8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 10, 2008

KONA GRILL, INC.
(Exact name of registrant as specified in its charter)

Delaware	000-51491	20-0216690
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

7150 E. Camelback Road, Suite 220 Scottsdale, Arizona	85251
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (480) 922-8100

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 10, 2008, Kona Grill, Inc. (the “Registrant”) issued a press release announcing its preliminary fourth quarter 2007 revenues and updating its fourth quarter 2007 earnings guidance.

The press release issued by the Registrant in connection with the announcement is attached to this report as Exhibit 99.1. The information in this Form 8-K and Exhibits attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number

99.1 Press release dated January 10, 2008 entitled “Kona Grill Releases Preliminary Fourth Quarter 2007 Revenues & Updates Earnings Guidance”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Kona Grill, Inc.

Date: January 10, 2008

By: Mark S. Robinow                              
       Mark S. Robinow
       Executive Vice President, Chief Financial Officer,
       and Secretary

EXHIBIT INDEX

Exhibit
Number
Description

99.1 Press release dated January 10, 2008 entitled “Kona Grill Releases Preliminary Fourth Quarter 2007 Revenues & Updates Earnings Guidance”

EX-99.1

Exhibit 99.1

Investor Relations Contact:
Raphael Gross/Don Duffy
203.682.8200

Kona Grill Releases Preliminary Fourth Quarter 2007 Revenues & Updates Earnings Guidance
To Present at Two Investor Conferences in January

Scottsdale, AZ. January 10, 2008 – Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, today released preliminary fourth quarter 2007 revenues as well as updated earnings guidance for the three-month period. The Company also announced that it will present at two investor conferences in January.

For the fourth quarter of 2007, preliminary revenues increased 21.9% to $18.1 million from $14.8 million a year-ago. The growth in revenues is attributable to additional revenues from 6 restaurants opened since October 2006 offset by a 0.8% decrease in same-store sales primarily caused by lower sales volumes at restaurants located in Arizona and Nevada. The Company had previously guided to revenues of $18.6 million to $19.1 million for the three-month period.

Based upon preliminary fourth quarter 2007 revenues, the Company now expects a net loss of ($0.6) million to ($0.9) million, or ($0.10) to ($0.15) per share. The earnings per share range includes the impact of expensing non-cash stock-based compensation which is estimated to be $0.02 to $0.03 per diluted share. This compares to previous earnings guidance of a net loss of ($0.5) million to ($0.8) million, or ($0.09) to ($0.14) per share, which also includes the impact of expensing non-cash stock-based compensation.

“Our updated guidance reflects slightly weaker sales results during our fourth quarter than we had anticipated, with traffic the primary cause. Although the consumer environment continues to be challenging, we are relatively well positioned in the marketplace because of the exceptional, yet affordable, dining experience we offer our guests,” said Marcus E. Jundt, Chief Executive Officer and President of Kona Grill.

The Company completed four restaurant openings this past year, including two during the fourth quarter of 2007, in Stamford, CT and Baton Rouge, LA.

As previously communicated, the Company anticipates opening six new restaurants in 2008 with two in the second quarter, one in the third quarter and three in the fourth quarter. The 2008 development schedule includes the previously announced restaurants in Gilbert, AZ; West Palm Beach, FL; Phoenix, AZ and three additional units to be announced later.

Investor Conferences
The Company will be presenting at Cowen & Company’s 6th Annual Consumer Conference on Tuesday, January 15, 2008 at The Westin New York at Times Square in New York City. The presentation will begin at 11:00 AM Eastern Time.

The Company will also be presenting at the 10th Annual ICR XChange Conference on Thursday, January 17, 2008 at the St. Regis Monarch Beach Resort & Spa in Dana Point, California. The presentation will begin at 8:50 AM Pacific Time.

Investors and interested parties will be able to listen to both presentations via webcast from the investor relations portion of the Company’s website at www.konagrill.com.

About Kona Grill
Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.