GENK — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-10

• Our near-term priorities for the restaurant business are to protect cash flow and to operate our existing locations well. We intend to be highly selective in committing capital to new restaurant construction, weighing the returns of each potential opening against alternative uses of capital, includi…

• We believe our CPG division represents our single largest opportunity for near-term growth. GEN products are now in nearly 2,000 retail doors nationwide. We launched the division with our core packaged frozen meats and have since expanded into other frozen and non-frozen Korean products. Our product…

• During 2023 and 2024 we opened six new restaurants. During the year 2025, we opened 15 new restaurants, including six in South Korea. In the first half of 2026, we opened three restaurants in Tucson, AZ, Denton, TX and McAllen, TX. During the six months ended June 30, 2026, we closed six restaurants…

• Our CPG division delivered its strongest quarter to date, with revenue up 341% sequentially from the first quarter of 2026, driven by our core line of frozen raw marinated meats. June 2026 was the division’s largest month, with revenue exceeding $2 million. As of the date of this report, GEN product…

• On October 27, 2025, the Company entered into a loan agreement for $4.0 million with PCB Bank. The loan matures on October 27, 2027, and bears interest at a variable rate per annum equal to 0.25% over the Wall Street Journal Prime Rate, which equaled 7.00% at June 30, 2026. The balance as of June 30…

Text removed vs the prior filing · source: 10-Q · 2026-05-14

• We expect to continue to grow our number of restaurants in the future. For the restaurants opened in 2024, the average Payback Periods was 2.3 years, which equates to an average ROI of approximately 45%. Going forward we are targeting for our new restaurant units a Payback Period of less than 3 year…

• During 2023 and 2024 we opened six new restaurants. During the year 2025, we opened 15 new restaurants, including six in South Korea. In the first quarter of 2026, we opened two restaurants in Tucson, AZ and Denton, TX. We plan to open a total of five to seven new restaurant locations during 2026.

• We are also expanding our CPG business division to sell our unique products with a target of 2,000 grocery store locations by the end of 2026 across the country.

• On September 29, 2023, the Company entered into a loan agreement for a $20.0 million line of credit with PCB Bank. The line of credit matures on September 25, 2026, and bears interest at a variable rate per annum equal to 7.00% as of March 31, 2026. The balance outstanding under the line of credit i…

• Revenues. Revenues represent sales of food and beverages in restaurants and, to a minor extent, through our online portal. 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 sal…

Text added vs the prior filing · source: 10-Q · 2026-08-10

• We are exposed to interest rate risk on our variable rate borrowings, consisting of $12.1 million outstanding under our line of credit and $7.6 million of term loans with PCB Bank, each bearing interest at the Wall Street Journal Prime Rate plus 0.25% (7.00% at June 30, 2026). A hypothetical 100 bas…

Text removed vs the prior filing · source: 10-Q · 2026-05-14

• We are exposed to market interest rates by accessing our line of credit and our $8.3 million of outstanding loans from PCB Bank, which bear interest at the Wall Street Journal Prime Rate plus 0.25%.

Text added vs the prior filing · source: 10-Q · 2026-08-10

• In June 2026, the Operating Company received a civil investigative demand (“CID”) from the U.S. Department of Justice issued pursuant to the False Claims Act. The investigative inquiry concerns applications for Restaurant Revitalization Fund (“RRF”) grants and Paycheck Protection Program (“PPP”) loa…

• The PPP loans and RRF grants at issue date to 2020 and 2021, prior to the Company’s initial public offering. As previously disclosed, certain companies acquired by the Operating Company received aggregate proceeds of approximately $23.0 million from the PPP loans, and the RRF grants totaled approxim…

• The Company is cooperating fully with the investigative inquiry, including producing records responsive to the CID. While the ultimate outcome and timing of the inquiry are uncertain, the Company does not currently expect this matter to have a material impact on its results of operations or financia…