What changed in GEN Restaurant Group, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of GEN Restaurant Group, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+285 added−277 removedSource: 10-K (2026-03-31) vs 10-K (2025-03-10)
Top changes in GEN Restaurant Group, Inc.'s 2025 10-K
285 paragraphs added · 277 removed · 217 edited across 1 sections
- Item 1C. Cybersecurity+285 / −277 · 217 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
217 edited+68 added−60 removed126 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
217 edited+68 added−60 removed126 unchanged
2024 filing
2025 filing
Biggest changeConsolidated Statements of Cash Flows For the year ended December 31, (in thousands) 2024 2023 Cash flows from operating activities Net Income $ 4,532 $ 11,434 Adjustments to reconcile net income to cash provided by operating activities Depreciation and amortization 6,857 4,892 Equity in income of equity method investee, net of distributions 17 95 Gain on remeasurement of previously held interest ( 3,402 ) — Stock-based compensation 2,986 1,517 Amortization of operating lease assets 6,814 4,642 Interest income earned on Notes receivable from related party ( 33 ) ( 150 ) Deferred tax expense 333 87 Changes in operating assets and liabilities: Accounts receivable ( 3,487 ) — Inventories ( 266 ) 2,082 Prepaid expenses and other current assets ( 2,613 ) ( 2,584 ) Other assets ( 432 ) ( 67 ) Accounts payable 730 3,008 Accrued salaries and benefits 583 684 Accrued interest 18 ( 133 ) Gift card liabilities 5,983 — Other current liabilities 221 ( 228 ) Operating lease liabilities ( 1,014 ) ( 3,115 ) Net cash provided by operating activities 17,827 22,164 Cash used in from investing activities Proceeds from recovery of Notes receivable from related party — 12,950 Advances made to related party — ( 2,100 ) Purchase of property and equipment ( 23,825 ) ( 17,157 ) Acquisition of GKBH, net of cash acquired ( 2,976 ) — Net cash (used in) investing activities ( 26,801 ) ( 6,307 ) Cash flows from financing activities Proceeds from issuance of Class A common stock sold in IPO, net of underwriting discount — 46,167 Payments to members for advances ( 881 ) ( 2,000 ) Advance from members — 262 Payments for deferred offering costs — ( 2,479 ) Payments on EIDL loans ( 90 ) ( 87 ) Payments on finance leases ( 100 ) ( 194 ) Payments on third party loans ( 3,770 ) ( 2,440 ) Payments on related party loans ( 296 ) ( 2,088 ) Payment on line of credit — ( 7,993 ) Proceeds from line of credit 3,000 1,100 Proceeds from third party loans 3,000 1,300 Proceeds from related party loans — 500 Member distributions ( 845 ) ( 26,469 ) Net cash provided by financing activities 18 5,579 Net change in cash and cash equivalents ( 8,956 ) 21,436 Cash and cash equivalents at beginning of period 32,631 11,195 Cash and cash equivalents at end of the period $ 23,675 $ 32,631 Supplemental disclosures of other cash flow information: Cash paid for interest $ 288 $ 195 Cash paid for taxes 114 175 Non-cash investing and financing activities: Unpaid purchases of property and equipment 1,904 927 Unpaid deferred offering costs - 125 Leased assets obtained in exchange for new operating lease liabilities 39,229 13,355 Conversion of related party loans and advances from members to Class A common stock 1,436 871 Issuance of promissory note for business acquisition 3,000 — Contribution by shareholder in final IPO settlement 1,277 — See accompanying notes to consolidated financial statements.
Biggest changeConsolidated Statements of Cash Flows Year Ended December 31, (in thousands) 2025 2024 Cash flows from operating activities Net (loss) income $ ( 19,375 ) $ 4,532 Adjustments to reconcile net (loss) income to cash provided by operating activities Depreciation and amortization 9,120 6,857 Equity in income of equity method investee, net of distributions — 17 Gain on remeasurement of previously held interest — ( 3,402 ) Stock-based compensation 2,936 2,986 Amortization of operating lease assets 6,395 6,814 Gain on lease terminations ( 471 ) — Impairment expense 5,527 — Interest income earned on Notes receivable from related party — ( 33 ) Deferred tax expense ( 914 ) 333 Changes in operating assets and liabilities: Accounts receivable ( 6,936 ) ( 3,487 ) Inventories ( 485 ) ( 266 ) Income tax receivable ( 742 ) — Prepaid expenses and other current assets ( 1,542 ) ( 2,613 ) Other assets ( 1,226 ) ( 432 ) Accounts payable 2,266 730 Accrued salaries and benefits ( 703 ) 583 Accrued interest 18 18 Gift card liabilities 8,686 5,983 Other current liabilities 2,125 221 Operating lease liabilities ( 1,265 ) ( 1,014 ) Net cash provided by operating activities 3,414 17,827 Cash flows from investing activities Purchase of property and equipment ( 27,734 ) ( 23,825 ) Acquisition of GKBH, net of cash acquired — ( 2,976 ) Net cash used in investing activities ( 27,734 ) ( 26,801 ) Cash flows from financing activities Payments to members for advances — ( 881 ) Payments on EIDL loans ( 98 ) ( 90 ) Payments on finance leases ( 3 ) ( 100 ) Payments on third party loans ( 3,159 ) ( 3,770 ) Payments on related party loans — ( 296 ) Payment on line of credit ( 11,000 ) — Proceeds from line of credit 9,000 3,000 Proceeds from third party loans 10,000 3,000 Payments under stock repurchase plan ( 201 ) — Distributions paid on NCI ( 830 ) ( 845 ) Dividends paid on common stock ( 157 ) — Acquisition of common stock for tax with withholding obligations ( 90 ) — Net provided by financing activities 3,462 18 Effects of exchange rate changes on cash 7 — Net change in cash and cash equivalents ( 20,851 ) ( 8,956 ) Cash and cash equivalents at beginning of period 23,675 32,631 Cash and cash equivalents at end of the period $ 2,824 $ 23,675 Supplemental disclosures of other cash flow information: Cash paid for interest $ 250 $ 288 Cash paid for taxes 455 114 Non-cash investing and financing activities: Reduction in accounts payable and accruals for purchases of property and equipment ( 143 ) 1,904 Leased assets obtained in exchange for new operating lease liabilities 21,609 39,229 Reduction due to early lease termination of operating lease asset ( 1,007 ) — Conversion of related party loans to equity — 1,436 Issuance of promissory note for business acquisition — 3,000 Adjustments to tax liabilities and assets under TRA 9 — Exchange of NCI for Class A common stock 226 — Contribution by stockholder in final IPO settlement — 1,277 See accompanying notes to consolidated financial statements.
Cash Used in Investing Activities Net cash used in investing activities during the year ended December 31, 2024 was $26.8 million, reflecting $23.8 million for the purchase of property and equipment and $3.0 million for the acquisition of GKBH.
Net cash used in investing activities during the year ended December 31, 2024 was $26.8 million, reflecting $23.8 million for the purchase of property and equipment and $3.0 million for the acquisition of GKBH.
Prior to the IPO, income taxes for GEN, LLC at the consolidated level were primarily state, and local minimum taxes. Subsequent to the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of GEN, LLC.
Prior to the IPO, income taxes for GEN, LLC at the consolidated level were primarily state, and local taxes minimum taxes. Subsequent to the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of GEN, LLC.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1 GEN Restaurant Group Clawback Policy (incorporated by reference to the Company’s 10-K dated March 7, 2024 as Exhibit 97.1) 101.INS+ Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. 101.SCH+ Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents 104+ Cover Page Interactive Data File (embedded within the Inline XBRL document) * Filed herewith. # Denotes management compensatory plan or arrangement. ** These certifications accompany this Annual Report on Form 10-K; they are not deemed “filed” with the SEC and are not to be incorporated by reference in any filing of the Company under the Securities Act of the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filings, except to the extent that the Company specifically incorporates it by reference. + XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act is deemed not filed for purposes of Section 18 of the Exchange Act and otherwise is not subject to liability under these sections.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1 GEN Restaurant Group Clawback Policy (incorporated by reference to the Company’s Annual Report on Form 10-K, Exhibit 97.1, filed on March 7, 2024) 101.INS+ Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. 101.SCH+ Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents 104+ Cover Page Interactive Data File (embedded within the Inline XBRL document) * Filed herewith. # Denotes management compensatory plan or arrangement. ** These certifications accompany this Annual Report on Form 10-K; they are not deemed “filed” with the SEC and are not to be incorporated by reference in any filing of the Company under the Securities Act of the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filings, except to the extent that the Company specifically incorporates it by reference. + XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act is deemed not filed for purposes of Section 18 of the Exchange Act and otherwise is not subject to liability under these sections.
In addition, there can be no assurance that we will generate sales growth in an amount sufficient to offset inflationary or other cost pressures. Interest Rate Risk We are exposed to market interest rates by accessing our line of credit, which bears an interest rate at the Wall Street Journal Prime Rate plus 0.25%. Ite m 8.
In addition, there can be no assurance that we will generate sales growth in an amount sufficient to offset inflationary or other cost pressures. 57 Interest Rate Risk We are exposed to market interest rates by accessing our line of credit, which bears an interest rate at the Wall Street Journal Prime Rate plus 0.25%. Ite m 8.
While we have been able to partially offset inflation and other changes in the costs of core operating resources by gradually increasing menu prices, coupled with the implementation of more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to 56 continue to do so in the future.
While we have been able to partially offset inflation and other changes in the costs of core operating resources by gradually increasing menu prices, coupled with the implementation of more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to continue to do so in the future.
For a discussion of why we consider these measures to be useful and their material risks and limitations, see “ Non-GAAP Financial Measures .” 43 Average Unit Volume “Average Unit Volume” (“AUV”) means the average annual restaurant sales for all restaurants open for a full 18 months before the end of the period measured.
For a discussion of why we consider these measures to be useful and their material risks and limitations, see “ Non-GAAP Financial Measures .” Average Unit Volume “Average Unit Volume” (“AUV”) means the average annual restaurant sales for all restaurants open for a full 18 months before the end of the period measured.
Evaluation of Disclosure Controls and Procedures Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officers and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined by Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this Annual Report on Form 10-K.
Evaluation of Disclosure Controls and Procedures Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined by Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this Annual Report on Form 10-K.
Limitations on Effectiveness of Disclosure Controls and Procedures and Internal Control over Financial Reporting In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. It em 9B. Other Information.
Limitations on Effectiveness of Disclosure Controls and Procedures and Internal Control over Financial Reporting In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. 58 It em 9B. Other Information.
We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. Our critical accounting estimates are those that materially affect our financial statements and involve subjective or complex judgments by management.
We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. 55 Our critical accounting estimates are those that materially affect our financial statements and involve subjective or complex judgments by management.
Factors considered by us in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the 55 manner of use of the acquired assets; and significant negative industry or economic trends.
Factors considered by us in estimating future cash flows include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Occupancy expenses include rent, common area maintenance and taxes for all restaurant locations, but exclude any related pre-opening costs. Operating expenses . Operating expenses include supplies, utilities, repairs and maintenance, and other costs incurred directly at the restaurant level. Depreciation and amortization expenses .
Occupancy expenses include rent, common area maintenance and taxes for all restaurant locations, but exclude any related pre-opening costs. Operating expenses . Operating expenses include supplies, utilities, repairs and maintenance, and other costs incurred directly at the restaurant level. 46 Depreciation and amortization expenses .
A list of our executive officers and their biological information appears in Part 1, Item 1 of this Annual Report on Form 10-K under the caption “Information About Our Executive Officers.” Additional information required by this item is incorporated by reference to the section titled “Proposal 1 - Election of Directors” and “Delinquent Section 16(a) Reports” in our Proxy Statement for the 2025 Annual Meeting of Stockholders, which will be filed no later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.
A list of our executive officers and their biological information appears in Part 1, Item 1 of this Annual Report on Form 10-K under the caption “Information About Our Executive Officers.” Additional information required by this item is incorporated by reference to the section titled “Proposal 1 - Election of Directors” and “Delinquent Section 16(a) Reports” in our Proxy Statement for the 2026 Annual Meeting of Stockholders, which will be filed no later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.
Code of Ethics We have adopted the Code of Business Conduct and Ethics for our Chief Executive Officers and Senior Finance Officers. A copy of the Code can be found on our website at www.genkoreanbbq.com in the “Investor” section.
Code of Ethics We have adopted the Code of Business Conduct and Ethics for our Chief Executive Officer and Senior Finance Officers. A copy of the Code can be found on our website at www.genkoreanbbq.com in the “Investor” section.
None of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, modified, or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the fiscal quarter ended December 31, 2024.
None of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, modified, or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the fiscal quarter ended December 31, 2025.
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and related notes of GEN Inc., included in Part II, Item 8 of this Annual Report on Form 10-K, which includes GEN Restaurant Companies, LLC (the “Operating Company”) for the year ended December 31, 2024 and 2023.
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and related notes of GEN Inc., included in Part II, Item 8 of this Annual Report on Form 10-K, which includes GEN Restaurant Companies, LLC (the “Operating Company”) for the year ended December 31, 2025 and 2024.
Although the outcome of these and other claims cannot be predicted with certainty, we do not believe the ultimate resolution of the current matters will have a material adverse effect on our business, financial condition, results of operations or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 40 PART II It em 5.
Although the outcome of these and other claims cannot be predicted with certainty, we do not believe the ultimate resolution of the current matters will have a material adverse effect on our business, financial condition, results of operations or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 41 PART II It em 5.
Audit Committee The information required by this item is incorporated by reference to the section titled “Committees of the Board” in our Proxy Statement for the 2025 Annual Meeting of the Stockholders, which will be filed no later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K. It em 11.
Audit Committee The information required by this item is incorporated by reference to the section titled “Committees of the Board” in our Proxy Statement for the 2026 Annual Meeting of the Stockholders, which will be filed no later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K. It em 11.
Accordingly, this has been presented as mezzanine equity, not permanent equity, in the accompanying consolidated balance sheets. F- 22 GEN RESTAURANT GROUP, INC. Notes to Consolidated Financial Statements December 31, 2024 and 2023 (b) Contingencies The Company and its related entities are involved in various claims and legal actions arising in the ordinary course of business.
Accordingly, this has been presented as mezzanine equity, not permanent equity, in the accompanying consolidated balance sheets. F- 22 GEN RESTAURANT GROUP, INC. Notes to Consolidated Financial Statements December 31, 2025 and 2024 (b) Contingencies The Company and its related entities are involved in various claims and legal actions arising in the ordinary course of business.
(v) Net Income Per Share Basic net income per share is computed by dividing net income attributable to the Company by the weighted average number of shares outstandin g during the period.
(v) Net (Loss) Income Per Share Basic net income (loss) per share is computed by dividing net income (loss) attributable to the Company by the weighted average number of shares outstandin g during the period.
Business Trends Although we temporarily paused our new restaurant opening plans during the COVID-19 pandemic, our long-term growth strategy is to continue to open new restaurants in locations that we believe will achieve profitability levels consistent with our pre-pandemic experience. During 2022, we opened three new restaurants, and we opened six new restaurants during both of 2023 and 2024.
Business Trends Although we temporarily paused our new restaurant opening plans during the COVID-19 pandemic, our long-term growth strategy is to continue to open new restaurants in locations that we believe will achieve profitability levels consistent with our pre-pandemic experience. During 2022, we opened three new restaurants, and we opened six new restaurants during each of 2023 and 2024.
The CODM uses net income to allocate resources (including labor, technology and capital resources) for the single segment to make decisions regarding annual budget, new restaurant openings, entering new geographic markets, landlord and vendor negotiation, marketing decisions, pursuing new business ventures, and driving the Company’s mission. F- 27 GEN RESTAURANT GROUP, INC.
The CODM uses net income to allocate resources (including labor, technology and capital resources) for the single segment to make decisions regarding annual budget, new restaurant openings, entering new geographic markets, landlord and vendor negotiation, marketing decisions, pursuing new business ventures, and driving the Company’s mission. F- 28 GEN RESTAURANT GROUP, INC.
Net Income Margin Net Income Margin is net income measured under accounting principles generally accepted in the United States of America (“GAAP”) divided by revenue.
Net (Loss) Income Margin Net Income Margin is net income measured under accounting principles generally accepted in the United States of America (“GAAP”) divided by revenue.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, GEN Inc. is dependent on distributions from GEN LLC to pay its taxes, its obligations under the Tax Receivable Agreement and other expenses. 52 In connection with the Reorganization, certain members of GEN LLC received the right to receive future payments pursuant to the Tax Receivable Agreement.
Accordingly, GEN Inc. is dependent on distributions from GEN LLC to pay its taxes, its obligations under the Tax Receivable Agreement and other expenses. 53 In connection with the Reorganization, certain members of GEN LLC received the right to receive future payments pursuant to the Tax Receivable Agreement.
Historically, until 2024, inflation has not had a material effect on our results of operations. Severe increases in inflation, however, could affect the global and U.S. economies and could have an adverse impact on our business, financial condition or results of operations.
Historically, until 2025, inflation has not had a material effect on our results of operations. Severe increases in inflation, however, could affect the global and U.S. economies and could have an adverse impact on our business, financial condition or results of operations.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets of liabilities. As of December 31, 2024, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets of liabilities. As of December 31, 2025, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs.
During 2023 and 2024, the Company satisfied this loan and as of December 31, 2024 , the loan balance outstanding was $ 0 .
During 2023 and 2024, the Company satisfied this loan and as of December 31, 2025 , the loan balance outstanding was $ 0 .
F- 20 GEN RESTAURANT GROUP, INC. Notes to Consolidated Financial Statements December 31, 2024 and 2023 Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid.
F- 20 GEN RESTAURANT GROUP, INC. Notes to Consolidated Financial Statements December 31, 2025 and 2024 Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid.
They will provide briefings to the Audit Committee on a periodic basis regarding cybersecurity matters, including but not limited to the following : • Current cybersecurity landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reporting, if any, and learning from any cybersecurity events; • Risk mitigation efforts and insurance, and • Compliance with regulatory requirements and industry standard. 39 It em 2.
They will provide briefings to the Audit Committee on a periodic basis regarding cybersecurity matters, including but not limited to the following : 39 • Current cybersecurity landscape and emerging threats; • Status of ongoing cybersecurity initiatives and strategies; • Incident reporting, if any, and learning from any cybersecurity events; • Risk mitigation efforts and insurance, and • Compliance with regulatory requirements and industry standard.
The Company has operating and finance leases for its corporate office, restaurant locations, office equipment and kitchen equipment. Our leases have remaining lease terms of less than 1 year to up to 25 years, including options to extend many of the leases.
The Company has operating and finance leases for its corporate office, restaurant locations, office equipment and kitchen equipment. Our leases have remaining lease terms of less than one year to up to 25 years, including options to extend many of the leases.
For the year ended December 31, 2024 , the Company did no t have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties.
For the year ended December 31, 2025 and 2024, the Company did no t have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties.
Cash Flows Provided by Financing Activities Net cash provided by financing activities during the year ended December 31, 2024 was $18 thousand, primarily due to $3.0 million in proceeds from third party debt and proceeds of $3.0 million from line of credit, partially offset by payments of $3.8 million on third party loans, $0.9 million for member distribution, and payments to members for advances of $0.9 million.
Net cash provided by financing activities during the year ended December 31, 2024 was $18 thousand, primarily due to $3.0 million in proceeds from third party debt and proceeds of $3.0 million from line of credit, partially offset by payments of $3.8 million on third party loans, $0.9 million for member distributions, and payments to members for advances of $0.9 million.
The following tables lists the Company’s entities in operation as of December 31, 2024 : Name Operating Name State Purpose GEN Restaurant Group, LLC GEN Tustin CA Restaurant GEN Huntington Beach CA Restaurant GEN Oxnard CA Restaurant JC Group International Inc.
The following tables lists the Company’s entities in operation as of December 31, 2025 : Name Operating Name State Purpose GEN Restaurant Group, LLC GEN Tustin CA Restaurant GEN Huntington Beach CA Restaurant GEN Oxnard CA Restaurant JC Group International Inc.
The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the years ended December 31, 2024 and 2023 as any amounts were deemed immaterial.
The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the years ended December 31, 2025 and 2024 as any amounts were deemed immaterial.
Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s internal control over financial reporting was effective as of December 31, 2024.
Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s internal control over financial reporting was effective as of December 31, 2025.
The non-controlling interests on the accompanying consolidated income statement represents the portion of the income attributable to the economic interests in the Operating Company held by the non-controlling holders of Class B Common Units calculated based on the weighted average non-controlling interests’ ownership during the periods presented.
The non-controlling interests on the accompanying consolidated statements of operations represents the portion of the income attributable to the economic interests in the Operating Company held by the non-controlling holders of Class B Common Units calculated based on the weighted average non-controlling interests’ ownership during the periods presented.
It em 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 58 PART III It em 10. Directors, Executive Officers and Corporate Governance.
It em 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 59 PART III It em 10. Directors, Executive Officers and Corporate Governance.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. Name Title Date /s/ David Kim Chief Executive Officer March 7, 2025 David Kim (Principal Executive Officer and Director) /s/ Thomas V.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. Name Title Date /s/ David Kim Chief Executive Officer March 31, 2026 David Kim (Principal Executive Officer and Director) /s/ Thomas V.
Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin may not be comparable to other similarly titled measures presented by other companies, because all companies may not calculate Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income, Adjusted net income attributable to Class A common stock per share, Restaurant-Level Adjusted EBITDA, and Restaurant-Level Adjusted EBITDA Margin in the same fashion.
Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net (loss) income, Adjusted net (loss) income attributable to Class A common stock per share-basic and diluted, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin may not be comparable to other similarly titled measures presented by other companies, because all companies may not calculate these measures in the same fashion.
(16) Net Income per Share Basic net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding during the period.
(16) Net (Loss) Income per Share Basic net (loss) income per share of Class A common stock is computed by dividing net income attributable to GEN Restaurant Group, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period.
During the third quarter of 2024, the Company entered into a loan agreement with a bank in the amount of $ 3.0 million with a maturity date of June 26, 2026 , at a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 0.25 %, resulting in an interest rate of 7.75 % as of December 31, 2024.
During the third quarter of 2024, the Company entered into a loan agreement with PCB Bank in the amount of $3.0 million with a maturity date of June 26, 2026, at a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 0.25%, resulting in an interest rate of 7.00% and 7.75% as of December 31, 2025 and 2024, respectively.
For a discussion of why we consider these measures to be useful and their material risk and limitations, see “Non-GAAP Financial Measures. ” Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin Restaurant-Level Adjusted EBITDA is Income from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expenses, related party consulting fees, management fees and non-cash lease expense.
For a discussion of why we consider these measures to be useful and their material risk and limitations, see “Non-GAAP Financial Measures. ” Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin Restaurant-Level Adjusted EBITDA is (loss) income from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expenses, and non-cash lease expense.
It em 16. Form 10-K Summary None. 61 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized . GEN RESTAURANT GROUP, INC. Date: March 7, 2025 By: /s/ Thomas V.
It em 16. Form 10-K Summary None. 63 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized . GEN RESTAURANT GROUP, INC. Date: March 31, 2026 By: /s/ Thomas V.
Represents federal, state, and local current and deferred income tax expense (benefit). 46 Results of Operations for the years ended December 31, 2024 and December 31, 2023 The following table presents selected comparative results of operations from our audited financial statements for the year ended December 31, 2024 and December 31, 2023.
Represents federal, state, and local current and deferred income tax expense (benefit). 47 Results of Operations for the Years Ended December 31, 2025 and December 31, 2024 The following table presents selected comparative results of operations from our audited financial statements for the year ended December 31, 2025 and December 31, 2024.
Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented. F- 26 GEN RESTAURANT GROUP, INC.
Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock trades on the Nasdaq Global Market under the symbol “GENK.” As of February 26, 2025, there were approximately 14 shareholders of record. This does not include persons whose stock is held in nominee or “street name” accounts through brokers.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock trades on the Nasdaq Global Market under the symbol “GENK.” As of February 19, 2026, there were approximately 12 shareholders of record. This does not include persons whose stock is held in nominee or “street name” accounts through brokers.
F- 5 Class A Common Stock Class B Common Stock Additional paid-in Retained Non- Controlling Stockholders' Equity/ Members' equity (in thousands except share outstanding ) Shares Amount Shares Amount capital Earnings Interest Balance, December 31, 2023 4,140,000 $ 4 28,141,566 $ 28 $ 7,112 $ 322 $ 28,552 $ 36,018 Net income 593 3,939 4,532 Stock-based compensation 2,986 2,986 Adjustment to tax liabilities and assets under TRA ( 1,288 ) ( 1,288 ) Shares issued upon RSU vesting 280,817 - Exchange of noncontrolling interest for Class A common stock 254,654 1 ( 254,654 ) 259 - ( 259 ) 1 Conversion of related party loans and advances from members to Class A common stock 237,593 1,436 1,436 Distributions to members - ( 845 ) ( 845 ) Contribution by shareholder in final IPO settlement 1,277 1,277 Balance, December 31, 2024 4,913,064 5 27,886,912 28 11,782 915 31,387 44,117 See accompanying notes to consolidated financial statements.
Consolidated Statements of C hanges in Permanent Equity (Deficit) Year ended December 31, 2025 and December 31, 2024 Class A Common Stock Class B Common Stock Additional paid-in Retained Non- Controlling Stockholders' Equity/ Members' equity (in thousands except for share amounts ) Shares Amount Shares Amount capital Earnings Interest (deficit) Balance, December 31, 2023 4,140,000 $ 4 28,141,566 $ 28 $ 7,112 $ 322 $ 28,552 $ 36,018 Net income 593 3,939 4,532 Stock-based compensation 2,986 2,986 Adjustment to tax liabilities and assets under Tax Receivable Agreement ("TRA") (1) ( 1,288 ) ( 1,288 ) Shares issued upon RSU vesting 280,817 - Exchange of noncontrolling interest for Class A common stock 254,654 1 ( 254,654 ) 259 ( 259 ) 1 Conversion of related party loans and advances from members to Class A common stock 237,593 1,436 1,436 Distributions to members ( 845 ) ( 845 ) Contribution by shareholders in final IPO settlement 1,277 1,277 Balance, December 31, 2024 4,913,064 $ 5 27,886,912 $ 28 $ 11,782 $ 915 $ 31,387 $ 44,117 See accompanying notes to consolidated financial statements.
On September 29, 2023, the Company entered into a $ 20 million line of credit with a bank. The line of credit matures on September 25, 2025 and bears interest at a variable rate per annum equal to 7.75 % as of December 31, 2024.
On September 29, 2023, the Company entered into a $ 20 million line of credit with a bank. The line of credit matures on September 25, 2026 . The interest at a variable rate per annum was equal to 7.00 % and 7.75 % as of December 31, 2025 and 2024, respectively.
Restaurant revenues in a given period are directly impacted by the number of restaurants we operate, menu pricing, the number of customers visiting and comparable restaurant sales change. Revenue also includes gift card revenue earned. Food costs.
Restaurant revenues in a given period are directly impacted by the number of restaurants we operate, menu pricing, the number of customers visiting and comparable restaurant sales change. Revenue also includes gift card revenue earned, and revenue earned through retail or wholesale distribution. Food costs.
The balance as of December 31, 2024 was $ 2.3 million. Economic Injury Disaster Loan (EIDL) On July 1, 2020, the Company executed the standard loan documents for six restaurants required for securing an EIDL loan from the United States Small Business Administration (the “SBA”) under its Economic Injury Disaster Loan assistance program.
The balance as of December 31, 2025 was $ 4.0 million. Economic Injury Disaster Loan (EIDL) On July 1, 2020, the Company executed the standard loan documents for six restaurants required for securing an EIDL loan from the United States Small Business Administration (the “SBA”) under its Economic Injury Disaster Loan assistance program.
(a) The following documents filed as a part of the report: (1) Financial Statements: . See “Index to Consolidated Financial Statements” on page F-1. (2) Financial Statements Schedule: Not Applicable .
Exhibits and Financial Statement Schedules. (a) The following documents filed as a part of the report: (1) Financial Statements: . See “Index to Consolidated Financial Statements” on page F-1. (2) Financial Statements Schedule: Not Applicable .
Properties. As of December 31, 2024, there were 43 restaurants owned and operated by GEN Inc. Our main office is located at 11480 South Street, Suite 205, Cerritos, CA 90703 and our telephone number is (562) 356-9929. We lease our main office and substantially all of the properties in which we operate restaurants.
It em 2. Properties. As of December 31, 2025, there were 57 restaurants owned and operated by GEN Inc. Our main office is located at 11480 South Street, Suite 205, Cerritos, CA 90703 and our telephone number is (562) 356-9929. We lease our main office and substantially all of the properties in which we operate restaurants.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Notes to Consolidated Financial Statements December 31, 2024 and 2023 For the year ended December 31, (in thousands) 2024 Gift card liabilities: Beginning Balance $ - Gift Card Activations $ 9,563 Gift Card Redemptions $ ( 2,964 ) Gift Card Breakage $ ( 616 ) Ending Balance $ 5,983 (8) Line of Credit On February 18, 2024, the Company finalized an agreement with WDI International, Inc.
Notes to Consolidated Financial Statements December 31, 2025 and 2024 (in thousands) For the Year Ended December 31, 2025 2024 Gift card liabilities: Beginning Balance $ 5,983 $ - Gift Card Activations 25,698 9,563 Gift Card Redemptions ( 14,793 ) ( 2,964 ) Gift Card Breakage ( 2,219 ) ( 616 ) Ending Balance $ 14,669 $ 5,983 (8) Line of Credit On February 18, 2024, the Company finalized an agreement with WDI International, Inc.
(incorporated by reference to the Company’s Form 8-K, Exhibit 3.2, filed July 6, 2023) 4.1 Warrant to Purchase Class A Common Stock (incorporated by reference to the Company’s Form S-1, Amendment No. 1, Exhibit 4.1, filed June 14, 2023) 10.1 Amended and Restated Limited Liability Company Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.1, filed May 26, 2023) 10.2 Tax Receivable Agreement by and among GEN Restaurant Group, Inc., GEN Restaurant Companies, LLC, the TRA Holders party thereto, and David Kim, as TRA Representative, dated as of June 30, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed July 6, 2023) 10.3 Registration Rights Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.4, filed May 26, 2023) 10.4 Indemnification Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.4, filed May 26, 2023) 10.5# 2023 Equity Incentive Plan (incorporated by reference to the Company’s Form S-1, Exhibit 10.5, filed May 26, 2023) 10.7# Executive Employment Agreement David Kim (incorporated by reference to the Company’s Form 8-K, Exhibit 10.1, filed August 4, 2023) 10.8# Executive Employment Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed August 4, 2023) 10.9# Executive Employment Agreement Thomas V.
(incorporated by reference to the Company’s Form 8-K, Exhibit 3.2, filed July 6, 2023) 4.1 Warrant to Purchase Class A Common Stock (incorporated by reference to the Company’s Form S-1, Amendment No. 1, Exhibit 4.1, filed June 14, 2023) 10.1 Amended and Restated Limited Liability Company Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.1, filed May 26, 2023) 10.2 Tax Receivable Agreement by and among GEN Restaurant Group, Inc., GEN Restaurant Companies, LLC, the TRA Holders party thereto, and David Kim, as TRA Representative, dated as of June 30, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed July 6, 2023) 10.3 Registration Rights Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.4, filed May 26, 2023) 10.4 Indemnification Agreement (incorporated by reference to the Company’s Form S-1, Exhibit 10.4, filed May 26, 2023) 10.5# 2023 Equity Incentive Plan (incorporated by reference to the Company’s Form S-1, Exhibit 10.5, filed May 26, 2023) 10.6# Amended and Restated Executive Employment Agreement, by and between the Company and David Kim, dated as of May 12, 2025 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2025. 10.7# Executive Employment Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed August 4, 2023) 10.8# Executive Employment Agreement Thomas V.
Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Marcum, LLP Marcum LLP We have served as the Company’s auditor since 2021.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Marcum LLP Marcum LLP We have served as the Company’s auditor from 2021 to 2025.
(e) Cash and Cash Equivalents The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. As of December 31, 2024, cash and cash equivalents consist principally of cash, money market accounts and short-term investments.
Forfeitures are accounted for as they occur. (e) Cash and Cash Equivalents The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. As of December 31, 2025 and 2024, cash and cash equivalents consist principally of cash, money market accounts and short-term investments.
As the Operating Company and its related entities (other than Gen, Inc.) have elected to be treated as partnerships for income tax purposes and are not subject to federal or state income taxes, income or loss is included in the tax returns of the members or the partners of the Operating Company and its related entities based on their respective shares.
Notes to Consolidated Financial Statements December 31, 2025 and 2024 Operating Company and its related entities (other than Gen, Inc.) have elected to be treated as partnerships for income tax purposes and are not subject to federal or state income taxes, income or loss is included in the tax returns of the members or the partners of the Operating Company and its related entities based on their respective shares.
Croal (incorporated by reference to the Company’s Form 8-K, Exhibit 10.3, filed August 4, 2023) 10.10 Non-competition Agreement David Kim (incorporated by reference to the Company’s Form 8-K, Exhibit 10.4, filed August 4, 2023) 10.11 Non-competition Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.5, filed August 4, 2023) 10.12 Master Services Agreement by and between Sysco Los Angeles Inc. and GEN Restaurant Group, dated as of August 1, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.1, filed August 7, 2023) 10.13 Business Loan Agreement among GEN Restaurant Group, Inc., GEN Restaurant Companies, LLC and PCB Bank, effective as of September 25, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.1, filed October 4, 2023) 19.1* Insider Trading Policy 21.1* Subsidiaries of the Registrant 23.1* Consent of Marcum, LLP, independent registered public accounting firm the Company’s Form S-8, 24.1* Power of Attorney (included on the signature page hereto) 31.1* Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2* Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 60 32.1** Certification of Principal Executive Officer Pursuant to 18 U.S.C.
Croal (incorporated by reference to the Company’s Form 8-K, Exhibit 10.3, filed August 4, 2023) 10.9 Non-competition Agreement David Kim (incorporated by reference to the Company’s Form 8-K, Exhibit 10.4, filed August 4, 2023) 10.10 Non-competition Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.5, filed August 4, 2023) 10.11 Master Services Agreement by and between Sysco Los Angeles Inc. and GEN Restaurant Group, dated as of August 1, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.1, filed August 7, 2023) 10.12 Business Loan Agreement among GEN Restaurant Group, Inc., GEN Restaurant Companies, LLC and PCB Bank, effective as of September 25, 2023 (incorporated by reference to the Company’s Form 8-K, Exhibit 10.1, filed October 4, 2023) 10.13# Form of Stock Bonus Award Agreement under the Company’s 2023 Equity Incentive Plan incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2025. 19.1 Insider Trading Policy (incorporated by reference to the Company’s Annual Report on Form 10-K, Exhibit 19.1, filed on March 10, 2025). 21.1* Subsidiaries of the Registrant 23.1* Consent of CBIZ CPAs P.C., independent registered public accounting firm. 23.2* Consent of Marcum LLP, independent registered public accounting firm . 24.1* Power of Attorney (included on the signature page hereto) 62 31.1* Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2* Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1** Certification of Principal Executive Officer Pursuant to 18 U.S.C.
These additional leases will total $ 62.2 million in future lease payment commitments. These operating leases are expected to commence in fiscal year 2025 and have lease terms, including option periods, of 20 to 25 years. The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next year.
These additional leases will total $ 38.6 million in future lease payment commitments. These operating leases a re expected to commence in fiscal year 2026 and have lease terms, including option periods, of 20 to 25 years. The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next year.
The following table shows the AUV for the years ended December 31, 2024 and December 31, 2023 : Year ended December 31, 2024 2023 (in thousands) Average Unit Volume $ 5,457 $ 5,873 Comparable Restaurant Sales Change Comparable restaurant sales change refers to the change in year-over-year sales for the comparable restaurant base.
The following table shows the AUV for the years ended December 31, 2025 and 2024: Twelve months ended December 31, 2025 2024 (in thousands) Average Unit Volume $ 5,068 $ 5,457 Comparable Restaurant Sales Change Comparable restaurant sales change refers to the change in year-over-year sales for the comparable restaurant base.
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The following table details the Company’s provision for income taxes.
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future.
Interest income reflects income earned on notes receivable. Equity in income of equity method investee. Equity in income (loss) of equity method investee reflected our 50% ownership in GKBH that was accounted for using the equity method until the date of acquisition on February 18, 2024. Provision for income taxes.
Equity in loss of equity method investee reflected our 50% ownership in GKBH that was accounted for using the equity method until the date of acquisition on February 18, 2024. (Benefit) provision for income taxes.
Interest expense incurred for the related party debt was $ 16 thousand and $ 133 thousand for the year ended December 31, 2024 and December 31, 2023 , respectively.
Interest expense incurred for the related party debt was $ 14 thousand and $ 16 thousand for the year ended December 31, 2025 and December 31, 2024 , respectively.
General and administrative expenses are expected to grow as our sales grow, including incremental legal, accounting, insurance and other expenses incurred as a public company including becoming compliant with the requirements of Sarbanes-Oxley and addressing our internal control weaknesses through implementing new accounting systems and hiring additional staff. 45 Consulting fees — related party.
General and administrative expenses are expected to grow as our sales grow, including incremental legal, accounting, insurance and other expenses incurred as a public company including becoming compliant with the requirements of Sarbanes-Oxley and addressing our internal control weaknesses through implementing new accounting systems and hiring additional staff. Gain on lease termination.
The following table shows the revenue per square foot for the year ended December 31, 2024 and 2023: For the period ending December 31, 2024 2023 Revenue per square foot $ 801 $ 857 Components of Results of Operations Revenues. Revenues represent sales of food and beverages in restaurants and, to a minor extent, through our online portal.
The following table shows the revenue per square foot for the year ended December 31, 2025 and 2024: Twelve months ended December 31, 2025 2024 Revenue per square foot $ 718 $ 801 Components of Results of Operations Revenues. Revenues represent sales of food and beverages in restaurants and, to a minor extent, through our online portal.
Short-term investments are classified available for sale securities, which are carried at fair value, with changes in fair value reported in earnings. Cash equivalents also include credit card transactions in transit. As of December 31, 2024 and December 31, 2023 , there were deposits in excess of federally insured amounts of $ 2.9 million and $ 8.8 million, respectively.
Short-term investments are carried at fair value, with changes in fair value reported in earnings. Cash equivalents also include credit card transactions in transit. As of December 31, 2025 and December 31, 2024 , there were deposits in excess of federally insured amounts of $ 0.8 million and $ 2.9 million, respectively.
Emerging Growth Company Status We are an “emerging growth company,” as defined in the JOBS Act, and we have taken advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” We may take advantage of these exemptions until we are no longer an “emerging growth company.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards.
During the fourth quarter of 2025, an impairment loss reserve was recognized in the amount of $5.5 million. 56 Emerging Growth Company Status We are an “emerging growth company,” as defined in the JOBS Act, and we have taken advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” We may take advantage of these exemptions until we are no longer an “emerging growth company.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards.
(o) Interest Expense A reconciliation of total interest cost to interest expense as reported in the consolidated income statement for the years ended December 31, 2024 and December 31, 2023 is as follows: For the year ended December 31, (in thousands) 2024 2023 Interest expense $ 399 $ 617 Interest income ( 1,228 ) ( 964 ) Interest income, net $ ( 829 ) $ ( 347 ) (p) Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are quantitatively tested on an annual basis for impairment.
(o) Interest (Expense) Income A reconciliation of total interest cost to interest expense as reported in the consolidated statements of operations for the years ended December 31, 2025 and December 31, 2024 is as follows: Year Ended December 31, (in thousands) 2025 2024 Interest expense $ ( 800 ) $ ( 399 ) Interest income 568 1,228 Interest (expense) income, net $ ( 232 ) $ 829 (p) Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are quantitatively tested on an annual basis for impairment.
As a percentage of revenue, payroll and benefits costs decreased from 31.4% to 30.9%. Occupancy expenses . Occupancy expenses were $17.5 million for the year ended December 31, 2024 compared to $14.7 million for the year ended December 31, 2023, an increase of $2.9 million, or 19.6%.
As a percentage of revenue, payroll and benefits costs decreased from 30.9% to 30.4%. Occupancy expenses . Occupancy expenses were $21.2 million for the year ended December 31, 2025 compared to $17.5 million for the year ended December 31, 2024, an increase of $3.7 million, or 21.0%.
Croal Chief Financial Officer March 7, 2025 Thomas V. Croal (Principal Financial and Accounting Officer) /s/Jae Chang Jae Chang March 7, 2025 Jae Chang (Director) /s/ Michael B. Cowan Michael B. Cowan March 7, 2025 Michael B.
Croal Chief Financial Officer March 31, 2026 Thomas V. Croal (Principal Financial and Accounting Officer) /s/Jae Chang Jae Chang March 31, 2026 Jae Chang (Director) /s/ Michael B. Cowan Michael B. Cowan March 31, 2026 Michael B.
(h) Revenue Recognition The Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. Sales tax amounts collected from customers are remitted to governmental authorities and are excluded from sales.
(h) Revenue Recognition The Company recognizes revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale.
“Financial Statements and Supplementary Data.” The table below shows the locations of our restaurants as of December 31, 2024: City State Opened City State Opened Tustin CA Sep-11 Westgate CA Jan-18 Huntington Beach CA Nov-12 San Diego CA May-18 Alhambra CA Dec-12 Mountain View CA Nov-18 Oxnard CA Jun-13 Sacramento CA Mar-19 Cerritos CA Jan-14 Pearlridge HI Apr-19 Torrance CA Aug-14 Frisco TX Jun-19 Rancho Cucamonga CA Dec-14 Houston TX Oct-19 San Jose CA Aug-15 Webster TX May-22 Henderson NV Aug-15 Las Vegas/Miracle Mile NV Jun-22 West Covina CA Sep-15 New York NY Dec-22 Corona CA Dec-15 Cerritos CA Apr-23 Northridge CA Dec-15 Chandler AZ Jun-23 Chino Hills CA Apr-16 Fort Lauderdale FL Jun-23 Carrollton TX Sep-16 Westheimer TX Oct-23 Honolulu HI Mar-17 Kapolei HI Nov-23 Glendale CA Mar-17 Arlington TX Dec-23 Fullerton CA Jul-17 Seattle WA Mar-24 Fremont CA Aug-17 Jacksonville FL Apr-24 Tempe AZ Sep-17 Pflugerville TX Oct-24 Dallas TX Feb-24 Maui HI Sep-24 Las Vegas/Sahara NV Dec-17 Tigard OR Oct-24 Concord CA Jan-18 Ite m 3.
“Financial Statements and Supplementary Data.” In addition to the six restaurants in South Korea, the table below shows the U.S. locations of our restaurants as of December 31, 2025: City State Opened City State Opened Tustin CA Sep-11 Westgate CA Jan-18 Huntington Beach CA Nov-12 San Diego CA May-18 Alhambra CA Dec-12 Mountain View CA Nov-18 Oxnard CA Jun-13 Sacramento CA Mar-19 Cerritos CA Jan-14 Pearlridge HI Apr-19 Torrance CA Aug-14 Frisco TX Jun-19 Rancho Cucamonga CA Dec-14 Houston TX Oct-19 San Jose CA Aug-15 Webster TX May-22 West Covina CA Sep-15 Las Vegas/Miracle Mile NV Jun-22 Corona CA Dec-15 New York NY Dec-22 Northridge CA Dec-15 Cerritos CA Apr-23 Chino Hills CA Apr-16 Chandler AZ Jun-23 Carrollton TX Sep-16 Fort Lauderdale FL Jun-23 Honolulu HI Mar-17 Westheimer TX Oct-23 Glendale CA Mar-17 Kapolei HI Nov-23 Fullerton CA Jul-17 Arlington TX Dec-23 Fremont CA Aug-17 Seattle WA Mar-24 Tempe AZ Sep-17 Jacksonville FL Apr-24 Las Vegas/Sahara NV Dec-17 Pflugerville TX Oct-24 Dallas TX Feb-24 Maui HI Sep-24 Concord CA Jan-18 Tigard OR Oct-24 Edison NJ Jan-25 Orlando FL Jan-25 Austin/Kan Austin TX Mar-25 San Antonio TX Jan-25 Waco TX Jul-25 Cary NC Mar-25 La Jolla CA Sep-25 El Paso TX Jul-25 40 Ite m 3.
The unrecognized stock-based compensation of $ 10.0 million as of December 31, 2024, will be recognized through July 2028. The Company issued 372,600 (or 9 % of the shares of common stock sold in the offering) warrants in connection with the IPO to the underwriters.
T he unrecognized stock-based compensation of $ 7.4 million as of December 31, 2025, will be recognized through July 2028. The Company issued 372,600 (or 9 % of the shares of common stock sold in the offering) warrants in connection with the IPO to the underwriters.
During the three months ended March 31, 2024, we recognized approximately $ 370 thousand in acquisition-related costs, which were included with “Gain on remeasurement of previously held interest” in our consolidated income statements.
During the year ended December 31, 2024, we recognized approximately $ 370 thousand in acquisition-related costs, which were included with “Gain on remeasurement of previously held interest” in our consolidated statements of operations.
Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive.
Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive. F- 26 GEN RESTAURANT GROUP, INC.
F- 7 GEN RESTAURANT GROUP, INC. Notes to Consolidated Financial Statements December 31, 2024 and 2023 ( 1) Organization and Description of Business The accompanying consolidated financial statements represent the consolidated balance sheets, income statements, changes in permanent equity (deficit), and cash flows of GEN Restaurant Group, Inc., Gen Restaurant Companies, LLC and its consolidated subsidiaries (the “Company”).
Notes to Consolidated Financial Statements December 31, 2025 and 2024 ( 1) Organization and Description of Business The accompanying consolidated financial statements represent the consolidated balance sheets, statements of operations, changes in permanent equity (deficit), and cash flows of GEN Restaurant Group, Inc., and its consolidated subsidiaries (the “Company”), including GEN Restaurant Companies, LLC (the “Operating Company”).
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