10-Q: Yoshiharu Global Co. Reports Increased Revenue but Continues to Face Losses in Q3 2024
Summary
- Yoshiharu Global Co. reported a revenue of $9.15 million for the nine months ended September 30, 2024, a 36.3% increase compared to $6.71 million for the same period in 2023.
- The revenue increase was largely due to the acquisition of three Las Vegas restaurants in April 2024.
- The company's net loss for the nine months ended September 30, 2024, was $3.2 million, compared to a net loss of $3.05 million for the same period in 2023.
- Restaurant operating expenses increased to $8.75 million for the nine months ended September 30, 2024, up from $6.57 million in 2023.
- General and administrative expenses also rose to $2.95 million for the nine months ended September 30, 2024, compared to $2.7 million in 2023.
- The company's loss per share was $2.39 for the nine months ended September 30, 2024, compared to $2.29 for the same period in 2023.
- For the three months ended September 30, 2024, revenue was $3.02 million, a 48.9% increase from $2.03 million in 2023.
- The net loss for the three months ended September 30, 2024, was $1.22 million, compared to a net loss of $0.88 million for the same period in 2023.
Sentiment
Score: 4
Explanation: The document presents a mixed picture. While revenue growth is positive, the continued and increased net losses, coupled with identified internal control weaknesses, raise concerns. The company's future growth plans are ambitious but carry significant risks.
Positives
- The company experienced a substantial increase in revenue, driven by the acquisition of new restaurants.
- Restaurant-level contribution margin improved to 11.0% for the nine months ended September 30, 2024, compared to 8.1% in the same period of 2023.
- The company opened a new restaurant in San Clemente, CA on October 31, 2024, bringing the total number of locations to 15 with 2 additional locations under construction.
- Delivery and service fees decreased as a percentage of sales, indicating a shift towards more in-dining customers.
Negatives
- The company continues to operate at a net loss, with a loss of $3.2 million for the nine months ended September 30, 2024.
- Operating expenses, including restaurant and general administrative costs, have increased.
- Interest expenses have significantly increased due to new borrowings related to the Las Vegas acquisition.
- The company's disclosure controls and procedures were deemed ineffective due to inadequate accounting resources and lack of segregation of duties.
Risks
- The company may not be able to successfully implement its growth strategy if it cannot identify appropriate restaurant locations or expand into new markets.
- The company may not be able to maintain or improve its comparable restaurant sales growth.
- The restaurant industry is highly competitive, which could impact the company's performance.
- The company's limited number of restaurants and the significant expense of opening new locations make it susceptible to fluctuations in results.
- The company has incurred operating losses and may not be profitable in the future.
- The company depends on its senior management team, and the loss of key personnel could adversely affect the business.
- The company's operating results are tied to the success of future franchise partners, over which it has limited control.
- The company could face negative publicity or damage to its reputation due to food safety concerns.
- Minimum wage increases and mandated employee benefits could increase labor costs.
- The company may face infringements on its intellectual property rights.
- Challenging economic conditions may affect consumer confidence and discretionary spending.
- The company may fail to secure guests' confidential information.
- The COVID-19 pandemic or similar public health threats could impact the business.
Future Outlook
The company aims to achieve over 100% annual unit growth rate in the next three to five years, generate comparable restaurant sales growth, drive high profitability, and heighten brand awareness. They also plan to initiate franchise sales in 2025 and are exploring new menu offerings, alcoholic beverage sales, and retail partnerships.
Management Comments
- The company is led by CEO James Chae, who founded Yoshiharu in 2016.
- Management believes that the expected cash flow from operations and proceeds from equity sales will be adequate to fund obligations for at least the next 12 months.
- Management has identified control deficiencies regarding inadequate accounting resources, the lack of segregation of duties and the need for a stronger internal control environment.
Industry Context
The company operates in the rapidly growing Asian cuisine market, which presents opportunities for expansion in both existing and new U.S. markets, as well as internationally. The company is also exploring new concepts such as a larger format restaurant with a sake bar and instant ramen noodles for retail distribution.
Comparison to Industry Standards
- The company's revenue growth of 36.3% year-over-year is strong, but the continued net losses are a concern.
- The restaurant-level contribution margin of 11.0% is a positive sign, but needs to be sustained and improved.
- The company's average unit volumes (AUVs) of $1.00 million are below the $1.13 million reported in the same period of 2023, indicating a potential need to improve sales per location.
- The company's general and administrative expenses as a percentage of sales decreased to 32.2% in the nine months ended September 30, 2024 from 40.2% in the nine months ended September 30, 2023, indicating improved efficiency.
- The company's labor costs as a percentage of sales decreased to 45.1% in the nine months ended September 30, 2024 compared to 46.6% in the nine months ended September 30, 2023, indicating improved efficiency.
- The company's food, beverage and supply costs as a percentage of sales stayed comparable at 25.8% in the nine months ended September 30, 2024 and at 26.6% in the nine months ended September 30, 2023.
- The company's rent and utilities as a percentage of sales was 13.8% in the nine months ended September 30, 2024 which is comparable to 12.5% in the prior period.
- The company's delivery and service fees as a percentage of sales decreased to 4.4% in the nine months ended September 30, 2024 compared to 6.2% in the prior period due to the decrease of take-out sales in the sales mix between the in-dining and take-out.
Stakeholder Impact
- Shareholders are impacted by the continued net losses and the potential dilution from equity sales.
- Employees are impacted by the company's growth and expansion plans.
- Customers are impacted by the company's new restaurant openings and menu offerings.
- Suppliers are impacted by the company's increasing buying power.
- Creditors are impacted by the company's increasing debt.
Next Steps
- The company plans to open additional restaurants in existing and new markets.
- The company intends to initiate sales of franchises in 2025.
- The company is exploring the development of instant ramen noodles for retail distribution.
- The company is exploring partnerships with grocery retailers to provide small-format Yoshiharu kiosks in stores.
- The company intends to increase its investment in advertising.
- The company plans to address the identified material weaknesses in internal controls.
Related Party Transactions
- The company has borrowed money from APIIS Financial Group, a company owned by James Chae, the majority stockholder and CEO.
- The company has a promissory note and a convertible note to Mr. Jihyuck Hwang, a related party, in connection with the acquisition of three Las Vegas restaurants.
Key Dates
- 2015-01-08: Global JJ Group, Inc. (JJ) was formed.
- 2016-07-21: Global AA Group, Inc. (AA) was formed.
- 2017-05-19: Global BB Group, Inc. (BB) was formed.
- 2018-11-27: Global JJ Group, Inc. executed a loan agreement for $780,000.
- 2019-09-23: Global CC Group, Inc. (CC) was formed.
- 2019-12-19: Global DD Group, Inc. (DD) was formed.
- 2020-06-13: Global AA Group, Inc. and Global BB Group, Inc. executed EIDL loan agreements for $150,000 each.
- 2020-07-15: Global JJ Group, Inc. executed an EIDL loan agreement for $150,000.
- 2020-12-04: Yoshiharu Irvine (YI) was formed.
- 2021-01-21: Yoshiharu Cerritos (YC) was formed.
- 2021-09-14: Global CC Group, Inc. executed a loan agreement for $197,000.
- 2021-10-02: Effective date of transfer of entities to Yoshiharu Holdings Co.
- 2021-12-09: Yoshiharu Global Co. was incorporated in Delaware.
- 2022-04-22: Yoshiharu Cerritos executed a loan agreement for $195,000.
- 2022-05-02: Yoshiharu Clemente (YCT), Yoshiharu Laguna (YL), Yoshiharu Ontario (YO), and Yoshiharu Menifee (YM) were formed.
- 2022-07-27: Yoshiharu Garden Grove (YG) was formed.
- 2022-09-09: Yoshiharu Global Co.'s stock began trading on the Nasdaq Capital Market.
- 2022-09-01: Initial Public Offering (IPO) of 2,940,000 shares of Class A common stock at $4.00 per share.
- 2023-05-22: Global BB Group, Inc., Global CC Group, Inc., and Global DD Group, Inc. executed loan agreements for $138,000, $196,000, and $178,000 respectively.
- 2023-09-13: Yoshiharu Garden Grove and Yoshiharu Laguna executed loan agreements for $150,000 each.
- 2023-09-21: Yoshiharu Las Vegas (YLV) was formed.
- 2023-11-17: Global AA Group, Inc. and Global BB Group, Inc. executed loan agreements with financial institutions.
- 2023-11-20: Global JJ Group, Inc. (BP) and Global JJ Group, Inc. (OR) executed loan agreements with financial institutions.
- 2023-11-21: Global CC Group, Inc. (CO) executed a loan agreement with a financial institution.
- 2023-11-22: The Company filed a Certificate of Amendment to effect a reverse stock split.
- 2023-11-30: Global CC Group, Inc. (EV) executed a loan agreement with a financial institution.
- 2024-01-05: The Company entered into a Securities Purchase Agreement with Alumni Capital LP.
- 2024-01-09: Yoshiharu Global Co. issued 12,745 shares of Class A Common Stock as commitment shares.
- 2024-01-30: Yoshiharu Global Co. executed a loan agreement for $500,000.
- 2024-03-22: Yoshiharu Menifee and Yoshiharu San Clemente executed loan agreements for $150,000 each.
- 2024-04-18: The Company amended the Securities Purchase Agreement with Alumni Capital LP.
- 2024-04-20: Effective date of the acquisition of assets of three restaurant entities in Las Vegas.
- 2024-06-04: Yoshiharu Las Vegas executed a loan agreement for $900,000.
- 2024-06-12: The Company consummated the acquisition of assets of three restaurant entities in Las Vegas.
- 2024-08-16: Yoshiharu borrowed an additional $150,000 from a commercial bank.
- 2024-09-24: Yoshiharu Global Co. issued 12,745 shares of Class A Common Stock as commitment shares.
- 2024-09-30: End of the quarterly period covered by this report.
- 2024-10-02: The Company announced the closing of a $1 million private placement.
- 2024-10-31: Yoshiharu opened a new restaurant in San Clemente, CA.
- 2024-11-19: Date of this report.
Keywords
Filings with Classifications
Strategic Rebranding and Business Diversification
- The company's differentiated expansion strategy is "rooted in Security Token Offering (STO) and AI-based technologies." This indicates an intention to use STOs as a mechanism for future capital raising to fuel real estate initiatives and growth.
Operational Update
- All Yoshiharu Global Co. restaurant locations will be temporarily closed for approximately three days starting June 13, 2025, delaying normal business operations.
Operational Update
- Temporary cessation of all restaurant operations, leading to a halt in revenue generation for approximately three days, which is an immediate negative operational impact.
Corporate Governance Update
- The company increased its authorized capital stock from 50,000,000 to 100,000,000 shares, providing the capacity to issue a significant number of new shares. This increase is a prerequisite for potential future capital raises through equity offerings, although no specific capital raise is announced in this filing.
Management Change Announcement
- The resignation of a director, Sungjoon Chae, even if amicable, can be perceived as a negative event impacting board stability.
- The explicit mention of a Nasdaq Listing Rule 5550(b)(1) deficiency and the lack of assurance regarding compliance or delisting relief indicates a significant regulatory challenge that could negatively impact the company's stock and operations.
S-1/A Filing
- The document details the potential for the company to receive proceeds from the cash exercise of convertible securities.
- The company may receive proceeds from the sale of Class A common stock to the Selling Stockholder.
Quarterly Report
- The company's net loss widened to $1.42 million, or $0.96 per share, compared to a net loss of $0.88 million, or $0.65 per share, in Q1 2024.
- The increased loss is attributed to higher restaurant operating expenses, including food, beverage, and supply costs, as well as increased labor, rent, and utility expenses.
- General and administrative expenses also increased by 37.5% due to higher professional fees.
Quarterly Report
- On January 5, 2024, the Company entered into a Securities Purchase Agreement with Alumni Capital LP, an accredited investor (the Investor), allowing the Company to sell up to $ 5,000,000 in Class A common stock to the Investor, subject to certain conditions including SEC approval of a registration statement.
- On January 6, 2025, the Company issued and sold to Crom Structured Opportunities Fund I, LP, a Delaware limited partnership (Crom) a 10% OID promissory note in the aggregate principal amount of $ 1,100,000 (the Note) for a purchase price of $ 1,000,000.
- Also on January 6, 2025, we entered into an equity purchase agreement (the Purchase Agreement) with Crom (the Investor) pursuant to which the Company shall have the right, but not the obligation, to sell to the Investor up to $ 10,000,000 (the ELOC Shares) of the Companys Class A common stock, $ 0.0001 par value per share (Class A Common Stock).
- On March 12, 2025, the Company entered into a private placement securities subscription agreement (the GM Private Placement Agreement) with Good Mood Studio, Inc. (Good Mood Studio) pursuant to which Good Mood Studio purchased $ 200,000 worth of the Companys shares of Class A common stock, par value $ 0.0001 per share (Class A Common Stock), at a price per share of $ 2.50 per share, or 80,000 shares of Class A Common Stock (the GM Shares).
- On March 12, 2025, the Company entered into a private placement securities subscription agreement (the BOF Private Placement Agreement) with Blue Ocean Fund (Blue Ocean Fund) pursuant to which Blue Ocean Fund purchased $ 300,000 worth of the Companys Class A Common Stock, at a price per share of $ 2.50 per share, or 120,000 shares of Class A Common Stock (the BOF Shares).
- On March 12, 2025, the Company entered into a private placement securities subscription agreement (the GLF Private Placement Agreement) with Green Light Fund (Green Light Fund) pursuant to which Green Light Fund purchased $ 214,000 worth of the Companys Class A Common Stock, at a price per share of $ 2.50 per share, or 85,600 shares of Class A Common Stock (the GLF Shares).
- On March 17, 2025, the Company entered into securities subscription agreements (the Subscription Agreements) with certain investors pursuant to which the investors purchased an aggregate of 480,000 warrants for a purchase price of $ 1,200,000.
- On March 24, 2025, the Company entered into securities subscription agreements (the Subscription Agreements) with certain investors pursuant to which the investors agreed to cancel indebtedness in an aggregate amount of $ 2,500,000 in exchange for the issuance of an aggregate of 1,000,000 warrants.
- On March 25, 2025, the Company entered into Subscription Agreements with certain investors pursuant to which the investors agreed to pay $ 1,650,000 in aggregate to purchase an aggregate of 660,000 warrants.
- On April 2, 2025, the Company entered into two new securities subscription agreements and amended one securities subscription agreement (the Subscription Agreements) with certain investors pursuant to which the investors purchased an aggregate of 400,000 additional warrants for a purchase price of $ 1,000,000.
- On April 9, 2025, Yoshiharu Global Co., a Delaware corporation (the Company) entered into two new securities subscription agreements (the Subscription Agreements) with certain investors pursuant to which the investors purchased an aggregate of 400,000 additional warrants for an aggregate purchase price of $ 1,000,000.
Earnings Release
- The operating loss increased from the prior year, indicating worsening profitability despite revenue growth.
S-1 Filing
- On March 12, 2025, the company entered into private placements with three investors for the sale of Class A common stock at a price of $2.50 per share for gross proceeds of $714,000.
- On March 17, 2025 the company sold penny warrants at a price of $2.50 per share for gross proceeds of $1,200,000.
Proxy Statement
- The company entered into subscription agreements with several funds and individuals to cancel indebtedness in exchange for warrants and shares.
- The company is issuing up to an aggregate of 2,720,000 shares of Class A common stock pursuant to various subscription agreements.
- The company is issuing 220,000 shares of Class B common stock to BS1 Fund.
Current Report (Form 8-K)
- Yoshiharu Global Co. is raising $1,000,000 through the sale of 400,000 warrants to certain investors.
- The warrants are exercisable for Class A common stock at an exercise price of $0.01 per share.
- The company intends to use the proceeds to maintain Nasdaq listing standards and for general corporate purposes.
Current Report (Form 8-K)
- The company is raising capital to maintain its Nasdaq listing, which suggests underlying financial difficulties.
- The terms of the warrant agreements include provisions for investor refunds if the company fails to meet certain deadlines, indicating potential operational and regulatory risks.
Current Report on Form 8-K
- The company is raising capital to maintain Nasdaq compliance, which suggests underlying financial difficulties.
- The terms of the warrant agreements include clauses that protect investors in case of delays or failures in the registration process, indicating a higher risk for the company.
Current Report on Form 8-K
- The agreement outlines specific timelines for filing a registration statement with the SEC and obtaining stockholder approval.
- Failure to meet these deadlines triggers investor rights, including the option to demand a refund or require the company to repurchase the warrants or underlying shares.
Current Report on Form 8-K
- The company is raising $1 million through the sale of warrants.
- The warrants are exercisable for shares of Class A common stock.
- The company may need to raise additional capital in the future if it fails to meet its financial obligations or Nasdaq compliance requirements.
Quarterly Report
- The company's Q4 revenue and net income were better than the prior year.
- The company regained compliance with NASDAQ listing requirements, which was better than expected.
- The company's full year revenue increased by 39%, which was better than the prior year.
Annual Report
- The company incurred a net loss of $2.7 million in 2024 compared to a net loss of $3.0 million in 2023.
- The company received a Nasdaq notification letter regarding its stockholders' equity falling below the $2,500,000 minimum.
Annual Report
- Construction permits have been significantly delayed, causing the company to incur lease payments prior to the opening of new locations.
Annual Report
- On January 5, 2024, the company entered into a securities purchase agreement with Alumni Capital LP.
- On January 6, 2025, the company entered into an equity purchase agreement with Crom Structured Opportunities Fund I, LP.
- On March 12, 2025, the company entered into private placements with three investors for the sale of Class A common stock.
- On March 17, 2025, the company sold 480,000 warrants for a purchase price of $1,200,000.
- On March 25, 2025, the Company entered into Subscription Agreements with certain investors pursuant to which the investors agreed to pay $1,650,000 in aggregate to purchase an aggregate of 660,000 warrants.
Current Report on Form 8-K
- The company did not regain compliance within the initial timeframe provided by Nasdaq.
Current Report on Form 8-K
- The company is raising capital through the sale of warrants.
- The company is cancelling debt in exchange for warrants.
- The company has raised $4.15 million through these transactions.
8-K Filing
- The company is raising capital to maintain Nasdaq listing standards, which suggests it is currently not in compliance.
- The company may be forced to repurchase the warrants or underlying shares at the original purchase price if certain conditions are not met.
8-K Filing
- Yoshiharu Global Co. has raised $1.2 million through the sale of warrants to several investors.
- Each warrant is exercisable for one share of the company's Class A common stock at an exercise price of $0.01.
- The company sold 480,000 warrants in total.
8-K Filing
- The company may be subject to penalties if it fails to file the registration statement with the SEC within 30 days of filing its annual report.
- The company may be subject to penalties if it fails to obtain the Requisite Stockholder Approval within 75 days from the date of the Subscription Agreements.
- The company may be subject to penalties if it fails to remit the refund within 30 days of it exercising its right to a refund.
Current Report Amendment (Form 8-K/A)
- Yoshiharu Global Co. raised $714,000 through private placements with Good Mood Studio, Blue Ocean Fund, and Green Light Fund.
- Good Mood Studio purchased $200,000 worth of shares, Blue Ocean Fund purchased $300,000 worth of shares, and Green Light Fund purchased $214,000 worth of shares.
- The shares were sold at $2.50 per share.
- The funds are intended to help the company maintain its Nasdaq listing and for other general corporate purposes.
Current Report Amendment (Form 8-K/A)
- The company is raising capital to maintain its Nasdaq listing, which suggests underlying financial difficulties.
Current Report (Form 8-K)
- Yoshiharu Global Co. raised $714,000 through private placements.
- Good Mood Studio invested $200,000.
- Blue Ocean Fund invested $300,000.
- Green Light Fund invested $214,000.
8-K Filing
- The company received a delisting notice from Nasdaq, indicating a failure to meet minimum financial requirements.
- The company's stock is scheduled to be suspended from trading, which is a negative outcome for shareholders.
S-1 Filing
- Yoshiharu Global Co. has entered into an equity purchase agreement (EPA) with Crom Structured Opportunities Fund I, LP, allowing the company to sell up to $10 million of its Class A Common Stock to Crom.
- The company has also issued a convertible promissory note to Crom in the original principal amount of $1,100,000.
- The company may receive up to $10 million in gross proceeds pursuant to the EPA and $1,000,000 from the Promissory Note.
- The company intends to use any proceeds from the Selling Stockholder that we receive under the EPA and Note for working capital, strategic and general corporate purposes.
S-1 Filing
- The potential dilution to existing shareholders is significant.
- The market price of Yoshiharu's Class A Common Stock could decline due to the sale of a substantial number of shares by Crom.
- The company's reliance on Crom as a source of funding depends on various factors, including the prevailing market price of its Class A Common Stock.
- The company's management has broad discretion over the use of the net proceeds from the sale of shares of Class A Common Stock to the Selling Stockholder, and you may not agree with how we use the proceeds and the proceeds may not be invested successfully.
Financing Agreement
- The company has secured a $1.1 million financing through a convertible note.
- The company has also entered into an equity purchase agreement for up to $10 million.
Current Report
- The company received approval for the potential issuance of more than 19.99% of its Class A Common Stock related to a Securities Purchase Agreement with Alumni Capital LP.
- The company also received approval for the potential issuance of more than 19.99% of its Class A Common Stock to an accredited investor through a common stock purchase agreement and a convertible promissory note.
Proxy Statement
- The company is seeking approval to issue more than 19.99% of its Class A Common Stock to Alumni Capital LP under a purchase agreement, potentially raising up to $5 million.
- The company is seeking approval to issue more than 19.99% of Class A Common Stock to an accredited investor through a common stock purchase agreement, potentially raising up to $10 million.
- The company is seeking approval to issue more than 19.99% of Class A Common Stock to an accredited investor through a convertible promissory note, potentially raising up to $1.1 million.
Proxy Statement
- The proposed stock issuances will significantly dilute existing stockholders' ownership and voting power, which is a negative outcome for current investors.
Quarterly Report
- The company has a Securities Purchase Agreement with Alumni Capital LP, allowing the sale of up to $5 million in Class A common stock.
- The company closed a $1 million private placement investment on October 2, 2024, to fund expansion into the Korean BBQ segment.
Quarterly Report
- Despite a significant increase in revenue, the company's net loss has increased compared to the same period last year.
- The company's operating expenses have increased, offsetting the revenue gains.
- The company's average unit volumes (AUVs) have decreased compared to the same period last year.
S-1/A Amendment
- The document relates to an S-1 filing, which is a registration statement for an initial public offering (IPO), indicating a potential capital raise through the sale of stock to the public.
- The company aims to commence the proposed sale to the public as soon as practicable after the effective date of this registration statement.
S-1/A (Amendment to Registration Statement)
- The document details a potential capital raise of up to $5 million through a purchase agreement with Alumni Capital LP.
- The company may sell shares of Class A Common Stock to Alumni Capital LP from time to time at its sole discretion.
- The company intends to use any proceeds from the selling stockholder for working capital, strategic and general corporate purposes.
Merger Announcement
- The document indicates that the company expects to break even in the second half of 2024 and become profitable in 2025, which is a better outlook than the current financial situation.
Merger Announcement
- The document mentions that the Seller Carry Loan Note was revised to correct the two repayment dates from November 30, 2024 to April 12, 2025 and from November 30, 2025 to April 12, 2026.
Merger Announcement
- The acquisition includes a $1.2 million convertible note, which could potentially be converted into Class A common stock, representing a potential capital raise.
- The terms of the convertible note allow the seller to convert the debt into shares of the company's stock, which would increase the number of shares outstanding.
Current Report
- The company's stockholders' equity has fallen below the minimum required for continued listing, indicating a significant financial issue.
Quarterly Report
- The company has a Securities Purchase Agreement with Alumni Capital LP, allowing the company to sell up to $5,000,000 in Class A common stock.
- The company issued 12,745 shares of Class A Common Stock as commitment shares pursuant to this agreement.
Quarterly Report
- Despite increased revenue, the company's net loss continues, indicating that the company is not yet profitable.
- The company's labor and rent expenses are increasing at a higher rate than revenue, impacting profitability.
- The company has identified material weaknesses in its internal controls over financial reporting.
Quarterly Report
- The company received a notification from Nasdaq indicating that the company failed to comply with the filing requirement of Listing Rule 5250(c)(1) due to its delayed Form 10-Q for the quarter ending March 31, 2024.
Quarterly Report
- The company reported a net loss of $876,205, indicating that the company is not yet profitable.
- The company identified material weaknesses in its internal controls over financial reporting.
- The company received a notification from Nasdaq for failing to file its 10-Q on time.
Quarterly Report
- The company entered into a Securities Purchase Agreement with Alumni Capital LP, allowing the company to sell up to $5,000,000 in Class A common stock.
- The company will issue 24,950 shares of Common Stock to the Investor as consideration.
- On January 9, 2024, Yoshiharu Global Co. issued 12,745 shares of Class A Common Stock as commitment shares pursuant to this agreement.
Annual Report
- The company entered into a securities purchase agreement with Alumni Capital LP, allowing the company to sell up to $5,000,000 in Class A common stock.
- The company may need to raise additional capital in the future to meet its growth plans.
Annual Report
- The company's net loss increased from $3.5 million in 2022 to $3.0 million in 2023.
- The company's average unit volume (AUV) decreased from $1.2 million in 2022 to $1.1 million in 2023.
- The company's comparable restaurant sales growth decreased from 9.9% in 2022 to -0.8% in 2023.
Annual Report
- Construction permits have been significantly delayed, causing the company to incur lease payments prior to the opening of new locations.
Current Report
- The company has failed to meet a key reporting deadline, which is a negative signal for investors.
Current Report
- The company's 10-Q filing for the quarter ended March 31, 2024, is delayed.
Merger Announcement
- The acquisition was delayed from the original agreement date of November 21, 2023, to allow for separate closings of the restaurants at the request of a lender.
Current Report
- The dismissal of the previous auditor due to an SEC order is a negative event that could raise concerns about past financial statements.
S-1 Registration Statement
- Yoshiharu Global Co. has entered into a purchase agreement with Alumni Capital LP, where Alumni Capital LP has committed to purchase up to $5,000,000 of shares of Class A Common Stock.
- The company may sell shares to Alumni Capital LP from time to time during the term of the purchase agreement.
- The purchase price of the shares will be based on the market price of the Class A Common Stock at the time of the sale, with a discount applied.
- The company intends to use any proceeds from the selling stockholder for working capital, strategic and general corporate purposes.
Annual Results
- The company has the right, but not the obligation, to sell up to $5,000,000 in shares of Class A Common Stock to Alumni Capital LP.
- The company expects to rely on equipment financing, cash flows from operations, and future offerings to meet capital needs.
Annual Results
- Construction permits have been significantly delayed, causing the company to incur lease payments prior to the opening of new locations.
Annual Results
- The company's net loss increased from $3.5 million in 2022 to $3.0 million in 2023.
- The average unit volume (AUV) decreased from $1.2 million in 2022 to $1.1 million in 2023.
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