What was the net value of Benihana's property and equipment as of December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
f directors, the Company's public statements, operating plans, and industry data to identify any evidence that may contradict management's assumptions
- We tested the completeness and accuracy of the underlying source information used by management to identify quantitative indicators of impairment.
/s/ Deloitte & Touche LLP
Denver, Colorado March 9, 2023
We have served as the Company's auditor since 2021.
F-3
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2022 | December 31, 2021 | ||
|---|---|---|---|
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 55,121 | $ | 23,614 |
| Accounts receivable | 15,220 | 11,356 | |
| Inventory | 5,728 | 3,915 | |
| Other current assets | 2,091 | 3,666 | |
| Due from related parties | 376 | 376 | |
| Total current assets | 78,536 | 42,927 | |
| Property and equipment, net | 94,087 | 69,638 | |
| Operating lease right-of-use assets | 85,161 | 85,395 | |
| Deferred tax assets, net | 12,323 | 12,313 | |
| Intangibles, net | 15,290 | 15,505 | |
| Other assets | 4,774 | 3,199 | |
| Security deposits | 853 | 858 | |
| Total assets | $ 291,024 | $ | 229,835 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net value of property and equipment as of December 31, 2021, was $69,638. This figure represents the depreciated value of Benihana's physical assets, such as restaurant buildings, kitchen equipment, and furniture, after accounting for accumulated depreciation.
For a prospective franchisee, this number provides insight into the scale of Benihana's investments in its physical infrastructure. It can be compared to the prior year's value to assess changes in the company's asset base. In 2020, the net property and equipment was valued at $67,344, showing an increase of a little over $2 million in 2021.
It's important to note that depreciation and amortization related to property and equipment amounted to $9.9 million for the year ended December 31, 2021, and $9.2 million for the year ended December 31, 2020. This indicates the ongoing expense associated with the wear and tear of these assets. Benihana's policy is not to depreciate construction in progress until the assets are placed into service, which is a standard accounting practice.