| Restatement of 2018 Unaudited Quarterly Results |
18. RESTATEMENT OF 2018 UNAUDITED
QUARTELRY RESULTS
The Company’s
various loan agreements contain financial and non-financial covenants and provisions providing for cross-default. The evaluation
of compliance with these provisions is subject to interpretation and the exercise of judgement. The Company concluded that, as
of December 31, 2017, conditions could be interpreted as events of default under one or more of its loan obligations, which could
also could trigger cross default provisions across its various loan agreements. Management quantified the potential penalties and
default interest that could consequently be assessed in the event the loans were deemed to be in default. Accordingly, the Company
recorded a liability for potential default interest and penalties of $881 thousand as interest expense in the accompanying consolidated
financial statements as of December 31, 2017. Management evaluated the potential impact of this liability on the prior quarterly
financial statements issued during 2017 and determined that net loss of the quarterly periods ended June 30, 2017 and September
30, 2017 should be restated to reflect the liability.
The table below
presents major captions of the Company’s condensed consolidated as originally reported and as adjusted. There was no impact
on the condensed consolidated statement of cash flows or on the Company’s
cash from operations for the year ended
December 31, 2017.
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
As Reported |
|
|
|
|
|
As Restated |
|
|
As Reported |
|
|
|
|
|
As Restated |
|
|
As Reported |
|
|
|
|
|
As Restated |
|
|
As Reported |
|
|
|
|
|
As Restated |
|
| |
|
June 30, 2017 |
|
|
Adjustment |
|
|
June 30, 2017 |
|
|
June 30, 2017 |
|
|
Adjustment |
|
|
June 30, 2017 |
|
|
September 30, 2017 |
|
|
Adjustment |
|
|
September 30, 2017 |
|
|
September 30, 2017 |
|
|
Adjustment |
|
|
September 30, 2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
$ |
10,765,317 |
|
|
$ |
- |
|
|
$ |
10,765,317 |
|
|
$ |
20,625,315 |
|
|
$ |
- |
|
|
$ |
20,625,315 |
|
|
$ |
10,725,365 |
|
|
$ |
- |
|
|
$ |
10,725,365 |
|
|
$ |
31,350,678 |
|
|
$ |
- |
|
|
$ |
31,350,678 |
|
| Operating loss from continuing operations |
|
$ |
(1,081,455 |
) |
|
$ |
- |
|
|
$ |
(1,081,455 |
) |
|
$ |
(2,070,842 |
) |
|
$ |
- |
|
|
$ |
(2,070,842 |
) |
|
$ |
(1,398,442 |
) |
|
$ |
- |
|
|
$ |
(1,398,442 |
) |
|
$ |
(3,469,285 |
) |
|
$ |
- |
|
|
$ |
(3,469,285 |
) |
| Interest expense |
|
$ |
(504,706 |
) |
|
$ |
(575,000 |
) |
|
$ |
(1,079,706 |
) |
|
$ |
(908,842 |
) |
|
$ |
(575,000 |
) |
|
$ |
(1,483,842 |
) |
|
$ |
(309,538 |
) |
|
$ |
(153,333 |
) |
|
$ |
(462,871 |
) |
|
$ |
(1,218,379 |
) |
|
$ |
(728,333 |
) |
|
$ |
(1,946,712 |
) |
| Loss from continuing operations |
|
$ |
(1,428,201 |
) |
|
$ |
(575,000 |
) |
|
$ |
(2,003,201 |
) |
|
$ |
(3,176,110 |
) |
|
$ |
(575,000 |
) |
|
$ |
(3,751,110 |
) |
|
$ |
(1,726,211 |
) |
|
$ |
(153,333 |
) |
|
$ |
(1,879,544 |
) |
|
$ |
(4,902,324 |
) |
|
$ |
(728,333 |
) |
|
$ |
(5,630,657 |
) |
| Consolidated net loss |
|
$ |
(1,428,201 |
) |
|
$ |
(575,000 |
) |
|
$ |
(2,003,201 |
) |
|
$ |
(3,176,110 |
) |
|
$ |
(575,000 |
) |
|
$ |
(3,751,110 |
) |
|
$ |
(1,726,211 |
) |
|
$ |
(153,333 |
) |
|
$ |
(1,879,544 |
) |
|
$ |
(4,902,324 |
) |
|
$ |
(728,333 |
) |
|
$ |
(5,630,657 |
) |
| Net loss attributable to Chanticleer Holdings, Inc. |
|
$ |
(1,371,873 |
) |
|
$ |
(575,000 |
) |
|
$ |
(1,946,873 |
) |
|
$ |
(3,098,939 |
) |
|
$ |
(575,000 |
) |
|
$ |
(3,673,939 |
) |
|
$ |
(1,557,439 |
) |
|
$ |
(153,333 |
) |
|
$ |
(1,710,772 |
) |
|
$ |
(4,656,381 |
) |
|
$ |
(728,333 |
) |
|
$ |
(5,384,714 |
) |
| Net loss attributable to common shareholders of Chanticleer Holdings, Inc. |
|
$ |
(1,399,495 |
) |
|
$ |
(575,000 |
) |
|
$ |
(1,974,495 |
) |
|
$ |
(3,150,708 |
) |
|
$ |
(575,000 |
) |
|
$ |
(3,725,708 |
) |
|
$ |
(1,585,658 |
) |
|
$ |
(153,333 |
) |
|
$ |
(1,738,991 |
) |
|
$ |
(4,736,369 |
) |
|
$ |
(728,333 |
) |
|
$ |
(5,464,702 |
) |
| Net loss attributable to Chanticleer Holdings, Inc. per common share, basic and diluted |
|
$ |
(0.58 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.81 |
) |
|
$ |
(1.40 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.65 |
) |
|
$ |
(0.63 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.71 |
) |
|
$ |
(2.10 |
) |
|
$ |
(0.32 |
) |
|
$ |
(2.42 |
) |
| Weighted average shares outstanding, basic and diluted |
|
|
2,432,313 |
|
|
$ |
- |
|
|
$ |
2,432,313 |
|
|
|
2,257,767 |
|
|
$ |
- |
|
|
$ |
2,257,767 |
|
|
|
2,432,313 |
|
|
$ |
- |
|
|
$ |
2,432,313 |
|
|
$ |
2,258,013 |
|
|
$ |
- |
|
|
$ |
2,258,013 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
33,056,885 |
|
|
$ |
- |
|
|
$ |
33,056,885 |
|
|
$ |
33,056,885 |
|
|
$ |
- |
|
|
$ |
33,056,885 |
|
|
$ |
31,564,589 |
|
|
$ |
- |
|
|
$ |
31,564,589 |
|
|
$ |
31,564,589 |
|
|
$ |
- |
|
|
$ |
31,564,589 |
|
| Total Liabilities |
|
$ |
18,419,316 |
|
|
$ |
575,000 |
|
|
$ |
18,994,316 |
|
|
$ |
18,419,316 |
|
|
$ |
575,000 |
|
|
$ |
18,994,316 |
|
|
$ |
19,030,560 |
|
|
$ |
153,333 |
|
|
$ |
19,183,893 |
|
|
$ |
19,030,560 |
|
|
$ |
728,333 |
|
|
$ |
19,758,893 |
|
| Total Chanticleer Holdings, Inc, Stockholder's Equity |
|
$ |
13,673,324 |
|
|
$ |
(575,000 |
) |
|
$ |
13,098,324 |
|
|
$ |
13,673,324 |
|
|
$ |
(575,000 |
) |
|
$ |
13,098,324 |
|
|
$ |
11,629,109 |
|
|
$ |
(153,333 |
) |
|
$ |
11,475,776 |
|
|
$ |
11,629,109 |
|
|
$ |
(728,333 |
) |
|
$ |
10,900,776 |
|
| Total Stockholder's Equity |
|
$ |
14,637,569 |
|
|
$ |
575,000 |
|
|
$ |
15,212,569 |
|
|
$ |
14,637,569 |
|
|
$ |
575,000 |
|
|
$ |
15,212,569 |
|
|
$ |
12,534,029 |
|
|
$ |
153,333 |
|
|
$ |
12,687,362 |
|
|
$ |
12,534,029 |
|
|
$ |
728,333 |
|
|
$ |
13,262,362 |
|
| Total Liabilities and Stockholer's Equity |
|
$ |
33,056,885 |
|
|
$ |
- |
|
|
$ |
33,056,885 |
|
|
$ |
33,056,885 |
|
|
$ |
- |
|
|
$ |
33,056,885 |
|
|
$ |
31,564,589 |
|
|
$ |
- |
|
|
$ |
31,564,589 |
|
|
$ |
31,564,589 |
|
|
$ |
- |
|
|
$ |
31,564,589 |
|
|