021-02-280001772177us-gaap:RevolvingCreditFacilityMember2021-09-012022-05-310001772177krus:KuraJapanMemberkrus:ExpatriateSalariesExpenseMember2021-09-012022-05-310001772177us-gaap:SoftwareDevelopmentMember2022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-02-280001772177us-gaap:RestrictedStockMember2021-09-012022-05-3100017721772021-02-280001772177krus:LeaseAssetsMember2021-08-310001772177krus:StockIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2020-09-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2022-02-280001772177krus:LeaseAssetsMember2022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-05-310001772177krus:KuraJapanMemberkrus:ExpatriateSalariesExpenseMember2021-03-012021-05-310001772177us-gaap:ConstructionInProgressMember2022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-09-012020-11-300001772177us-gaap:GeneralAndAdministrativeExpenseMember2022-05-310001772177krus:KuraJapanMemberkrus:ExpatriateSalariesExpenseMember2022-03-012022-05-310001772177krus:StockIncentivePlanMember2022-03-012022-05-310001772177krus:KuraJapanMemberkrus:RoyaltyPaymentsMember2021-03-012021-05-310001772177us-gaap:RetainedEarningsMember2022-02-2800017721772022-02-280001772177us-gaap:FoodAndBeverageMember2020-09-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-03-012021-05-310001772177krus:StockIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-09-012022-05-3100017721772022-03-012022-05-310001772177us-gaap:LeaseholdImprovementsMember2021-08-310001772177krus:KuraJapanMember2022-05-310001772177us-gaap:CommonClassBMember2022-05-310001772177us-gaap:AdditionalPaidInCapitalMember2020-08-310001772177us-gaap:AdditionalPaidInCapitalMember2022-05-310001772177krus:KuraJapanMemberkrus:TravelAndOtherAdministrativeExpensesMember2021-09-012022-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-08-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2020-08-310001772177us-gaap:CommonClassAMember2022-07-050001772177us-gaap:RevolvingCreditFacilityMemberkrus:FixedInterestRateOfTwoPointEightPercentageMember2020-09-012021-05-310001772177us-gaap:RevolvingCreditFacilityMember2022-05-310001772177us-gaap:RetainedEarningsMember2022-05-310001772177us-gaap:VehiclesMember2021-08-3100017721772021-12-012022-02-280001772177us-gaap:GeneralAndAdministrativeExpenseMemberkrus:CARESActMember2021-03-012021-05-3100017721772021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-11-300001772177krus:KuraJapanMember2021-03-012021-05-310001772177krus:LaborAndRelatedCostsMember2020-09-012021-05-310001772177us-gaap:FoodAndBeverageMember2021-09-012022-05-310001772177krus:LaborAndRelatedCostsMemberkrus:CARESActMember2021-03-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-02-280001772177us-gaap:FoodAndBeverageMember2021-03-012021-05-310001772177us-gaap:RevolvingCreditFacilityMemberkrus:FixedInterestRateOfTwoPointEightPercentageMember2021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-11-300001772177us-gaap:CommonClassBMember2022-03-012022-05-310001772177krus:StockIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-03-012021-05-310001772177krus:CreditCardAndOtherReceivablesMember2021-08-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-03-012022-05-310001772177us-gaap:AdditionalPaidInCapitalMember2020-12-012021-02-280001772177us-gaap:OtherExpenseMemberkrus:StockIncentivePlanMember2021-09-012022-05-310001772177krus:KuraJapanMemberkrus:TravelAndOtherAdministrativeExpensesMember2022-03-012022-05-310001772177krus:KuraJapanMember2022-03-012022-05-310001772177krus:KuraJapanMemberus-gaap:InterestExpenseMember2021-03-012021-05-310001772177us-gaap:OtherExpenseMemberkrus:StockIncentivePlanMember2021-03-012021-05-310001772177us-gaap:CommonClassBMember2021-03-012021-05-310001772177krus:CARESActMember2020-09-012021-08-310001772177us-gaap:RevolvingCreditFacilityMemberkrus:FixedInterestRateOfOnePointOnePercentageMember2021-05-310001772177us-gaap:OtherExpenseMemberkrus:StockIncentivePlanMember2022-03-012022-05-310001772177us-gaap:RetainedEarningsMember2020-12-012021-02-280001772177us-gaap:RevolvingCreditFacilityMember2021-03-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-08-310001772177us-gaap:RetainedEarningsMember2021-11-300001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-11-300001772177us-gaap:SoftwareDevelopmentMember2021-08-310001772177krus:CARESActMember2021-09-012022-05-310001772177krus:LeaseReceivablesMember2022-05-310001772177us-gaap:LeaseholdImprovementsMember2022-05-310001772177krus:KuraJapanMemberus-gaap:RevolvingCreditFacilityMemberkrus:COVID19Member2022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-12-012022-02-280001772177krus:CARESActMember2021-03-012021-05-3100017721772021-09-012021-11-300001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2020-11-300001772177us-gaap:CommonClassAMember2021-08-310001772177krus:KuraJapanMemberkrus:LicenseAgreementMember2019-08-012019-08-310001772177krus:KuraJapanMemberkrus:TravelAndOtherAdministrativeExpensesMember2020-09-012021-05-310001772177krus:KuraJapanMember2021-09-012022-05-310001772177krus:LaborAndRelatedCostsMemberkrus:CARESActMember2020-09-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2020-11-300001772177krus:KuraJapanMemberkrus:PurchasesOfEquipmentMember2020-09-012021-05-310001772177us-gaap:SubsequentEventMember2022-07-072022-07-070001772177us-gaap:CommonClassAMember2021-09-012022-05-310001772177us-gaap:EmployeeStockOptionMember2020-09-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2022-03-012022-05-310001772177krus:KuraJapanMemberkrus:PurchasesOfAdministrativeSuppliesMember2021-03-012021-05-3100017721772021-09-012022-05-310001772177us-gaap:RetainedEarningsMember2020-08-310001772177krus:KuraJapanMemberkrus:PurchasesOfEquipmentMember2021-09-012022-05-310001772177us-gaap:ComputerEquipmentMember2022-05-310001772177krus:CARESActMember2020-09-012021-05-310001772177us-gaap:RetainedEarningsMember2021-05-310001772177krus:LaborAndRelatedCostsMember2021-09-012022-05-310001772177us-gaap:FurnitureAndFixturesMember2021-08-3100017721772020-08-310001772177us-gaap:ConstructionInProgressMember2021-08-310001772177krus:StockIncentivePlanMember2021-09-012022-05-310001772177krus:KuraJapanMemberkrus:PurchasesOfEquipmentMember2022-03-012022-05-310001772177us-gaap:EmployeeStockOptionMember2022-03-012022-05-3100017721772020-09-012020-11-300001772177us-gaap:RetainedEarningsMember2021-02-280001772177krus:StockIncentivePlanMember2021-08-310001772177us-gaap:RetainedEarningsMember2021-09-012021-11-300001772177us-gaap:CommonClassAMember2020-09-012021-05-310001772177us-gaap:OccupancyMember2021-09-012022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-05-310001772177us-gaap:GeneralAndAdministrativeExpenseMemberkrus:CARESActMember2020-09-012021-05-310001772177krus:FinanceLeaseAssetsMember2022-05-310001772177us-gaap:CommonClassBMember2022-07-050001772177us-gaap:ComputerEquipmentMember2021-08-310001772177us-gaap:GeneralAndAdministrativeExpenseMember2021-09-012022-05-310001772177krus:KuraJapanMember2020-09-012021-05-310001772177us-gaap:RetainedEarningsMember2022-03-012022-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-03-012021-05-310001772177krus:KuraJapanMemberkrus:TravelAndTranslationExpenseMember2020-09-012021-05-310001772177krus:KuraJapanMemberkrus:PurchasesOfEquipmentMember2021-03-012021-05-310001772177us-gaap:CommonClassBMember2021-09-012022-05-3100017721772020-11-300001772177krus:StockIncentivePlanMember2022-05-310001772177krus:CARESActMember2020-03-272022-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-09-012021-11-3000017721772022-05-310001772177krus:KuraJapanMemberus-gaap:RevolvingCreditFacilityMember2020-04-100001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-12-012021-02-280001772177us-gaap:CommonClassAMember2022-03-012022-05-310001772177us-gaap:VehiclesMember2022-05-3100017721772021-08-310001772177us-gaap:RestrictedStockMember2022-03-012022-05-310001772177krus:LaborAndRelatedCostsMember2022-03-012022-05-310001772177krus:KuraJapanMemberkrus:PurchasesOfAdministrativeSuppliesMember2020-09-012021-05-310001772177us-gaap:RetainedEarningsMember2020-11-300001772177krus:KuraJapanMemberkrus:TravelAndTranslationExpenseMember2022-03-012022-05-310001772177us-gaap:RetainedEarningsMember2021-12-012022-02-280001772177krus:StockIncentivePlanMember2020-09-012021-05-310001772177krus:KuraJapanMemberkrus:ExpatriateSalariesExpenseMember2020-09-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-08-310001772177krus:LaborAndRelatedCostsMember2021-03-012021-05-310001772177krus:KuraJapanMemberkrus:TravelAndTranslationExpenseMember2021-03-012021-05-310001772177us-gaap:RetainedEarningsMember2021-03-012021-05-310001772177us-gaap:CommonClassBMember2021-08-310001772177us-gaap:CommonClassAMember2022-05-310001772177us-gaap:RetainedEarningsMember2020-09-012020-11-300001772177us-gaap:OccupancyMember2021-03-012021-05-310001772177us-gaap:OccupancyMember2022-03-012022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-08-310001772177us-gaap:FurnitureAndFixturesMember2022-05-310001772177krus:StockIncentivePlanMember2021-03-012021-05-310001772177us-gaap:EmployeeStockOptionMember2021-09-012022-05-310001772177krus:KuraJapanMember2021-08-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-11-300001772177us-gaap:OccupancyMember2020-09-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2021-05-310001772177us-gaap:OtherExpenseMemberkrus:StockIncentivePlanMember2020-09-012021-05-310001772177us-gaap:RevolvingCreditFacilityMemberkrus:FixedInterestRateOfOnePointOnePercentageMember2020-09-012021-05-310001772177us-gaap:AdditionalPaidInCapitalMember2020-09-012020-11-300001772177krus:KuraJapanMemberkrus:RoyaltyPaymentsMember2021-09-012022-05-310001772177krus:StockIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-03-012022-05-310001772177us-gaap:CommonClassBMember2020-09-012021-05-310001772177krus:LeaseReceivablesMember2021-08-310001772177us-gaap:RevolvingCreditFacilityMember2020-09-012021-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-02-280001772177us-gaap:FoodAndBeverageMember2022-03-012022-05-310001772177us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-02-280001772177us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-09-012021-11-3000017721772021-03-012021-05-310001772177us-gaap:CommonClassAMember2021-03-012021-05-310001772177krus:FinanceLeaseAssetsMember2021-08-31xbrli:pureiso4217:USDxbrli:sharesxbrli:sharesiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-39012

 

KURA SUSHI USA, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

26-3808434

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

17461 Derian Avenue, Suite 200

Irvine, California

92614

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (657) 333-4100

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.001 par value per share

 

KRUS

 

Nasdaq Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 5, 2022, the registrant had 8,740,465 shares of Class A common stock, $0.001 par value per share, outstanding and 1,000,050 shares of Class B common stock, $0.001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations

2

 

Condensed Statements of Stockholders’ Equity

3

 

Condensed Statements of Cash Flows

4

 

Notes to Condensed Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

26

PART II.

OTHER INFORMATION

27

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

27

Item 3.

Defaults Upon Senior Securities

27

Item 4.

Mine Safety Disclosures

27

Item 5.

Other Information

27

Item 6.

Exhibits

28

Signatures

29

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Kura Sushi USA, Inc.

Condensed Balance Sheets

(amounts in thousands, except par value)

(Unaudited)

 

 

 

May 31, 2022

 

 

August 31, 2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

35,968

 

 

$

40,430

 

Accounts and other receivables

 

 

2,213

 

 

 

2,019

 

Inventories

 

 

884

 

 

 

733

 

Due from affiliate

 

 

 

 

 

329

 

Prepaid expenses and other current assets

 

 

6,108

 

 

 

13,957

 

Total current assets

 

 

45,173

 

 

 

57,468

 

Non-current assets:

 

 

 

 

 

 

Property and equipment – net

 

 

68,677

 

 

 

53,885

 

Operating lease right-of-use assets

 

 

78,569

 

 

 

64,158

 

Deposits and other assets

 

 

3,106

 

 

 

2,158

 

Total assets

 

$

195,525

 

 

$

177,669

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

6,115

 

 

$

4,920

 

Accrued expenses and other current liabilities

 

 

3,287

 

 

 

2,820

 

Salaries and wages payable

 

 

5,947

 

 

 

4,612

 

Finance leases – current

 

 

697

 

 

 

932

 

Operating lease liabilities – current

 

 

7,062

 

 

 

5,650

 

Due to affiliate

 

 

84

 

 

 

244

 

Sales tax payable

 

 

1,173

 

 

 

869

 

Total current liabilities

 

 

24,365

 

 

 

20,047

 

Non-current liabilities:

 

 

 

 

 

 

Finance leases – non-current

 

 

49

 

 

 

546

 

Operating lease liabilities – non-current

 

 

80,679

 

 

 

65,834

 

Other liabilities

 

 

472

 

 

 

398

 

Total liabilities

 

 

105,565

 

 

 

86,825

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value; 1,000 shares authorized, no shares
issued or outstanding

 

 

 

 

 

 

Class A common stock, $0.001 par value; 50,000 shares authorized,
8,734 and 8,700 shares issued and outstanding as of May 31, 2022
and August 31, 2021, respectively

 

 

9

 

 

 

9

 

Class B common stock, $0.001 par value; 10,000 shares authorized,
1,000 shares issued and outstanding as of May 31, 2022
and August 31, 2021

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

117,549

 

 

 

115,756

 

Accumulated deficit

 

 

(27,599

)

 

 

(24,922

)

Total stockholders' equity

 

 

89,960

 

 

 

90,844

 

Total liabilities and stockholders' equity

 

$

195,525

 

 

$

177,669

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

1


 

Kura Sushi USA, Inc.

Condensed Statements of Operations

(amounts in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended May 31,

 

 

Nine Months Ended May 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Sales

 

$

37,969

 

 

$

18,471

 

 

$

99,091

 

 

$

36,967

 

Restaurant operating costs:

 

 

 

 

 

 

 

 

 

 

 

 

Food and beverage costs

 

 

11,282

 

 

 

5,850

 

 

 

29,615

 

 

 

12,078

 

Labor and related costs

 

 

11,788

 

 

 

1,649

 

 

 

31,840

 

 

 

8,070

 

Occupancy and related expenses

 

 

2,693

 

 

 

1,885

 

 

 

7,195

 

 

 

5,202

 

Depreciation and amortization expenses

 

 

1,376

 

 

 

1,086

 

 

 

3,814

 

 

 

3,015

 

Other costs

 

 

4,372

 

 

 

2,713

 

 

 

12,326

 

 

 

6,843

 

Total restaurant operating costs

 

 

31,511

 

 

 

13,183

 

 

 

84,790

 

 

 

35,208

 

General and administrative expenses

 

 

5,900

 

 

 

4,292

 

 

 

16,714

 

 

 

10,687

 

Depreciation and amortization expenses

 

 

85

 

 

 

130

 

 

 

256

 

 

 

299

 

Total operating expenses

 

 

37,496

 

 

 

17,605

 

 

 

101,760

 

 

 

46,194

 

Operating income (loss)

 

 

473

 

 

 

866

 

 

 

(2,669

)

 

 

(9,227

)

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

23

 

 

 

67

 

 

 

70

 

 

 

154

 

Interest income

 

 

(25

)

 

 

(1

)

 

 

(75

)

 

 

(8

)

Income (loss) before income taxes

 

 

475

 

 

 

800

 

 

 

(2,664

)

 

 

(9,373

)

Income tax (benefit) expense

 

 

(2

)

 

 

30

 

 

 

13

 

 

 

88

 

Net income (loss)

 

$

477

 

 

$

770

 

 

$

(2,677

)

 

$

(9,461

)

Net income (loss) per Class A and Class B shares

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.09

 

 

$

(0.28

)

 

$

(1.13

)

Diluted

 

$

0.05

 

 

$

0.09

 

 

$

(0.28

)

 

$

(1.13

)

Weighted average Class A and Class B shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

9,722

 

 

 

8,383

 

 

 

9,714

 

 

 

8,381

 

Diluted

 

 

10,069

 

 

 

8,663

 

 

 

9,714

 

 

 

8,381

 

 

The accompanying notes are an integral part of these condensed financial statements.

2


 

Kura Sushi USA, Inc.

Condensed Statements of Stockholders’ Equity

(amounts in thousands)

(Unaudited)

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Total

 

 

 

Class A

 

 

Class B

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balances as of August 31, 2021

 

 

8,700

 

 

$

9

 

 

 

1,000

 

 

$

1

 

 

$

115,756

 

 

$

(24,922

)

 

$

90,844

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

443

 

 

 

 

 

 

443

 

Employee stock plan

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

19

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,275

)

 

 

(1,275

)

Balances as of November 30, 2021

 

 

8,713

 

 

 

9

 

 

 

1,000

 

 

 

1

 

 

 

116,218

 

 

 

(26,197

)

 

 

90,031

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

596

 

 

 

 

 

 

596

 

Employee stock plan

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Taxes paid on vested restricted stock awards

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

(154

)

 

 

 

 

 

(154

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,879

)

 

 

(1,879

)

Balances as of February 28, 2022

 

 

8,716

 

 

 

9

 

 

 

1,000

 

 

 

1

 

 

 

116,689

 

 

 

(28,076

)

 

 

88,623

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

732

 

 

 

 

 

 

732

 

Employee stock plan

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

128

 

 

 

 

 

 

128

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

477

 

 

 

477

 

Balances as of May 31, 2022

 

 

8,734

 

 

$

9

 

 

 

1,000

 

 

$

1

 

 

$

117,549

 

 

$

(27,599

)

 

$

89,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Total

 

 

 

Class A

 

 

Class B

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balances as of August 31, 2020

 

 

7,342

 

 

$

7

 

 

 

1,000

 

 

$

1

 

 

$

60,332

 

 

$

(14,627

)

 

$

45,713

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

266

 

 

 

 

 

 

266

 

Exercise of stock options

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

94

 

 

 

 

 

 

94

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,350

)

 

 

(6,350

)

Balances as of November 30, 2020

 

 

7,364

 

 

 

7

 

 

 

1,000

 

 

 

1

 

 

 

60,692

 

 

 

(20,977

)

 

 

39,723

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

309

 

 

 

 

 

 

309

 

Exercise of stock options

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

272

 

 

 

 

 

 

272

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,881

)

 

 

(3,881

)

Balances as of February 28, 2021

 

 

7,413

 

 

 

7

 

 

 

1,000

 

 

 

1

 

 

 

61,273

 

 

 

(24,858

)

 

 

36,423

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

391

 

 

 

 

 

 

391

 

Exercise of stock options

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

73

 

 

 

 

 

 

73

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

770

 

 

 

770

 

Balances as of May 31, 2021

 

 

7,424

 

 

$

7

 

 

 

1,000

 

 

$

1

 

 

$

61,737

 

 

$

(24,088

)

 

$

37,657

 

 

The accompanying notes are an integral part of these condensed financial statements.

3


 

Kura Sushi USA, Inc.

Condensed Statements of Cash Flows

(amounts in thousands)

(Unaudited)

 

 

 

 

Nine Months Ended May 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(2,677

)

 

$

(9,461

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

4,070

 

 

 

3,314

 

Stock-based compensation

 

 

1,771

 

 

 

966

 

Loss on disposal of property and equipment

 

 

 

 

 

91

 

Non-cash lease expense

 

 

2,294

 

 

 

1,975

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts and other receivables

 

 

(301

)

 

 

(1,227

)

Inventories

 

 

(151

)

 

 

(100

)

Due from affiliate

 

 

329

 

 

 

10

 

Prepaid expenses and other current assets

 

 

7,849