GEN RESTAURANT GROUP, INC.

SeeGEN accompanyingRESTAURANT notesGROUP, to consolidated financial statementsINC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)


☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025

     ☐

     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from _________  to _________

Commission File Number: 001-41727

GEN Restaurant Group, Inc.

(Exact name of registrant as specified in its charter)


Delaware	87-3424935
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11480 South Street Suite 205 Cerritos, CA	90703
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (562) 356-9929

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Class A Common stock,
par value $0.001 per share

     GENK

     The Nasdaq Stock Market LLC
(The Nasdaq Global Market)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, based on the closing price of the shares of common stock on the Nasdaq Global Market on June 30, ~~2024~~2025 was $5820,~~775,840~~803.938.

As of ~~February~~March 2824, ~~2025~~2026, there were outstanding 5,~~375~~364,~~752~~141 shares of the Registrant’s Class A Common Stock and 27,~~761~~559,~~515~~810 shares of the Registrant’s Class B Common Stock.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement relating to its ~~2025~~2026 annual meeting of stockholders are incorporated information by reference into Part III of this Annual Report on Form 10-K where indicated. Such proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

Table of Contents

		Page
PART I
Item 1.	Business	3
Item 1A.	Risk Factors	8
Item 1B.	Unresolved Staff Comments	3839
Item 1C	Cybersecurity	39
Item 2.	Properties	40
Item 3.	Legal Proceedings	4041
Item 4.	Mine Safety Disclosures	4041
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	4142
Item 6.	Reserved	4142
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4243
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	5657
Item 8.	Financial Statements and Supplementary Data	5758
Item 9.	Changes in and Disagreements ~~With~~with Accountants on Accounting and Financial Disclosure	5758
Item 9A.	Controls and Procedures	5758
Item 9B.	Other Information	5859
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	5859
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	5960
Item 11.	Executive Compensation	5960
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	5960
Item 13.	Certain Relationships and Related Transactions, and Director Independence	5960
Item 14.	Principal Accountant Fees and Services	5960
PART IV
Item 15.	Exhibits and Financial Statement Schedules	6062
Item 16.	Form 10-K Summary	6163

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about us and our industry that involve substantial risks and uncertainties. All statements contained in this Annual Report on Form 10-K other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The terms such as “target,” “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “continue,” “predict,” “potential,” “plan,” “anticipate” or the negative of these terms, and similar expressions are intended to identify forward-looking statements. You should not rely on forward-looking statements as predictions of future events. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations.

These forward-looking statements are subject to a number or risks, uncertainties and assumptions, including but not limited to:

•

our ability to increase comparable restaurant sales and average unit volumes (“AUVs”);

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our ability to expand in existing and new markets;

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our projected growth in the number of restaurants;

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macroeconomic conditions and other economic factors;

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our ability to compete with many other restaurants;

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our reliance on vendors, suppliers, and distributors;

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concerns regarding food safety and food-borne illness;

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changes in food and supply costs, including the impact of inflation and tariffs;

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changes in consumer preferences and the level of acceptance of our restaurant concept in new markets;

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minimum wage increases and mandated employee benefits that could cause a significant increase in our labor costs;

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the failure of our information technology systems or the breach of our network security;

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the loss of key members of our management team;

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the impact of our UP-C structure;

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the impact of governmental laws and regulations;

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our ability to expand our ready-to-cook product offerings;

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volatility in the price of our common stock; and

•

other risk, uncertainties and factors described in Part I, Item 1A, “Risk Factors,” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this Annual Report on Form 10-K.

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this report which may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or

review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.

GENERAL INFORMATION

GEN Restaurant Group, Inc. (“GEN Inc. or the “Company”) was formed as a Delaware corporation on October 28, 2021 and is based in Cerritos, California. As the managing member of Gen Restaurant Companies, LLC (the “Operating Company”), GEN Inc. operates and controls all business and affairs of the Operating Company and its consolidated subsidiaries. Unless the context otherwise requires, references to the “Company” refer to GEN Inc., and its consolidated subsidiaries, including the Operating Company.

Organizational Structure

Upon our IPO, the entities comprising GEN Restaurant Group are consolidated as subsidiaries of GEN LLC. The historical owners of GEN Restaurant Group received membership units of GEN LLC in exchange for the ownership interests in GEN Restaurant Group. The following actions took place in connection with the closing of the IPO (collectively, the “Reorganization:):

•

GEN Inc. amended and restated its certificate of incorporation to, among other things, provide for Class A common stock and Class B common stock.

•

GEN Inc. sold to the underwriters 4,140,000 shares of Class A common stock.

•

The GEN LLC agreement was amended and restated to provide, among other things, Class A units and Class B units and appointed GEN Inc. as the managing member of GEN LLC.

•

GEN Inc. used the proceeds of the offering to acquire newly issued shares of Class A units of GEN LLC.

•

The GEN LLC agreement permits the members of the GEN LLC to exchange Class B units for shares of Class A common stock on a one-for-one basis.

•

GEN Inc. entered into the Tax Receivable Agreement for the benefit of the other members of GEN LLC (not including GEN Inc.) pursuant to which GEN Inc. will pay 85% of the net cash tax savings, if any, that GEN Inc. realizes.

•

We entered into a Registration Rights Agreement with the Class B stockholders to provide for certain rights and restrictions.

PART I

Item 1. Business.

Company Overview

GEN Inc. is one of the largest Asian casual dining restaurant concepts by total revenue in the United States. During 2025, we expanded our footprint with partnerships with grocery stores to offer our ready-to-cook meals at over 800 locations, with expected expansion to 1,500 to 2,500 grocery stores in 2026. We offer an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, and seafood, all at a superior value. Founded in 2011 by two Korean immigrants, since the opening of our first restaurant in September 2011 we have grown to 4357 company-owned restaurants, as of December 31, ~~2024~~2025, located in California, Arizona, Hawaii, Nevada, Texas, New York, Oregon, ~~and~~North Carolina, Washington, New Jersey, Florida and South Korea. Our restaurants have modern decor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across the restaurants. On February 18, 2024, the Company purchased the other 50% of GKBH and other rights and the Company now controls 100% of this equity investment, GKBH restaurant.

We expect to continue growing our number of restaurants in the future. In 2022, our new restaurants have generated average Payback Periods of approximately 1.9 years, which equates to an average Return on Investment (“ROI”) of over 50%. For restaurants opened in 2023 and 2024, the average Payback Period of approximately 2.2, 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 years, which equates to an ROI of 33% to 40%. Restaurants range in size from 4.7 thousand to 12 thousand square feet, and are typically located in high-activity commercial areas. “Payback Period” means the length of time, in years, required to recoup build-out costs after the restaurant’s opening date.

Our Strengths

•

Unlimited Orders at One Affordable, All-Inclusive Price. Our guests can order unlimited quantities of food for a fixed price generally ranging from $20.95 to $20.99 for lunch and $29.99 to $33.95 for dinners as of December 31, ~~2024~~2025, except for $35.95 for dinner at the Miracle Mile at Las Vegas, NV location and $27.95 for lunch, $33.95 for regular dinner and $37.95 for late dinner at the Manhattan, NY location. Our affordable price points make our concept accessible to multiple demographics and allow our guests to discover a variety of traditional Korean and Korean-American fusion dishes at a fixed price compared to the a la carte pricing found at other casual dining restaurants.

•

Efficient “Cook-It-Yourself” Business Model. Using our “cook-it-yourself” model, we have been able to operate our restaurants without chefs and with limited personnel needed to process orders in the kitchen. Our menu items come ready-to-serve from our suppliers, allowing us to quickly fill guest orders after a simple transfer from package to plate. This approach ensures consistent food quality across all of our restaurants and provides for more efficient operations than traditional restaurants, which in turn allows us to cater to high traffic levels. Additionally, because our guests serve as their own chefs, we believe our kitchens require a smaller percentage of our footprint than other casual dining restaurant concepts, enabling more space for guest seating.

•

Strong Supplier Network Provides Foundation for Growth. During the fourth quarter of 2023 we entered into an agreement with Sysco Los Angeles, Inc., or Sysco, to purchase certain food products for a period of three years. We also utilize other suppliers for certain items.

•

Large Community of Loyal Enthusiasts. Based in part on our online reviews, we believe we have attracted a passionate and loyal group of customers, including Millennial and Gen Z enthusiasts who enjoy trying new cuisine of various ethnic origins. We believe these “foodies” enjoy our diverse menu of flavorful Korean and Korean-American food, affordable prices points and differentiated dining ambience.

•

Unique Guest Experience Drives Positive Customer Ratings. Many of our guests express their enthusiasm for our concept experience by rating and reviewing our restaurants online.

•

In-House Design and Fabrication Capabilities. Well-functioning ventilation systems are critical to Korean barbeque restaurant concepts due to the need to simultaneously ventilate each table. In order to ensure proper setup, many of our competitors rely on third-party contractors, who can be prohibitively expensive and require lengthy lead times. We take a different approach, designing and fabricating our ventilation systems in-house, which in turn provides us with greater control than our competition over quality, costs and lead time.

•

An Inspirational Founder-led Management Team. Our team is led by experienced and passionate senior management who are committed to providing the highest quality service and experience for our guests.

Our Growth Strategies

Open Additional Restaurants in New and Existing Markets. Since opening our original restaurant in Tustin, California in 2011, we have successfully opened profitable new restaurants throughout Southern and Northern California, and in ~~Nevada~~Arizona, ~~Texas~~Florida, Hawaii, ~~Arizona,~~North ~~Florida~~Carolina, ~~Oregon~~New Jersey, New ~~Jersey~~York, Nevada, Oregon, Texas, Washington, and ~~New~~South ~~York~~Korea. We intend to leverage our expertise opening new restaurants to expand further into new geographies with the same rigorous and thoughtful new site and restaurant build-out process that we have successfully demonstrated in the past. InDuring ~~2022~~2023, ~~following~~we ~~the~~opened ~~COVID-19~~six ~~pandemic~~restaurants in: Cerritos, weCalifornia ~~resumed~~(opened ~~cultivating~~on ~~our~~April ~~pipeline~~4, of2023), ~~new~~Chandler, ~~restaurants~~Arizona, ~~and~~(opened on June 1, 2023), Fort Lauderdale, Florida (opened ~~three~~on ~~new~~June ~~locations~~10, in2023), ~~Webster~~Westheimer (Houston), Texas (opened on October 26,2023), Kapolei, ~~Las~~Hawaii ~~Vegas~~(opened on November 18, ~~Nevada~~2023), and ~~New York~~Arlington, ~~New~~Texas ~~York.~~(opened ~~During~~on December 21, 2023). In 2024, we opened six restaurants in: ~~Cerritos~~Dallas, ~~California~~Texas (opened on ~~April~~February 423, ~~2023~~2024), ~~Chandler~~Seattle, ~~Arizona,~~Washington (opened on ~~June~~March 1, ~~2023~~2024), ~~Fort~~ ~~Lauderdale~~Jacksonville, Florida (opened on ~~June~~April 1012, ~~2023~~2024), ~~Westheimer~~Maui, ~~(Houston)~~Hawaii, ~~Texas~~ (opened on ~~October~~September 2623,~~2023~~ 2024), ~~Kapolei~~ Pflugerville, ~~Hawaii~~Texas (opened on ~~November~~October 18, ~~2023~~2024), and ~~Arlington~~Tigard, ~~Texas~~Oregon (opened on ~~December~~October 2119, ~~2023~~2024).

During ~~2024~~2025, we opened ~~six~~15 restaurants in: ~~Dallas~~Orlando, ~~Texas~~Florida (opened on ~~February~~January 18, 2025), Edison, New Jersey (opened on January 23, ~~2024~~2025), ~~Seattle~~San Antonio, ~~Washington~~Texas (opened on ~~March~~January 131, ~~2024~~2025), ~~Jacksonville~~Austin, ~~Florida~~Texas (opened on ~~April~~March 12, ~~2024~~2025), ~~Maui~~Cary, ~~Hawaii~~North Carolina (opened on March 22, 2025) Kan Sushi in Austin, Texas (opened on ~~September~~April 231, ~~2024~~2025), ~~Pflugerville~~Waco, Texas (opened on ~~October~~July 186, ~~2024~~2025) ~~and~~El ~~Tigard~~Paso, ~~Oregon~~Texas (opened on ~~October~~July 1929, ~~2024~~2025) San Diego, California (opened on September 24, 2025), and six restaurants in South Korea.

Subsequent to December 31, ~~2024~~2025, the Company has opened ~~three~~two ~~new~~restaurant ~~restaurants: San~~in ~~Antonio~~Denton, Texas, ~~Orlando, Florida,~~ and ~~Edison~~Tucson, ~~New Jersey~~Arizona.

We have signed ~~eighteen~~18 leases for new locations ~~during~~as ~~the~~of ~~year ended~~ December 31, ~~2024~~2025. In addition to the ~~three~~two restaurants we opened in January ~~2025~~and March 2026, we currently expect to open 10four to 13eight other locations during ~~2025. Beginning in~~ 2026~~, we plan to open ten to twelve new restaurants annually in new and existing domestic markets~~. ~~We expect to open restaurants in new markets in states such as Michigan, North Carolina, Illinois, Massachusetts, Georgia, Utah, Colorado, and Virginia, as well as in the District of Columbia.~~

We ~~are~~entered ~~introducing~~into an international expansion ~~into~~with South Korea with atsix ~~least two~~ Company-owned locations ~~slated~~openings ~~to open~~ in 2025.

During ~~2022, we opened three restaurants with average Net Build-Out Costs of approximately $1.9 million. During~~ 2023, we opened six restaurants with average Net Build-Out Costs of approximately $2.1 million. During 2024, we opened six restaurants with average Net Build-Out Costs of approximately $2.2 million. Going forward, we are targeting average Net Build-Out Costs of less than $3.0 million with AUV’s ranging from $4.0 to $5.0 million for our new restaurant units, resulting in a target Payback Period of less than 3three years, which may vary depending on the specific market. The combination of our strong expertise in constructing new restaurants and tremendous white space opportunity positions us well to expand our concept into new markets.

Increase Restaurant Sales and Profitability. We initiated a modest price increase near the end of the fourth quarter of 2024 with no discernable change in guest behavior. We also initiated a modest price increase during February 2026 in most of our restaurants. We plan to continue to analyze and monitor price receptivity from our customers, and we believe there may be additional opportunities to implement modest price increases in the future with no material impact on customer traffic. Additionally, our strong supply chain capabilities and ability to operate with a limited number of employees have allowed us to control our costs. We continually look to invest in new technologies through rigorous testing and analyses to further improve and maintain an optimal cost structure, as well as to enhance our dining experience.

Selectively Pursue Wholesale Opportunities. With the favorable pricing terms we have established with our suppliers and distributors, during the COVID-19 pandemic we were able to continue providing a limited number of guests with our high-quality meats by introducing temporary bulk purchase options in 21 of our restaurants. ~~Considering the positive response from our guests, we plan to selectively pursue wholesale opportunities going forward.~~ We have engaged with national food retailers to offer our ready-to-~~serve~~cook meats. The COVID-19 pandemic served as an opportunity to not only assess the viability of a wholesale segment, but also to begin exploring other new service offerings we may be able into introduce to our existing business.

Restaurant Management

Restaurant Management and Employees. As of December 31, ~~2024~~2025, on average, each of our restaurants employed a total of 70 full-time and part-time employees who are managed by a general manager. The actual number of personnel that work during a given shift varies depending on the day, as well as time. During any given shift, restaurants are typically staffed with one kitchen manager, two to four hosts, four to ten servers, four to five food preparers, one to two cashiers, two to three bussers, up to seven food runners, and three to four dishwashers.

Training and Employee Programs. To ensure a consistent and exceptional dining experience, we have established onboarding training programs for all of our restaurant employees. Employee training for restaurant managers typically requires approximately three to six months, while training for other restaurant employees ranges from 60 to 90 days. Our operating model, which does not require that we employ chefs or cooks, necessitates a relatively small staff primarily responsible for serving food, and leads to reduced complexity and duration of our training programs. When we staff a new restaurant that is preparing to open, we send a team of existing employees to the new restaurant to provide the training and to introduce and impart our cultural values. Our training programs for employees provide comprehensive guides specifically developed for each position.

Our Suppliers

We acquire certain food products and supplies from third-party vendors and suppliers, and we are dependent upon a few suppliers for certain specialized equipment utilized in our restaurants, such as the embedded grills in our tables. Pacific Global, a subsidiary of a related party, provided restaurant supplies such as tableware, napkins, soda, sauces for approximately 3.2% and 16.4% of total operating expenses in 2024 and 2023, respectively, and Wise Universal provided us with food products and supplies equaling approximately 21.3% of our total food and beverage costs in 2023. Each of Fast Fabrications, Pacific Global and Wise Universal are controlled by parties affiliated with us. We do not currently have written contracts with any of these suppliers. See “Part III, Item 13, “Certain Relationships and Related Person Transactions, and Director Independence” for additional information on our relationship with ~~these~~ suppliers controlled by certain of our affiliates..

During the fourth quarter of 2023 we entered into an agreement with Sysco to purchase certain food products for a period of three years. Sysco accounted for approximately 7657.34% and 1576.13% of food costs for the year ~~2024~~2025 and ~~2023~~2024, respectively. During ~~Additionally,~~the ~~U.S.~~years ~~Foods,~~ended anDecember ~~unrelated third party~~31, ~~provided~~2025 usand ~~with~~2024, ~~certain~~two ~~food~~third-party ~~products~~vendors ~~which~~accounted infor ~~2023~~32.5% ~~amounted~~and ~~to approximately 36~~24.02% of ~~our~~ total food ~~and beverage~~ costs., ~~We did not purchase from U~~respectively.~~S. Foods in 2024.~~

Management Information and Systems

We use Revel for our point-of-sale (POS) system, a system designed for the restaurant industry. Our Revel POS system allows us to seamlessly track and monitor our sales, food and beverage costs and inventory levels. This system is integrated with the handheld tablets our staff use to take guest orders and process payments, and it includes customizable features which provide data that allow us to better understand our guest dining preferences. We use a combination of Automatic Data Processing, Inc. and Toast, Inc. software for our payroll and human resources systems. We have partnered with Yelp to allow our guests to check-in ahead of their visits in order reduce wait times they may otherwise encounter. Since ~~Historically~~2025, we have ~~used~~utilized ~~QuickBooks for our accounting systems, but as of January 1, 2024, we have upgraded to~~ NetSuite’s accounting system ~~as we continue~~ to ~~grow~~support the ~~number~~continued expansion of ~~restaurants~~our werestaurant ~~operate~~portfolio. We rely on all of our third-party systems and application providers to protect the information of our customers and employees.

Our Industry

WeThe ~~believe~~global ~~that~~visibility ~~the~~and ~~unique,~~influence ~~interactive~~of ~~culinary~~Korean ~~experience~~culture atcontinues ~~our lively restaurants appeals~~ to agrow ~~vast~~across ~~segment~~all ofdemographics, ~~the~~with ~~population.~~particularly ~~This~~strong ~~enables~~engagement usamong Millennials toand ~~successfully~~Gen ~~compete with~~Z, and ~~take~~is ~~share~~expected ~~from,~~to ~~our~~drive ~~competitors~~increased ~~across~~demand ~~the~~for ~~restaurant~~Korean ~~industry,~~dining ~~particularly~~experiences. In the ~~chain~~United ~~restaurant industry~~States, ~~defined~~the asnumber ~~restaurants~~of ~~where~~Korean ~~guests~~restaurant ~~order~~locations ~~while~~grew ~~seated~~by ~~and~~10% ~~pay~~in ~~after~~2024, ~~eating.~~with Weexpansion ~~believe~~across weboth ~~will~~full-service ~~expand~~and ~~our~~quick-service ~~market~~segments, ~~share~~driven by ~~leveraging~~rising ~~our~~consumer ~~scale~~interest ~~and~~in ~~compelling~~flavors ~~value proposition that many smaller casual dining restaurant concepts are not able to replicate.~~

Growing Popularity of Korean Culture. The increasing awareness of Korean culture among all demographics, particularly among Millennial and Gen Z populations, is expected to significantly add to our growing volume of guests. Since the release of Gangnam Style, a Korean song that became the first YouTube video to reach one billion views, and subsequent hits produced by up-and-coming Korean artists such as Blackpink, and BTS, Korean culture continues to become a global phenomenon that has gained immense popularity in recent years. The increasing number of viral music video hits, as well as other well-received Korean entertainment, including the recent Netflix survival drama television series, Squid Game, and the Academy award-winning Korean film, Parasite, have contributed to the tremendous growth of what is referred to as the “Hallyu wave.” According to the Korean Foundation, the “Hallyu wave,” which encompasses the increasing popularity and international spread of Korean food, language and culture since the 1990s, has amassed over 100 million fans across 109 countries, excluding South Korea, as of September 2020.5

that are bold, shareable, and social-media friendly. According to industry research, 450 new Korean restaurant locations opened in the U.S. since 2018, with significant concentrations in major markets like Los Angeles, San Francisco, and New York City. Other trend favorites-including Korean corn dogs, ramen, kimchi, and Korean-inspired sauces- have surged in popularity. The United States has now become the largest global market for Korean food franchises, with more than 1,100 Korean-brand outlets, a more than 100% increase over the past five year, underscoring the strong and sustained momentum of Korean culinary trends.

Competition

We compete primarily with casual dining concepts in the highly competitive and fragmented restaurant industry. Our competition includes a variety of small, local restaurants, medium-sized regional restaurants, and large national chains that primarily provide dine-in service. Within the casual dining category, we believe Asian restaurants, including Korean, Chinese, Thai, Vietnamese and Japanese concepts that often specialize in specific items or preparation methods, are among the least concentrated and most fragmented. We believe there is not a casual dining concept at our scale that offers the same compelling value proposition and unique dining experience.

Human Capital Resources

We offer a diverse environment full of passionate and talented people. Our team members are collaborative and supportive, with a driving desire to make a distinctive mark in the restaurant industry. Our core values drive our people initiatives as they focus on mutual respect, teamwork, continuous improvement and learning, gratitude, a positive attitude, and passion to be the best in our business. We believe we attract and retain superior talent because we offer a challenging work environment with opportunities to make a difference in our company’s future. We work together as one team, with the single vision of making our company successful. Our employees are not subject to any collective bargaining agreements, and we have experienced no material work stoppages.

As of December 31, ~~2024~~2025, we had approximately 2,700 employees. Of those ~~289~~375 are employed on a full-time basis. Approximately 3837% of our workforce is female and 6263% is male. Our senior leadership team (Vice President level and above) is 83% male and 17% female, while manager roles are approximately 64% male and 36% female. Our existing employees typically recruit new team members, although we may use outside recruiting support in selected circumstances.

Environmental Matters

We are subject to federal, state and local laws and regulations relating to environmental protection, including regulation of discharges into the air and water, storage and disposal of waste and clean-up of contaminated soil and groundwater. Under various federal, state and local laws, an owner or operator of real estate may be liable for the costs of removal or remediation of hazardous or toxic substances on, in or emanating from such property. Such liability may be imposed without regard to whether the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances, and in some cases, we may have obligations imposed by indemnity provisions in our leases.

Government Regulation and Compliance

We are subject to various federal, state, and local regulations, including those relating to building and zoning requirements, public health and safety and the preparation and sale of food. The development and operation of restaurants depends to a significant extent on the selection and acquisition of suitable sites, which are subject to zoning, land use, and environmental approvals, traffic, and other regulations and requirements. Our restaurants are also subject to state and local licensing and regulation by health, sanitation, food and occupational safety, and other agencies, which regulation has increased in the wake of the COVID-19 pandemic. We may experience material difficulties or failures in obtaining the necessary licenses, approvals or permits for our restaurants, which could delay planned restaurant openings or affect the operations at our existing restaurants. In addition, stringent and varied requirements of local regulators with respect to zoning, land use, and environmental factors could delay or prevent development of new restaurants in particular locations.

Our operations are subject to the U.S. Occupational Safety and Health Act, which governs worker health and safety, as well as rules and regulations regarding the U.S. Fair Labor Standards Act, which governs such matters as minimum wages and overtime, and a variety of similar federal, state and local laws (such as fair work week laws, immigration laws, various wage and hour laws, termination and discharge laws, and state occupational safety regulations) that govern these and other employment law matters. We may also be subject to lawsuits or investigations from our current or former employees, the U.S. Equal Employment Opportunity Commission, the Department of Labor, or others alleging violations of federal and state laws regarding workplace and employment matters, discrimination and similar matters, and we have been a party to a number of such matters in the past. These lawsuits and investigations require significant resources from our senior management and can result in material fines, penalties and/or settlements, some or all of which may not be covered by insurance, as well as significant remediation efforts that may be costly and time consuming, and which we may not implement effectively.

Intellectual Property

We protect our intellectual property primarily through a combination of trademarks, domain names, and trade secrets. We have registered trademarks in the U.S. and internationally. We will continue to pursue additional trademark registrations to the extent we believe they would be beneficial and cost-effective. Our inner restaurant décor is covered by a trademark covering our signature white, brown, blue, cyan and silver colors, our white booth seating areas with brown wood accents and glass dividers, and our blue sconces and LED lighting, among other features.

We have procedures in place to monitor for potential infringement of our intellectual property, and it is our policy to take appropriate action to enforce our intellectual property, taking into account the strength of our claim, likelihood of success, cost, and overall business priorities.

Corporate Information

GEN Inc. was incorporated in Delaware on October 28, 2021 as a Delaware corporation. It had no business operations prior to our initial public offering in June 2023. In connection with the consummation of our initial public offering, GEN Inc. became the managing member of GEN LLC, which owns 43 restaurants and related subsidiaries. Our principal executive offices are located at 11480 South Street Suite 205, Cerritos, CA 90703 and our telephone number is (562) 356-9929.

Information About our Executive Officers

The following section sets forth the name, age, and business experience for the past five years of the executive officers as of the filing date of this Annual Report on Form 10-K. Unless otherwise noted, the positions described are positions with GEN Inc. or its subsidiaries.

Name	Age	~~Age~~	Position	~~Position~~
David Kim	57		56Chief Executive Officer and Director	~~Chief Executive Officer and Director~~
Thomas V. Croal	65		65Chief Financial Officer	~~Chief Financial Officer~~

David Kim. Mr. Kim joined GEN shortly after the opening of our first restaurant in 2011 and, since our formation in October 2021, he has served as our Chief Executive Officer and Director. Before founding GEN, Mr. Kim served as Chief Executive Officer of La Salsa, Inc., a fast casual Mexican restaurant chain, from July 2007 to September 2011. Mr. Kim also served as Chief Executive Officer of Baja Fresh Enterprises, another fast casual Mexican restaurant chain, from October 2006 to September 2011, and prior to that served as President of Caliber Capital Group, an equity investment firm focused on distressed companies, from 2005 to 2010. From August 2002 to September 2011, Mr. Kim was the managing member of CinnaWorks, LLC, a national owner of Cinnabon franchises, and from November 1994 to March 2016, he was the managing member of Sweet Candy, LLC, owner of the retail candy concept Sweet Factory.

From November 1994 to March 2016, Mr. Kim managed Golden Den Corp. and RD Restaurant Group, Inc., which owned Denny’s, Carl’s Jr. Golden Corral and Pick-Up Stix franchises. Mr. Kim is also owner, operator, and manager of several other concepts that are not all-you-can-eat. Mr. Kim has established the Kim Family Foundation, through which he supports various charitable causes related to scholastic achievement and leadership.

Mr. Kim’s qualifications to serve on the Board include his wealth of experience with our business as co-founder and within the restaurant industry, and his demonstrated business acumen and skills in entrepreneurship and business strategy. Mr. Kim’s Board service also creates a direct, more open channel of communication between the Board and senior management.

Thomas V. Croal. Mr. Croal has served as our Chief Financial Officer since July 2021. Prior to joining us, Mr. Croal served as Chief Financial Officer of Pancreatic Cancer Action Network, a non-profit organization focused on pancreatic cancer research, from January 2019 to July 2021. Mr. Croal also served as Senior Vice President and Chief Financial Officer of Sage Publications, Inc., a global independent publisher. Mr. Croal also served as Chief Financial Officer of PPONet, Inc., a preferred provider physicians network, from September 2004 to June 2005. Mr. Croal also served as Senior Vice President and Chief Financial Officer of Silverado Senior Living Holdings, Inc., an operator of senior housing communities, from June 2007 to September 2018. Mr. Croal held various positions at Insight Health Services Corp., a healthcare service provider, including Chief Financial Officer and Chief Operating Officer, from September 1989 to March 2003. Mr. Croal was also previously a California Certified Public Accountant with Arthur Andersen & Co. Mr. Croal received his Bachelor of Science in Accounting from Loyola Marymount University.

Available Information

Our website is located at www.genkoreanbbq.com including an investor relations section in which we routinely post information, such as webcasts of quarterly calls and other investor events in which we participate or host, and any related materials. Information contained on our website or linked therein or otherwise connected thereto does not constitute part of and is not incorporated by reference into this Annual Report on Form 10-K.

Item 1A. Risk Factors.

Risk Factor Summary

Our Company is subject to several risks that if realized could materially affect our business, prospects, financial condition, results of operations, cash flows and access to liquidity. Our business is subject to uncertainties and risks including:

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Inflationary conditions with respect to the cost for food, ingredients, labor, construction, and utilities, and we may not be able to increase prices or implement operational improvements sufficient to fully offset such costs, which may adversely impact our revenues and results of operations.

•

The impact of global and domestic economic conditions and public health crises on consumer discretionary spending could materially adversely affect our financial performance.

•

The possible negative effects on sales of opening new restaurants in existing markets may negatively affect sales at our existing restaurants.

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New restaurants, once opened, may not be profitable, and the increases in average restaurant sales and comparable restaurant sales that we have experienced in the past may not be indicative of future results.

•

Sales and profit growth could be adversely affected if comparable restaurant sales are less than we expect.

•

Failure to manage our growth effectively, including the impact of expansion and the ongoing need for capital expenditures related to new and existing locations, could harm our business and operating results.

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The geographically concentrated nature of our restaurant base, could result in negative effects due to conditions specific to our markets.

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Our significant reliance on certain food ingredients, supplies, and vendors and suppliers of those ingredients and supplies, our dependence on which could adversely affect our business, financial condition or results of operations.

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Intense competition, such that, if we are unable to continue to compete effectively in the restaurant industry in general and, in particular, within the dining segments of the restaurant industry in which we compete, our business, financial condition and results of operations would be adversely affected.

•

Food safety and foodborne illness concerns as well as outbreaks of flu, viruses or other diseases, which could have an adverse effect on our business, financial condition or results of operations.

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New information or attitudes regarding diet and health, which could result in changes in regulations and consumer consumption habits that could adversely affect our business, financial condition or results of operations.

•

Significant reliance on the continued proper operation of our equipment, such that any mechanical failure could prevent us from effectively operating our restaurants.

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The loss of any registered trademark or other intellectual property or our failure to maximize or successfully assert our intellectual property rights, which could enable other companies to compete more effectively with us.

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Negative publicity relating to one of our restaurants, which could reduce sales at some or all of our other restaurants.

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Risks associated with leasing space subject to long-term non-cancelable leases.

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The possibility of labor shortages, increased labor costs or unionization activities, which could affect our growth, business, financial condition and operating results.

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Failure to comply with federal, state, and local governmental laws and regulation, including those specific to the restaurant industry may adversely affect our ability to open new restaurants or otherwise adversely affect our business, financial condition or results of operations.

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Litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material monetary damages and other remedies, and that our insurance policies may provide inadequate levels of coverage against claims, resulting in negative impacts to our financial condition.

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Changes to accounting rules or regulations, which may adversely affect our business, financial condition or results of operations.

•

The Internal Revenue Service, (“ the “IRS”), might challenge the tax basis step-ups and other tax benefits we receive in connection with this offering and the related transactions and in connection with future acquisitions of GEN LLC units.

•

GEN Inc. will be required to pay over to members of GEN LLC (other than GEN Inc.) most of the tax benefits GEN Inc. receives from tax basis step-ups (and certain other tax benefits) attributable to its

acquisition of units of GEN LLC in the future, and the amount of those payments are expected to be substantial.

•

In certain circumstances, GEN LLC will be required to make distributions to us and the other members of GEN LLC, and the distributions that GEN LLC will be required to make may be substantial.

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Future changes to tax laws or our effective tax rate could materially and adversely affect our company and reduce net returns to our stockholders.

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Our charter documents and the Delaware General Corporation Law, (“DGCL”), could discourage takeover attempts and other corporate governance changes.

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Our amended and restated certificate of incorporation includes an exclusive forum clause, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.

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Short history operating as a publicly consolidated entity, and our status as such may strain our resources, divert our management’s attention, and affect our ability to attract and retain qualified board members, which may adversely affect operations.

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Our current indebtedness, and any future indebtedness we may incur, may limit our operational and financing flexibility and negatively impact our business.

•

In prior years, we identified two material weaknesses in our internal control over financial reporting, which could impact our ability to produce timely, accurate and reliable financial statements could be impaired. As of December 31, 2024, management has completed remediation of these material weaknesses.

Risks Related to Our Growth Strategy and Restaurant Expansion

We continue to experience inflationary conditions with respect to the cost for food, ingredients, labor, construction and utilities, and we may not be able to increase prices or implement operational improvements sufficient to fully offset such costs, which may adversely impact our revenues and results of operations.

The strength of our revenues and results of operations are dependent upon, among other things, the price and availability of food, ingredients, labor, construction and utilities. In ~~the~~2024 ~~years ended 2023~~ and ~~2024~~2025, the costs of commodities, labor, energy and other inputs necessary to operate our restaurants increased. Fluctuations in economic conditions, weather, demand and other factors also affect the cost of the ingredients and products that we buy. From ~~2023~~2024 to ~~2024~~2025, ~~the~~food costs as a percentage of sales ~~of food costs~~ increased from 3233.20% to 3334.06% and ~~the~~payroll ~~percentage~~and ofbenefits ~~sales~~costs ofas ~~payroll~~a ~~and~~percentage ~~benefits~~of ~~costs~~sales decreased from 3130.49% to 30.94%. Our inability to anticipate and respond effectively to one or more adverse changes in any of these factors could have a significant adverse effect on our results of operations. We expect the inflationary pressures and other fluctuations impacting the cost of these items to continue to impact our business through ~~2025~~2026. Our attempts to offset cost pressures, such as through menu price increases and operational improvements, may not be successful. We ~~initiated modest price increases in 2024 and in 2023 with no discernible change in guest behavior. We~~ seek to provide a moderately priced product, and, as a result, we may not seek to or be able to pass along price increases to our customers sufficient to completely offset cost increases. Traffic may also be negatively impacted by menu price increases as consumers may be less willing to pay our menu prices and may increasingly visit lower-priced competitors, may reduce the frequency of their visits, or may forgo some purchases altogether. To the extent that price increases are not sufficient to offset higher costs adequately or in a timely manner, and/or if they result in significant decreases in revenue volume, our revenues and results of operations may be adversely affected.

Our long-term success is highly dependent on our ability to successfully identify and secure appropriate sites and timely develop and expand our operations in existing and new markets.

One of the key means of achieving our growth strategies will be through opening and operating new restaurants on a profitable basis for the foreseeable future. We opened 15 and six new restaurants in ~~2023~~2025 and 2024, respectively. We identify target markets where we can enter or expand, taking into account numerous factors such as the locations of our current restaurants, demographics, traffic patterns and information gathered from various sources. We may not be able to open our planned new restaurants within budget or on a timely basis, if at all, given the uncertainty of these factors, which could adversely affect our business, financial condition and results of operations. As we operate more restaurants, our rate of expansion relative to the size of our restaurant base will eventually decline.

The number and timing of new restaurants opened during any given period may be negatively impacted by a number of factors including, without limitation:

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identification and availability of locations with the appropriate size, traffic patterns, local retail and business attractions and infrastructure that will drive high levels of guest traffic and sales per unit;

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competition in existing and new markets, including competition for restaurant sites;

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the ability to negotiate suitable lease terms;

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the lack of development and overall decrease in commercial real estate due to a macroeconomic downturn;

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recruitment and training of qualified personnel in the local market;

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our ability to obtain all required governmental permits, including zonal approvals, on a timely basis;

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our ability to control construction and development costs of new restaurants;

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landlord delays;

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the proximity of potential sites to an existing restaurant, and the impact of cannibalization on future growth;

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anticipated commercial, residential and infrastructure development near our new restaurants; and

•

the cost and availability of capital to fund construction costs and pre-opening costs.

Accordingly, we cannot assure you that we will be able to successfully expand as we may not correctly analyze the suitability of a location or anticipate all of the challenges imposed by expanding our operations. Our growth strategy, and the substantial investment associated with the development of each new restaurant, may cause our operating results to fluctuate and be unpredictable or adversely affect our business, financial condition or results of operations. If we are unable to expand in existing markets or penetrate new markets, our ability to increase our sales and profitability may be materially harmed or we may face losses.

In addition, our restaurant count potential based on our current white space analysis may change in the future, or we may conduct future analyses that yield results inconsistent with our earlier analysis.

Our expansion into new markets may present increased risks due in part to our unfamiliarity with the areas and consumer unfamiliarity with our concept, which may make our future results unpredictable.

As of December 31, ~~2024~~2025, we ~~operate~~operated ~~our~~ restaurants in ~~nine~~eleven states,: California, Arizona, ~~Nevada~~Florida, Hawaii, ~~Texas~~North Carolina, New Jersey, New York, Nevada, Oregon, ~~Washington~~Texas, and ~~Florida~~Washington. We opened ~~six~~15 new restaurants in ~~2023~~2025, ~~and~~including ~~2024~~six in South Korea, and we plan to increase the number of our restaurants in the next several years as part of our expansion strategy. We ~~are~~may ~~likely in the future~~ open restaurants in markets where we have ~~little~~limited or no operating experience., ~~This~~which ~~growth~~involves ~~strategy~~significant ~~and~~capital ~~the substantial~~ investment ~~associated~~and ~~with~~could ~~the development of each new restaurant may~~ cause our operating results to fluctuate unpredictably or adversely affect our business, financial condition ~~or results of operations. Restaurants we open in new markets may take longer to reach expected sales and profit levels on a consistent basis and may have higher construction~~, ~~occupancy~~ or operating costs than restaurants we open in existing markets, thereby affecting our overall profitability. New markets may have competitive conditions, consumer tastes and discretionary spending patterns that are more difficult to predict or satisfy than our existing markets and there may be little or no market awareness of our brand or concept in these new markets. In new market, we may need to make greater investments in advertising and promotional activity than we originally planned to build brand awareness. We also may find it more difficult in new markets to hire, motivate and keep qualified employees who share our vision, passion and business culture. If we do not successfully execute our plans to enter new markets, our business, financial condition or results of operations ~~could be materially adversely affected~~.

Restaurants we open in new markets may take longer to reach expected sales and profitability, may incur higher construction, occupancy, or operating costs, and may face competitive conditions, consumer preferences, and spending patterns that are more difficult to predict. We also may find it more difficult in new markets to hire, motivate and keep qualified employees who share our vision, passion and business culture. If we do not successfully execute our plans to enter new markets, our business, financial condition or results of operations could be materially adversely affected.

Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business, financial condition, and results of operations.

The U.S. government has adopted new approaches to trade policy, and in some cases may renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements. The U.S. government has also imposed tariffs on most foreign goods and has threatened to impose significant tariff increases or expand the tariffs

to capture other countries and types of goods. Tariffs on imports from nations from whom we procure are likely to increase the difficulty and cost of our operations, and/or could require us to incur costs to transition to alternative suppliers. Future tariff increases, expanding the tariffs to cover other countries or other changes in U.S. trade policy could exacerbate these challenges.

Further increasing uncertainty related to trade policies, on February 20, 2026, the U.S. Supreme Court ruled against the U.S. presidential administration’s use of tariffs under the International Emergency Economic Powers Act ("IEEPA"). However, the decision creates uncertainty related to various aspects of the tariffs previously collected under the IEEPA, and not all tariffs announced throughout 2025 were impacted by this U.S. Supreme Court decision. Additionally, in response to the U.S. Supreme Court ruling, the U.S. presidential administration imposed a new worldwide tariff effective for 150 days from February 24, 2026. The imposition of these new, worldwide tariffs, as well as the potential for further tariff actions by the U.S. presidential administration or others, represents a significant source of uncertainty.

In addition, in response to these tariffs, other countries have threatened, announced or implemented retaliatory tariffs on U.S. goods. Political tensions and uncertainty as a result of rapidly changing trade policies could reduce trade volume, investment, technological exchange, and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets, which could in turn have a material adverse impact on our business, financial condition and results of operations.

The impact of global and domestic economic conditions on consumer discretionary spending could materially adversely affect our financial performance.

Dining out is a discretionary expenditure that historically has been influenced by domestic and global economic conditions. These conditions include, but may not be limited to: unemployment, general and industry- specific inflation, consumer confidence, consumer purchasing and saving habits, credit conditions, stock market performance, home values, population growth, household incomes and tax policy. Material changes to governmental policy related to domestic and international fiscal concerns, and/or changes in central bank policies with respect to monetary policy, also could affect consumer discretionary spending. Any factor affecting consumer discretionary spending may influence customer traffic in our restaurants and average check amount, thus potentially having a material impact on our financial performance. Furthermore, negative economic conditions resulting from war, terrorist activities, global economic occurrences or trends or other geo-political events or conflicts could cause consumers to make long-term changes to their discretionary spending behavior, whether on a temporary, extended or permanent basis. Reductions in staff levels and restaurant closures could result from prolonged negative economic conditions, which could materially adversely affect our business, financial condition or results of operations.

The opening of new restaurants in existing markets may negatively affect sales at our existing restaurants.

The consumer target area of our restaurants varies by location, depending on a number of factors, including population density, other local retail and business attractions, area demographics and geography. As a result, the opening of a new restaurant in or near markets in which we already have restaurants could adversely affect the sales of these existing restaurants and thereby adversely affect our business, financial condition or results of operations.

The presence of existing restaurants could also make it more difficult to build our consumer base for a new restaurant in the same market. Our core business strategy does not entail opening new restaurants that we believe will materially affect sales at our existing restaurants, but we may selectively open new restaurants in and around areas of existing restaurants that are operating at or near capacity to effectively serve our guests. Sales cannibalization between our restaurants may become significant in the future as we continue to expand our operations and could affect our sales growth, which could, in turn, materially adversely affect our business, financial condition or results of operations.

Newly opened restaurants may not be profitable, and the increases in average restaurant sales and comparable restaurant sales that we have experienced in the past may not be indicative of future results.

~~Our~~ ~~new restaurants have opened with strong volumes, which then typically decline after the initial sales surge that comes with interest in a new restaurant opening.~~ New restaurants may not be profitable and their sales performance may not follow historical patterns. In addition, our average restaurant sales and comparable restaurant sales may not increase at the rates achieved in the past. Our business depends on the success of new restaurants as well as the success of existing restaurants. If sales at existing restaurant locations do not meet expectations and our new restaurants are not profitable, our business and results of operations may be harmed.

past. Our business depends on the success of new restaurants as well as the success of existing restaurants. If sales at existing restaurant locations do not meet expectations and our new restaurants are not profitable, our business and results of operations may be harmed.

Our ability to operate new restaurants profitably and increase average restaurant sales and comparable restaurant sales will depend on many factors, some of which are beyond our control, including:

•

consumer awareness and understanding of our brand and our concept;

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general economic conditions, which can affect restaurant traffic, local labor costs and prices we pay for the food products and other supplies we use;

•

changes in consumer preferences and discretionary spending;

•

competition, either from our competitors in the restaurant industry or our own restaurants;

•

temporary and permanent site characteristics of new restaurants; and

•

changes in government regulation.

If our new restaurants do not perform as planned, our business and future prospects could be harmed. In addition, if we are unable to achieve our expected average restaurant sales, our business, financial condition or results of operations could be adversely affected.

Our sales and profit growth could be adversely affected if comparable restaurant sales are less than we expect.

The level of comparable restaurant sales change, which represents the change in year-over-year sales for restaurants open for at least 1218 full months, could affect our sales growth. Our ability to increase comparable restaurant sales depends in part on our ability to successfully implement our sales initiatives, such as our initiatives to increase online and to-go sales, review our beverage program to increase beverage sales and to review operational efficiencies to increase the customer flow in our restaurants. It is possible such initiatives will not be successful, that we will not achieve our target comparable restaurant sales change or that the change in comparable restaurant sales could be negative, which may cause a decrease in our profitability and would materially adversely affect our business, financial condition or results of operations. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Comparable Restaurant Sales Change.”

Our failure to manage our growth effectively could harm our business and operating results.

Our growth plan includes opening new restaurants. Our existing restaurant management systems, financial and management controls and information systems may be inadequate to support our planned expansion.

Managing our growth effectively will require us to continue to enhance these systems, procedures and controls and to hire, train and retain managers and team members. We may not respond quickly enough to the changing demands that our expansion will impose on our management, restaurant teams and existing infrastructure which could harm our business, financial condition or results of operations.

Our limited number of restaurants, the significant expense associated with opening new restaurants and the unit volumes of our new restaurants makes us susceptible to significant fluctuations in our results of operations.

As of December 31, ~~2024~~2025, we operated 4357 restaurants. We opened 15 and six new restaurants in ~~both~~2025 ~~2023~~ and 2024, respectively. The capital resources required to develop each new restaurant are significant. During ~~2022, we opened three restaurants with average Net Build-Out Costs of approximately $1.9 million. During~~ 2023 and 2024, we opened twelve restaurants total with average Net Build-Out Costs of approximately $2.2 million. We are targeting average net build-out costs of less than $3.0 million for new restaurants. However, actual costs may vary significantly depending upon a variety of factors, including the site and size of the restaurant and conditions in the local real estate and labor markets. Our estimates for improvements, fixtures and furnishings may also be incorrect, which may cause us to incur certain impairment charges. Our relatively small number of existing restaurants, the significant investment associated with each new restaurant, variance in the operating results in any one restaurant, a ~~delay or cancellation in the planned opening of a restaurant, or any combination of the preceding factors could materially affect our business, financial condition or results of operations.~~

Our restaurant base is geographically concentrated, and we could be negatively affected by conditions specific to our markets.

As of December 31, 2024, approximately 49% of our restaurants are located in California, with 35% of our restaurants located in Southern California specifically. Adverse changes in demographic, unemployment, economic, regulatory or weather conditions in California have had, and may continue to have, material adverse effects on our business, financial condition or results of operations. As a result of our concentration in these markets, we have been, and in the future may be, disproportionately affected by adverse conditions in these markets compared to other chain restaurants with a national footprint.

delay or cancellation in the planned opening of a restaurant, or any combination of the preceding factors could materially affect our business, financial condition or results of operations.

Our restaurant base is geographically concentrated, and we could be negatively affected by conditions specific to our markets.

As of December 31, 2025, approximately 42% of our domestic restaurants are located in California, with 30% of our restaurants located in Southern California specifically. Adverse changes in demographic, unemployment, economic, regulatory or weather conditions in California and Texas have had, and may continue to have, material adverse effects on our business, financial condition or results of operations. As a result of our concentration in these markets, we have been, and in the future may be, disproportionately affected by adverse conditions in these markets compared to other chain restaurants with a national footprint.

Acts of violence at or threatened against our restaurants or the centers in which they are located, including civil unrest, customer intimidation, active shooter situations and terrorism, could unfavorably impact our restaurant sales, which could materially adversely affect our financial performance.

Any act of violence at or threatened against our restaurants or the centers in which they are located, including civil unrest, customer intimidation, active shooter situations and terrorist activities, may result in damage and restricted access to our restaurants and/or restaurant closures in the short-term and, in the long-term, may cause our customers and staff to avoid our restaurants. Any such situation could adversely impact customer traffic and make it more difficult to fully staff our restaurants, which could materially adversely affect our financial performance.

A decline in visitors to any of the retail centers, shopping malls, lifestyle centers, or entertainment centers where our restaurants are located could negatively affect our restaurant sales.

Our restaurants are primarily located in high-activity commercial centers. We depend on high visitor rates at these centers to attract guests to our restaurants. Factors that may result in declining visitor rates include public health conditions such as a pandemic, economic or political conditions, anchor tenants closing in retail centers in which we operate, changes in consumer preferences or shopping patterns, changes in discretionary consumer spending, increasing petroleum prices, or other factors, which may adversely affect our business, financial condition or results of operations.

Our plans to open new restaurants, and the ongoing need for capital expenditures at our existing restaurants, could result in a shortage of capital.

Our growth strategy depends on opening new restaurants, which will require us to use cash flows from operations. We cannot assure you that cash flows from operations will be sufficient to allow us to implement our growth strategy. If these funds are not allocated efficiently among our various projects, or if any of these initiatives prove to be unsuccessful, we may experience reduced profitability and we could be required to delay, significantly curtail or eliminate planned restaurant openings, which could have a material adverse effect on our business, financial condition and results of operations. In addition, our business will continue to require capital expenditures for the maintenance, renovation, and improvement of existing restaurants to remain competitive and maintain the value of our brand. This creates an ongoing need for cash, and, to the extent we cannot fund capital expenditures from cash flows from operations, funds will need to be borrowed or otherwise obtained. If the costs of funding new restaurants or renovations or enhancements to existing restaurants exceed budgeted amounts, and/ or the time for building or renovation is longer than anticipated, our profits and liquidity could be reduced. If we cannot access the capital we need, we may not be able to execute our growth strategy, take advantage of future opportunities or respond to competitive pressures.

Risks Related to Our Relationships and Other Key Suppliers

We rely significantly on certain vendors and suppliers, which could adversely affect our business, financial condition or results of operations.

Our ability to maintain consistent price and quality throughout our restaurants depends in part upon our ability to acquire specified food products and supplies in sufficient quantities from third-party vendors and suppliers at a reasonable cost. In addition, we are dependent upon a few suppliers for certain specialized equipment used in our restaurants, such as the embedded grills in our tables. U.S. Foods, an unrelated third party, provided us with food products equaling approximately 36.0% of our total food and beverage costs in 2023; we did not purchase any products from U.S. Foods during the year 2024. Pacific Global Distribution, Inc. (“Pacific Global”), a subsidiary of a related party, provided restaurant supplies such as tableware, napkins, soda, and sauces, and accounted for approximately 3.2% and 16.4% of total operating expenses in 2024 and 2023, respectively. Wise Universal Inc. (“Wise Universal”), provided us with food products and supplies equaling approximately 21.3% of our total food and beverage costs in 2023. Each of Fast Fabrications, Pacific Global and Wise Universal are controlled by parties affiliated with the Company. See Part II, Item 13. “Certain Relationships and Related Transactions, and Director Independence” for additional information on our relationship with these suppliers. We do not currently control the businesses of our vendors and suppliers and our efforts to specify and monitor the standards under which they perform may not be successful. In addition, we did not have written contracts with any of any suppliers until the third quarter of 2023. During the third quarter of 2023, we signed a contract with a specific vendor, Sysco Los

Our ability to maintain consistent price and quality throughout our restaurants depends in part upon our ability to acquire specified food products and supplies in sufficient quantities from third-party vendors and suppliers at a reasonable cost. In addition, we are dependent upon a few suppliers for certain specialized equipment used in our restaurants, such as the embedded grills in our tables. Fast Fabrications, LLC and Ignite Enterprises, LLC, which provide services related to restaurant interior construction and travel, respectivelyare controlled by parties affiliated with the Company. See Part III, Item 13. “Certain Relationships and Related Transactions, and Director Independence” for additional information on our relationship with these suppliers. We do not currently control the businesses of our vendors and suppliers and our efforts to specify and monitor the standards under which they perform may not be successful. In addition, we did not have written contracts with any of any suppliers until the third quarter of 2023. During the third quarter of 2023, we signed a contract with a specific vendor, Sysco Los Angeles, Inc. (“Sysco”), for ~~all~~most of our restaurant food products. If Sysco is unable to satisfy our product requirements and we turn to another supplier, they may demand terms that are more advantageous to them at a higher cost to us. Sysco accounted for approximately 7657.34% and 1576.13% of food costs for the ~~year~~years ~~2024~~2025 and ~~2023~~2024, respectively. Furthermore, certain food items are perishable, and we have limited control over whether these items will be delivered to us in appropriate condition for use in our restaurants. If any of our vendors or other suppliers are unable to fulfill their obligations to our standards, if our informal arrangements with our suppliers break down or if we are unable to find replacement providers in the event of a supply or service disruption, we could encounter supply shortages and incur higher costs to secure adequate supplies, which could materially adversely affect our business, financial condition or results of operations.

In addition, we use various third-party vendors to provide, support and maintain most of our management information systems. We also outsource certain accounting, payroll and human resource functions to business process service providers. The failure of such vendors to fulfill their obligations could disrupt our operations. Additionally, any changes we may make to the services we obtain from our vendors, or new vendors we employ, may disrupt our operations. These disruptions could materially adversely affect our business, financial condition or results of operations.

Changes in food and supply costs could adversely affect our business, financial condition or results of operations.

Our profitability depends in part on our ability to anticipate and react to changes in food and supply costs. Shortages or interruptions in the availability of certain supplies caused by unanticipated demand, problems in production or distribution, food contamination, inclement weather or other conditions could adversely affect the availability, quality and cost of our ingredients, which could harm our operations. Any increase in the prices of the food products most critical to our menu, such as beef, pork, poultry, and seafood, could also adversely affect our business, financial condition or results from operations. Although we try to manage the impact that these fluctuations have on our operating results, we remain susceptible to increases in food costs as a result of factors beyond our control, such as general economic conditions, seasonal fluctuations, weather conditions, demand, food safety concerns, generalized infectious diseases, product recalls and government regulations.

If any of our distributors or suppliers performs inadequately, or our distribution or supply relationships are disrupted for any reason, our business, financial condition, results of operations or cash flows could be adversely affected. If we cannot replace or engage distributors or suppliers who meet our specifications in a short period of time, that could increase our expenses and cause shortages of food and other items at our restaurants, which could cause aone ~~restaurant~~or more of our restaurants to remove items from its menu. If that were to happen, affected restaurants could experience significant reductions in sales during the shortage or thereafter, if guests change their dining habits as a result. In addition, because we provide moderately priced food, we may choose not to, or may be unable to, pass along commodity price increases to consumers. These potential changes in food and supply costs could materially adversely affect our business, financial condition or results of operations.

Failure to receive frequent deliveries of fresh food ingredients and other supplies could harm our business, financial condition or results of operations.

Our ability to maintain our menu depends in part on our ability to acquire ingredients that meet our specifications from reliable suppliers. Shortages or interruptions in the supply of ingredients caused by unanticipated demand, problems in production or distribution, food contamination, inclement weather or other conditions could adversely affect the availability, quality and cost of our ingredients, which could harm our business, financial condition or results of operations. If any of our distributors or suppliers performs inadequately, or our distribution or supply relationships are disrupted for any reason, our business, financial condition or results of operations could be adversely affected. If we cannot replace or engage distributors or suppliers who meet our specifications in a short period of time, that could increase our expenses and cause shortages of food and other items at our restaurants, which could cause a restaurant to remove items from its menu. If that were to happen, affected restaurants could experience significant reductions in sales during the shortage or thereafter, if guests change their dining habits as a result. This reduction in sales could materially adversely affect our business, financial condition or results of operations.

condition or results of operations. If any of our distributors or suppliers performs inadequately, or our distribution or supply relationships are disrupted for any reason, our business, financial condition or results of operations could be adversely affected. If we cannot replace or engage distributors or suppliers who meet our specifications in a short period of time, that could increase our expenses and cause shortages of food and other items at our restaurants, which could cause a restaurant to remove items from its menu. If that were to happen, affected restaurants could experience significant reductions in sales during the shortage or thereafter, if guests change their dining habits as a result. This reduction in sales could materially adversely affect our business, financial condition or results of operations.

In addition, our approach to competing in the restaurant industry depends in large part on our continued ability to provide authentic and traditional Korean cuisine that is free from artificial ingredients. As we increase our use of these ingredients, the ability of our suppliers to expand output or otherwise increase their supplies to meet our needs may be constrained. We could face difficulties to obtain a sufficient and consistent supply of these ingredients on a cost-effective basis.

Other Commercial, Operational, Financial and Regulatory Risks

We face intense competition, and if we are unable to continue to compete effectively in the restaurant industry in general and, in particular, within the dining segments of the restaurant industry in which we compete, our business, financial condition and results of operations would be adversely affected.

The restaurant and retail industries are intensely competitive, and we face many well-established competitors. We compete within each market with national and regional restaurant and retail chains and locally owned restaurants and retailers. We face significant competition from a variety of casual dining restaurants offering both Asian and non-Asian cuisine, as well as takeout offerings from grocery stores and other outlets where Asian food is sold. These segments are highly competitive with respect to, among other things, product quality, dining experience, ambience, location, convenience, value perception, and price. Our competition continues to intensify as competitors increase the breadth and depth of their product offerings and open new locations. These competitors may have, among other things, chefs who are widely known to the public, ~~that~~which may generate more notoriety for those competitors as compared to our brand. We also compete with many restaurant and retail establishments for site locations and restaurant-level employees.

Several of our competitors offering Asian and related cuisine may look to compete with us on price, quality and service. Any of these competitive factors may materially adversely affect our business, financial condition or results of operations. Although the impact could be short-term, our future results could be impacted again by the opening of other Asian concept restaurants close to our locations, particularly if such Asian concept restaurants are “all you can eat.” The presence of additional “all you can eat” Asian restaurants near our locations could have a negative impact on our results of operations.

We face competition as a result of the convergence of grocery, deli, retail, and restaurant services, particularly in the supermarket industry. We also face competition from various off-premise meal replacement offerings, including, but not limited to, the rapid growth of home meal kit delivery, third party meal delivery, and catering by our competitors. Moreover, our competitors can harm our business even if they are not successful in their own operations by taking away customers or employees through aggressive and costly advertising, promotions or hiring practices. We anticipate that intense competition will continue with respect to all of the factors described above.

We also compete with other restaurant chains and other retail businesses for quality site locations, management and hourly employees, and other aspects of our operations that could affect both the availability and cost of these important resources. If we are unable to continue to compete effectively, our business, financial condition and results of operations would be adversely affected.

Changes in economic conditions could materially affect our ability to maintain or increase sales at our restaurants or open new restaurants.

The restaurant industry depends on consumer discretionary spending. The United States in general or the specific markets in which we operate may suffer from depressed economic activity, recessionary economic cycles, higher fuel or energy costs, low consumer confidence, high levels of unemployment, reduced home values, increases in home foreclosures, investment losses, personal bankruptcies, reduced access to credit or other economic factors that may affect consumer discretionary spending. Sales in our restaurants could decline if consumers choose to dine out less frequently or reduce the amount they spend on meals while dining out.

~~impairment~~higher ~~charges~~fuel ~~and~~or ~~potential~~energy ~~restaurant~~costs, ~~closures~~low ~~could~~consumer ~~result~~confidence, ~~from~~high ~~prolonged~~levels ~~negative~~of ~~restaurant~~unemployment, ~~sales~~reduced home values, ~~which~~increases ~~could~~in ~~materially~~home ~~adversely~~foreclosures, investment losses, personal bankruptcies, reduced access to credit or other economic factors that may affect consumer discretionary spending. Sales in our ~~business,~~restaurants ~~financial~~could ~~condition~~decline if consumers choose to dine out less frequently or ~~results~~reduce ofthe ~~operations~~amount they spend on meals while dining out.

Negative economic conditions might cause consumers to make long-term changes to their discretionary spending behavior, including dining out less frequently on a permanent basis. If restaurant sales decrease, our profitability could decline as we spread fixed costs across a lower level of sales. Reductions in staff levels, asset impairment charges and potential restaurant closures could result from prolonged negative restaurant sales, which could materially adversely affect our business, financial condition or results of operations.

Food safety and food-borne illness concerns as well as outbreaks of flu, viruses or other diseases could have an adverse effect on our business, financial condition or results of operations.

We cannot guarantee that our internal controls and training will be fully effective in preventing all food safety issues at our restaurants, including any occurrences of food-borne illnesses such as salmonella, E. coli and hepatitis A. In addition, there is no guarantee that our restaurant locations will maintain the ~~high levels of~~ internal controls and training we require at our restaurants. Furthermore, we rely on third-party vendors, making it difficult to monitor food safety compliance and increasing the risk that food-borne illness would affect multiple locations rather than a single restaurant. Some food-borne illness incidents could be caused by third-party vendors and transporters outside of our control. New illnesses resistant to our current precautions may develop in the future, or diseases with long incubation periods could arise, that could give rise to claims or allegations on a retroactive basis. One or more instances of food-borne illness in any of our restaurants or markets or related to food products we sell could negatively affect our restaurant sales nationwide if highly publicized on national media outlets or through social media. This risk exists even if it were later determined that the illness was wrongly attributed to us or one of our restaurants. A number of other restaurant chains have experienced incidents related to food-borne illnesses that have had a material adverse effect on their operations. The occurrence of a similar incident at one or more of our restaurants, or negative publicity or public speculation about an incident, could materially adversely affect our business, financial condition or results of operations.

Additionally, consumer preferences could be affected by health concerns about the consumption of meat, specifically beef, a key ingredient used in our restaurants. For example, if a pathogen, other bacteria, or parasite infects the food supply (or is believed to have infected the food supply), regardless of whether our supply chain is affected, guests may actively avoid consuming certain ingredients. Negative publicity surrounding such an infection in the food supply, whether related to one of our restaurants or to a competitor in our industry, may have an adverse impact on demand for our food.

If a virus is transmitted by human contact or respiratory transmission, our employees or guests could become infected, or could choose, or be advised, to avoid gathering in public places, any of which could adversely affect our restaurant guest traffic and our ability to adequately staff our restaurants, receive deliveries on a timely basis or perform functions at the corporate level. Additionally, jurisdictions in which we have restaurants may impose mandatory closures, seek voluntary closures or impose restrictions on operations. Even if such measures are not implemented and a virus or other disease does not spread significantly, the perceived risk of infection or significant health risk may cause guests to choose alternatives to dining out in our restaurants which may adversely affect our business.

New information or attitudes regarding diet and health could result in changes in regulations and consumer consumption habits that could adversely affect our business, financial condition or results of operations.

Changes in attitudes regarding diet and health or new information regarding the adverse health effects of consuming certain foods could result in changes in government regulation and consumer eating habits that may impact our business, financial condition or results of operations. These changes have resulted in, and may continue to result in, laws and regulations requiring us to disclose the nutritional content of our food offerings and laws and regulations affecting permissible ingredients and menu offerings. For example, a number of jurisdictions have enacted menu labeling laws requiring multi-unit restaurant operators to disclose to consumers certain nutritional information, or have enacted legislation restricting the use of certain types of ingredients in restaurants. These requirements may be different or inconsistent with requirements we are subject to under the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act, (collectively, the “ACA”), which establishes a uniform, federal requirement for certain restaurants to post nutritional information on their menus. Specifically, the ACA requires chain restaurants with 20 or more locations operating under the same name and offering substantially the same menus to publish the total number of calories of standard menu items on menus and menu boards, along with a statement that puts this calorie information in the context of a total daily calorie intake. The ACA also requires covered restaurants to provide to consumers, upon request, a written summary of detailed nutritional information for each standard menu item, and to provide a statement on menus and menu

requirements may be different or inconsistent with requirements we are subject to under the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act, (collectively, the “ACA”), which establishes a uniform, federal requirement for certain restaurants to post nutritional information on their menus. Specifically, the ACA requires chain restaurants with 20 or more locations operating under the same name and offering substantially the same menus to publish the total number of calories of standard menu items on menus and menu boards, along with a statement that puts this calorie information in the context of a total daily calorie intake. The ACA also requires covered restaurants to provide to consumers, upon request, a written summary of detailed nutritional information for each standard menu item, and to provide a statement on menus and menu boards about the availability of this information upon request. Unfavorable publicity about, or guests’ reactions to, our menu ingredients, the size of our portions or the nutritional content of our menu items could negatively influence the demand for our offerings, thereby adversely affecting our business, financial condition or results of operations.

Compliance with current and future laws and regulations regarding the ingredients and nutritional content of our menu items may be costly and time-consuming. Additionally, if consumer health regulations or consumer eating habits change significantly, we may be required to modify or discontinue certain menu items, and may experience higher costs associated with the implementation of those changes. These changes could also adversely affect the attractiveness of our restaurants to new or returning guests. We cannot predict the impact of any new nutrition labeling requirements. The risks and costs associated with nutritional disclosures on our menus could impact our operations, particularly given differences among applicable legal requirements and practices within the restaurant industry with respect to testing and disclosure, ordinary variations in food preparation among our own restaurants, and the need to rely on the accuracy and completeness of nutritional information obtained from third-party suppliers.

We may not be able to effectively respond to changes in consumer health perceptions, successfully implement the nutrient content disclosure requirements or adapt our menu offerings to trends in eating habits. The imposition of menu labeling laws and an inability to keep up with consumer eating habits could materially adversely affect our business, financial condition or results of operations, as well as our position within the restaurant industry in general.

We rely significantly on the continued proper operation of our equipment, and any mechanical failure could prevent us from effectively operating our restaurants.

To operate, our restaurants rely on technology and equipment such as the grills and ventilation systems located at each table. Our ability to manage our restaurants safely, efficiently, and effectively depends significantly on the reliability and capacity of these systems. Mechanical failures and our inability to service such equipment in a timely manner could result in delays in customer service and reduce efficiency of our restaurant operations, including a loss of sales. Remediation of such problems could result in significant, unplanned capital investments and any equipment failure may have an adverse effect on our business, financial condition or results of operations due to our reliance on such equipment.

Additionally, customers use our equipment to cook and prepare portions of their meals. Customers may not correctly cook the food they are preparing and/or may improperly use our cooking equipment which could lead to illness, injury or damage to customers’ personal property. Any such result could expose us to litigation and negative publicity. Consumer demand for our restaurant could be impacted by an incident of bodily injury or damage to property. If consumer confidence in our restaurants or brand is diminished due to any such incident, we may experience lower sales and adverse effects to our business, financial condition or results of operations.

The loss of any registered trademark or other intellectual property or our failure to maximize or successfully assert our intellectual property rights could enable other companies to compete more effectively with us.

We utilize intellectual property in our business. Our trademarks and service marks are valuable assets that reinforce our brand and consumers’ favorable perception of our restaurants. We have invested a significant amount of money in establishing and promoting our trademarked brands. Our continued success depends, to a significant degree, upon our ability to maximize, protect and preserve our intellectual property.

We rely on confidentiality agreements and trademark law to protect our intellectual property rights. Our confidentiality agreements with our team members and certain of our consultants, contract employees, suppliers and independent contractors, generally require that all information made known to them be kept strictly confidential. As a result, we may not be able to prevent others from independently developing and using similar branding.

~~parties~~independent ~~who use names and logos similar to our trademarks~~contractors, ~~which~~generally ~~may~~require inthat ~~turn~~all ~~cause~~information ~~consumer~~made ~~confusion~~known orto ~~negatively~~them ~~affect~~be ~~consumers’~~kept ~~perception~~strictly ~~of our brand and products~~confidential. ~~Moreover,~~As ~~intellectual property disputes and proceedings and infringement claims may result in~~ a ~~significant distraction for management and significant expense~~result, ~~which~~we may not be ~~recoverable~~able ~~regardless of whether we are successful. Such proceedings may be protracted with no certainty of success, and an adverse outcome could subject us~~ to ~~liabilities,~~prevent ~~force us to cease use of certain trademarks or other intellectual property or force us to enter into licenses with~~ others. ~~Any~~from ~~one~~independently ofdeveloping ~~these occurrences may have an adverse effect on our business, financial condition~~ and ~~results~~using ofsimilar ~~operations~~branding.

We also have trademark registrations both in the U.S. and internationally. We cannot assure you that the steps we have taken to protect our intellectual property rights are adequate, that our intellectual property rights can be successfully defended and asserted in the future or that third parties will not infringe upon or misappropriate any such rights. In addition, our trademark rights and related registrations may be challenged in the future and could be canceled or narrowed. Failure to protect our trademark rights could prevent us in the future from challenging third parties who use names and logos similar to our trademarks, which may in turn cause consumer confusion or negatively affect consumers’ perception of our brand and products. Moreover, intellectual property disputes and proceedings and infringement claims may result in a significant distraction for management and significant expense, which may not be recoverable regardless of whether we are successful. Such proceedings may be protracted with no certainty of success, and an adverse outcome could subject us to liabilities, force us to cease use of certain trademarks or other intellectual property or force us to enter into licenses with others. Any one of these occurrences may have an adverse effect on our business, financial condition and results of operations.

Our marketing programs may not be successful, and our advertising campaigns and restaurant designs and remodels may not generate increased sales or profits.

We undertake marketing efforts, advertising campaigns and restaurant designs and remodels to raise brand awareness and attract and retain guests, which causes us to incur costs and expend other resources. These initiatives may not be successful, resulting in expenses incurred without the benefit of higher sales. Additionally, some of our competitors have greater financial resources, which enable them to spend significantly more on marketing and advertising and other initiatives than we are able to. Should our competitors increase spending on marketing and advertising and other initiatives or our marketing funds decrease for any reason, or should our advertising, promotions, new menu items and restaurant designs and remodels be less effective than those of our competitors, there could be a material adverse effect on our business, financial condition or results of operations.

Our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media could materially adversely impact our business, financial condition or results of operations.

Our marketing efforts rely heavily on the use of social media. In recent years, there has been a marked increase in the use of social media platforms, including weblogs (blogs), mini-blogs, chat platforms, social media websites, and other forms of Internet-based communications which allow individuals access to a broad audience of consumers and other interested persons. Many of our competitors are expanding their use of social media, and new social media platforms are rapidly being developed, potentially making more traditional social media platforms obsolete. As a result, we need to continuously innovate and develop our social media strategies in order to maintain broad appeal with guests and brand relevance. We also continue to invest in other digital marketing initiatives that allow us to reach our guests across multiple digital channels and build their awareness of, engagement with, and loyalty to our brand. These initiatives may not be successful, resulting in expenses incurred without the benefit of higher sales or increased brand recognition.

Negative publicity relating to one of our restaurants could reduce sales at some or all of our other restaurants.

Our success is dependent in part upon our ability to maintain and enhance the value of our brand and consumers’ connection to our brand. We may, from time to time, be faced with negative publicity relating to food quality, restaurant facilities, guest complaints or litigation alleging illness or injury, health inspection scores, integrity of our or our suppliers’ food processing, employee relationships or other matters, regardless of whether the allegations are valid or whether we are held to be responsible. The negative impact of adverse publicity relating to one restaurant may extend far beyond the restaurant involved to affect some or all of our other restaurants, thereby causing an adverse effect on our business, financial condition or results of operations. A similar risk exists with respect to unrelated food service businesses, if consumers associate those businesses with our own operations.

The considerable expansion in the use of social media over recent years can further amplify any negative publicity that could be generated by such incidents. Many social media platforms immediately publish the content their subscribers and participants post, often without filters or checks on accuracy of the content posted. Information posted on such platforms may be adverse to our interests and/or may be inaccurate. The dissemination of such information online could harm our business, reputation, prospects, financial condition, or results of operations, regardless of the information’s accuracy. The damage may be immediate without affording us an opportunity for redress or correction.

ofposted ~~our~~on ~~operations.~~such Aplatforms ~~significant~~may ~~increase~~be inadverse ~~the~~to ~~number~~our ofinterests ~~these claims~~ and/or anmay ~~increase~~be ininaccurate. ~~the~~The ~~number~~dissemination of ~~successful~~such information ~~claims~~online could ~~materially~~harm ~~adversely affect~~ our business, reputation, prospects, financial condition, or results of operations., ~~Consumer~~regardless ~~demand~~of ~~for~~the ~~our restaurants and our brand~~information’s ~~value~~accuracy. ~~could~~The ~~diminish~~damage ~~significantly~~may ifbe ~~any~~immediate ~~such~~without ~~incidents~~affording ~~or other matters create negative publicity or otherwise erode consumer confidence in~~ us oran ~~our~~opportunity ~~restaurants,~~for ~~which~~redress ~~would likely result in lower sales and could materially adversely affect our business, financial condition~~ or ~~results of operations~~correction.

Additionally, employee claims against us based on, among other things, wage and hour violations, discrimination, harassment or wrongful termination may also create negative publicity that could adversely affect us and divert our financial and management resources that would otherwise be used to benefit the future performance of our operations. A significant increase in the number of these claims or an increase in the number of successful claims could materially adversely affect our business, financial condition or results of operations. Consumer demand for our restaurants and our brand’s value could diminish significantly if any such incidents or other matters create negative publicity or otherwise erode consumer confidence in us or our restaurants, which would likely result in lower sales and could materially adversely affect our business, financial condition or results of operations.

We are subject to all of the risks associated with leasing space subject to long-term non-cancelable leases.

We do not own any real property, and lease all of our restaurant locations. Payments under our operating leases account for a significant portion of our expenses and we expect the new restaurants we open in the future will similarly be leased. The majority of our leases have lease terms of five to ten years, exclusive of customary extensions which are at our option. Most of our leases require a fixed annual rent which generally increases each year, and some require the payment of additional rent if restaurant sales exceed a negotiated amount. Generally, our leases are “net” leases, which require us to pay all of the cost of insurance, taxes, maintenance and utilities. We generally cannot cancel these leases. Additional sites that we lease are likely to be subject to similar long-term non-cancelable leases. If an existing or future restaurant is not profitable, and we decide to close it, we may nonetheless be committed to perform our obligations under the applicable lease including, among other things, paying the base rent for the balance of the lease term. In addition, as each of our leases expires, we may fail to negotiate renewals, either on commercially acceptable terms or at all, which could cause us to pay increased occupancy costs or to close restaurants in desirable locations. If we fail to negotiate renewals, we may have to dispose of assets at such restaurant locations and incur closure costs as well as impairment of property and equipment. Furthermore, if we fail to negotiate renewals, we may incur additional costs associated with moving transferable furniture, fixtures and equipment. These potential increased occupancy and moving costs, as well as closures of restaurants, could materially adversely affect our business, financial condition or results of operations.

Macroeconomic conditions, including economic downturns, may cause landlords of our leases to be unable to obtain financing or remain in good standing under their existing financing arrangements, resulting in failures to pay required tenant improvement allowances or satisfy other lease covenants to us. In addition, tenants at shopping centers in which we are located or have executed leases, or to which our locations are near, may fail to open or may cease operations. Decreases in total tenant occupancy in shopping centers in which we are located, or to which our locations are near, may affect traffic at our restaurants. All of these factors could have a material adverse impact on our business, financial condition or results of operations.

We may need capital in the future, and we may not be able to raise that capital on favorable terms.

Developing our business will require significant capital in the future. To meet our capital needs, we expect to rely on our cash flows from operations, future offerings and other third-party financing. Third-party financing in the future may not, however, be available on terms favorable to us, or at all. Our ability to obtain additional funding will be subject to various factors, including market conditions, our operating performance, lender sentiment and our ability to incur additional debt in compliance with other contractual restrictions under term loans or other debt documents we may enter into. These factors may make the timing, amount, or terms and conditions of additional financings unattractive. Additionally, any debt financing that we secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities. Our inability to raise capital could impede our growth and could materially adversely affect our business, financial condition or results of operations.

Our Paycheck Protection Program loan and our applications for such loans could in the future be determined to have been impermissible or could result in damage to our reputation.

Between April and June 2020, we received proceeds of $9.5 million from loans, or the 2020 PPP Loans, under the Paycheck Protection Program of the CARES Act, of which $9.2 million was forgiven between May and August 2021, which we used to retain current employees, maintain payroll and make lease and utility payments. During 2021, we entered into several additional PPP loan agreements, providing for an additional aggregate loan amount of $13.5 million, or the 2021 PPP Loans, and together with the 2020 PPP Loans, the PPP Loans. All of the 2021 PPP Loans were forgiven during 2021 and in the first quarter of 2022. In addition, the Company has received approximately $16.8 million from the Restaurant Revitalization Fund, or the RRF Grant, under The American Rescue Plan Act of 2021.

In order to apply for the PPP Loans, we were required to certify, among other things, that the current economic uncertainty made the PPP Loans request necessary to support our ongoing operations. We made this certification in good faith after analyzing, among other things, our financial situation and access to alternative forms of capital and believe that we satisfied all eligibility criteria for the PPP Loans, and that our receipt of the PPP Loans is consistent with the broad objectives of the Paycheck Protection Program of the CARES Act. The certification described above does not contain any objective criteria and is subject to interpretation. On April 23, 2020, the SBA issued guidance stating that it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith. The lack of clarity regarding loan eligibility under the Paycheck Protection Program has resulted in significant media coverage and controversy with respect to public companies applying for and receiving loans. If, despite our good-faith belief that given our Company’s circumstances we satisfied all eligible requirements for the PPP Loans, we are later determined to have violated any of the laws or governmental regulations that apply to us in connection with the PPP Loans, such as the False Claims Act, or it is otherwise determined that we were ineligible to receive the PPP Loans, we may be subject to penalties, including significant civil, criminal and administrative penalties and could be required to repay the PPP Loans in their entirety. Additionally, the funds provided by the RRF Grant must be used for specific purposes, and we were required to provide use of funds validations on an annual basis through March 2023 regarding our use of the funds. If the SBA determines we used our RRF Grant funds on ineligible expenses, we may be required to return certain funds. In addition, receipt of a PPP Loan and/or the RRF Grant may result in adverse publicity and damage to reputation, and a review or audit by the SBA or other government entity or claims under the False Claims Act could consume significant financial and management resources. Any of these events could have a material adverse effect on our business, results of operations and financial condition.

If we face labor shortages, increased labor costs or unionization activities, our growth, business, financial condition and operating results could be adversely affected.

Labor is a primary component in the cost of operating our restaurants. If we face labor shortages or increased labor costs because of increased competition for employees, higher employee turnover rates, increases in federal, state or local minimum wage rates or other employee benefits costs (including costs associated with health insurance coverage), our operating expenses could increase and our growth could be adversely affected. In addition, our success depends in part upon our ability to attract, motivate and retain a sufficient number of well-qualified restaurant operators and management personnel, as well as a sufficient number of other qualified employees, to keep pace with our expansion schedule. Qualified individuals needed to fill these positions are in short supply in some geographic areas. In addition, restaurants traditionally experience relatively high employee turnover rates. Personal or public health concerns might make some existing employees or potential candidates reluctant to work in enclosed restaurant environments. Our failure to recruit and retain such individuals may delay the planned openings of new restaurants or result in higher employee turnover in existing restaurants, which could have a material adverse effect on our business, financial condition or results of operations.

If we are unable to continue to recruit and retain sufficiently qualified individuals, our business and our growth could be adversely affected. Competition for these employees could require us to pay higher wages, or minimum wage could be increased, which could result in higher labor costs. The minimum wage, particularly in California, continues to increase and is subject to factors outside of our control. In addition, increases in the minimum wage would increase our labor costs. Additionally, costs associated with workers’ compensation are rising, and these costs may continue to rise in the future. We may be unable to increase our menu prices in order to pass these increased labor costs on to consumers, in which case our profit margins would be negatively affected, which could materially adversely affect our business, financial condition or results of operations.

Although none of our employees are currently covered under collective bargaining agreements, our employees may elect to be represented by labor unions in the future. If a significant number of our employees were to unionize and collective bargaining agreement terms were significantly different from our current compensation arrangements, it could adversely affect our business, financial condition or results of operations.

pass these increased labor costs on to consumers, in which case our profit margins would be negatively affected, which could materially adversely affect our business, financial condition or results of operations.

Our business could be adversely affected by a failure to obtain visas or work permits or to properly verify the employment eligibility of our employees.

Some of our employees’ ability to work in the United States depends on obtaining and maintaining necessary visas and work permits. On certain occasions we have been, and in the future we may be, unable to obtain visas or work permits to bring necessary employees to the United States for any number of reasons including, among others, limits set by the U.S. Department of Homeland Security or the U.S. Department of State.

Although we require all workers to provide us with government-specified documentation evidencing their employment eligibility, some of our employees may, without our knowledge, be unauthorized workers. We currently participate in the “E-Verify” program, an Internet-based, free program run by the U.S. government to verify employment eligibility, in states in which participation is required, and we plan to introduce its use across all our restaurants. However, use of the “E-Verify” program does not guarantee that we will properly identify all applicants who are ineligible for employment. Unauthorized workers are subject to deportation and as a result, we may be subject to fines or penalties, could experience adverse publicity that may negatively impact our brand and may make it more difficult to hire and keep qualified employees. Termination of a significant number of employees who are unauthorized employees may disrupt our operations, cause temporary increases in our labor costs as we train new employees and result in adverse publicity. We could also become subject to fines, penalties and other costs related to claims that we did not fully comply with all recordkeeping obligations of federal and state immigration compliance laws. These factors could materially adversely affect our business, financial condition or results of operations.

Labor disputes may disrupt our operations and affect our profitability, thereby causing a material adverse effect on our business, financial condition or results of operations.

As an employer, we are presently, and may in the future be, subject to various employment-related claims, such as individual or class actions or government enforcement actions relating to alleged employment discrimination, employee classification and related withholding, wage-hour, labor standards or healthcare and benefit issues. Any future actions if brought against us and successful in whole or in part, may affect our ability to compete or could materially adversely affect our business, financial condition or results of operations.

The minimum wage, particularly in California, continues to increase and is subject to factors outside of our control.

The minimum wage, particularly in California, continues to increase and is subject to factors outside of our control. We have a substantial number of hourly employees who are paid wage rates based on the applicable federal or state minimum wage. California’s minimum wage has increased routinely over the past three years and is substantially higher than the federal minimum wage. Moreover, municipalities may set minimum wages above the applicable state standards. The federal minimum wage has been $7.25 per hour since July 24, 2009. Any federally-mandated, state-mandated or municipality-mandated minimum wages may be raised in the future which could have a materially adverse effect on our business, financial condition or results of operations. If we increase our menu prices to cover increased labor costs, the higher prices could adversely affect sales and thereby reduce our margins and adversely affect our business, financial condition or results of operations.

Changes in employment laws may adversely affect our business, financial condition, results of operations or cash flow.

Various federal and state labor laws govern the relationship with our employees and affect operating costs. These laws include employee classification as exempt/non-exempt for overtime and other purposes, minimum wage requirements, tips and gratuity payments, unemployment tax rates, workers’ compensation rates, immigration status and other wage and benefit requirements. Significant additional government-imposed increases in the following areas could materially affect our business, financial condition, operating results or cash flow:

•

minimum wages;

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tips and gratuities;

•

mandatory health benefits;

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vacation accruals;

•

paid leaves of absence, including paid sick leave; and

•

tax reporting.

Failure to obtain and maintain required licenses and permits or failure to comply with alcoholic beverage or food control regulations could lead to the loss of our liquor and food service licenses and, thereby, harm our business, financial condition or results of operations.

The restaurant industry is subject to various federal, state and local government regulations, including those relating to the sale of food and alcoholic beverages. Such regulations are subject to change from time to time.

If we fail to obtain and maintain licenses, permits and approvals relating to such regulations, it could adversely affect our business, financial condition or results of operations. Typically, licenses must be renewed annually, and if governmental authorities determine that our conduct violates applicable regulations, may be revoked, suspended or denied renewal for cause at any time. Our failure to obtain or maintain the required licenses and approvals could adversely affect our existing restaurants and delay or result in our decision to cancel the opening of new restaurants, which would adversely affect our business, financial condition or results of operations.

Alcoholic beverage control regulations generally require our restaurants to apply for licensure with a state authority and, in certain locations, county or municipal authorities. These licenses generally must be renewed annually and may be revoked or suspended for cause at any time. Alcoholic beverage control regulations relate to numerous aspects of daily operations of our restaurants, including minimum age of patrons and employees, hours of operation, advertising, trade practices, wholesale purchasing, other relationships with alcohol manufacturers, wholesalers and distributors, inventory control and handling, storage and dispensing of alcoholic beverages. Any future failure to comply with these regulations and obtain or retain liquor licenses could adversely affect our business, financial condition or results of operations.

Governmental regulation may adversely affect our ability to open new restaurants or otherwise adversely affect our business, financial condition or results of operations.

We are subject to various federal, state and local regulations. Our restaurants are subject to state and local licensing and regulation by health, alcoholic beverage, sanitation, food and occupational safety and other agencies. We may experience material difficulties or failures in obtaining the necessary licenses, approvals or permits for our restaurants, which could delay planned restaurant openings or affect the operations at our existing restaurants. In addition, stringent and varied requirements of local regulators with respect to zoning, land use and environmental factors could delay or prevent development of new restaurants in particular locations.

We are subject to the U.S. Americans with Disabilities Act and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas, including our restaurants. We may in the future have to modify restaurants, for example, by adding access ramps or redesigning certain architectural fixtures, to provide service to or make reasonable accommodations for disabled persons. The expenses associated with these modifications could be material.

Our operations are also subject to the U.S. Occupational Safety and Health Act, which governs worker health and safety, the U.S. Fair Labor Standards Act, which governs such matters as minimum wages and overtime, and a variety of similar federal, state and local laws that govern these and other employment law matters. In addition, federal, state and local proposals related to paid sick leave or similar matters could, if implemented, materially adversely affect our business, financial condition or results of operations.

Compliance with environmental laws may negatively affect our business.

We are subject to federal, state and local laws and regulations concerning waste disposal, pollution, protection of the environment, and the presence, discharge, storage, handling, release and disposal of, and exposure to, hazardous or toxic substances. These environmental laws provide for significant fines and penalties for noncompliance and liabilities for remediation, sometimes without regard to whether the owner or operator of the property knew of, or was responsible for, the release or presence of hazardous toxic substances. Third parties may also make claims against owners or operators of properties for personal injuries and property damage associated with releases of, or actual or alleged exposure to, such hazardous or toxic substances at, on or from our restaurants. Environmental conditions relating to releases of hazardous substances at prior, existing or future restaurant sites could materially adversely affect our business, financial condition or results of operations.

23Further, environmental laws, and the administration, interpretation, and enforcement thereof, are subject to change and may become more stringent in the future, each of which could materially adversely affect our business, financial condition or results of operations.

property knew of, or was responsible for, the release or presence of hazardous toxic substances. Third parties may also make claims against owners or operators of properties for personal injuries and property damage associated with releases of, or actual or alleged exposure to, such hazardous or toxic substances at, on or from our restaurants. Environmental conditions relating to releases of hazardous substances at prior, existing or future restaurant sites could materially adversely affect our business, financial condition or results of operations.

Further, environmental laws, and the administration, interpretation and enforcement thereof, are subject to change and may become more stringent in the future, each of which could materially adversely affect our business, financial condition or results of operations.

Failure to comply with anti-bribery or anti-corruption laws could adversely affect our reputation, business, financial condition or results of operations.

The U.S. Foreign Corrupt Practices Act and other similar applicable laws prohibiting bribery of government officials and other corrupt practices are the subject of increasing emphasis and enforcement around the world.

Although we have implemented policies and procedures designed to promote compliance with these laws, there can be no assurance that our employees, contractors, agents, or other third parties will not take actions in violation of our policies or applicable law. Any such violations or suspected violations could subject us to civil or criminal penalties, including substantial fines and significant investigation costs, and could also materially damage our reputation, brands, expansion efforts and growth prospects, business, financial condition and results of operations. Publicity relating to any noncompliance or alleged noncompliance could also harm our reputation and adversely affect our business, financial condition or results of operations.

We could be party to litigation that could distract management, increase our expenses, or subject us to material monetary damages and other remedies.

Our guests may file complaints or lawsuits against us alleging we caused an illness or injury they suffered at or after a visit to our restaurants, or that we have problems with food quality or operations. We are also subject to a variety of other claims arising in the ordinary course of our business, including personal injury claims, contract claims and claims alleging violations of federal and state law regarding workplace and employment matters, equal opportunity, discrimination and similar matters, and we are presently subject to class action and other lawsuits with regard to certain of these matters and could become subject to additional class action or other lawsuits related to these or different matters in the future.

Additionally, we may be subject to claims regarding disputes with existing or future restaurant partners. We currently have a partner at our Honolulu, Hawaii restaurant location. Any disputes with this partner, or other partners, may cause issues for the business and operations of our Honolulu, Hawaii restaurant location or other restaurant locations.

In recent years, ~~restaurant~~our ~~companies,~~company ~~including~~and ~~us,~~other restaurant companies have been subject to lawsuits alleging violations of federal and state laws regarding workplace and employment conditions, discrimination and similar matters, and some restaurants have been subject to class action lawsuits in respect of such matters. A number of these lawsuits have resulted in the payment of substantial damages by the defendants. Similar lawsuits have been brought alleging violations of various federal and state wage and hour laws regarding, among other things, employee meal deductions, overtime eligibility of managers and failure to pay for all hours worked. We have been named in lawsuits like this, and there can be no assurance that we will not be named in any such lawsuits in the future or that we would not be required to pay substantial expenses and/or damages.

Regardless of whether any claims against us are valid, or whether we are ultimately held liable, claims may be expensive to defend and may divert time and money away from our operations and hurt our performance. A judgment in excess of our insurance coverage for any claims could materially and adversely affect our business, financial condition or results of operations. Any adverse publicity resulting from these allegations may also materially and adversely affect our reputation or prospects, which in turn could materially adversely affect our business, financial condition or results of operations.

violations of various federal and state wage and hour laws regarding, among other things, employee meal deductions, overtime eligibility of managers and failure to pay for all hours worked. We have been named in lawsuits like this, and there can be no assurance that we will not be named in any such lawsuits in the future or that we would not be required to pay substantial expenses and/or damages.

We are subject to state and local “dram shop” statutes, which may subject us to uninsured liabilities. These statutes generally allow a person injured by an intoxicated person to recover damages from an establishment that wrongfully served alcoholic beverages to the intoxicated person. Because a plaintiff may seek punitive damages, which may not be fully covered by insurance, this type of action could have an adverse impact on our business, financial condition or results of operations. A judgment in such an action significantly in excess of, or not covered by, our insurance coverage could adversely affect our business, financial condition or results of operations. Further, adverse publicity resulting from any such allegations may adversely affect our business, financial condition or results of operations.

Our current insurance may not provide adequate levels of coverage against claims.

There are types of losses we may incur that cannot be insured against or that we believe are not economically reasonable to insure. Such losses could have a material adverse effect on our business, financial condition or results of operations. In addition, our current insurance policies may not be adequate to protect us from liabilities that we incur in our business in areas such as workers’ compensation, general liability, auto and property. In the future, our insurance premiums may increase, and we may not be able to obtain similar levels of insurance on reasonable terms, or at all. Any substantial inadequacy of, or inability to obtain, insurance coverage could materially adversely affect our business, financial condition and results of operations. Failure to maintain adequate directors’ and officers’ insurance would likely adversely affect our ability to attract and retain qualified officers and directors.

Risks Related to Tax Matters

GEN Inc. will depend on distributions from GEN LLC to pay any taxes and other expenses, including payments under the Tax Receivable Agreement.

GEN Inc. is a holding company and, its only business is to act as the managing member of GEN LLC, and its only material assets are Class A units representing approximately 12.8% of the membership interests of GEN LLC (the underwriters exercised their option to purchase additional shares of Class A common stock in full) as of the transaction date. As of December 31, ~~2024~~2025, the Class A units represent approximately 1416.10% of the membership interests of GEN LLC. GEN Inc. does not have any independent means of generating revenue. We anticipate that GEN LLC will continue to be treated as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, taxable income will be allocated to the members of GEN LLC. Accordingly, GEN Inc. will be required to pay income taxes on its allocable share of any net taxable income of GEN LLC. We intend to cause GEN LLC to make distributions to each of its members, including GEN Inc., in an amount intended to enable each member to pay applicable taxes on taxable income allocable to such member and to allow GEN Inc. to make payments under the Tax Receivable Agreement, which are expected to be substantial. In addition, GEN LLC will reimburse GEN Inc. for corporate and other overhead expenses. If the amount of tax distributions to be made exceeds the amount of funds available for distribution, GEN Inc. shall receive a tax distribution calculated using the corporate rate before the other members receive any distribution and the balance of funds available for distribution, if any, shall be distributed to the other members accordance with the GEN LLC Agreement. To the extent that GEN Inc. requires additional capital, and GEN LLC is restricted from making such distributions under applicable laws or regulations, or is otherwise unable to provide such funds, it could materially and adversely affect GEN Inc.’s ability to pay taxes and other expenses, including payments under the Tax Receivable Agreement, and affect our liquidity and financial condition. In addition, although we do not currently expect to pay dividends, such restrictions could affect our ability to pay any dividends, if declared.

The IRS, might challenge the tax basis step-ups and other tax benefits we received in connection with our initial public offering and the related transactions and in connection with future acquisitions of GEN LLC units.

~~Inc.’s~~Tax ~~ability~~Receivable ~~to benefit from any tax basis increases or other tax benefits will depend upon a number of factors~~Agreement, asand ~~discussed~~affect ~~below,~~our ~~including~~liquidity ~~the timing~~ and ~~amount~~financial ofcondition. ~~our~~In ~~future~~addition, ~~income.~~although Wewe ~~will~~do not becurrently ~~reimbursed~~expect ~~for~~to ~~any~~pay ~~payments previously made under the Tax Receivable Agreement if the basis increases or other tax benefits described above are successfully challenged by the IRS or another taxing authority. As a result~~dividends, insuch ~~certain~~restrictions ~~circumstances, payments~~ could beaffect ~~made~~our ~~under~~ability ~~the~~to ~~Tax~~pay ~~Receivable~~any ~~Agreement~~dividends, inif ~~excess of our ultimate cash tax savings~~declared.

GEN Inc. may in the future acquire GEN LLC units in exchange for shares of our Class A common stock or, at our election, cash. Those acquisitions and exchanges are expected to result in increases in the tax basis of the assets of GEN LLC reflecting the difference between the price GEN Inc. pays to acquire GEN LLC units and the tax basis of the assets of GEN LLC at the time of the acquisition. These increases in tax basis are expected to increase (for tax purposes) GEN Inc.’s depreciation and amortization and, together with other tax benefits, reduce the amount of tax that GEN Inc. would otherwise be required to pay, although it is possible that the IRS might challenge all or part of these tax basis increases or other tax benefits, and a court might sustain such a challenge. Additionally, GEN Inc.’s ability to benefit from any tax basis increases or other tax benefits will depend upon a number of factors, as discussed below, including the timing and amount of our future income. We will not be reimbursed for any payments previously made under the Tax Receivable Agreement if the basis increases or other tax benefits described above are successfully challenged by the IRS or another taxing authority. As a result, in certain circumstances, payments could be made under the Tax Receivable Agreement in excess of our ultimate cash tax savings.

GEN Inc. will be required to pay over to members of GEN LLC most of the tax benefits GEN Inc. receives from tax basis step-ups (and certain other tax benefits) attributable to its acquisition of units of GEN LLC in the future, and the amount of those payments are expected to be substantial.

GEN Inc. entered into the Tax Receivable Agreement with members of GEN LLC (not including GEN Inc.). The Tax Receivable Agreement provides for payment by GEN Inc. to members of GEN LLC or their permitted assignees (not including GEN Inc.) of 85% of the amount of the net cash tax savings, if any, that GEN Inc. realizes (or, under certain circumstances, is deemed to realize) as a result of (i) increases in tax basis (and utilization of certain other tax benefits) resulting from GEN Inc.’s acquisition of a member’s GEN LLC units in future exchanges and (ii) any payments GEN Inc. makes under the Tax Receivable Agreement (including tax benefits related to imputed interest). Generally, payments under the Tax Receivable Agreement will be made to certain members of GEN LLC pursuant to the terms of the Tax Receivable Agreement. Such payments will reduce the cash provided by the tax savings previously described that would otherwise have been available to GEN Inc. for other uses, including reinvestment or dividends to GEN Inc. Class A stockholders. GEN Inc. will retain the benefit of the remaining 15% of these net cash tax savings.

The term of the Tax Receivable Agreement commenced upon the completion of our initial public offering and will continue until all tax benefits that are subject to the Tax Receivable Agreement have been utilized or have expired, unless we exercise our right to terminate the Tax Receivable Agreement (or it is terminated due to a change in control or our breach of a material obligation thereunder), in which case, GEN Inc. will be required to make the termination payment specified in the Tax Receivable Agreement. The payments under the Tax Receivable Agreement are not conditioned upon a recipient’s continued ownership in GEN LLC or GEN Inc. In addition, payments we make under the Tax Receivable Agreement will be increased by any interest accrued from the due date (without extensions) of the corresponding tax return. Based on certain assumptions, including no material changes in the relevant tax law and that we earn sufficient taxable income to realize the full tax benefit of the increased amortization of our assets and the net operating losses (and similar items), we expect that future payments to the holders of rights under the Tax Receivable Agreement will equal $99.6 million in the aggregate, based on the price of our Class A common stock of $12.00 per share, although the actual future payments to the members of GEN LLC will vary based on the factors discussed below, and estimating the amount and timing of payments that may be made under the Tax Receivable Agreement is by its nature imprecise, as the calculation of amounts payable depends on a variety of factors and future events. We expect to receive distributions from GEN LLC in order to make any required payments under the Tax Receivable Agreement. However, we may need to incur debt to finance payments under the Tax Receivable Agreement to the extent such distributions or our cash resources are insufficient to meet our obligations under the Tax Receivable Agreement as a result of timing discrepancies or otherwise.

The actual increase in tax basis, as well as the amount and timing of any payments under the Tax Receivable Agreement, will vary depending on a number of factors, including the price of our Class A common stock at the time of the exchange; the timing of future exchanges; the extent to which exchanges are taxable; the amount and timing of the utilization of tax attributes; the amount, timing and character of GEN Inc.’s income; the U.S. federal, state and local tax rates then applicable; the amount of each exchanging unitholder’s tax basis in its units at the time of the relevant exchange; the depreciation and amortization periods that apply to the increases in tax basis; the timing and amount of any earlier payments that GEN Inc. may have made under the Tax Receivable Agreement and the portion of GEN Inc.’s payments under the Tax Receivable Agreement that constitute imputed interest or give rise to depreciable or amortizable tax basis. We expect that, as a result of the increases in the tax basis of the tangible and intangible assets of GEN LLC attributable to the acquired or exchanged GEN LLC interests, and certain other tax benefits, the payments that GEN Inc. will be required to make to the holders of rights under the Tax Receivable Agreement will be substantial. There may be a material negative effect on our financial condition and liquidity if, as described below, the payments under the Tax Receivable Agreement exceed the actual benefits GEN Inc. receives in respect of the tax attributes subject to the Tax Receivable Agreement and/or distributions to GEN Inc. by GEN LLC are not sufficient to permit GEN Inc. to make payments under the Tax Receivable Agreement.

time of the exchange; the timing of future exchanges; the extent to which exchanges are taxable; the amount and timing of the utilization of tax attributes; the amount, timing and character of GEN Inc.’s income; the U.S. federal, state and local tax rates then applicable; the amount of each exchanging unitholder’s tax basis in its units at the time of the relevant exchange; the depreciation and amortization periods that apply to the increases in tax basis; the timing and amount of any earlier payments that GEN Inc. may have made under the Tax Receivable Agreement and the portion of GEN Inc.’s payments under the Tax Receivable Agreement that constitute imputed interest or give rise to depreciable or amortizable tax basis. We expect that, as a result of the increases in the tax basis of the tangible and intangible assets of GEN LLC attributable to the acquired or exchanged GEN LLC interests, and certain other tax benefits, the payments that GEN Inc. will be required to make to the holders of rights under the Tax Receivable Agreement will be substantial. There may be a material negative effect on our financial condition and liquidity if, as described below, the payments under the Tax Receivable Agreement exceed the actual benefits GEN Inc. receives in respect of the tax attributes subject to the Tax Receivable Agreement and/or distributions to GEN Inc. by GEN LLC are not sufficient to permit GEN Inc. to make payments under the Tax Receivable Agreement.

In certain circumstances, including at our option, payments under the Tax Receivable Agreement may be accelerated and/or significantly exceed the actual tax benefits, if any, that GEN Inc. actually realizes.

The Tax Receivable Agreement provides that if (i) GEN Inc. exercises its right to early termination of the Tax Receivable Agreement in whole(that is, with respect to all benefits due to all beneficiaries under the Tax Receivable Agreement) or in part (that is, with respect to some benefits due to all beneficiaries under the Tax Receivable Agreement), (ii) GEN Inc. experiences certain changes in control,(iii) the Tax Receivable Agreement is rejected in certain bankruptcy proceedings, (iv) GEN Inc. fails (subject to certain exceptions) to make a payment under the Tax Receivable Agreement or (v) GEN Inc. materially breaches its obligations under the Tax Receivable Agreement, in each of (iii), (iv) and (v), if such failure is not cured within 90 days, GEN Inc. will be obligated to make an early termination payment to holders of rights under the Tax Receivable Agreement equal to the present value of all payments that would be required to be paid by GEN Inc. under the Tax Receivable Agreement. The amount of such payments will be determined on the basis of certain assumptions in the Tax Receivable Agreement. If we were to elect to terminate the Tax Receivable Agreement immediately after this offering, based on an initial public offering price of $12.00 per share of our Class A Common Stock, we estimate that we would be required to pay approximately $56.6 million in the aggregate under the Tax Receivable Agreement. We note, however, that the analysis set forth above assumes no material changes in the relevant tax law. Any early termination payment may be made significantly in advance of the actual realization, if any, of the future tax benefits to which the termination payment relates. The amount of the early termination payment is determined by discounting the present value of all payments that would be required to be paid by GEN Inc. under the Tax Receivable Agreement at a rate equal to the lesser of (a) 6.5% and (b) the Secured Overnight Financing Rate, as reported by the Wall Street Journal (SOFR) plus 400 basis points.

Moreover, as a result of an elective early termination, a change in control or GEN Inc.’s material breach of its obligations under the Tax Receivable Agreement, GEN Inc. could be required to make payments under the Tax Receivable Agreement that exceed its actual cash savings under that Tax Receivable Agreement. Thus, GEN Inc.’s obligations under the Tax Receivable Agreement could have a substantial negative effect on its financial condition and liquidity and could have the effect of delaying, deferring or preventing certain mergers, asset sales, or other forms of business combinations or changes of control. We cannot assure you that we will be able to finance any early termination payment. It is also possible that the actual benefits ultimately realized by us may be significantly less than were projected in the computation of the early termination payment. We will not be reimbursed if the actual benefits ultimately realized by us are less than were projected in the computation of the early termination payment.

Payments under the Tax Receivable Agreement will be based on the tax reporting positions that we will determine and the IRS or another tax authority may challenge all or part of the tax basis increases, as well as other related tax positions we take, and a court could sustain such a challenge. GEN Inc. will not be reimbursed for any payments previously made under either of the Tax Receivable Agreement if the basis increases described above are successfully challenged by the IRS or another taxing authority. As a result, in certain circumstances, payments could be made under the Tax Receivable Agreement that are significantly in excess of the benefit that GEN Inc. actually realizes in respect of the increases in tax basis (and utilization of certain other tax benefits) and GEN Inc. may not be able to recoup those payments, which could adversely affect GEN Inc.’s financial condition and liquidity.

In certain circumstances, GEN LLC will be required to make distributions to us and the other members of GEN LLC, and the distributions that GEN LLC will be required to make may be substantial.

GEN LLC is expected to continue to be treated as a partnership for U.S. federal income tax purposes and, as such, is generally not directly subject to U.S. federal income tax. Instead, taxable income will be allocated to members, including GEN Inc. Pursuant to the GEN LLC Agreement, GEN LLC will make tax distributions to its members, including GEN Inc., which generally will be made pro rata based on the ownership of GEN LLC units, calculated using an assumed tax rate, to help each of the members to pay taxes on that member’s allocable share of GEN LLC’s net taxable income. Under applicable tax rules, GEN LLC is required to allocate net taxable income disproportionately to its members in certain circumstances, and GEN LLC may be required to make tax distributions that, in the aggregate, exceed the aggregate amount of taxes payable by its members with respect to the allocation of GEN LLC income.

Funds used by GEN LLC to satisfy its tax distribution obligations will not be available for reinvestment in our business. Moreover, the tax distributions GEN LLC will be required to make may be substantial, and may significantly exceed (as a percentage of GEN LLC’s income) the overall effective tax rate applicable to a similarly situated corporate taxpayer. In addition, because these payments will be calculated with reference to an assumed tax rate, and because of the disproportionate allocation of net taxable income, these payments may significantly exceed the actual tax liability for many of the existing members of GEN LLC. Any tax distributions made to the members of GEN LLC are treated as an advance against, and will reduce, future distributions.

As a result of potential differences in the amount of net taxable income allocable to us and to the members of GEN LLC, as well as the use of an assumed tax rate in calculating GEN LLC’s distribution obligations, we may receive distributions significantly in excess of our tax liabilities and obligations to make payments under the Tax Receivable Agreement. We may choose to manage these excess distributions through a number of different approaches, including through the payment of dividends to our Class A common stockholders or by applying them to other corporate purposes.

Future changes to tax laws or our effective tax rate could materially and adversely affect our company and reduce net returns to our stockholders.

Our tax treatment is subject to the enactment of, or changes in, tax laws, regulations and treaties, or the interpretation thereof, tax policy initiatives and reforms under consideration and the practices of tax authorities in various jurisdictions. Such changes may include (but are not limited to) the taxation of operating income, investment income, dividends received or (in the specific context of withholding tax) dividends paid, or the taxation of partnerships and other passthrough entities. We are unable to predict what tax reform may be proposed or enacted in the future or what effect such changes would have on our business, but such changes, to the extent they are brought into tax legislation, regulations, policies or practices, could affect our financial position and overall or effective tax rates in the future in countries where we have operations, reduce post-tax returns to our stockholders, and increase the complexity, burden and cost of tax compliance.

Our businesses are subject to income taxation in the United States. Tax rates at the federal, state and local levels may be subject to significant change. If our effective tax rate increases, our operating results and cash flow could be adversely affected. Our effective income tax rate can vary significantly between periods due to a number of complex factors including, but not limited to, projected levels of taxable income in each jurisdiction, tax audits conducted and settled by various tax authorities, and adjustments to income taxes upon finalization of income tax returns.

We may be required to pay additional taxes because of the U.S. federal partnership audit rules and potentially also state and local tax rules.

Under the U.S. federal partnership audit rules, subject to certain exceptions, audit adjustments to items of income, gain, loss, deduction, or credit of an entity (and any holder’s share thereof) are determined, and taxes, interest, and penalties attributable thereto, are assessed and collected, at the entity level. GEN LLC (or any of its applicable subsidiaries or other entities in which GEN LLC directly or indirectly invests that are treated as partnerships for U.S. federal income tax purposes) may be required to pay additional taxes, interest and penalties as a result of an audit adjustment, and GEN Inc., as a member of GEN LLC (or such other entities), could be required to indirectly bear the economic burden of those taxes, interest, and penalties even though we may not otherwise have been required to pay additional corporate-level taxes as a result of the related audit adjustment. Audit adjustments for state or local tax purposes could similarly result in GEN LLC (or any of its applicable subsidiaries or other entities in which GEN LLC directly or indirectly invests) being required to pay or indirectly bear the economic burden of state or local taxes and associated interest, and penalties.

Under certain circumstances, GEN LLC or an entity in which GEN LLC directly or indirectly invests and that is treated as a partnership for tax purposes may be eligible to make an election to cause members of GEN LLC (or such other entity) to take into account the amount of any understatement, including any interest and penalties, in accordance with such member’s share in GEN LLC in the year under audit. We will decide whether or not to cause GEN LLC to make this election; however, there are circumstances in which the election may not be available and, in the case of an entity in which GEN LLC directly or indirectly invests, such decision may be outside of our control. If

~~GEN~~a ~~LLC~~result orof an ~~entity~~audit inadjustment, ~~which~~and GEN ~~LLC~~Inc., ~~directly~~as a member of GEN LLC (or such other entities), could be required to indirectly ~~invests~~bear ~~does~~the ~~not~~economic ~~make~~burden ~~this~~of ~~election~~those taxes, ~~the~~interest, ~~then~~and penalties even though we may not otherwise have been required to pay additional corporate-~~current~~level ~~members~~taxes as a result of the related audit adjustment. Audit adjustments for state or local tax purposes could similarly result in GEN LLC (~~including~~or any of its applicable subsidiaries or other entities in which GEN ~~Inc.~~LLC directly or indirectly invests) ~~could~~being ~~economically~~required to pay or indirectly bear the economic burden of ~~the~~state ~~understatement~~or local taxes and associated interest, and penalties.

If GEN LLC were to become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, GEN Inc. and GEN LLC might be subject to potentially significant tax inefficiencies, and GEN Inc. would not be able to recover payments previously made by it under the Tax Receivable Agreement, even if the corresponding tax benefits were subsequently determined to have been unavailable due to such status.

We intend to operate such that GEN LLC does not become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes. A “publicly traded partnership” is an entity that otherwise would be treated as a partnership for U.S. federal income tax purposes, the interests of which are traded on an established securities market or readily tradable on a secondary market or the substantial equivalent thereof. Under certain circumstances, exchanges of GEN LLC units pursuant to the GEN LLC Agreement or other transfers of GEN LLC units could cause GEN LLC to be treated like a publicly traded partnership. From time to time the U.S. Congress has considered legislation to change the tax treatment of partnerships and there can be no assurance that any such legislation will not be enacted or if enacted will not be adverse to us.

If GEN LLC were to become a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, significant tax inefficiencies might result for GEN Inc. and GEN LLC, including as a result of GEN Inc.’s inability to file a consolidated U.S. federal income tax return with GEN LLC. In addition, GEN Inc. may not be able to realize tax benefits covered under the Tax Receivable Agreement and would not be able to recover any payments previously made by it under the Tax Receivable Agreement, even if the corresponding tax benefits (including any claimed increase in the tax basis of GEN LLC’s assets) were subsequently determined to have been unavailable.

Risks Related to Ownership of Our Class A Common Stock

The market price of our Class A common stock may be volatile or may decline regardless of our operating performance.

The market price of our common stock is likely to be volatile. The market price of our Class A common stock may fluctuate significantly in response to numerous factors, some of which are beyond our control and may not be related to our operating performance, including:

•

announcements of new restaurants, commercial relationships, acquisitions or other events by us or our competitors;

•

price and volume fluctuations in the overall stock market from time to time;

•

significant volatility in the market price and trading volume of restaurant companies in general;

•

addition or loss of significant customers or other developments with respect to significant customers;

•

fluctuations in the trading volume of our shares or the size of our public float;

•

actual or anticipated changes or fluctuations in our operating results;

•

whether our operating results meet the expectations of securities analysts or investors;

•

actual or anticipated changes in the expectations of investors or securities analysts;

•

litigation involving us, our industry, or both;

•

regulatory developments in the United States, foreign countries, or both applicable to our products;

•

general economic conditions and trends;

•

major catastrophic events;

•

lockup releases or sales of large blocks of our Class A common stock;

•

departures of key employees; or

•

an adverse impact on the Company from any of the other risks cited in this Annual Report.

In addition, if the stock market for restaurant companies, or the stock market generally, experiences a loss of investor confidence, the trading price of our Class A common stock could decline for reasons unrelated to our business, operating results or financial condition. Stock prices of many restaurant companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. The trading price of our Class A common stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly affect us. In the past, stockholders have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, we could incur substantial costs, resources and the attention of management could be diverted from our business, and our business may be adversely affected.

The disparity in the voting rights among the classes of our common stock and inability of the holders of our Class A common stock to influence decisions submitted to a vote of our stockholders may have an adverse effect on the price of our Class A common stock.

Holders of our Class A common stock and Class B common stock vote together as a single class on almost all matters submitted to a vote of our stockholders. Shares of our Class A common stock and Class B common stock entitle the respective holders to identical non-economic rights, except that each share of our Class A common stock entitles its holder to one vote on all matters to be voted on by stockholders generally, while each share of our Class B common stock entitle its holder to ten votes on all matters to be voted on by stockholders. The difference in voting rights could adversely affect the value of our Class A common stock to the extent that investors view, or any potential future purchaser of our company views, the superior voting rights and implicit control of the Class B common stock to have value.

Sales of substantial blocks of our Class A common stock into the public market, or the perception that such sales might occur, could cause the market price of our Class A common stock to decline.

Sales of substantial blocks of our Class A common stock into the public market, or the perception that such sales might occur, could cause the market price of our Class A common stock to decline and may make it more difficult for you to sell your Class A common stock at a time and price that you deem appropriate.

Pursuant to a registration rights agreement, holders of our Class B common stock have rights to require us to file registration statements covering the sale of shares of Class A common stock issuable upon exchange of the corresponding Class B units or to include such shares in registration statements that we may file for ourselves or other stockholder, and accordingly, we filed a registration statement on Form S-3 under the Securities Act of 1933, as amended (the “Securities Act”), to register 28,223,836 shares of Class A common stock in May 2025. We have also registered the offer and sale of all shares of common stock that we may issue under our equity compensation plans.

We filed a registration statement on Form S-8 under the Securities Act to register the 4,000,000 shares of Class A common stock reserved for issuance under our 2023 Equity Incentive Plan (the “Plan”). The Plan provides for automatic increases in the shares reserved for grant or issuance under the Plan which could result in additional dilution to our stockholders. These shares can be freely sold in the public market upon issuance and vesting, subject to restrictions provided under the terms of the Plan and/or the award agreements entered into with participants.

We are a “controlled company” within the meaning of the listing standards of the Nasdaq Stock Market (the “Exchange”), and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements. While we continue to rely on these exemptions, you will not have the same protections afforded to stockholders of companies that are subject to such requirements.

Our co-founders control a majority of the voting power of our outstanding common stock. As a result, we qualify as a “controlled company” within the meaning of the corporate governance standards of the Exchange. Under these rules, a listed company of which more than 50% of the voting power with respect to the election of directors is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements, including the requirement that (i) a majority of our board of

~~directors~~dilution ~~consist~~to ofour ~~independent~~stockholders. These ~~directors,~~shares ~~(ii)~~can ~~director~~be ~~nominees~~freely besold ~~selected~~in orthe ~~recommended~~public tomarket ~~the~~upon ~~board~~issuance ~~entirely~~and byvesting, ~~independent~~subject ~~directors~~to ~~and~~restrictions ~~(iii)~~provided under the ~~compensation~~terms ~~committee~~of bethe ~~composed~~Plan ~~entirely~~and/or ofthe ~~independent~~award ~~directors~~agreements entered into with participants.

As a result of these exemptions, we do not have a majority of independent directors, our compensation committee does not consist entirely of independent directors and our directors may not be nominated or selected entirely by independent directors.

Accordingly, you do not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the Exchange.

Insiders have substantial control over our company, which could limit your ability to influence the outcome of key decisions, including a change of control.

Our co-founders control more than 50% of the voting power of our common stock in the election of directors. This control limits or precludes your ability to influence corporate matters for the foreseeable future. These stockholders are able to influence or control matters requiring approval by our stockholders, including the election of directors and the approval of mergers, acquisitions or other extraordinary transactions. Their interests may differ from yours and they may vote in a manner that is adverse to your interests. This control may deter, delay or prevent a change of control of our company, deprive our stockholders of an opportunity to receive a premium for their Class A common stock as part of a sale of our company and may ultimately have a negative effect on the market price of our Class A common stock.

We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will solely depend on appreciation in the price of our Class A common stock.

We have no present intention to pay any cash dividends on our common stock in the foreseeable future. We will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.

Our charter documents and the ~~Delaware General Corporation Law, (the “~~DGCL~~”),~~ could discourage takeover attempts and other corporate governance changes.

Our certificate of incorporation and bylaws contain provisions that could delay or prevent a change in control of our company. These provisions also make it difficult for stockholders to elect directors that are not nominated by the current members of our board of directors or take other corporate actions, including effecting changes in our management. These provisions provide that:

•

our board of directors are classified into three classes of directors with staggered three-year terms;

•

directors are only able to be removed from office for cause and with the affirmative vote of at least a majority of the voting power of all shares of our common stock then outstanding;

•

authorize the issuance of “blank check” preferred stock that our board of directors could use to implement a stockholder rights plan;

•

prohibit stockholder action by written consent, which requires stockholder actions to be taken at a meeting of our stockholders;

•

establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings;

•

provide the board of directors with sole authorization to establish the number of directors and fill director vacancies;

•

certain provisions of our amended and restated certificate may only be amended with the approval of at least 662¤3% of the voting power of all shares of our common stock then outstanding;

•

the board of directors is expressly authorized to make, alter, or repeal our amended and restated bylaws and that our stockholders may amend our bylaws only with the approval of at least 662¤3% of the voting power of all shares of our common stock then outstanding; and

•

special meetings of the stockholders may not be called at the request of stockholders.

In addition, as a Delaware corporation, we are subject to Section 203 of the DGCL. These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for a period of time. In addition, debt instruments we may enter into in the future may include provisions entitling the lenders to demand immediate repayment of all borrowings upon the occurrence of certain change of control events relating to our company, which also could discourage, delay or prevent a business combination transaction.

Our amended and restated certificate of incorporation includes an exclusive forum clause, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.

Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for any complaint asserting any internal corporate claims, including claims in the right of the Company that are based upon a violation of a duty by a current or former director, officer, employee or stockholder in such capacity, or as to which the DGCL confers jurisdiction upon the Court of Chancery. In addition, our amended and restated certificate of incorporation provide that the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act ~~of 1933 (the “Securities Act”)~~. We note, however, that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. Section 22 of the Securities Act creates concurrent jurisdiction for state and federal courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. This forum selection provision will not apply to claims brought to enforce a duty or liability created by the Securities and Exchange Act of 1934, as amended (the “Exchange Act”).

This choice of forum provision may limit a stockholder’s ability to bring a claim against us and our directors, officers, or other employees in other judicial forums, which may discourage lawsuits against us and our directors, officers and other employees in jurisdictions other than the State of Delaware, or federal courts, in the case of claims arising under the Securities Act. Alternatively, if a court were to find the choice of forum provision contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could have a material adverse effect on our business, financial condition, or results of operations.

Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have received notice of and consented to the foregoing provisions. This exclusive forum clause may limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.

General Risk Factors

Our current indebtedness, and any future indebtedness we may incur, may limit our operational and financing flexibility and negatively impact our business.

We have a $20.0 million revolving line of credit with Pacific City Bank. As of December 31, ~~2024~~2025, the aggregate principal amount of our debt outstanding under this line of credit was $31.0 million, although we have the ability to increase borrowings under this line of credit, subject to satisfaction of the conditions contained in the loan agreement. On January 12, 2026, the Company paid the $1.0 million balance on the line of credit.

We have outstanding Economic Injury Disaster Loans, (“EIDL”), in the aggregate amount of $4.43 million, due in 2050 and 2051. We also may enter into new borrowing arrangements and incur significant indebtedness in the future to continue to support our growth.

Our existing and any future indebtedness could have significant consequences, including:

•

greater difficulty for us to make payments on our existing indebtedness;

•

increased vulnerability to general economic and industry conditions;

•

the requirement that a substantial portion of our cash flow from operations be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities;

•

exposure to the risk of increased interest rates on our borrowings under our promissory note, which is at variable rates of interest;

•

limitation of our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes; and

•

limitation of our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged.

Our ability to make payments on debt, to repay existing or future indebtedness when due, and to fund operations and significant planned capital expenditures will depend on our ability to generate cash in the future. Our ability to produce cash from operations is, and will be, subject to a number of risks, including those described in this Annual Report. Our financial condition, including our ability to make payments on our debt, is also dependent on external factors such as interest rates, the level of lending activity in the credit markets and other external industry-specific and more general external factors, including those described in this Annual Report.

We may not be able to borrow additional financing or to refinance our current debt or other indebtedness we may incur in the future, if required, on commercially reasonable terms, if at all.

The requirements of being a public company may strain our resources, divert our management’s attention and affect our ability to attract and retain qualified board members.

As a public company, we are subject to the reporting requirements of the Exchange Act, and are required to comply with applicable requirements of the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of the Nasdaq Stock Market, and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. Among other things, the Exchange Act requires that we file annual, quarterly, and current reports with respect to our business and operating results and maintain effective disclosure controls and procedures and internal controls over financial reporting. Significant resources and management oversight will be required to maintain and, if required, improve our disclosure controls and procedures and internal controls over financial reporting to meet this standard. As a result, management’s attention may be diverted from other business concerns, which could harm our business and operating results. Although we have already hired employees to comply with these requirements, we may need to hire even more employees in the future, which will increase our costs and expenses.

We also expect that being a public company and these new rules and regulations will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers.

substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers.

Our management team has limited experience managing a public company.

Most members of our management team have limited or no experience managing a publicly traded company, interacting with public company investors, and complying with the increasingly complex laws, rules, and regulations that govern public companies. These are significant obligations we will now be subject to relating to reporting procedures and internal controls, and our management team may not successfully or efficiently manage our transition to being a public company. These new obligations and added scrutiny will require significant attention from our management and could divert their attention away from the day-to-day management of our business, which could adversely affect our business, operating results, and financial condition.

We had identified two material weaknesses in our internal control over financial reporting in the year 2023. Our remediation in 2024 of such material weaknesses is effective, however, if we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely, accurate and reliable financial statements would be impaired.

A material weakness is a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our financial statements would not be prevented or detected on a timely basis. We had identified two material weaknesses in our internal control over financial reporting in 2023, that was remediated in 2024. The first material weakness related to a lack of adequate and timely review of accounts and reconciliations by management, primarily due to a large number of accounting journal entries across GEN Restaurant Group’s operating entities resulting in material audit adjustment and significant post-closing adjustments. The second material weakness related to an inadequate design of our information technology controls and inappropriate access by members of our finance team, primarily due to the open architecture of our accounting system and a lack of segregation of duties within our finance team.

Our management developed and implemented remediation plans, including operation improvements designed to limit journal entries as well as implementation of an accounting system with a closed architecture. The material weaknesses was considered remediated when, after design and implementation, management has concluded, through testing, that these controls are effective. Our management will monitor the effectiveness of its remediation plans and will maintain the changes management put into place, and any new ones as determined to be appropriate. If remediation is not maintain, material weaknesses could result in further material misstatements to our annual or interim financial statements that might not be prevented or detected on a timely basis, or in delayed filing of required periodic reports. In the future, if we are unable to assert that our internal control over financial reporting is effective, or if our Independent Registered Public Accounting Firm is unable to express an unqualified opinion as to the effectiveness of the Company’s internal control over financial reporting, when required in the future, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of the Class A common stock could be adversely affected and we could become subject to litigation or investigations by the Exchange, the Securities and Exchange Commission, (the “SEC”), or other regulatory authorities, which could require additional financial and management resources.

We are an “emerging growth company” and a “smaller reporting company” and as a result of the reduced disclosure requirement applicable to emerging growth companies and smaller reporting companies, our common stock may be less attractive to investors.

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups (“JOBS”) Act, and a “smaller reporting company,” as defined under the Exchange Act. As an emerging growth company and a smaller reporting company, we are permitted to follow reduced disclosure requirements compared to those of public companies that are not emerging growth companies or smaller reporting companies do. We will remain an emerging growth company until the earlier of (a) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more; (b) the last day of the fiscal year following the fifth anniversary of the date of the completion of our initial public offering; (c) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (d) the date on which we are deemed to be a large accelerated filer under the rules of the Securities and Exchange Commission, (the “SEC”), which means the market value of our voting and non-voting common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th (and we have been a public company for at least 12 months and have filed at least one annual report on Form 10-K). For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

of the SEC, which means the market value of our voting and non-voting common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th (and we have been a public company for at least 12 months and have filed at least one annual report on Form 10-K). For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

•

presenting only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations disclosure;

•

reduced disclosure about our executive compensation arrangements;

•

exemption from the requirements to hold non-binding stockholder advisory votes on executive compensation or golden parachute arrangements;

•

extended transition periods for complying with new or revised accounting standards;

•

exemption from the auditor attestation requirement in the assessment of our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; and

•

exemption from complying with any requirement that may be adopted by the Public Company Accounting Oversight Board (the “PCAOB”), regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis).

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period for complying with new or revised accounting standards; and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

We are also a “smaller reporting company,” as defined in the Exchange Act, and we will remain a smaller reporting company until the fiscal year following the determination that our voting and non-voting common stock held by non-affiliates is more than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is more than $100 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is more than $700 million measured on the last business day of our second fiscal quarter. Similar to emerging growth companies, smaller reporting companies are permitted to provide simplified executive compensation disclosure and have certain other reduced disclosure obligations, including, among other things, being required to provide only two years of audited financial statements and not being required to provide selected financial data, supplemental financial information or risk factors.

We may choose to take advantage of some, but not all, of the available exemptions for emerging growth companies and smaller reporting companies. We cannot predict whether investors will find our common stock less attractive if we rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our shares price may be more volatile.

If we fail to maintain or implement effective internal controls, we may not be able to report financial results accurately or on a timely basis, or to detect fraud, which could have a material adverse effect on our business and the per share price of our Class A common stock.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures, and internal control over financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. We are also continuing to improve our internal control over financial reporting. We have expended, and anticipate that we will continue to expend, significant resources in order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting.

Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business. Further, weaknesses in our disclosure controls or our internal control over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our operating results or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of management reports and independent registered public accounting firm audits of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures, and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the market price of our Class A common stock. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the Exchange.

WeOur ~~are~~current ~~not~~controls ~~currently~~and ~~required~~any tonew ~~comply~~controls ~~with~~that ~~the~~we ~~SEC~~develop ~~rules~~may ~~that~~become ~~implement~~inadequate ~~Section~~because ~~404~~ of ~~the~~changes ~~Sarbanes-~~in ~~Oxley~~conditions ~~Act,~~in ~~and~~our ~~are~~business. ~~therefore~~Further, ~~not~~weaknesses ~~required~~in toour ~~make~~disclosure acontrols ~~formal~~or ~~assessment of the effectiveness of~~ our internal control over financial reporting ~~for~~may ~~that~~be ~~purpose.~~discovered Wein ~~will~~the befuture. ~~required~~Any failure to ~~provide~~develop anor ~~annual~~maintain ~~management~~effective ~~report~~controls, onor ~~the~~any ~~effectiveness~~difficulties ofencountered in their implementation or improvement, could harm our ~~internal~~operating ~~control~~results ~~over~~or ~~financial~~cause ~~reporting~~us ~~commencing~~to ~~with~~fail to meet our ~~second~~reporting obligations ~~annual~~and ~~report~~may onresult ~~Form~~in ~~10-K~~a ~~(December~~restatement ~~31,~~of ~~2024)~~our financial statements for prior periods. ~~Our~~Any ~~independent~~failure ~~registered~~to ~~public~~implement ~~accounting~~and ~~firm~~maintain iseffective ~~not~~internal ~~required~~control toover ~~audit~~financial reporting could also adversely affect the ~~effectiveness~~results of management reports and independent registered public accounting firm audits of our internal control over financial reporting ~~until~~that ~~after~~ we ~~are~~will noeventually ~~longer~~be anrequired ~~“emerging~~to ~~growth~~include ~~company,”~~in asour ~~defined~~periodic inreports ~~the~~that ~~JOBS~~will ~~Act~~be filed with the SEC. AtIneffective ~~such~~disclosure ~~time~~controls and procedures, ~~our~~and ~~independent~~internal ~~registered~~control ~~public~~over ~~accounting~~financial ~~firm~~reporting ~~may~~could ~~issue~~also acause ~~report~~investors ~~that~~to islose ~~adverse~~confidence in ~~the~~our ~~event~~reported itfinancial isand ~~not~~other ~~satisfied~~information, ~~with~~which would likely have a negative effect on the ~~level~~market atprice ~~which~~of our ~~internal~~Class ~~control~~A ~~over~~common ~~financial~~stock. ~~reporting~~In isaddition, ~~documented~~if we are unable to continue to meet these requirements, ~~designed~~we ormay ~~operating~~not be able to remain listed on the Exchange.

We are not currently required to comply with the SEC rules that implement Section 404 of the Sarbanes- Oxley Act, and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. We were required to provide an annual management report on the effectiveness of our internal control over financial reporting beginning with our second annual report on Form 10-K (December 31, 2024). Our independent registered public accounting firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer an “emerging growth company,” as defined in the JOBS Act. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating.

Any failure to maintain effective disclosure controls and internal control over financial reporting could have a material and adverse effect on our business and operating results, and cause a decline in the market price of our Class A common stock.

If securities or industry analysts publish inaccurate or unfavorable research reports about our business, our share price and trading volume could decline.

The trading market for our Class A common stock will partially depend on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If one or more of the analysts who cover us should downgrade our shares or change their opinion of our business prospects, our share price would likely decline. If one or more of these analysts ceases coverage of our company or fails to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our share price or trading volume to decline.

The estimates of market opportunity and forecasts of market growth included in this Annual Report on Form 10-K may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.

Market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. For example, several of the reports rely on or employ projections of consumer adoption and incorporate data from secondary sources such as company websites as well as industry, trade and government publications. While our estimates of market size and expected growth of our market were made in good faith and are based on assumptions and estimates we believe to be reasonable, these estimates may not prove to be accurate. Even if the market in which we compete meets the size estimates and growth forecast in this Annual Report, our business could fail to grow at the rate we anticipate, if at all.

The structure and role of our senior management team may result in the departure of members of the team or otherwise adversely affect our operations.

Our success is substantially dependent on the continued service of certain members of our senior management team. These executives have been responsible for determining the strategic direction of our business and for executing our growth strategy. They are integral to our brand, culture and the reputation we enjoy with suppliers, customers and consumers. We also rely on our leadership team for operating our business, identifying, recruiting and training key personnel, identifying expansion opportunities, arranging necessary financing, and for general and administrative functions. The loss of the services of any of these executives or other key employees could have a material adverse effect on our business and prospects, as we may not be able to timely find suitable individuals to replace, if at all. In addition, any such departure could be viewed in a negative light by investors and analysts, which may cause the price of our common stock to decline. We also currently have co-CEOs, and this management structure could be cumbersome and lead to disagreements at the management level. Furthermore, certain agreements between us and our co-CEOs could give rise to claims by us against our co-CEOs in certain circumstances. We carry key-person life insurance for our senior executives. To continue to execute our growth strategy, we also must identify, hire and retain highly skilled personnel. We might not be successful in continuing to attract and retain qualified personnel. Failure to identify, hire and retain necessary key personnel could have a material adverse effect on our business, financial condition or results of operations.

administrative functions. The loss of the services of any of these executives or other key employees could have a material adverse effect on our business and prospects, as we may not be able to timely find suitable individuals to replace, if at all. In addition, any such departure could be viewed in a negative light by investors and analysts, which may cause the price of our common stock to decline. We carry key-person life insurance for our senior executives. To continue to execute our growth strategy, we also must identify, hire and retain highly skilled personnel. We might not be successful in continuing to attract and retain qualified personnel. Failure to identify, hire and retain necessary key personnel could have a material adverse effect on our business, financial condition or results of operations.

A breach of security of confidential employee information or confidential consumer information related to our electronic processing of credit and debit card transactions, could substantially affect our reputation, business, financial condition, or results of operations.

The majority of our restaurant sales are by credit or debit cards. Other restaurants and retailers have experienced security breaches in which credit and debit card information has been stolen. In the future our customers may make claims against us for purportedly fraudulent transactions arising out of the actual or alleged theft of credit or debit card information. We may ultimately be held liable for the unauthorized use of a cardholder’s card number in an illegal activity and be required by card issuers to pay charge-back fees. In addition, most states have enacted legislation requiring consumer notification of security breaches involving personal information, including credit and debit card information. Any such claim or proceeding could cause us to incur significant unplanned expenses, which could have an adverse impact on our business, financial condition or results of operations. Further, negative publicity resulting from these allegations may have a material adverse effect on us and could substantially affect our reputation and business, financial condition or results of operations.

In addition, our business requires the collection, transmission and retention of large volumes of guest and employee data, including personally identifiable information, in various information technology systems that we maintain and in those maintained by third parties with whom we contract to provide services. There is increased regulation of the collection and use of such information at the international, federal, and state levels. Additionally, we have been subject to security breaches and cyber incidents in the past and our preventative measures and incident response efforts may not be entirely effective at preventing future breaches. As the digital age continues to evolve and reliance upon new technologies becomes more prevalent, it is imperative we secure the privacy and sensitive information we collect. The theft, destruction, loss, misappropriation, or release of sensitive and/or confidential information, or interference with our information technology systems or the technology systems of third parties on which we rely, could result in business disruption, negative publicity, brand damage, violation of privacy laws, loss of customers, potential liability, remediation costs and competitive disadvantage.

We rely on restaurant and retail-specific information technology systems and any inadequacy, failure, or interruption of those systems, including those newly implemented, may harm our ability to effectively operate our business.

We are dependent on various information technology systems, including, but not limited to, point-of-sale processing in our restaurants for management of our supply chain, payment of obligations, collection of cash, credit and debit card transactions and other processes and procedures. No operational applications are physically hosted on our premises, although we do manage internal file servers. Most of our applications are operated in the cloud, either as Software as a Service (SaaS) platforms or hosted services. Key third-party, cloud-based systems include Microsoft OneDrive for document storing, sharing and collaboration and other platforms to manage activities including, but not limited to, payroll and personnel data. We also use Revel for our point-of-sale (POS) system and QuickBooks. A failure of our information technology systems to perform as we anticipate could disrupt our business and result in transaction errors, processing inefficiencies and loss of sales, causing our business to suffer. In addition, our information technology systems may be vulnerable to damage or interruption from circumstances beyond our control, including fire, natural disasters, systems failures and viruses and security breaches. Any such damage or interruption could have a material adverse effect on our business.

During 2025, we implemented new information technology systems. Implementations of new systems are often complex and time-consuming, and the use of any new systems involve risks inherent to conversion to a new system. These risks include loss of information, the compromise of data integrity and the potential disruption of our normal business operations. The implementation process may be disruptive if the new information technology systems do not work as planned, or if we experience issues relating to the new technology. Any disruption to our normal business operations and/or our failure to manage such disruptions could have a material adverse effect on our business.

Our actual or perceived failure to comply with privacy, data protection, and information security laws, regulations and obligations could harm our business.

~~personal~~systems ~~information~~do ~~and~~not ~~other~~work ~~content and data, which we refer to collectively~~ as ~~privacy laws~~planned, ~~the scope of which is changing, subject to differing interpretations and may be inconsistent among countries,~~ or ~~conflict~~if ~~with~~we ~~other~~experience ~~laws,~~issues ~~regulations~~relating ~~or other obligations. We are also subject~~ to the ~~terms~~new oftechnology. ~~our~~Any ~~privacy~~disruption ~~policies and obligations~~ to our ~~customers~~normal ~~and~~business ~~other~~operations ~~third parties related to privacy, data protection~~ and/or ~~information~~our ~~security.~~failure ~~We strive~~ to ~~comply~~manage ~~with~~such ~~applicable~~disruptions ~~privacy~~could ~~laws;~~have ~~however, the regulatory framework for privacy and data protection worldwide is varied, and it is possible that these or other actual obligations may be interpreted and applied in~~ a ~~manner~~material ~~that~~adverse iseffect ~~inconsistent~~on ~~from~~our ~~one jurisdiction to another~~business.

~~California~~Our ~~also~~actual ~~enacted legislation affording consumers expanded privacy protections: the California Consumer Privacy Act of 2018,~~ or ~~CCPA,~~perceived ~~went~~failure ~~into effect as of January 1, 2020 and was subject~~ to enforcement starting July 1, 2020. Additionally, the California Attorney General issued CCPA regulations that add additional requirements on businesses. The potential effects of this legislation and the related CCPA regulations may require us to incur substantial costs and expenses in an effort to comply. ~~For~~with ~~example~~privacy, ~~the~~data ~~CCPA gives California residents (including employees) expanded rights to transparency~~protection, ~~access~~ and ~~require deletion of their personal~~ information, ~~opt~~security ~~out of certain personal information sharing and receive detailed information about how their personal information is collected and used. The CCPA also provides for civil penalties for violations~~laws, asregulations well as a private right of action for data breaches that may increase data breach litigation. Additionally, a new privacy law, the California Privacy Rights Act, or CPRA, was approved by California voters in the November 3, 2020 election. The CPRA significantly modifies the CCPA, potentially resulting in further uncertainty and ~~requiring~~obligations ~~us to incur additional costs and expenses in efforts to comply. The enactment of the CCPA and CPRA is prompting similar legislative developments in other states in the United States, which~~ could ~~create~~harm ~~the~~our ~~potential for a patchwork of overlapping but different state laws, and is inspiring federal legislation~~business.

We are subject to numerous federal, state, local and international laws and regulations regarding privacy, data protection, information security and the storing, sharing, use, processing, transfer, disclosure and protection of personal information and other content and data, which we refer to collectively as privacy laws, the scope of which is changing, subject to differing interpretations and may be inconsistent among countries, or conflict with other laws, regulations or other obligations. We are also subject to the terms of our privacy policies and obligations to our customers and other third parties related to privacy, data protection and information security. We strive to comply with applicable privacy laws; however, the regulatory framework for privacy and data protection worldwide is varied, and it is possible that these or other actual obligations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another.

California also enacted legislation affording consumers expanded privacy protections: the California Consumer Privacy Act of 2018, or CCPA, went into effect as of January 1, 2020 and was subject to enforcement starting July 1, 2020. Additionally, the California Attorney General issued CCPA regulations that add additional requirements on businesses. The potential effects of this legislation and the related CCPA regulations may require us to incur substantial costs and expenses in an effort to comply. For example, the CCPA gives California residents (including employees) expanded rights to transparency, access and require deletion of their personal information, opt out of certain personal information sharing and receive detailed information about how their personal information is collected and used. The CCPA also provides for civil penalties for violations, as well as a private right of action for data breaches that may increase data breach litigation. Additionally, the California Privacy Rights Act, or CPRA, was approved by California voters in the November 3, 2020 election and went into effect on January 1, 2023, with enforcement beginning on March 29, 2023. The CPRA significantly modified the CCPA, potentially resulting in further uncertainty and requiring us to incur additional costs and expenses in efforts to comply. The enactment of the CCPA and CPRA is prompting similar legislative developments in other states in the United States, which could create the potential for a patchwork of overlapping but different state laws, and is inspiring federal legislation.

Further, some countries also are considering or have passed legislation requiring local storage and processing of data, or similar requirements, which could increase the cost and complexity of operating our products and services and other aspects of our business.

With laws and regulations such as the CCPA/CPRA imposing new and relatively burdensome obligations, and with substantial uncertainty over the interpretation and application of these and other laws and regulations, there is a risk that the requirements of these or other laws and regulations, or of contractual or other obligations relating to privacy, data protection or information security, are interpreted or applied in a manner that is, or is alleged to be, inconsistent with our management and processing practices, our policies or procedures, or the features of our products and services. We may face challenges in addressing their requirements and making any necessary changes to our policies and practices, and we may find it necessary or appropriate to assume additional burdens with respect to data handling, to restrict our data processing or otherwise to modify our data handling practices and to incur significant costs and expenses in these efforts. Any failure or perceived failure by us to comply with our privacy policies, our privacy, data protection or information security-related obligations to customers or other third parties or any of our other legal obligations relating to privacy, data protection or information security may result in governmental investigations or enforcement actions, litigation, claims or public statements against us by consumer advocacy groups or others, and could result in significant liability or cause our customers to lose trust in us, which could have an adverse effect on our reputation and business.

Furthermore, the costs of compliance with, and other burdens imposed by, the laws, regulations and policies that are applicable to the businesses of our customers may limit the adoption and use of, and reduce the overall demand for, our products and services.

Additionally, if third parties we work with violate applicable laws or regulations or out contracts and policies, such violations may also put our customers’, supplies’ or other third parties’ content and personal information at risk and could in turn have an adverse effect on our business. Any significant change to applicable privacy laws or relevant industry practices could increase our costs and require us to modify our platform, applications and features, possibly in a material manner, which we may be unable to complete and may limit our ability to store and process customer data or develop new applications and features.

Item 1B. Unresolved Staff Comments.

None.

Item 1C. Cybersecurity.

The Company is committed to protecting the confidentiality, integrity, and availability of its information systems and the data they contain from cybersecurity threats. The Company recognizes that cybersecurity is a dynamic and evolving area of risk that requires ongoing assessment, management, and oversight. The Company works with third party companies to assess, identify, manage, and mitigate material cybersecurity threats, as well as to respond to and recover from cybersecurity incidents.

The Company recognizes the importance of maintaining our technology and data systems. Our cybersecurity policies, standards, processes, and practices are integrated across our operational departments.

Cybersecurity Risk Management and Strategy

As one of the elements of our overall risk management program, we focus on the following key areas:

•

Technical Safeguards: We deploy technical safeguards, including by not limited to firewalls, anti-malware functionality and access controls.

•

Outside Consultants: We utilize outside consultants, including contractors and other third parties, to among other things, conduct regular testing of our networks and systems to identify vulnerabilities through penetration testing, while also measuring and advising on potential improvements to our incident prevention, response, and documentation procedures.

We have not encountered cybersecurity threats or experienced previously cybersecurity incidents that have materially affected or that we believe are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.

Governance

Board of Directors Oversight

Our Board is aware of the critical nature of managing risks associated with cybersecurity threats. Management works with our Board to establish oversight mechanisms to ensure effective governance in managing risks associated with cybersecurity threats because we recognize the significance of these threats to our operational integrity and stakeholder confidence. The Board has delegated to our Audit Committee the primary responsibility for oversight of cybersecurity risks.

Management’s Role Managing Risk

Our CEO, Chief Financial Officer (“CFO”), and Information Technology Manager (“IT Manager”) play a primary role in informing the Audit Committee on cybersecurity risks. Our IT Manager has seven years of experience with the Company, which includes management of cybersecurity. These individuals monitor activity and potential risks related to the day-to-day operations of the business, including reviewing results of the work of our outside consultants. 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.

Item 2. Properties.

As of December 31, ~~2024~~2025, there were 4357 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. For additional information regarding the lease terms and provisions, see Note 1. “Organization and Description of Business” and Note 11. “Leases” in our consolidated financial statements included in Item 8. “Financial Statements and Supplementary Data.”

~~The~~In addition to the six restaurants in South Korea, the table below shows the U.S. locations of our restaurants as of December 31, ~~2024~~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
Henderson	NV	Aug-15	Las Vegas/Miracle Mile	NV	Jun-22
West Covina	CA	Sep-15	Las Vegas/Miracle Mile	NV	Jun-22
West Covina	CA	Sep-15	New York	NY	Dec-22
Corona	CA	Dec-15	New York	NY	Dec-22
Corona	CA	Dec-15	Cerritos	CA	Apr-23
Northridge	CA	Dec-15	Cerritos	CA	Apr-23
Northridge	CA	Dec-15	Chandler	AZ	Jun-23
Chino Hills	CA	Apr-16	Chandler	AZ	Jun-23
Chino Hills	CA	Apr-16	Fort Lauderdale	FL	Jun-23
Carrollton	TX	Sep-16	Fort Lauderdale	FL	Jun-23
Carrollton	TX	Sep-16	Westheimer	TX	Oct-23
Honolulu	HI	Mar-17	Westheimer	TX	Oct-23
Honolulu	HI	Mar-17	Kapolei	HI	Nov-23
Glendale	CA	Mar-17	Kapolei	HI	Nov-23
Glendale	CA	Mar-17	Arlington	TX	Dec-23
Fullerton	CA	Jul-17	Arlington	TX	Dec-23
Fullerton	CA	Jul-17	Seattle	WA	Mar-24
Fremont	CA	Aug-17	Seattle	WA	Mar-24
Fremont	CA	Aug-17	Jacksonville	FL	Apr-24
Tempe	AZ	Sep-17	Jacksonville	FL	Apr-24
Tempe	AZ	Sep-17	Pflugerville	TX	Oct-24
Las Vegas/Sahara	NV	Dec-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	Tigard	OR	Oct-24
Concord	CA	Jan-18
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

Item 3. Legal Proceedings.

We are subject to various legal proceedings and claims that arise in the ordinary course of our business. 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.

Item 4. Mine Safety Disclosures.

Not applicable.

4041

PART II

Item 5. 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 2619, ~~2025~~2026, there were approximately 1412 shareholders of record. This does not include persons whose stock is held in nominee or “street name” accounts through brokers.

Dividend Policy

We are not required to pay any dividends, ~~and~~but ~~have~~we ~~not~~did ~~declared~~declare orand ~~paid~~pay ~~any~~a special cash dividends on our common stock during 2025. WeHowever, ~~intend~~we todo ~~continue~~not presently have a plan to ~~retain~~pay ~~earnings~~cash ~~for~~dividends ~~use~~on our Class A common stock in the ~~operation~~future. Payment ~~and~~of ~~expansion~~future cash dividends, if any, will be at discretion of our ~~business~~Board after taking into account various factors, ~~and~~including ~~therefore~~our dofinancial ~~not~~condition, ~~anticipate~~operating ~~paying~~results, ~~any~~the current and anticipated cash ~~dividends~~needs, onoutstanding ~~our~~indebtedness, ~~common~~plans ~~stock~~for inexpansion ~~the~~and ~~foreseeable~~restrictions ~~future~~imposed by our debt arrangements, if any.

Item 6. Reserved

4142

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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~~2025 and ~~2023~~2024. The terms “we”, “our”, and “us” as used herein refer to the Operating Company and its consolidated subsidiaries prior to the ~~Transactions~~IPO ~~(as~~and ~~defined~~related intransactions ~~Note~~described 1in tothis ~~such~~Form ~~consolidated~~10-K ~~financial statements)~~ and to GEN Restaurant Group, Inc. and its consolidated subsidiaries, including the Operating Company, following the ~~Transactions~~IPO and related transactions.

This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. All statements other than statements of historical fact contained in this Annual Report, including, without limitation, statements regarding our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Annual Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The forward-looking statements made in this Annual Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect future events or circumstances, new information, or the occurrence of unanticipated events, except as required by law.

Overview

GEN Restaurant Group is an Asian casual dining restaurant concept that offers an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, and seafood, all at a superior value. Founded in 2011 by two Korean immigrants, since ~~the~~ opening of our first restaurant in September 2011 we have grown to 4657 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Oregon, New Jersey, ~~and~~Washington, North Carolina, Florida and six stores in South Korea. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across the restaurants.

We expect to continue to grow our number of restaurants in the future. ~~In 2022, our new restaurants have generated average Payback Periods of approximately 1.9 years, which equates to an average ROI of over 50%.~~ For the restaurants opened in 2023 and 2024, the average Payback Periods of 2.2 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, which equates to an ROI of 33% to 40%. Restaurants range in size from 4.7 thousand to 12 thousand square feet, and are typically located in high-activity commercial areas.

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~~each of 2023 and 2024. During the year 2025, we opened 15 new restaurants, including six in South Korea. Subsequent to December 31, ~~2024~~2025, we opened ~~three~~two new restaurants in ~~San Antonio~~Tucson, ~~TX,~~AZ ~~Edison, NJ,~~ and ~~Orlando~~Denton, FLTX. In addition to these ~~three~~opening, as of December 31, ~~2024~~2025 we have entered into leases for 18 new restaurant locations, with openings planned during ~~2025~~2026 and thereafter. ~~These~~The ~~locations~~15 restaurants opened during 2025 are located in ~~Austin~~Orlando, TXFL, ~~New~~Edison, ~~York~~NJ, ~~(Sixth~~San ~~Street)~~Antonio TX, NYCary, ~~Bayside~~NC, ~~(Queens)~~Waco, NYTX, El Paso, TX, ~~San~~La ~~Diego~~Jolla, CA, ~~Waco,~~and ~~TX,~~two ~~Kona,~~in HIAustin, ~~Nashville,~~TX. In ~~TN,~~addition ~~Boston,~~to ~~MA,~~the Tucson, AZ, ~~Cary,~~restaurant ~~NC,~~we ~~Austin~~opened ~~(Southpark)~~in ~~TX,~~January ~~Naperville,~~2026 ~~IL,~~and ~~Clearwater,~~the FLDenton, ~~McAllen,~~ TX, ~~San~~restaurant ~~Antonio,~~we ~~TX,~~opened ~~Cambridge,~~in MAMarch ~~and~~2026 ~~Sterling Heights~~, ~~MI.~~we ~~The~~currently ~~six~~expect ~~restaurants~~to ~~opened~~open ~~during~~four ~~2024~~to ~~are~~eight ~~our~~other ~~Dallas,~~locations ~~Texas,~~during ~~Seattle,~~2026. ~~Washington~~Additionally, ~~Jacksonville,~~we ~~Florida,~~expanded ~~Maui,~~internationally ~~Hawaii,~~into ~~Pflugerville,~~South ~~Texas,~~Korea ~~and~~with ~~Tigard,~~six ~~Oregon~~Company-owned locations~~. In~~ ~~addition~~in to2025. ~~the~~Future ~~three~~sales ~~restaurants~~and weprofitability ~~opened~~levels inof ~~January~~our ~~2025,~~restaurants weand ~~currently~~our ~~expect~~ability to ~~open~~successfully 10implement toour 13growth ~~other~~strategy ~~locations~~in ~~during~~the ~~2025.~~near ~~Additionally~~term, wehowever, ~~are~~remain ~~introducing international expansion into~~ uncertain.

4243

South Korea with at least two Company-owned locations slated to open in 2025. Future sales and profitability levels of our restaurants and our ability to successfully implement our growth strategy in the near term, however, remain uncertain.

Recent Events Concerning Our Financial Position

On September 29, 2023, the Company entered into a $20 million line of credit with aPCB bank. The line of credit matures on September 25, ~~2025~~2026 and bears interest at a variable rate per annum equal to 7.750% as of December 31, ~~2024~~2025. As of December 31, ~~2024~~2025 the balance was $31.0 million,. ~~which~~On ~~was~~January ~~subsequently~~12, ~~paid~~2026, inthe ~~full~~Company onpaid ~~January~~the 2,$1.0 ~~2025~~million balance.

WeDuring ~~assessed~~the ~~our~~third ~~long-lived~~quarter ~~assets~~of ~~for~~2024, ~~potential~~the ~~impairment~~Company ~~each~~entered ~~quarter~~into a loan agreement with PCB Bank in the ~~result~~amount ~~that~~of no$3.0 ~~impairment~~million ~~charges~~with ~~were~~a ~~recorded~~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 ~~any~~an interest rate of ~~the~~7.00% ~~periods~~and ~~presented~~7.75% as of December 31, 2025 and 2024, respectively. The balance as of December 31, 2025 and 2024 was $0.7 million and $2.3 million, respectively.

On April 25, 2025, the Company entered into a loan agreement for a $2.0 million loan with PCB Bank. The loan matures on April 25, 2027, and bears interest at a variable interest rate per annum equal to 7.00% as of December 31, 2025. The Company makes quarterly payments in the amount of $250,000, in addition to monthly interest payments. The balance as of December 31, 2025 was $1.3 million.

On July 29, 2025, the Company entered into a loan agreement for $4.0 million with PCB Bank. The loan matures on July 29, 2027, and bears interest at a variable rate per annum equal to 0.25% over the Wall Street Journal Index rate (prime rate), which equals 7.00% as of December 31, 2025. The balance as of December 31, 2025 was $3.2 million.

On October 27, 2025, the Company entered into a loan agreement of $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 December 31, 2025. The balance as of December 31, 2025 was $4.0 million.

The Company impaired fixed assets related to five restaurants in 2025, primarily related to closure decisions on underperforming restaurants. Impairment is based on our current assessment of the expected future cash flows of of various restaurants based on recent results and other specific market factors. During the year ended December 31, 2025, the Company recognized the impairment expense on fixed assets of $5.5 million.

Key Performance Indicators

In assessing the performance of our business, we consider a variety of financial and performance measures. The key measures for determining how our business is performing include Net (Loss) Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net (loss) income, Adjusted ~~net~~Net ~~income~~(Loss) Income attributable to Class A common stock per share - basic and diluted, Adjusted earnings (loss) per share, (“EPS”), Restaurant-Level Adjusted EBITDA, Restaurant-Level Adjusted EBITDA Margin, Average Unit Volumes, comparable restaurant sales growth, the number of restaurant openings and revenue per square foot.

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.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income excluding interest income (expense), net, income taxes, depreciation and amortization, stock-based compensation, ~~consulting fees paid to a related party, gain on extinguishment of debt, RRF grants,~~ employee retention credits, litigation accruals, non-cash lease expense ~~and~~ , non-cash lease expense included in pre-opening costs and gain on remeasurement of previously held interest. 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. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

~~Adjusted Net Income and Adjusted EPS~~44

Adjusted Net ~~Income~~(Loss) and Adjusted net income per share represents net income before income taxes, adjusted for stock-based compensation, and the related tax impact of the stock-based compensation adjustment, and provision for income taxes. “Adjusted EPS” is Adjusted Net Income, ~~converted to a per share amount. Adjusted Net Income~~ and Adjusted EPS are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. For a discussion of why we consider these measures to be useful and their material risk and limitations, see “Non-GAAP Financial Measures.”

Adjusted Net (Loss) Income and Adjusted EPS represent net (loss) income adjusted for pre-opening costs, gain on remeasurement of previously held interest, stock based compensation, legal settlements, and the related tax impact of the adjustments. Adjusted Net (Loss) Income attributable to Class A common stock per share-basic and diluted, is Adjusted Net (Loss) Income less Adjusted Net (Loss) Income attributable to non-controlling interest. “Adjusted EPS” is Adjusted Net (Loss) Income attributable to Class A common stock per share-basic and diluted, converted to a per share amount. Adjusted Net (Loss) Income, Adjusted Net (Loss) Income attributable to Class A common stock per share-basic and diluted, and Adjusted EPS are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. 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~~(loss) 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. Non-cash items such as charges for asset impairments and asset disposals are not included in Restaurant-Level Adjusted EBITDA. Restaurant-Level Adjusted EBITDA Margin is the calculation of Restaurant-Level Adjusted EBITDA divided by revenue. 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. AUV is calculated by dividing annual revenue for the year presented for all such restaurants by the total number of restaurants in that base. This measurement allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

The following table shows the AUV for the years ended December 31, ~~2024~~2025 and ~~December 31, 2023~~ 2024:

	Year ended December 31,
	Twelve months ended December 31,
	2024		2023
	2025		2024
(in thousands)
Average Unit Volume	$	5,~~457~~068	$	5,~~873~~457

Comparable Restaurant Sales Change

Comparable restaurant sales change refers to the change in year-over-year sales for the comparable restaurant base. We include restaurants in the comparable restaurant base that have been in operation for at least 18 full months prior to the accounting period presented. Once a restaurant has been open 18 full months, it must have had continuous operations during both the current period and the prior year period being measured to remain a comparable restaurant. If operations were to be substantially impacted by unusual events that closed the location or significantly changed its capacity, that location is excluded from the comparable sales calculation until it has been operating continuously under normal conditions for both the current period and the prior year comparison period.

	Year Ended December 31,
	Twelve months ended December 31,
	2024			2023
	2025			2024
Comparable restaurant sales change (%)		(57.69	)%		0.(5.6	)%
Comparable restaurant base		3338			2933

Since opening new restaurants is expected to be a significant component of our sales growth, comparable restaurant sales change is only one measure of how we evaluate our performance.

Number of Restaurant Openings

The number of restaurant openings reflects the number of restaurants opened during a particular reporting period. Before we open new restaurants, we incur pre-opening costs. New restaurants may not be profitable, and their sales performance may not follow historical patterns. The number and timing of restaurant openings has had, and is expected to continue to have, an impact on our results of operations. The following table shows the change in our restaurant base for the years ended December 31, ~~2024~~2025 and ~~2023~~2024:

	Year ended December 31,
	Twelve months ended December 31,
	2024			2023
	2025			2024
Restaurant activity
Beginning of period		3743			3137
Openings		615			6
Closings		—(1	)		—
End of period		4357			3743

During ~~the month of January 2025~~2026, we opened ~~three~~two new restaurants: in Tucson, Arizona and Denton, Texas.

Revenue Per Square Foot

“Revenue per square foot” means the restaurant sales for all restaurants opened a full 18 months before the end of the ~~eighteen~~18 month period measured divided by the average square footage of such restaurants. This measurement allows management to assess the effectiveness of our approach to real estate selection and the overall performance of our restaurant base. The following table shows the revenue per square foot for the year ended December 31, ~~2024~~2025 and ~~2023~~2024:

	For the period ending December 31,
	Twelve months ended December 31,
	2024		2023
	2025		2024
Revenue per square foot	$	~~801~~718	$	~~857~~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. 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. Food costs are variable in nature, change with sales volume and are influenced by menu mix and subject to increases or decreases based upon fluctuations in commodity costs. Another important factor causing fluctuations in food costs includes restaurant management of food waste. Food costs are a substantial expense and are expected to grow proportionally as our sales grow.

Payroll and benefits. Payroll and benefits include all restaurant-level management and hourly labor costs, including wages, employee benefits and payroll taxes. Similar to the food costs that we incur, labor and related expenses at our restaurants are expected to grow proportionally as our sales grow. Factors that influence fluctuations in our labor and related expenses include the volume of sales at our restaurants, minimum wage and payroll tax legislation, payroll rate increases due to labor shortages or inflationary pressures, the frequency and severity of workers’ compensation claims, and healthcare costs.

Occupancy 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.

Depreciation and amortization expenses. Depreciation and amortization expenses are periodic non-cash charges at our restaurants that consist of depreciation of fixed assets, including equipment, software and capitalized leasehold improvements. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from five to ten years.

Pre-opening costs. Pre-opening costs include pre-opening period rent, maintenance, taxes, payroll and benefits costs, advertising and other expenses directly incurred by the new restaurant until the date of the restaurant opening. Pre-opening costs can fluctuate significantly from period to period, based on the number and timing of restaurant openings.

General and administrative expenses. General and administrative expenses include expenses associated with corporate management supervisory functions that support the operations of existing restaurants and development of new restaurants, including compensation and benefits, stock-based compensation, travel expenses, legal and professional fees, marketing costs, information systems, corporate office rent and other related corporate costs. 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.

45Gain on lease termination. During the third quarter of 2025, we recorded lease termination income of $0.5 million related to the closure of one restaurant.

Consulting fees — related party. Consulting fees include expenses paid to a related party entity, which provided for annual fees of up to 25% of gross revenue in exchange for various consulting services. The related party is 100% owned by an executive officer, the services were for 21 of the restaurants, and such consulting fees were only paid to the extent we had adequate resources. Following our IPO, these consulting fees were eliminated as services transitioned to us, although corporate general and administrative expenses have increased correspondingly.

Management fees. Management fees included expenses paid to a third-party entity, which provides fixed fees for 12 restaurants and a percentage of gross revenue for one restaurant in exchange for management services. Following the IPO, management fees were phased out, although corporate general and administrative expenses are expected to increase correspondingly.

Depreciation and amortization - corporate. These are periodic non-cash charges at the corporate level that consist of depreciation of fixed assets, including equipment, information systems software and capitalized leasehold improvements, if any. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from five to seven years.

~~Restaurant~~Employee ~~revitalization~~retention ~~fund grant~~credits. ~~During~~Employee ~~2021,~~retention wecredits ~~received~~include ~~$16.8~~refundable ~~million~~credits ofrecognized ~~grants~~ under the ~~Restaurant~~provisions ~~Revitalization Fund,~~ of ~~which~~the ~~$13.0~~CARES ~~million~~Act ~~was recognized in income~~ and $3extension thereof.8 ~~million~~During ~~was~~the ~~deferred~~year asended of December 31, ~~2024~~2025, and December 31, ~~2023~~2024, $0.3 Wemillion doand ~~not~~$0.2 ~~anticipate~~million, ~~receiving~~respectively, ~~additional~~of ~~funds~~these ~~under~~credits ~~this~~were ~~program~~received and recorded.

~~Employee~~Impairment ~~retention credits~~expense. During ~~Employee~~the ~~retention~~fourth ~~credits~~quarter ~~include~~of ~~refundable~~2025, ~~credits~~we ~~recognized~~determined ~~under~~that ~~the~~fixed ~~provisions~~assets ofat the ~~CARES~~restaurant ~~Act~~level ~~and~~were ~~extension~~impaired ~~thereof.~~and ~~During~~we ~~the~~recorded ~~years~~an ~~ended~~impairment ~~December~~expense ~~31,~~as ~~2024,~~it ~~and~~was ~~December~~determined ~~31,~~that ~~2023,~~the ~~$0.2~~fair ~~million~~value ~~and $2.5 million, respectively,~~ of these ~~credits~~assets ~~were~~was ~~received~~less ~~and~~than ~~recorded~~the carrying value.

~~Other~~Loss ~~income~~on ~~(loss)~~foreign currency. ~~Other~~Represents ~~income~~the ~~(loss)~~foreign ~~consists~~currency oftransaction ~~one-time~~losses ~~legal~~in ~~accruals~~South ~~and other miscellaneous items~~Korea.

Gain on remeasurement of previously held interest. This reflects the business acquisition of GKBH (a restaurant in Hawaii) during the first quarter of 2024.

~~Interest~~Impairment ~~expense, net~~reserve. During ~~Interest~~the ~~expense~~fourth ~~includes~~quarter ~~cash~~of ~~and~~2025, ~~non-cash~~we ~~charges~~recorded ~~related~~an toimpairment ~~our~~reserve ~~debt~~in ~~outstanding~~connection ~~and~~with ~~finance~~the ~~lease~~transfer ~~obligations.~~of ~~Interest~~five ~~income~~stores ~~reflects~~to ~~income~~a ~~earned~~third onparty ~~notes~~in ~~receivable~~exchange for a 49% equity interest.

~~Equity~~Interest in income of(expense), ~~equity method investee~~net. ~~Equity~~Interest inexpense ~~income~~includes ~~(loss)~~cash ofand ~~equity~~non-cash ~~method~~charges ~~investee~~related ~~reflected~~to our ~~50%~~debt ~~ownership~~outstanding inand ~~GKBH~~finance ~~that~~lease ~~was~~obligations. ~~accounted~~Interest ~~for~~income ~~using~~reflects ~~the~~income ~~equity~~earned ~~method until the date of acquisition~~ on ~~February~~cash ~~18, 2024~~balances.

~~Provision~~Equity ~~for~~in ~~income~~loss ~~taxes~~of equity method investee. ~~Represents~~ ~~federal,~~Equity ~~state,~~in ~~and~~loss ~~local~~of ~~current~~equity ~~and~~method ~~deferred~~investee ~~income~~reflected ~~tax~~our ~~expense~~50% ~~(benefit)~~ownership in GKBH that was accounted for using the equity method until the date of acquisition on February 18, 2024.

46(Benefit) provision for income taxes. Represents federal, state, and local current and deferred income tax expense (benefit).

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. Our financial results for these periods are not necessarily indicative of the financial results that we will achieve in future periods.

	Year Ended December 31,					Increase/(decrease)
(amounts in thousands)	2024			2023		Amount			%
Revenue	$	208,380		$	181,007	$	27,373			15.1	%
Restaurant operating expenses:
Food cost		68,730			58,322		10,408			17.8	%
Payroll and benefits		64,322			56,889		7,433			13.1	%
Occupancy expenses		17,524			14,653		2,871			19.6	%
Operating expenses		21,538			18,043		3,495			19.4	%
Depreciation and amortization		6,735			4,808		1,927			40.1	%
Pre-opening costs		7,607			3,680		3,927			106.7	%
Total restaurant operating expenses		186,456			156,395		30,061			19.2	%
General and administrative		21,326			12,937		8,389			64.8	%
Consulting fees - related party		—			2,325		(2,325	)		(100.0	)%
Management fees		—			1,176		(1,176	)		(100.0	)%
Depreciation and amortization - corporate		122			84		38			45.2	%
Total costs and expenses		207,904			172,917		34,987			20.2	%
Income from operations		476			8,090		(7,614	)		(94.1	)%
Employee retention credits		199			2,483		(2,284	)		(92.0	)%
Gain on remeasurement of previously held interest		3,402			—		3,402			100.0	%
Interest income, net		829			347		482			138.9	%
Equity in (loss) income of equity method investee		(17	)		535		(552	)		(103.2	)%
Income before income taxes		4,889			11,455		(6,566	)		(57.3	)%
Provision for income taxes		357			21		336			1600.0	%
Net income		4,532			11,434		(6,902	)		(60.4	)%
Net Income attributable to noncontrolling interest		3,940			3,028		912			30.1	%
Net income attributable to GEN Restaurant Group, Inc.	$	592		$	8,406	$	(7,814	)		(93.0	)%

	% of Revenue
	Twelve months ended Dec 31,
	2024			2023
Revenue		100	%		100	%
Restaurant operating expenses:
Food cost		33.0	%		32.2	%
Payroll and benefits		30.9	%		31.4	%
Occupancy expenses		8.4	%		8.1	%
Operating expenses		10.3	%		10.0	%
Depreciation and amortization		3.2	%		2.7	%
Pre-opening costs		3.7	%		2.0	%
Total restaurant operating expenses		89.5	%		86.4	%
General and administrative		10.2	%		7.1	%
Consulting fees - related party		0.0	%		1.3	%
Management fees		0.0	%		0.6	%
Depreciation and amortization - corporate		0.1	%		0.0	%
Total costs and expenses		99.8	%		95.5	%
Income from operations		0.2	%		4.5	%
Employee retention credits		0.1	%		1.4	%
Gain on remeasurement of previously held interest		1.6	%		0.0	%
Interest income, net		0.4	%		0.2	%
Equity in (loss) income of equity method investee		0.0	%		0.3	%
Net Income before income taxes		2.3	%		6.3	%
Provision for income taxes		0.2	%		0.0	%
Net income		2.2	%		6.3	%
Net Income attributable to noncontrolling interest		1.9	%		1.7	%
Net income attributable to GEN Restaurant Group, Inc.		0.3	%		4.6	%

Results of Operations for the Years Ended December 31, 2025 and December 31, 2024

~~Revenues.~~The ~~Revenues~~following ~~were~~table ~~$208.4~~presents ~~million~~selected ~~for~~comparative ~~the~~results ~~year~~of ~~ended~~operations ~~December~~from ~~31,~~our ~~2024,~~audited ~~compared~~financial tostatements ~~$181.0 million~~ for the year ended December 31, ~~2023, an~~2025 ~~increase~~and ofDecember ~~$27.4 million~~31, ~~or 15~~2024.~~1%.~~ ~~This~~Our ~~primarily~~financial ~~reflects~~results ~~having~~for 43these ~~restaurants~~periods ~~open~~are innot ~~the~~necessarily ~~year~~indicative ~~ended~~of ~~December~~the ~~31,~~financial ~~2024~~results ~~compared~~that towe 37will ~~restaurants~~achieve ~~open~~ in ~~the~~future ~~year ended December 31, 2023~~periods.

Food costs. Food costs were $68.7 million for the year ended December 31, 2024, compared to $58.3 million for the year ended December 31, 2023, an increase of $10.4 million, or 17.8%. The increase in food costs primarily reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 32.2% to 33.0%.


	Year Ended December 31,						Increase/(Decrease)
($ amounts in thousands)	2025			2024			Amount			%

Revenue	$	212,541		$	208,380		$	4,161			2.0	%
Restaurant operating expenses:
Food cost		73,790			68,730			5,060			7.4	%
Payroll and benefits		64,943			64,322			621			1.0	%
Occupancy expenses		21,197			17,524			3,673			21.0	%
Operating expenses		24,176			21,538			2,638			12.2	%
Depreciation and amortization		8,962			6,735			2,227			33.1	%
Pre-opening costs		8,317			7,607			710			9.3	%
Total restaurant operating expenses		201,385			186,456			14,929			8.0	%
General and administrative		25,935			21,326			4,609			21.6	%
Impairment expense		5,527			—			5,527			—
Depreciation and amortization - corporate		158			122			36			29.5	%
(Gain) loss on lease terminations		(471	)		—			(471	)	100%
Total costs and expenses		232,534			207,904			24,630			11.8	%
(Loss) income from operations		(19,993	)		476			(20,469	)		(4300.2	)%
Employee retention credits		313			199			114			57.3	%
Gain on remeasurement of previously held interest		—			3,402			(3,402	)		(100.0	)%
Other loss		(346	)		—			(346	)	100%
Loss on foreign currency		(47	)		—			(47	)	100%
Interest (expense) income, net		(232	)		829			(1,061	)		(128.0	)%
Equity in loss of equity method investee		—			(17	)		17			(100.0	)%
Net (loss) income before income taxes		(20,305	)		4,889			(25,194	)		(515.3	)%
(Benefit) provision for income taxes		(930	)		357			(1,287	)		(360.5	)%
Net (loss) income		(19,375	)		4,532			(23,907	)		(527.5	)%
Net (loss) income attributable to non-controlling interest		(16,349	)		3,940			(20,289	)		(514.9	)%
Net (loss) income attributable to GEN Restaurant Group, Inc.	$	(3,026	)	$	592		$	(3,618	)		(611.1	)%

Payroll and benefits. Payroll and benefits costs were $64.3 million for the year ended December 31, 2024, compared to $56.9 million for the year ended December 31, 2023, an increase of $7.4 million, or 13.1%. The increase in payroll and benefits costs is primarily due to new restaurants. 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%. The increase in occupancy expenses reflects the addition of six new locations in 2024. As a percentage of revenue, occupancy expenses were 8.4% in 2024 compared to 8.1% in 2023.

Operating expenses. Operating expenses were $21.5 million for the year ended December 31, 2024 compared to $18.0 million for the year ended December 31, 2023, an increase of $3.5 million, or 19.4%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 10.3% in 2024 and 10.0% in 2023.

Depreciation and amortization expenses. Depreciation and amortization expenses were $6.7 million for the year ended December 31, 2024 and $4.8 million for the year ended December 31, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.2% in 2024 and 2.7% in 2023.


	% of Revenue
	Year ended December 31,
	2025			2024
Revenue		100	%		100	%
Restaurant operating expenses:
Food cost		34.7	%		33.0	%
Payroll and benefits		30.6	%		30.9	%
Occupancy expenses		10.0	%		8.4	%
Operating expenses		11.4	%		10.3	%
Depreciation and amortization		4.2	%		3.2	%
Pre-opening costs		3.9	%		3.7	%
Total restaurant operating expenses		94.8	%		89.5	%
General and administrative		12.2	%		10.2	%
Impairment expense		2.6	%		0.0	%
Depreciation and amortization - corporate		0.1	%		0.1	%
(Gain) loss on lease terminations		(0.2	)%		0.0	%
Total costs and expenses		109.4	%		99.8	%
(Loss) income from operations		(9.4	)%		0.2	%
Employee retention credits		0.1	%		0.1	%
Gain on remeasurement of previously held interest		0.0	%		1.6	%
Other loss		(0.2	)%		0.0	%
Loss on foreign currency		0.0	%		0.0	%
Interest income (expense), net		(0.1	)%		0.4	%
Equity in loss of equity method investee		0.0	%		0.0	%
Net (loss) income before income taxes		(9.6	)%		2.3	%
(Benefit) provision for income taxes		(0.4	)%		0.2	%
Net (loss) income		(9.1	)%		2.2	%
Net (loss) income attributable to non-controlling interest		(7.7	)%		1.9	%
Net (loss) income attributable to GEN Restaurant Group, Inc.		(1.4	)%		0.3	%

~~Pre-opening costs~~Revenues. ~~Pre-opening~~Revenues ~~costs~~ were $7212.65 million for the year ended December 31, ~~2024~~2025, compared to $3208.74 million for the year ended December 31, ~~2023~~2024, an increase of $4.2 million, or 2.0%. This ~~increase~~primarily ~~was~~reflects ~~due~~having 57 restaurants open in the year ended December 31, 2025 compared to ~~more~~43 restaurants ~~under~~open ~~development~~ in ~~2024~~the ~~than~~year inended ~~2023.~~December 31, 2024.

~~General~~Food ~~and administrative expenses~~costs. ~~General~~Food ~~and~~costs ~~administrative expenses~~ were $2173.38 million for the year ended December 31, ~~2024~~2025, compared to $1468.17 million ~~(including management fees)~~ for the year ended December 31, ~~2023~~2024, an increase of $75.21 million, or 517.14%. AsThe aincrease ~~percentage~~in offood ~~revenue,~~costs ~~general~~primarily ~~and~~reflects ~~administrative~~more ~~expenses~~restaurants ~~increased~~in ~~from~~operation ~~7.8%~~and ~~(including~~inflationary ~~management~~cost ~~fees)~~increases. inAs ~~2023~~a topercentage ~~10.2%~~of inrevenue, ~~2024~~food as costs ~~shifted~~increased ~~post-IPO~~ from ~~consulting~~33.0% ~~and management fees previously paid~~ to ~~related parties~~34. 6%.

~~Consulting~~Payroll ~~fees~~and -benefits. ~~related~~Payroll ~~party.~~and ~~Consulting~~benefits ~~fees~~costs were $264.39 million for the year ended December 31, ~~2023.~~2025, ~~These~~compared ~~fees~~to ~~were~~$64.3 ~~eliminated~~million ~~following~~for the ~~IPO~~year ended December 31, 2024, an increase of $0.6 million, or 1.0%. The increase in ~~June~~payroll ~~2023~~and benefits costs is primarily due to new restaurants, partially offset by labor efficiencies implemented. As a percentage of revenue, payroll and benefits costs decreased from 30.9% to 30.4%.

~~Management~~Occupancy ~~Fees~~expenses. ~~Management~~Occupancy ~~fees~~expenses were $121.2 million for the year ended December 31, ~~2023~~2025 compared to $17.5 ~~These~~million ~~were~~for ~~paid~~the toyear aended ~~third-party~~December ~~entity~~31, ~~and~~2024, ~~consist~~an increase of ~~fixed~~$3.7 ~~fees~~million, ~~for~~or ~~twelve~~21.0%. ~~restaurants~~The ~~and~~increase ain ~~percentage~~occupancy ofexpenses ~~gross~~reflects ~~revenue~~the ~~for~~addition ~~one~~of ~~restaurant~~15 new locations in ~~exchange~~2025. ~~for~~As ~~management~~a ~~services.~~percentage ~~These~~of ~~fees~~revenue, ~~were~~occupancy ~~eliminated~~expenses ~~following~~increased ~~the~~from ~~IPO~~8.4% in ~~June~~2024 ~~2023~~compared to 10.0% in 2025.

~~Employee~~Operating ~~retention credits~~expenses. ~~During~~ ~~both~~Operating ~~the~~expenses ~~years~~were ~~ended~~$24.2 ~~December~~million ~~31,~~for ~~2024~~the ~~and~~year ended December 31, ~~2023~~2025 wecompared ~~received~~to ~~employee~~$21.5 ~~retention~~million ~~credits~~for ~~from~~ the ~~IRS~~year inended ~~the~~December ~~amount~~31, of2024, ~~$199~~an ~~thousand~~increase ~~and~~of $2.56 million, ~~respectively~~or 12.2%, as expenses increased

~~Other income (loss). During the years ended December 31, 2024, and 2023 these expenses were $0.~~ 49

to support revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 11.4% in 2025 and 10.3% in 2024.

Depreciation and amortization expenses. Depreciation and amortization expenses were $9.0 million for the year ended December 31, 2025 and $6.7 million for the year ended December 31, 2024. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 4.2% in 2025 and 3.2.% in 2024.

Pre-opening costs. Pre-opening costs were $8.3 million for the year ended December 31, 2025 compared to $7.6 million for the year ended December 31, 2024. This increase was due to more restaurants under development and opened in 2025 than in 2024.

General and administrative expenses. General and administrative expenses were $25.9 million for the year ended December 31, 2025 compared to $21.3 million for the year ended December 31, 2024, an increase of $4.6 million, or 21.6%. As a percentage of revenue, general and administrative expenses increased from 10.2% in 2024 to 12.2% in 2025 as marketing and personnel costs increased in connection with the expansion of restaurants in development.

Impairment expense. During the fourth quarter of 2025, we recorded an asset reserve of $5.5 million related to the sale of five restaurants to become equity investments.

Gain on lease terminations. During 2025, we recorded lease termination income of $0.5 million related to the closure of one restaurant.

Employee retention credits. During both the years ended December 31, 2025 and December 31, 2024 we received employee retention credits from the IRS in the amount of $0.3 million and $0.2 million, respectively.

Gain on remeasurement of previously held interest. This reflects the business acquisition of GKBH (a restaurant in Hawaii) during the first quarter of 2024.

~~Interest~~Other ~~income, net~~loss. Other ~~During~~loss ~~2024,~~consists ~~interest~~of ~~income,~~one-time ~~net~~legal ~~was~~accruals ~~$0.8~~and ~~million~~other ~~compared~~miscellaneous ~~to $0~~items.3 During ~~million~~the inyears ~~2023.~~ended ~~The~~December ~~increase~~31, in2025 ~~net~~and ~~interest~~2024, ~~income~~we ~~was~~incurred ~~primarily~~approximately ~~due~~$346 tothousand, ~~the~~and ~~interest~~$0 ~~income~~of ~~earned~~these onexpenses, ~~the proceeds from the IPO~~respectively.

~~Equity~~Interest in income of(expense), ~~equity~~net. ~~method~~During ~~investee.~~2025, ~~Equity~~interest inexpense was (~~loss~~$0.2) ~~income~~million ofdue ~~equity~~to ~~method~~lower ~~investee~~cash ~~reflected~~on ~~our~~hand ~~50%~~during ~~ownership~~2025, incompared ~~GKBH~~to ~~that~~interest ~~was~~income ~~accounted~~of ~~for~~$0.8 ~~using~~million ~~the~~in ~~equity~~2024 ~~method~~primarily ~~until~~due to the ~~date~~interest ofincome ~~acquisition~~earned on ~~February~~the ~~18,~~proceeds ~~2024.~~from ~~Equity~~the ~~method~~IPO ~~investee~~transaction ~~was~~and athe ~~loss~~reduction of ~~$17~~proceeds ~~thousand~~using infor ~~2024~~development ~~compared~~of tonew ~~a $535 thousand gain in 2023~~restaurants.

Equity in loss of equity method investee. 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. Equity method investee was a loss of $17 thousand in 2024.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income excluding interest (income) expense, income taxes, depreciation and amortization, stock-based compensation, and ~~consulting~~also ~~fees~~excludes ~~paid~~non-recurring ~~to a related party~~ and wecertain ~~also~~other ~~exclude~~ non-~~recurring~~cash items such as ~~gain on extinguishment of debt, RRF grants,~~ employee retention credits, litigation accruals, ~~aborted deferred IPO costs written off,~~ non-cash lease expense, ~~and~~ non-cash lease expense included in pre-opening costs and gain on remeasurement of previously held interest. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measure depict normal recurring cash operating expenses essential to supporting the operations of our company.

4950

The following table reconciles net (loss) income to Adjusted EBITDA for the ~~year~~years ended December 31, ~~2024~~2025 and December 31, ~~2023~~2024:

(amounts in thousands)	Year ~~ended~~Ended December 31,
	2024			2023
	2025			2024
EBITDA:
Net income	$	4,532		$	11,434
Net (loss) income	$	(19,375	)	$	4,532
Net Income Margin		2.2	%		6.3	%
Net (Loss) Income Margin		(9.1	)%		2.2	%
Interest income , net		(829	)		(347	)
Interest income (expense), net		232			(829	)
Provision for income taxes		357			21
(Benefit) provision for income taxes		(930	)		357
Depreciation and amortization		69,~~857~~120			46,~~892~~857
EBITDA	$	(10,~~917~~953	)	$	1610,~~000~~917
EBITDA Margin		(5.2	)%		85.82	%
Adjustments to EBITDA:
EBITDA	$	(10,~~917~~953	)	$	1610,~~000~~917
Stock-based compensation expense(1)		2,~~986~~936		$	12,~~517~~986
Consulting fees - related party (2)		—			2,325
Employee retention credits (2)		(313	)		(199	)
Employee retention credits (3)		(199	)		(2,483	)
Litigation accrual (3)		346			—
Non-cash lease expense (4)		~~677~~474			~~379~~677
Non-cash lease expense related to pre-opening costs (5)		2,354			1,110
Non-cash lease expense included in pre-opening costs (5)		2,641			2,354
Adjusted EBITDA	$	16,735		$	18,848
Impairment expense (6)		5,527			—
Adjusted EBITDA Margin		8.0	%		10.4	%
Gain on remeasurement of previously held interest (7)		—			(3,402	)
Adjusted EBITDA	$	658		$	13,333
Adjusted EBITDA Margin		0.3	%		6.4	%

(1)

Stock-based compensation expense: During the years ended December 31, ~~2024~~2025 and ~~2023~~2024,we incurred expenses related to the granting of restricted stock units (“RSUs”) to employees. This was recorded in General and administrative expense.

(2)

Consulting fees—related party: These costs ended following the completion of the IPO.

Employee retention credits: These are refundable credits recognized under the provisions of the CARES Act.

(3)

Litigation accrual: This is an expense related to specific, one-time litigation claim. See “Note 12 - Commitments and Contingencies” in the consolidated financial statements.

(4)

Non-cash lease expense: This reflects the extent to which lease expense is greater than or less than contractual rent paid.

(5)

Non-cash lease expense related to pre-opening costs: Cost for stores in development in which the lease expense is greater than the contractual rent paid.

(6)

Impairment expense. During the fourth quarter of 2025, we recorded an asset reserve related to the partnership agreement to transfer five stores in exchange for a 49% equity interest.

(7)

Gain on remeasurement of previously held interest consists of a one-time gain from the business acquisition of GKBH (a restaurant in Hawaii) during the first quarter of 2024.

Adjusted Net Income and Adjusted EPS

Adjusted Net Income and Adjusted net income per share represents net income before income taxes, adjusted for stock-based compensation, and the related tax impact of the stock-based compensation adjustment, and provision for income taxes. “Adjusted EPS” is Adjusted Net Income, converted to a per share amount.

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The following table reconciles Net (loss) income before taxes to Adjusted net (loss) income and Adjusted net (loss) income per share attributable to Class A common stock per share-basic and diluted for the ~~twelve~~years ~~months~~ended ~~ending~~ December 31, ~~2024~~2025 and ~~2023~~2024:

	~~Twelve months ended December 31,~~	Twelve months ended December 31,
(in thousands, except per share amounts)	2024				2023
		2025				2024
Net income before income taxes	$	4,889			$	11,455
Net (loss) income		$	(19,375	)		$	4,532
Stock based compensation		2,986				1,517
Pre-opening costs			8,317				7,607
Tax impact of adjustment		(125	)			(59	)
Gain on remeasurement of previously held interest			—				(3,402	)
Provision for income taxes		357				21
Stock-based compensation			2,936				2,986
Adjusted Net income		7,393				12,892
Impairment expense			5,527				—
Less: Net income attributable to noncontrolling interest		6,427				3,028
Legal settlement			346				—
Net income attributable to GEN Restaurant Group, Inc.		966				9,864
Tax impact of adjustments			(782	)			(125	)
Adjusted Net income attributable to Class A common stock per share - basic and diluted (1)	$	966			$	510
Adjusted Net (loss) income			(3,031	)			11,598
Weighted-average shares of Class A common stock outstanding - basic (1)		4,668				4,140
Less: Adjusted net (loss) income attributable to non-controlling interest			(2,558	)			10,044
Weighted-average shares of Class A common stock outstanding - diluted (2)		4,668				4,233
Adjusted net (loss) income attributable to GEN Restaurant Group, Inc.			(474	)			1,554
Adjusted Net income per share of Class A common stock - basic (1)	$	0.21			$	0.12
Adjusted Net (loss) income attributable to Class A common stock per share - basic and diluted		$	(474	)		$	1,554
Adjusted Net income per share of Class A common stock - diluted (2)	$	0.21			$	0.12
Weighted-average shares of Class A common stock outstanding - basic and diluted			5,164				4,668
Adjusted Net (loss) income per share of Class A common stock - basic and diluted		$	(0.09	)		$	0.33

(1)(2) Basic and diluted adjusted net income per share of Class A common stock is presented only for the period after the Company’s organization transactions effective June 30, 2023.

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

We define Restaurant-Level Adjusted EBITDA as 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. We define Restaurant-Level Adjusted EBITDA Margin as Restaurant-Level Adjusted EBITDA divided by revenue.

As with Adjusted EBITDA and Adjusted EBITDA Margin, we believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures depict normal, recurring cash operating expenses essential to supporting the operations of our restaurants.

However, you should be aware that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are financial measures that are not indicative of overall results for our company, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level and non-cash expenses excluded from such measures.

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The following table reconciles Income from Operations to Restaurant-Level Adjusted EBITDA for the year ended December 31, ~~2024~~2025 and ~~December 31, 2023:~~2024.

(amounts in thousands)	Year ended December 31,
	Twelve months ended December 31,
	2024			2023
	2025			2024
Income from Operations	$	476		$	8,090
(Loss) income from Operations	$	(19,993	)	$	476
Income Margin from Operations		0.2	%		4.5	%
(Loss) Income Margin from Operations		(9.4	)%		0.2	%
Depreciation and amortization		69,~~857~~120			46,~~892~~857
Pre-opening costs		78,~~607~~317			37,~~680~~607
General and administrative		2125,~~326~~935			1221,~~937~~326
Consulting fees - related party		—			2,325
Impairment expense		5,527			—
Management fees		—			1,176
Non-cash lease expense		474			677
Non-cash lease expense		677			379
Restaurant-Level Adjusted EBITDA	$	29,380		$	36,943
Restaurant-Level Adjusted EBITDA	$	36,943		$	33,479
Restaurant-Level Adjusted EBITDA Margin		13.8	%		17.7	%
Restaurant-Level Adjusted EBITDA Margin		17.7	%		18.5	%

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 are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. 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 ~~Adjusted~~these ~~EBITDA,~~measures ~~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. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.

Liquidity and Capital Resources

As of December 31, ~~2024~~2025 we had $232.78 million of cash and ($731.23) million of working capital deficit, which is calculated as current assets minus current liabilities, compared with $3223.67 million of cash and ($57.52) million of working capital deficit as of December 31, ~~2023~~2024. On June 30, 2023, we completed the IPO of 4,140,000 shares of Class A common stock. The public offering price of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to us of approximately $46.2 million after deducting the underwriting discounts and commission and offering expenses payable by us.

Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant equipment and fixtures. There is no guarantee that if we need to raise any additional capital that we will be able to do so.

Prior to the IPO certain companies within GEN Restaurant Group made distributions to their members, which impacted our cash position upon completion of the IPO. The operating agreements of most of the companies within GEN Restaurant Group, as separate private entities prior to the Reorganization, mandated annual or quarterly distributions of available cash and/or tax distributions in an amount sufficient to allow members to pay taxes on income allocated to them. We determined the amount of these distributions based on the operating cash flow of each such entity. During the year ended December 31, 2023, an aggregate of $26.5 million of distributions were made, and during the year ended December 31, 2024, an aggregate of approximately $0.9 million of distributions were made related to income taxes.

We believe that cash provided by operating activities and cash on hand will be sufficient to fund our lease obligations, capital expenditures and working capital needs for at least the next 12 months. Upon the IPO transaction, GEN Inc. became a holding company with no operations of its own. Accordingly, GEN Inc. is dependent on distributions from GEN LLC to pay its taxes, its obligations under the Tax Receivable Agreement and other expenses.

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In connection with the Reorganization, certain members of GEN LLC received the right to receive future payments pursuant to the Tax Receivable Agreement. The amount payable under the Tax Receivable Agreement will be based on an annual calculation of the reduction in our U.S. federal, state and local taxes resulting from the utilization of certain tax benefits resulting from sales and exchanges by certain members of GEN LLC. We expect that payments that we may be required to make under the Tax Receivable Agreement may be substantial. Assuming no material changes in the relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the Tax Receivable Agreement, we expect that the reduction in tax payments for us associated with the federal, state and local tax benefits described above would aggregate to approximately $117.2 million through 2037. Under such scenario we would be required to pay certain members of GEN LLC 85% of such amount, or $99.6 million through 2037.

The actual amounts may materially differ from these hypothetical amounts as potential future reductions in tax payments for us and Tax Receivable Agreement payments by us will be calculated using prevailing tax rates applicable to us over the life of the Tax Receivable Agreement and will be dependent on us generating sufficient future taxable income to realize the benefit.

We cannot reasonably estimate future annual payments under the Tax Receivable Agreement given the difficulty in determining those estimates as they are dependent on a number of factors, including the extent of exchanges by continuing GEN LLC unitholders, the associated fair value of the underlying GEN LLC units at the time of those exchanges, the tax rates applicable, our future income, and the associated tax benefits that might be realized that would trigger a Tax Receivable Agreement payment requirement.

However, a significant portion of any potential future payments under the Tax Receivable Agreement is anticipated to be payable over 15 years, consistent with the period over which the associated tax deductions would be realized by GEN Inc., assuming GEN LLC generates sufficient income to utilize the deductions. If sufficient income is not generated by GEN LLC, the associated taxable income of GEN Inc. will be impacted and the associated tax benefits to be realized will be limited, thereby similarly reducing the associated Tax Receivable Agreement payments to be made. Given the length of time over which payments would be payable, the impact to liquidity in any single year may be greatly reduced.

Summary of Cash Flows

Our primary sources of liquidity are operating cash flows, cash on hand and debt borrowings. We use these sources to fund expenditures for new restaurant openings, reinvest in our existing restaurants, and increase our working capital. Our working capital position benefits from the fact that we generally collect cash from sales to guests the same day, or in the case of credit or debit card transactions, within several days of the related sale, and we typically have at least 30 days to pay our vendors.

The following table summarizes our cash flows for the periods presented:

	Year ended December 31,
	Year Ended December 31,
	2024			2023
	2025			2024
(amounts in thousands)
Summary of Cash Flows
Net cash provided by operating activities	$	173,~~827~~414		$	2217,~~164~~827
Net cash used in investing activities		(2627,~~801~~734	)		(626,~~307~~801	)
Net cash provided by financing activities		183,462			~~5,579~~18

Cash Provided by Operating Activities

Net cash provided by operating activities during the year ended December 31, 2025 was $3.4 million, the result of net loss of $19.4 million, adjusted by non-cash charges of depreciation and amortization of $9.1 million, amortization of operating lease assets of $6.4 million, impairment expense of $5.5 million and stock-based compensation of $3.0 million, partially offset by the increase of $8.7 million from gift cards and a decrease in accounts receivable of $6.9 million. The net cash inflows from changes in operating assets and liabilities were $196 thousand.

Net cash provided by operating activities during the year ended December 31, 2024 was $17.8 million, the result of net income of $4.5 million, adjusted by non-cash charges of depreciation and amortization of $6.9 million, amortization of operating lease assets of $6.8 million and stock-based compensation of $3.0 million, partially offset by the gain of $3.4 million. The net cash outflows from changes in operating assets and liabilities were primarily flat.

Net cash provided by operating activities during the year ended December 31, 2023 was $22.2 million, the result of net income of $11.4 million, adjusted by non-cash charges of depreciation and amortization of $4.9 million, amortization of operating lease assets of $4.6 million and stock-based compensation of $1.5 million, partially offset by net cash outflows of approximately $0.3 million from changes in operating assets and liabilities. The net cash outflows from changes in operating assets and liabilities were primarily the result of an increase in prepaid expenses of $2.6 million and a decrease in operating lease liabilities of $3.1 million, partially offset by an increase in accounts payable of $3.0 million and a decrease in inventory of $2.1 million.

Cash Used in Investing Activities

Net cash used in investing activities during the year ended December 31, 2025 was $27.7 million, for the purchase of property and equipment.

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, 2023 was $6.3 million, reflecting $10.9 million in the net recovery of proceeds from advances made to a related party, partially offset by $17.2 million for the purchase of property and equipment.

Cash Flows Provided by Financing Activities

Net cash provided by financing activities during the year ended December 31, ~~2024~~2025 was $183.5 ~~thousand~~million, primarily due to $310.0 million in proceeds from third party debt and proceeds of $39.0 million from line of credit, partially offset by payments of $311.80 million on ~~third~~the ~~party~~line ~~loans~~of credit, payments of $03.91 million ~~for~~on ~~member~~third ~~distribution,~~party loans and ~~payments~~dividends toand ~~members~~distributions ~~for advances~~ of approximately $01.90 million.

Net cash provided by financing activities during the year ended December 31, ~~2023~~2024 was $~~5.6~~18 ~~million~~thousand, primarily due to $463.20 million in proceeds from ~~the~~third ~~issuance~~party ofdebt ~~Class~~and Aproceeds ~~common~~of ~~stock~~$3.0 inmillion ~~the~~from ~~IPO,~~line ~~offset~~of credit, partially offset by payments of $263.58 million inon third party loans, $0.9 million for member distributions, and payments onto ~~loans~~members for advances of $140.19 million.

~~Contractual~~Effect ~~Obligations~~of Exchange Rate Changes on Cash

~~The~~For ~~following~~the ~~table~~year ~~presents~~ending ~~our~~December ~~commitments~~31, 2025, the effect of exchange rates on cash and ~~contractual~~cash ~~obligations~~equivalents asprimarily reflects the translation impact from fluctuation in the value of ~~December~~the 31South Korean won relative to the U.S. dollar. During the period, ~~2024:~~the won experienced modest depreciation against the U.S. dollar, resulting in a loss on foreign currency translation of $7 thousand compared to $0 in the comparative period.

	Payments Due by Period as of December 31, 2024
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(amounts in thousands)
Operating lease payments (1)	$	261,852	$	14,776	$	31,183	$	32,234	$	183,659
Finance lease payments (2)		26		26		—		—		—
Notes payable (3)		6,864		1,722		1,144		230		3,768
Notes payable interest (4)		2,719		182		329		305		1,903
Line of Credit		3,000		3,000		—		—		—
Total Contractual obligations	$	274,461	$	16,706	$	32,656	$	32,769	$	189,330

Material Cash Requirements

~~Represents~~As ~~future~~of ~~minimum~~December ~~lease~~31, ~~payments~~2025, ~~for~~we ~~our~~had ~~restaurant~~$12.3 ~~operations~~million ~~and~~in ~~corporate~~contractual ~~office.~~obligation ~~Operating~~relating ~~lease~~to ~~payments~~debt, ~~exclude~~including ~~contingent~~EIDL ~~rent~~loans ~~payments~~payable. ~~that~~All ~~may~~contractual obligation are expected to be ~~due~~paid ~~under~~during ~~certain~~the ofnext ~~our~~12 ~~leases~~months ~~based~~utilizing oncash aand ~~percentage~~cash ofequivalents ~~sales~~on inhand ~~excess~~and ofprovided ~~specified~~by ~~thresholds~~operating activities. For operating lease obligations, See “Note 11— - Leases” to the financial statements in this annual report for further details.

Reflects the principal and interest payments during the lease terms. Refer to “Note 11—Leases” to the financial statements included in this annual report.

Reflects the principal payment on third party notes. Refer to “Note 9—Notes Payable” to the financial statements included elsewhere in this annual report.

Interest relates to the notes payable through maturity dates. Refer to “Note 9—Notes Payable” to the financial statements included in this annual report.

Off-Balance Sheet Arrangements

As of December 31, ~~2024~~2025 and December 31, ~~2023~~2024 we did not have any material off-balance sheet arrangements.

Critical Accounting Policies and Estimates

Our discussion and analysis of operating results and financial condition are based upon our financial statements. The preparation of our financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses and related disclosures of contingent assets and liabilities. 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. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may be materially different from the estimates. We believe the following are affected by significant judgments and estimates used in the preparation of our financial statements and that the judgments and estimates are reasonable.

Operating and Finance Leases

Our office leases provide for fixed minimum rent payments. Our restaurant leases provide for fixed minimum rent payments and some require additional contingent rent payments based upon sales in excess of specified thresholds. When achievement of such sales thresholds is deemed probable, contingent rent is accrued in proportion to the sales recognized in the period. For operating leases that include free-rent periods and rent escalation clauses, we recognize rent expense based on the straight-line method. For the purpose of calculating rent expenses under the straight-line method, the lease term commences on the date we obtain control of the property. Lease incentives used to fund leasehold improvements are recognized when earned and reduce the operating right-of-use asset related to the lease. These are amortized through the operating right-of-use asset as reductions of expense over the lease term. Restaurant lease expense is included in occupancy expenses, while office lease expense is included in general and administrative expenses on the accompanying financial statements.

We currently lease all of our restaurant locations, corporate office, and some of the equipment used in our restaurants. On January 1, 2022, we adopted ASU 2016-02, Leases ( ASC Topic 842), using a modified retrospective approach. See "Note 11—Leases" to the financial statements. At commencement of the lease, we determine the appropriate classification as an operating lease or a finance lease. All of our restaurant and office leases are classified as operating leases and some of our equipment leases are classified as finance leases.

Assets we acquired under finance lease arrangements were recorded at the lower of the present value of future minimum lease payments or fair value of the assets at the inception of the lease. Finance lease assets were amortized over the shorter of the useful life of the assets or the lease term, and the amortization expense is included in depreciation and amortization on the accompanying financial statements.

Impairment of Long-Lived Assets

We ~~assess~~review ~~potential impairments of our~~ long-lived assets, which includes property and equipment and operating lease right-of-use assets, for impairment when events or circumstances indicate the carrying value value of the assets may not be recoverable, in accordance with the provisions of Financial Accounting Standards Board, (“FASB”), Accounting Standards Codification, (“ASC”) 360, “Property, Plant and Equipment.” ~~An impairment test is performed on a quarterly basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.~~ In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. ~~Assets~~and ~~are~~primarily ~~grouped~~includes atan ~~the individual restaurant-level for purposes of the impairment~~ assessment ~~because a restaurant represents the lowest level for which identifiable cash flows are largely independent~~ of ~~the~~historical cash flows ofand other ~~assets~~relevant factors and ~~liabilities~~circumstances. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. 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

55An impairment test is performed on a quarterly basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant-level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated forecasted restaurant cash flows expected to be generated by the asset group. 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. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset.

~~manner~~During ~~of use of~~ the ~~acquired~~fourth ~~assets;~~quarter ~~and significant negative industry or economic trends. If the carrying amount~~ of ~~the asset group exceeds its estimated undiscounted future cash flows~~2025, an impairment ~~charge~~loss isreserve was recognized asin the amount ~~by which the carrying amount~~ of ~~the~~$5.5 ~~asset exceeds the fair value of the asset~~million.

~~No impairment loss was recognized during any of the periods presented.~~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. We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. We may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of our IPO or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual revenue, we have more than $700.0 million in market value of our stock held by non-affiliates (and we have been a public company for at least 12 months and have filed one annual report on Form 10-K) or we issue more than $1.0 billion of non-convertible debt securities over a three-year period.

Recently Adopted Accounting Pronouncements

See “Note 2 - Basis of Presentation and Summary of Significant Accounting Policies” to the financial statements, for a discussion of recently adopted accounting standard.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Commodity and Food Price Risks

Our profitability is dependent on, among other things, our ability to anticipate and react to changes in the costs of key operating resources, including food and beverage and other commodities. We have been able to partially offset cost increases that resulted from a number of factors, including market conditions, shortages or interruptions in supply due to weather or other conditions beyond our control and governmental regulations and inflation. We accomplished this by increasing our menu prices and making other operational adjustments that increase productivity. However, substantial increases in costs and expenses could impact our operating results to the extent that such increases cannot be offset by menu price increases or operational adjustments.

Inflation Risk

The primary areas where inflation impacts our operations are in food, beverage, labor and energy costs. Our restaurant operations are subject to federal and state minimum wage laws and other laws governing such matters as working conditions, overtime and tip credits. Significant numbers of our restaurant personnel are paid at rates dependent on the federal and/or state minimum wage and, accordingly, increases in the minimum wage increase our labor costs. To the extent permitted by competition and the economy, we have mitigated increased costs by increasing menu prices and may continue to do so if deemed necessary in future years. Substantial increases in costs and expenses could impact our operating results to the extent such increases cannot be passed through to our guests. Historically, until ~~2024~~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.

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. From time to time, competitive conditions could limit our menu pricing flexibility. In addition, macroeconomic conditions could render additional menu price increases imprudent. There can be no assurance that future cost increases can be offset by increased menu prices or that increased menu prices will be fully absorbed by our guests without any resulting change to their visit frequencies or purchasing patterns. In addition, there can be no assurance that we will generate sales growth in an amount sufficient to offset inflationary or other cost pressures.

5657

continue to do so in the future. From time to time, competitive conditions could limit our menu pricing flexibility. In addition, macroeconomic conditions could render additional menu price increases imprudent. There can be no assurance that future cost increases can be offset by increased menu prices or that increased menu prices will be fully absorbed by our guests without any resulting change to their visit frequencies or purchasing patterns. 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%.

Item 8. Financial Statements and Supplementary Data.

See index to financial statements on page F-1.

Item 9. Changes in and Disagreements ~~With~~with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive ~~Officers~~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. ~~Based~~Management’s onassessment ~~this~~included evaluation, ~~our~~of ~~management~~elements ~~concluded~~such ~~that~~as ~~our~~the ~~disclosure~~design ~~controls~~ and ~~procedures~~operating ~~were~~effectiveness ~~effective~~of atkey ~~the~~financial ~~reasonable~~reporting ~~assurance~~controls, ~~level~~process asdocumentation, ofaccounting ~~the~~policies, ~~end~~and ofour ~~the~~overall ~~period~~control ~~covered by this report~~environment.

Based on this evaluation, our management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

Management’s Report on Internal Control over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of consolidated financial statements for external purposes in accordance with GAAP. The Company’s management has evaluated the effectiveness of its internal control over financial reporting based on the criteria set forth in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). 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~~2025.

This Annual Report does not include an attestation report of our independent registered public accounting firm due to a transition period established by the rules of the SEC for emerging growth companies.

Remediation of Previously Disclosed Material Weakness

We previously reported material weaknesses in our 2023 Annual Report on Form 10-K, as well as in our Quarterly Report on Form 10-Q filed for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, a material weakness in our control environment. As of December 31, 2024, management has completed our remediation efforts of these material weaknesses.

Changes in Internal Control over Financial Reporting

~~Other~~There ~~than described above in “Remediation of Previously Disclosed Material Weakness”, there~~ were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, ~~2024~~2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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.

Item 9B. Other Information.

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~~2025.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

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~~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~~Officer and Senior Finance Officers. A copy of the Code can be found on our website at www.genkoreanbbq.com in the “Investor” section. We intend to satisfy the disclosure requirements of the SEC regarding amendments to, or waivers from the Code by posting such information on the same website.

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~~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.

Item 11. Executive Compensation.

The information ~~contained~~required ~~under~~by this item is incorporated by reference to the ~~captions~~sections titled “Director ~~compensation~~Compensation” and “Executive ~~compensation~~Compensation” in our ~~proxy~~Proxy ~~statement~~Statement for ~~the~~our 2026 ~~2025~~Annual ~~annual~~Meeting ~~meeting~~ of ~~stockholders~~Stockholders, iswhich ~~incorporated~~will ~~herein~~be byfiled ~~reference~~no tolater ~~such~~than ~~proxy~~120 ~~statement,~~days ~~provided~~after ~~that~~ the ~~Compensation~~end ~~Committee~~of ~~report~~the ~~shall~~fiscal ~~not~~year becovered ~~deemed~~by ~~filed~~this ~~with~~Annual ~~this~~Report on Form 10-K.

The information ~~contained~~required ~~under~~by this item is incorporated by reference to the ~~caption~~sections titled “Compensation ~~committee~~Committee ~~interlocks~~Interlocks and ~~insider~~Insider ~~participation~~Participation” in our ~~proxy~~Proxy ~~statement~~Statement for ~~the~~our ~~2025~~2026 ~~annual~~Annual ~~meeting~~Meeting of ~~stockholders~~Stockholders, which will be filed no later than 120 days after the end of the fiscal is incorporated herein by reference to such proxy statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information ~~that~~required isby ~~contained~~this ~~under~~item ~~the~~is ~~captions~~incorporated ~~“Security~~by ~~ownership~~reference ofto ~~certain~~the ~~beneficial~~sections ~~owners~~titled “Principal Stockholders” and “~~Security~~Equity ~~ownership~~Compensation ofPlan ~~directors and management~~Information” in our ~~proxy~~Proxy ~~statement~~Statement for ~~the~~our ~~2025~~2026 ~~annual~~Annual ~~meeting~~Meeting of ~~stockholders~~Stockholders, iswhich ~~incorporated~~will ~~herein~~be filed no later than 120 days after the end of the fiscal year covered by ~~reference~~this toAnnual ~~such~~Report ~~proxy~~on ~~statement~~Form 10-K.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information ~~contained~~required ~~under~~by this item is incorporated by reference to the ~~captions~~sections titled “Certain Relationships and Related ~~person~~Person ~~transactions~~Transactions” and “Director ~~independence~~Independence” in our ~~proxy~~Proxy ~~statement~~Statement for ~~the~~our ~~2025~~2026 ~~annual~~Annual ~~meeting~~Meeting of ~~stockholders~~Stockholders iswhich ~~incorporated~~will ~~herein~~be filed no later than 120 days after the end of the fiscal year covered by ~~reference~~this toAnnual ~~such~~Report ~~proxy~~on ~~statement.~~Form 10-K.

Item 14. Principal Accountant Fees and Services.

The information ~~with~~required ~~respect~~by tothis ~~principal~~item ~~accountant~~is ~~fees~~incorporated ~~and~~by ~~services~~reference ~~contained~~to ~~under~~ the ~~caption~~section titled “Proposal to2 ~~ratify~~- ~~appointment~~Ratification of ~~independent~~Independent ~~registered~~Registered ~~public~~Public ~~accounting~~Accounting ~~firm~~Firm” in our ~~proxy~~Proxy ~~statement~~Statement for ~~the~~our ~~2025~~2026 ~~annual~~Annual ~~meeting of stockholders is incorporated herein by reference to such proxy statement.~~

5960

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.

PART IV

Item 15. 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.

(3)

Exhibits:

ExhibitNumber		Description
3.1		Amended and Restated Certificate of Incorporation (incorporated by reference to the Company’s Form 8-K, Exhibit 3.1, filed July 6, 2023)
3.2		Amended and Restated Bylaws of GEN Restaurant Group 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)
10.6#		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.
10.8#		Executive Employment Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed August 4, 2023)
10.7#		Executive Employment Agreement Jae Chang (incorporated by reference to the Company’s Form 8-K, Exhibit 10.2, filed August 4, 2023)
10.9#		Executive Employment Agreement Thomas V. Croal (incorporated by reference to the Company’s Form 8-K, Exhibit 10.3, filed August 4, 2023)
10.8#		Executive Employment Agreement Thomas V. 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)
10.9		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)
10.10		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)
10.11		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)
10.13		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)
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)
19.1*		Insider Trading Policy
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 ~~Marcum,~~CBIZ ~~LLP~~CPAs P.C., independent registered public accounting firm ~~the Company’s Form S-8,~~.
23.2*		Consent of Marcum LLP, independent registered public accounting firm.
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.

6062

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. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Principal Financial Officer Pursuant to 18 U.S.C. 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, ~~dated~~Exhibit 97.1, filed on 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~~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.

Item 16. Form 10-K Summary

None.

6163

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. Croal
Date: March 31, 2026	By:	/s/ Thomas V. Croal
		Thomas V. Croal
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS that each individual whose signature appears below constitutes and appoints David Kim and Thomas V. Croal and each them, his true and lawful attorneys-in-fact and agents, with full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K and to file the same, with all exhibits thereto and all documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or his or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

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 731, ~~2025~~2026
David Kim	(Principal Executive Officer and Director)
/s/ Thomas V. Croal	Chief Financial Officer	March 731, ~~2025~~2026
Thomas V. Croal	(Principal Financial and Accounting Officer)
/s/Jae Chang	Jae Chang	March 731, ~~2025~~2026
Jae Chang	(Director)
/s/ Michael B. Cowan	Michael B. Cowan	March 731, ~~2025~~2026
Michael B. Cowan	(Director)
/s/ Jonathan Gregory	Jonathan Gregory	March 731, ~~2025~~2026
Jonathan Gregory	(Director)
/s/ David Park	David Park	March 731, ~~2025~~2026
David Park	(Director)

6264

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-2
Report of Independent Registered Public Accounting Firm (Marcum LLP)	F-2
Consolidated Balance Sheets as of December 31, 2024 and 2023	F-3
Report of Independent Registered Public Accounting Firm (CBIZ CPAs P.C.)	F-3
Consolidated Income Statements for the Years ended December 31, 2024 and 2023	F-4
Consolidated Balance Sheets as of December 31, 2025 and 2024	F-4
Consolidated Statements of Changes in Permanent Equity (deficit) for the Years ended December 31, 2024 and 2023	F-5
Consolidated Statements of Comprehensive Loss for the Years ended December 31, 2025 and 2024	F-5
Consolidated Statements of Cash Flows for the Years ended December 31, 2024 and 2023	F-7
Consolidated Statements of Changes in Permanent Equity (deficit) for the Years ended December 31, 2025 and 2024	F-6
Notes to Consolidated Financial Statements	F-8
Consolidated Statements of Cash Flows for the Years ended December 31, 2025 and 2024	F-8
Notes to Consolidated Financial Statements	F-9

F-1

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 688)

To the Stockholders and Board of Directors of

GEN Restaurant Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of GEN Restaurant Group, Inc. (the “Company”) as of December 31, 2024 ~~and 2023~~, the related consolidated statements of ~~income~~comprehensive loss, changes in permanent equity (deficit) and cash flows for ~~each of~~ the ~~two~~year ~~years in the period~~ ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). 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~~ year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the ~~audits~~audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our ~~audits~~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. 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~~audit ~~provide~~provides a reasonable basis for our opinion.

/s/ Marcum, LLP

Marcum LLP

We have served as the Company’s auditor ~~since~~from 2021 to 2025.

Costa Mesa, California

March 7, 2025

Costa Mesa, CA

PCAOB ID No. 688

F-2

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 688)

To the Stockholders and Board of Directors of

GEN Restaurant Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of GEN Restaurant Group, Inc. (the “Company”) as of December 31, 2025, the related consolidated statements of comprehensive loss, changes in permanent equity (deficit) and cash flows for the year ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis of Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. 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. Our audit 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/ CBIZ CPAs P.C.

CBIZ CPAs P.C.

We have served as the Company’s auditor since 2021 (such date takes into account the acquisition of the attest business of Marcum LLP by CBIZ CPAs P.C. effective November 1, 2024).

Costa Mesa, California

March 31, 2026

F-3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

GEN RESTAURANT GROUP, INC.

Consolidated Balance Sheets

(in thousands, except share and per share information)	December 31,~~2024~~2025			December 31,~~2023~~2024
Current assets:
Cash and cash equivalents	$	232,~~675~~824		$	3223,~~631~~675
Inventories		~~727~~1,212			~~461~~727
Accounts receivable		310,~~487~~422			—3,487
Prepaid expenses and other current assets		6,004			3,726
Income tax receivable		742			—
Total current assets		33,893			36,818
Prepaid expenses and other current assets		7,546			6,004
Equity method investment		—			523
Total current assets		22,746			33,893
Property and equipment, net		5265,~~639~~747			3352,~~907~~639
Goodwill		9,498			—9,498
Operating lease assets		131,542			99,255
Operating lease assets, net		146,473			131,542
Deferred tax asset		1113,~~686~~009			1211,~~618~~686
Other assets		12,~~157~~383			~~749~~1,157
Total assets	$	~~240~~259,~~415~~856		$	~~183~~240,~~870~~415
Liabilities and equity
Current liabilities
Accounts payable		1214,~~408~~822			1012,~~704~~408
Accrued salaries and benefits		32,~~243~~450			23,~~660~~243
Accrued interest		6077			4260
Notes payable, current		12,~~724~~812			~~165~~1,724
Line of credit		31,000			—3,000
Notes payable to related parties		—			1,197
Obligations under finance leases, current		8			26
Obligations under finance leases, current		26			125
Operating lease liabilities, current		6,707			5,221
Operating lease liabilities, current		5,221			4,535
Deferred Restaurant Revitalization Fund grant		3,806			3,806
Advances from members		—			2,704
Gift card liabilities		14,669			5,983
Gift card liabilities		5,983			—
Other current liabilities		7,723			5,598
Other current liabilities		5,598			5,366
Total current liabilities		54,074			41,069
Total current liabilities		41,069			31,304
Notes payable, net of current portion		10,795			5,140
Notes payable, net of current portion		5,140			4,547
Tax receivable agreement liability		1,088			691
Tax receivable agreement liability		691			—
Obligations under finance leases, net of current		14			—
Operating lease liabilities, net of current portion		~~147~~165,~~898~~879			~~110~~147,~~501~~898
Total liabilities		~~194~~231,~~798~~850			~~146~~194,~~352~~798
Commitments and contingencies (Note 11)
Mezzanine equity
EB-5 Members’ equity		1,500			1,500
EB-5 Members’ equity; Redeemable units for 30% of Gen Restaurant Investment, LLC, redemption amount of $1,500 as of December 31, 2025 and December 31, 2024.		1,500			1,500
Permanent equity
Class A common stock, $0.001 par value, 70,000,000 shares authorized, 4,913,064 shares issued and outstanding as of December 31, 2024 and 4,140,000 shares issued and outstanding as of December 31, 2023, respectively		5			4
Class A common stock, $0.001 par value, 70,000,000 shares authorized, 5,265,565 shares issuedand outstanding and 4,913,064 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively		5			5
Class B common stock, $0.001 par value, 50,000,000 shares authorized; 27,886,912 shares issued and outstanding as of December 31, 2024 and 28,141,566 shares issued and outstanding as of December 31, 2023, respectively		28			28
Class B common stock, $0.001 par value, 50,000,000 shares authorized; 27,681,719 shares issued and outstanding and 27,886,912 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively		28			28
Additional paid-in capital		1114,~~782~~796			711,~~112~~782
Retained Earnings		915			322
Accumulated other comprehensive income		7			—
Non-controlling interest		31,387			28,552
Retained Earnings (accumulated deficit)		(2,111	)		915
Total permanent equity		44,117			36,018
Non-controlling interest		13,982			31,387
Total liabilities and stockholders’ equity	$	240,415		$	183,870
Treasury stock		(201	)		—
Total permanent equity		26,506			44,117
Total liabilities, mezzanine equity, and permanent equity	$	259,856		$	240,415

See accompanying notes to consolidated financial statements.

F-3

GEN RESTAURANT GROUP, INC

Consolidated Income Statements

	For the year ended December 31,
(in thousands, except per share amounts)	2024			2023
Revenue	$	208,380		$	181,007
Restaurant operating expenses:
Food cost		68,730			58,322
Payroll and benefits		64,322			56,889
Occupancy expenses		17,524			14,653
Operating expenses		21,538			18,043
Depreciation and amortization		6,735			4,808
Pre-opening costs		7,607			3,680
Total restaurant operating expenses		186,456			156,395
General and administrative		21,326			12,937
Consulting fees - related party		—			2,325
Management fees		—			1,176
Depreciation and amortization - corporate		122			84
Total costs and expenses		207,904			172,917
Income from operations		476			8,090
Employee retention credits		199			2,483
Gain on remeasurement of previously held interest (see Note 3)		3,402			—
Interest income, net		829			347
Equity in (loss) income of equity method investee		(17	)		535
Net income before income taxes		4,889			11,455
Provision for income taxes		357			21
Net income		4,532			11,434
Less: Net income attributable to noncontrolling interest		3,940			3,028
Net income attributable to GEN Restaurant Group, Inc.		592			8,406
Net income attributable to Class A common stock per share - basic and diluted (1)	$	592		$	324
Weighted-average shares of Class A common stock outstanding - basic (1)		4,668			4,140
Weighted-average shares of Class A common stock outstanding - diluted (2)		4,668			4,233
Net income per share of Class A common stock - basic (1)	$	0.13		$	0.08
Net income per share of Class A common stock - diluted (2)	$	0.13		$	0.08

(1) (2)Basic and diluted net income per Class A common stock is presented only for the period after the Company’s organizational transactions.

See Note 1 for a description of the organizational transactions. See Note 16 for calculation of net income per share.

See accompanying notes to consolidated financial statements.

F-4

GEN RESTAURANT GROUP, INC.

Consolidated ~~Statements~~Statement of ~~Changes in Permanent Equity (Deficit)~~Operations

Year ended December 31, 2024 and December 31, 2023


	For the year ended December 31,
(in thousands, except per share amounts)	2025			2024

Revenue	$	212,541		$	208,380
Restaurant operating expenses:
Food cost		73,790			68,730
Payroll and benefits		64,943			64,322
Occupancy expenses		21,197			17,524
Operating expenses		24,176			21,538
Depreciation and amortization		8,962			6,735
Pre-opening costs		8,317			7,607
Total restaurant operating expenses		201,385			186,456
General and administrative		25,935			21,326
Impairment expense		5,527			—
Depreciation and amortization - corporate		158			122
Gain on lease terminations		(471	)		—
Total costs and expenses		232,534			207,904
(Loss) income from operations		(19,993	)		476
Employee retention credits		313			199
Gain on remeasurement of previously held interest (see Note 3)		—			3,402
Other loss		(346	)		—
Loss on foreign currency		(47	)		—
Interest (expense) income, net		(232	)		829
Equity in loss of equity method investee		—			(17	)
Net (loss) income before income taxes		(20,305	)		4,889
(Benefit) provision for income taxes		(930	)		357
Net (loss) income		(19,375	)		4,532
Less: Net (loss) income attributable to non-controlling interest		(16,349	)		3,940
Net (loss) income attributable to GEN Restaurant Group, Inc.		(3,026	)		592

Net (loss) income attributable to Class A common stock per share - basic and diluted	$	(3,026	)	$	592

Weighted-average shares of Class A common stock outstanding - basic and diluted		5,164			4,668

Net (loss) income per share of Class A common stock - basic and diluted	$	(0.59	)	$	0.13
Other comprehensive income, net of tax:
Foreign currency translation adjustment	$	7		$	—
Comprehensive (loss) income		(19,368	)		4,532
Less: Comprehensive (loss) income attributable to non-controlling interest		(16,349	)		3,940
Comprehensive (loss) income attributable to GEN Restaurant Group, Inc.	$	(3,019	)	$	592

	RedeemableClass BCommon			Members' equity			Class ACommon Stock				Class BCommon Stock				Additionalpaid-in			Retained		Non-Controlling			Stockholders'Equity/Members'equity
(in thousands except share outstanding )	Units			(deficit)			Shares		Amount		Shares		Amount		capital			Earnings		Interest			(deficit)
Balance, December 31, 2022		-		$	(10,011	)			$	-			$	-	$	-				$	3,250		$	(6,761	)
Activities prior to the initial public offering and related organizational transactions:
Net income prior to the organizational transaction					8,084																827			8,911
Conversion of related party loans to equity					871																			871
Member distributions					(26,469	)																		(26,469	)
Effects of initial public offering and related organization transactions:																								-
Effects of the organizational transactions		(23,448	)		27,525																(4,077	)		23,448
Issuance of Class A common stock in the IPO, net of underwriting discount								3,600,000		3						40,141								40,144
Issuance of Class A common stock to underwriters upon exercise of overallotment option								540,000		1						6,025								6,026
Issuance of Class B common stock in the IPO, net of underwriting discount												28,141,566		28		(28	)							-
Conversion of Class B common units into Class B Shares		23,448														(23,447	)							(23,447	)
Capitalization of initial public offering costs																(3,265	)							(3,265	)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increase in tax basis																12,520								12,520
Activity subsequent to the initial public offering and related organizational transactions:
Net income																			322		2,201			2,523
Stock-based compensation																1517								1,517
NCI Adjustment																(26,351	)				26,351			-
Balance, December 31, 2023		-		$	-			4,140,000	$	4		28,141,566	$	28	$	7,112		$	322	$	28,552		$	36,018

See accompanying notes to consolidated financial statements.

F-5

	Class ACommon Stock				Class BCommon Stock					Additionalpaid-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~~Consolidated ~~accompanying~~Statements ~~notes~~of toChanges ~~consolidated~~in ~~financial~~Permanent ~~statements.~~Equity (Deficit)

~~F-6~~Year ended December 31, 2025 and December 31, 2024

GEN RESTAURANT GROUP, INC.


	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

~~Consolidated~~See ~~Statements~~accompanying ofnotes ~~Cash~~to ~~Flows~~consolidated financial statements.

	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			—

F-6

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

~~F-7~~Consolidated Statements of Changes in Permanent Equity (Deficit)

~~GEN~~Years ~~RESTAURANT~~ended ~~GROUP~~December 31, ~~INC.~~2025 and December 31, 2024

Notes to Consolidated Financial Statements



	Class A Common Stock				Class B Common Stock					Class A Treasury Shares				Additional paid-in		Accumulated Other Comprehensive Gain (Loss)		Retained			Non- Controlling			Stockholders' Equity/ Members' equity
(in thousands except for share amounts )	Shares		Amount		Shares			Amount		Shares		Amount		capital				Earnings			Interest
Balance, December 31, 2024		4,913,064	$	5		27,886,912		$	28		-	$	-	$	11,782	$	—	$	915		$	31,387		$	44,117
Net loss															-				(3,026	)		(16,349	)		(19,375	)
Stock-based compensation		52,127	$	-											2,936										2,936
Adjustment to tax liabilities and assets under TRA															9										9
Shares issued upon RSU vesting		95,181													-										-
Exchange of non-controlling interest for Class A common stock		205,193				(205,193	)								226				—			(226	)		-
Dividends paid $0.03 per share of Class A common stock

Filing Compare · GEN Restaurant Group, Inc.