Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 14, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | GEN Restaurant Group, Inc. | |
Entity Central Index Key | 0001891856 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes | |
Securities Act File Number | 001-41727 | |
Entity Tax Identification Number | 87-3424935 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 11480 South Street Suite 205 | |
Entity Address, City or Town | Cerritos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90703 | |
City Area Code | (562) | |
Local Phone Number | 356-9929 | |
Title of 12(b) Security | Class A Common stock,par value $0.001 per share | |
Trading Symbol | GENK | |
Security Exchange Name | NASDAQ | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,140,000 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 28,141,566 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 32,149 | $ 11,195 |
Inventories | 575 | 2,542 |
Prepaid expenses and other current assets | 3,114 | 994 |
Total current assets | 35,838 | 14,731 |
Equity method investment | 558 | 618 |
Property and equipment, net | 27,808 | 21,283 |
Operating lease assets | 98,479 | 90,713 |
Deferred tax asset | 12,253 | |
Other assets | 692 | 683 |
Total assets | 175,628 | 138,878 |
Current liabilities | ||
Accounts payable | 5,254 | 7,474 |
Accrued salaries and benefits | 1,048 | 1,976 |
Accrued interest | 230 | 175 |
Line of credit | 0 | 6,894 |
Obligations under finance leases, current | 40 | 134 |
Operating lease liabilities, current | 4,376 | 4,096 |
Deferred Restaurant Revitalization Fund grant | 3,806 | 3,806 |
Advances from members | 2,704 | 4,442 |
Other current liabilities | 6,102 | 4,624 |
Income tax payable | 225 | |
Total current liabilities | 24,889 | 37,266 |
Obligations under finance leases, net of current portion | 130 | 185 |
Operating lease liabilities, net of current portion | 109,389 | 100,872 |
Total liabilities | 139,117 | 144,139 |
Commitments and contingencies (Note 11) | ||
Mezzanine equity | ||
EB-5 Members' equity | 1,500 | 1,500 |
Permanent equity (deficit) | ||
Members' equity (deficit) | 348 | (10,011) |
Non-controlling interest | 28,722 | 3,250 |
Additional paid-in capital | 5,909 | |
Retained Earnings | 348 | (10,011) |
Total permanent equity (deficit) | 35,011 | (6,761) |
Total liabilities and stockholders' equity (deficit) | 175,628 | 138,878 |
Related Party | ||
Current assets: | ||
Notes receivable from related party, net of current portion | 10,850 | |
Current liabilities | ||
Notes payable, current | 1,062 | 3,021 |
Notes payable, net of current portion | 500 | |
Non-related Party | ||
Current liabilities | ||
Notes payable, current | 42 | 624 |
Notes payable, net of current portion | 4,709 | $ 5,316 |
Class A Common Stock | ||
Permanent equity (deficit) | ||
Common stock | 4 | |
Class B Common Stock | ||
Permanent equity (deficit) | ||
Common stock | $ 28 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) | Jun. 30, 2023 $ / shares shares |
Class A Common Stock | |
Common stock, par value | $ / shares | $ 0.001 |
Common stock, shares authorized | 75,000,000 |
Common stock, shares issued | 4,140,000 |
Common stock, shares outstanding | 4,140,000 |
Class B Common Stock | |
Common stock, par value | $ / shares | $ 0.001 |
Common stock, shares authorized | 50,000,000 |
Common stock, shares issued | 28,141,566 |
Common stock, shares outstanding | 28,141,566 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 45,564 | $ 42,419 | $ 135,899 | $ 122,880 |
Restaurant operating expenses: | ||||
Food cost | 14,523 | 13,954 | 43,614 | 40,968 |
Payroll and benefits | 14,444 | 12,649 | 42,419 | 36,128 |
Occupancy expenses | 3,772 | 3,168 | 10,876 | 9,051 |
Operating expenses | 4,582 | 4,159 | 13,007 | 11,178 |
Depreciation and amortization | 1,232 | 1,095 | 3,476 | 3,234 |
Pre-opening costs | 723 | 437 | 2,123 | 975 |
Total restaurant operating expenses | 39,276 | 35,462 | 115,515 | 101,534 |
General and administrative | 3,802 | 2,191 | 7,815 | 5,720 |
Consulting fees - related party | 1,320 | 2,325 | 4,897 | |
Management fees | 588 | 1,176 | 1,745 | |
Depreciation and amortization - corporate | 21 | 9 | 58 | 24 |
Total costs and expenses | 43,099 | 39,570 | 126,889 | 113,920 |
Income from operations | 2,465 | 2,849 | 9,010 | 8,960 |
Gain on extinguishment of PPP debt | 387 | |||
Employee retention credits | 0 | 64 | 2,483 | 2,583 |
Other income (loss) | (6) | (7) | (854) | |
Interest expense, net | 190 | (203) | (206) | (440) |
Equity in income of equity method investee | 53 | 70 | 520 | 921 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 2,708 | 2,774 | 11,800 | 11,557 |
Provision for income taxes | (74) | (171) | ||
Net income | 2,634 | 2,774 | 11,629 | 11,557 |
Less: Net income attributable to noncontrolling interest | 2,297 | 387 | 3,198 | 1,067 |
Net income attributable to Gen Restaurant Group, Inc. | 337 | $ 2,387 | 8,431 | $ 10,490 |
Net income attributable to Class A common stock per share - basic | 337 | 348 | ||
Net income attributable to Class A common stock per share - diluted | $ 337 | $ 348 | ||
Weighted-average shares of Class A common stock outstanding - basic | 4,140 | 4,140 | ||
Weighted-average shares of Class A common stock outstanding - diluted | 4,140 | 4,140 | ||
Net income per share of Class A common stock - basic | $ 0.08 | $ 0.08 | ||
Net income per share of Class A common stock - diluted | $ 0.08 | $ 0.08 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Permanent Equity (Deficit) - USD ($) $ in Thousands | Total | Class A Common Stock | Class A Common Stock IPO | Class B Common Stock | Redeemable Class B Common Units | Members' equity (deficit) | Common Stock Class A Common Stock | Common Stock Class A Common Stock IPO | Common Stock Class B Common Stock | Common Stock Class B Common Stock IPO | Additional paid-in capital | Additional paid-in capital Class A Common Stock | Additional paid-in capital Class A Common Stock IPO | Additional paid-in capital Class B Common Stock IPO | Retained Earnings | Non-Controlling Interest |
Beginning Balance at Dec. 31, 2021 | $ 10,693 | $ 8,894 | $ 1,799 | |||||||||||||
Distributions | (17,334) | (17,334) | ||||||||||||||
Net income | 3,362 | 2,989 | 373 | |||||||||||||
Ending Balance at Mar. 31, 2022 | (3,279) | (5,451) | 2,172 | |||||||||||||
Beginning Balance at Dec. 31, 2021 | 10,693 | 8,894 | 1,799 | |||||||||||||
Net income | 11,557 | |||||||||||||||
Ending Balance at Sep. 30, 2022 | (5,401) | (8,266) | 2,866 | |||||||||||||
Beginning Balance at Mar. 31, 2022 | (3,279) | (5,451) | 2,172 | |||||||||||||
Distributions | (5,481) | (5,481) | ||||||||||||||
Net income | 5,419 | 5,112 | 307 | |||||||||||||
Ending Balance at Jun. 30, 2022 | (3,342) | (5,820) | 2,479 | |||||||||||||
Distributions | (4,833) | (4,833) | ||||||||||||||
Net income | 2,774 | 2,387 | 387 | |||||||||||||
Ending Balance at Sep. 30, 2022 | (5,401) | (8,266) | 2,866 | |||||||||||||
Beginning Balance at Dec. 31, 2022 | (6,761) | (10,011) | 3,250 | |||||||||||||
Distributions | (3,059) | (3,059) | ||||||||||||||
Net income | 4,531 | 4,134 | 397 | |||||||||||||
Ending Balance at Mar. 31, 2023 | (5,289) | (8,936) | 3,647 | |||||||||||||
Beginning Balance at Dec. 31, 2022 | (6,761) | (10,011) | 3,250 | |||||||||||||
Issuance of common stock (in shares) | 3,600,000 | |||||||||||||||
Ending Balance at Jun. 30, 2023 | 30,070 | $ 4 | $ 28 | $ 3,602 | $ 11 | 26,425 | ||||||||||
Ending Balance, Shares at Jun. 30, 2023 | 4,140,000,000 | 28,141,566,000 | ||||||||||||||
Beginning Balance at Dec. 31, 2022 | (6,761) | (10,011) | 3,250 | |||||||||||||
Issuance of common stock (in shares) | 4,140,000 | 28,141,566 | ||||||||||||||
Net income | 11,629 | $ 2,719 | ||||||||||||||
Ending Balance at Sep. 30, 2023 | 35,011 | $ 4 | $ 28 | 5,909 | 348 | 28,722 | ||||||||||
Ending Balance, Shares at Sep. 30, 2023 | 4,140,000,000 | 28,141,566,000 | ||||||||||||||
Beginning Balance at Mar. 31, 2023 | (5,289) | (8,936) | 3,647 | |||||||||||||
Distributions | (23,410) | (23,410) | ||||||||||||||
Net income prior to the organizational transactions | 4,380 | 3,950 | 430 | |||||||||||||
Conversion of related party loans to equity | 871 | 871 | ||||||||||||||
Effects of the organizational transactions | 23,448 | $ (23,447) | $ 27,525 | (4,077) | ||||||||||||
Issuance of common stock (in shares) | 3,600,000,000 | 28,141,566,000 | ||||||||||||||
Issuance of common stock | $ 40,141 | $ 3 | $ 28 | $ 40,138 | $ (28) | |||||||||||
Issuance of Class A common stock to underwriters upon exercise of overallotment option, Shares | 540,000,000 | |||||||||||||||
Issuance of Class A common stock to underwriters upon exercise of overallotment option | 6,026 | $ 1 | $ 6,025 | |||||||||||||
Conversion of Class B common units into Class B Shares | (23,447) | $ 23,447 | (23,447) | |||||||||||||
Capitalization of initial public offering costs | (3,265) | (3,265) | ||||||||||||||
Establishment of liabilities under tax receivable agreement | 10,530 | 10,530 | ||||||||||||||
Net income | 85 | 11 | 74 | |||||||||||||
NCI adjustment | (26,351) | 26,351 | ||||||||||||||
Ending Balance at Jun. 30, 2023 | 30,070 | $ 4 | $ 28 | 3,602 | 11 | 26,425 | ||||||||||
Ending Balance, Shares at Jun. 30, 2023 | 4,140,000,000 | 28,141,566,000 | ||||||||||||||
Stock-based compensation | 759 | 759 | ||||||||||||||
Establishment of liabilities under tax receivable agreement | 1,548 | 1,548 | ||||||||||||||
Net income | 2,634 | $ 2,634 | ||||||||||||||
Net income | 2,634 | 337 | 2,297 | |||||||||||||
Ending Balance at Sep. 30, 2023 | $ 35,011 | $ 4 | $ 28 | $ 5,909 | $ 348 | $ 28,722 | ||||||||||
Ending Balance, Shares at Sep. 30, 2023 | 4,140,000,000 | 28,141,566,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities | |||||||
Net income | $ 2,634 | $ 4,531 | $ 2,774 | $ 3,362 | $ 11,629 | $ 11,557 | |
Adjustments to reconcile net income to cash provided by operating activities | |||||||
Depreciation and amortization | 3,534 | 3,258 | |||||
Equity in income of equity method investee, net of distributions | 60 | (484) | |||||
Stock-based compensation | 759 | ||||||
Gain on extinguishment of debt, PPP | (387) | ||||||
Amortization Of Operating Lease Assets | 3,506 | 2,555 | |||||
Interest income earned on Notes receivable from related party | (133) | (142) | |||||
Changes in operating assets and liabilities: | |||||||
Inventories | 1,967 | (3,005) | |||||
Prepaid expenses and other current assets | (1,986) | (1,030) | |||||
Other assets | (9) | (19) | |||||
Accounts payable | (2,817) | 1,680 | |||||
Accrued salaries and benefits | (929) | (664) | |||||
Accrued interest | 56 | (85) | |||||
Other current liabilities | 275 | 2,365 | |||||
Operating lease liabilities | (2,475) | (1,820) | |||||
Income tax payable | 49 | ||||||
Net cash provided by operating activities | 13,486 | 13,779 | |||||
Cash flows from investing activities | |||||||
Proceeds from recovery of Notes receivable from related party | 12,950 | 13,467 | |||||
Advances made to related party | (2,100) | ||||||
Purchase of property and equipment | (9,462) | (5,777) | |||||
Net cash provided by investing activities | 1,388 | 7,690 | |||||
Cash flows from financing activities | |||||||
Proceeds from issuance of Class A common stock sold in IPO, net of underwriting | 46,167 | ||||||
Payments to members for advances | (2,000) | ||||||
Advances from members | 262 | 2,866 | |||||
Payments for deferred offering costs | (2,061) | (1,896) | |||||
Proceeds from PPP and EIDL loans | 2,700 | ||||||
Payments on PPP and EIDL loans | (65) | (192) | |||||
Payments on finance leases | (149) | (162) | |||||
Payments on third party loans | (2,424) | (379) | |||||
Payments on related party loans | (2,088) | (7,962) | |||||
Payments on line of credit | (7,993) | ||||||
Proceeds from line of credit | 1,100 | 7,893 | |||||
Proceeds from third party loans | 1,300 | ||||||
Proceeds from related party loans | 500 | 2,425 | |||||
Member distributions | (26,469) | (27,648) | |||||
Net cash provided by (used in) financing activities | 6,080 | (22,355) | |||||
Net increase in cash and cash equivalents | 20,954 | (886) | |||||
Cash and cash equivalents at beginning of year | $ 11,195 | $ 9,890 | 11,195 | 9,890 | $ 9,890 | ||
Cash and cash equivalents at end of quarter | $ 32,149 | $ 9,004 | 32,149 | 9,004 | $ 11,195 | ||
Supplemental disclosures of other cash flow information: | |||||||
Cash paid for interest | 284 | 380 | |||||
Cash paid for taxes | 95 | 0 | |||||
Non-cash investing and financing activities: | |||||||
Unpaid purchases of property and equipment | 737 | 371 | |||||
Receivable for member contributions | 60 | ||||||
Unpaid deferred offering cost | 1,374 | 626 | |||||
Leased assets obtained in exchange for new operating lease liabilities | 11,430 | $ 103,827 | |||||
Conversion of related party loans to member's equity | $ 871 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | (1) Organization and Description of Business The accompanying consolidated financial statements represent the consolidated balance sheets, income statements, changes in permanent equity (deficit), and cash flows of GEN Restaurant Group, Inc and its consolidated subsidiaries, including the Operating Company (the “Company”). The Company operates restaurants which are located in California, Arizona, Hawaii, Nevada, New York, and Texas, specializing in a variety of special flavored meats for Korean barbeque. The following tables lists the Company’s entities in operation as of September 30, 2023 : Name Operating Name State Purpose GEN Restaurant Group, LLC GEN Tustin CA Restaurant GEN Huntington Beach CA Restaurant GEN Oxnard CA Restaurant JC Group International Inc. (S Corp) GEN Henderson NV Restaurant GEN West Covina CA Restaurant GEN Corona CA Restaurant GEN Restaurant Investment, LLC GEN Glendale CA Restaurant GEN California, LLC GEN Fullerton CA Restaurant GEN Mira Mesa CA Restaurant GEN Arizona, LLC GEN Tempe AZ Restaurant GEN Chandler, LLC GEN Chandler AZ Restaurant GEN Nevada, LLC GEN Sahara NV Restaurant GEN Miracle Mile NV Restaurant GEN Alhambra, LLC GEN Alhambra CA Restaurant GEN Cerritos, LLC GEN Cerritos CA Restaurant GEN Cerritos II, LP Gen Cerritos II CA Restaurant GEN Torrance, LLC GEN Torrance CA Restaurant GEN Rancho Cucamonga, LP GEN Rancho Cucamonga CA Restaurant GEN San Jose, LP GEN San Jose CA Restaurant GEN Northridge, LP GEN Northridge CA Restaurant GEN Chino Hills, LP GEN Chino Hills CA Restaurant GEN Carrollton, LP GEN Carrollton TX Restaurant GEN Fort Lauderdale, LP GEN Fort Lauderdale FL Restaurant GEN Fremont, LP GEN Fremont CA Restaurant GEN Concord, LP GEN Concord CA Restaurant GEN Webster, LP GEN Webster TX Restaurant GEN Westgate, LP GEN Westgate CA Restaurant GEN Manhattan NYU, LP GEN Manhattan NY Restaurant GEN Mountain View, LP GEN Mountain View CA Restaurant GKBH Restaurant, LLC GEN Korean BBQ HI Restaurant GEN Hawaii, LLC Investment Company HI Management of GKBH GEN Online, LLC GEN Online CA Website sales GEN Sacramento, LP GEN Sacramento CA Restaurant GEN Pearlridge, LLC GEN Pearlridge HI Restaurant GEN Frisco, LP GEN Frisco TX Restaurant GEN Houston, LLC GEN Houston TX Restaurant GEN Texas, LLC Investment Company TX Management of GEN Houston and GEN Webster GEN Master, LLC Holding Company NV Management GEN Restaurant Management, LLC GRM DE Management As of September 30, 2023, the above entities are collectively owned 100% by the controlling group, except for GEN Hawaii. Prior to the IPO, an outside investor owned 49% of GEN Houston and GEN Wesbster, but as of June 30, 2023, they are 100 % owned by the Company. The Company has an equity method investment in GEN Hawaii, with a 50% ownership share. On September 30, 2023 and December 31, 2022, there wer e 34 a nd 31 restaurants in operation, respectively. During the third quarter of 2023, the Company signed two leases for restaurants in Orlando, FL for a period of 10 years and a lease for another restaurant in Manhattan, NY (Sixth Street) for a period of twenty years . Organization GEN Restaurant Group, Inc. (“GEN Inc.”) was formed as a Delaware corporation on October 28, 2021. GEN Inc. is a holding company that was formed for the purpose of completing an underwritten initial public offering (“IPO”) of shares of its Class A common stock (as defined below) and other related Transactions (as defined below) in order to carry on the business of GEN Restaurant Companies, LLC (“GEN LLC”, or the “Operating Company”), the predecessor of GEN Inc. for financial reporting purposes. The Operating Company was organized under the laws of the state of Delaware on October 28, 2021, and is based in Cerritos, California. As the managing member of the Operating Company, GEN Inc. operates and controls all the business and affairs of the Operating Company, and through the Operating Company and its consolidated subsidiaries, conducts its business. Unless the context otherwise requires, references to the “Company” refer to GEN Restaurant Group, Inc., and its consolidated subsidiaries, including the Operating Company. The authorized shares of GEN Inc. consist of (i) shares of Class A common stock, par value $ 0.001 per share (the “Class A common stock”) and (ii) shares of Class B common stock, par value $ 0.001 per share (the “Class B common stock”). See “Initial Public Offering and Organizational Transactions” below for the description of the IPO and the Transactions completed in June 2023. The Operating Company has been determined to be the predecessor for accounting purposes and, accordingly, the condensed consolidated financial statements for periods prior to the IPO and the related Transactions have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from January 1, 2023 through June 27, 2023 presented in the condensed consolidated financial statements and condensed notes to the financial statements herein represent the historical operations of the Operating Company. The amounts for the period from June 28, 2023 through September 30, 2023 reflect the consolidated operations of the Company. Initial Public Offering and Organizational Transactions On June 30, 2023, GEN Inc. completed its IPO of 3,600,000 shares of Class A common stock at a public offering price of $ 12.00 per share. In addition, the underwriters purchased an additional 540,000 shares of Class A common stock from selling stockholders pursuant to the exercise of their option to purchase additional shares in the IPO. The sale of shares of Class A common stock by GEN Inc. generated aggregate net proceeds of $ 46.2 million, after deducting the underwriting discounts and commissions and offering expenses payable by GEN Inc. GEN Inc. contrib uted all of the net proceeds to the Operating Company in exchange for a number of Class A common units of the Operating Company (“Class A Common Units”) equal to the number of shares of Class A common stock sold by GEN Inc. in the IPO at a price per Class A Common Unit equal to the IPO price per share of Class A common stoc k. After giving effect to the IPO and the related Transactions and the use of the net proceeds from the IPO, GEN Inc. owns approximately 12.8 % of the Operating Company’s outstanding common units. As a result of the IPO, Mr. David Kim and Mr. Jae Chang, Co-CEOs, collectively control approximately 58.6 % of GEN Inc.’s common stock as a result of their ownership of GEN LLC’s Class B common units (“Class B Common Units”), which were issued on a one-to-one basis. Each share of Class B common stock is entitled to ten votes on all matters submitted to a vote of GEN Inc.’s stockholders. As a result of the IPO and the Transactions, GEN Inc. became the managing member of the Operating Company and its principal asset is Class A Common Units of the Operating Company. As the managing member of the Operating Company, GEN Inc. operates and controls all of the business and affairs of the Operating Company, and through the Operating Company and its subsidiaries, conducts its business. Although GEN Inc. has a minority economic interest in the Operating Company, GEN LLC has the sole voting interest in, and controls the management of, the Operating Company, and has the obligation to absorb losses of, and receive benefits from, the Operating Company, which could be significant. GEN Inc. consolidated the Operating Company in its consolidated financial statements and reports a non-controlling interest related to the Class B Common Units held by the members of the Operating Company (other than the Class A Common Units held by GEN Inc.) on its consolidated financial statements. GEN Inc. has a board of directors and executive officers but has no employees. All of the Company’s assets are held by, and all of its operations are conducted through, the Operating Company. All of the Company’s employees are employed by the Operating Company. In connection with the closing of the IPO, GEN Inc. and the Operating Company consummated the following organizational transactions (collectively, the “Transactions”): • The Operating Company adopted the Operating Agreement (the “Operating Agreement”), which converted each member’s existing membership interests in the Operating Company into Class B Common Units, and appointed GEN Inc. as the managing member of the Operating Company; • GEN Inc. restated its certificate of incorporation to, among other things, provide for Class A common stock and Class B common stock; • GEN Inc. issued and sold 4,140,000 shares of its Class A common stock to the purchasers in the IPO (including the underwriters' option to exercise), and used all of the net proceeds received from the IPO to acquire Class A Common Units from the Operating Company at a purchase price per Class A Common Unit equal to the IPO price per share of Class A common stock, less underwriting discounts and commissions, which Class A Common Units represented approximately 12.8 % of the Operating Company’s outstanding common units after the IPO; and • GEN Inc. entered into (i) a Tax Receivable Agreement (the “TRA”) with the Operating Company and the Operating Company’s members and (ii) a Registration Rights Agreement (the “Registration Rights Agreement”) with the Operating Company’s members who, assuming that all of the Class B Common Units of such members are redeemed or exchanged for newly-issued shares of Class A common stock on a one-to-one basis, will own an aggregate of 28,141,566 shares of Class A common stock, representing approximately 98.6 % of the combined voting power of all of GEN Inc’s common stock. Although the actual timing and amount of any payments that GEN Inc will make to the Operating Company’s members under the TRA will vary, GEN Inc. expects those payments to be significant. GEN Inc.’s corporate structure following the IPO, as described above, is commonly referred to as an “Up-C” structure, which is often used by partnerships and limited liability companies when they undertake an initial public offering of their business. The Up-C structure allows the members of the Operating Company to continue to realize tax benefits associated with owning interests in an entity that is treated as a partnership, or “pass-through” entity, for income tax purposes following the IPO. One of these benefits is that future taxable income of the Operating Company that is allocated to its members will be taxed on a flow-through basis and therefore will not be subject to corporate taxes at the Operating Company entity level. Additionally, because the members may redeem their Class B Common Units for shares of GEN Inc.'s Class A common stock on a one-for-one basis, the Up-C structure also provides the members with potential liquidity that holders of non-publicly traded limited liability companies are not typically afforded. GEN Inc. will receive the same benefits as its members because of its ownership of Class A Common Units in an entity treated as a partnership, or “pass-through” entity, for income tax purposes. As GEN Inc. redeems additional Class B Common Units from the Operating Company’s members under the mechanism described above, GEN Inc will obtain a step-up in tax basis in GEN Inc’s share of the Operating Company’s assets. This step-up in tax basis will provide GEN Inc with certain tax benefits, such as future depreciation and amortization deductions that can reduce the taxable income allocable to GEN Inc. GEN Inc. entered into the TRA with the Operating Company and each of the Operating Company’s members, which provides for the payment by GEN Inc to the Operating Company’s members of 85 % of the amount of tax benefits, if any, that GEN Inc. actually realizes (or in some cases, is deemed to realize) as a result of (i) increases in tax basis resulting from the redemption of Class B Common Units and (ii) certain other tax benefits attributable to payments made under the TRA. As a result of the completion of the Transactions, including the IPO: • GEN Inc. is a holding company and its principal asset is the Class A Common Units it holds in the Operating Company; • GEN Inc. is the managing member of the Operating Company and controls the business and affairs of the Operating Company and its subsidiaries; • The purchasers in the IPO (i) own 4,140,000 shares of Class A common stock, representing approximatel y 1.4 % of the combined voting power of all of GEN Inc’s common stock, and (ii) own 100% of the economic interest in GEN Inc. • GEN Inc. owns all of the Class A Common Units of GEN LLC, representing approximately 12.8 % of the distributions made by GEN LLC. While this interest represents a minority of economic interests in GEN LLC, it represents 100 % of the voting interests, and GEN Inc. acts as the managing member of GEN LLC. As a result, GEN Inc. operates and controls all of GEN LLC’s business and affairs and is able to consolidate its financial results into GEN Inc.’s financial statements. • The members of GEN LLC other than GEN Inc. are certain historic owners of GEN Restaurant Group, all of whom, in the aggregate, own 28,141,566 Class B Common Units of GEN LLC and 28,141,566 shares of Class B common stock of GEN Inc. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | (2) Basis of Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying condensed consolidated financial statements of the Company, collectively, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the registration statement filed for the IPO completed on June 30, 2023. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated financial statements, and, in the opinion of management, reflect all adjustments (all of which were considered of normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2023 and for any other interim period or future year. (b) Recently Adopted Accounting Pronouncement s In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, Leases (Topic 842): Common Control Arrangements. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The Company is in the process of evaluating the impact that the adoption of the ASU will have on the consolidated financial statements and related disclosures, which is not expected to be material. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including receivables. In January 2023 , the Company adopted ASU No. 2016-13, and concluded that the adoption of ASC 326 did no t have a material impact on the Company’s recognition of financial instruments within the scope of the standard. ASC Topic 320, “ Investments-Debt Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading, or available-for-sale. During the quarter ended September 30, 2023, the Company adopted ASC 320 and classified its U.S. Treasury and equivalent securities as held-to-maturity. Held to maturity securities are those securities which the Company has the ability and intent to hold until maturity. (c) Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities in the accompanying unaudited condensed consolidated financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP and applicable rules, and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the previously filed registration statement. (d) Equity-Based Compensation The Company accounts for equity-based compensation grants of equity awards to employees in accordance with ASC Topic 718, “ Stock Based Compensation” . The Company issued restricted stock units to its employees. The Company estimates the fair value of the restricted stock units on the grant-date and recognizes the resulting fair value over the requisite service period. The fair value of each restricted stock unit or award is determined based upon the value of the common stock granted or sold. The Company has elected to treat stock-based awards with graded vesting schedules and time-based service conditions as a single award and recognizes stock-based compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for as they occur. (e) Cash and Cash Equivalents The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments are classified as held-to-maturity as the Company has the positive intent and ability to hold the investments until maturity. Held-to-maturity investments are carried at amortized cost. Due to the short-term nature, the carrying amounts reported in the consolidated balance sheet approximate fair value. Cash equivalents consist principally of credit card transactions in transit. As of September 30, 2023 and December 31, 2022 , there were deposits in excess of federally insured amounts of $ 11.6 million and $ 3.5 million, respectively. Carrying Gross Gross Fair Value (in thousands) Cash $ 32,149 $ — $ — $ 32,149 $ 32,149 $ — $ — $ 32,149 U.S. Treasury Securities (included in cash and cash equivalents) $ 20,000 $ 12 $ — $ 20,012 $ 20,000 $ 12 $ — $ 20,012 (f) Concentration Risk The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligation, the Company may be unable to find alternative suppliers. The Company relies on U.S. Foods, an unrelated third-party for a significant portion of its food products. For the three months ended September 30, 2023 and September 30, 2022 , U.S. Foods accounted for approximately 52.9 % and 37.8 % of total food costs, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , U.S. Foods accounted for approximately 45.0 % and 44.8 % of total food costs, respectively. The Company relies on Pacific Global Distribution, Inc. (“PGD”), which provides restaurant supplies such as tableware, napkins, soda, and sauces. PGD is owned by a related party. For the three months ended September 30, 2023 and September 30, 2022 , PGD accounted for approximately 13.7 % and 5.2 % of total operating expenses, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , PGD accounted for approximately 14.9 % and 6.3 % of total operating expenses, respectively. The Company also relies on Wise Universal, Inc. (“Wise”), an entity 60 % owned by a related party, which provides food products for 13 restaurants. For the three months ended September 30, 2023 and September 30, 2022 , Wise accounted for approximately 26.8 % and 26.5 % of total food costs, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , Wise accounted for approximately 23.6 % and 26.7 % of total food costs, respectively. (g) Inventories Inventories consist principally of food and beverages and are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories. (h) Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. Sales tax amounts collected from customers are remitted to governmental authorities and are excluded from sales. (i) Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are stated at the present value of minimum lease payments. The estimated useful service lives are as follows: Equipment 5 - 7 Years Furniture and fixtures 5 - 7 Years Leasehold improvements Shorter of useful life or remaining lease term The Company and its related entities capitalize certain costs in conjunction with improvements to specific sites for planned future restaurants. The Company and its related entities also capitalize certain costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and equipment and are amortized over the shorter of the life of the related leasehold improvements or the remaining lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying condensed consolidated income statements. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the nine months ended September 30, 2023 and September 30, 2022 as any amounts were deemed immaterial. (j) Other Assets and Other Current Liabilities Other assets as of September 30, 2023 and December 31, 2022 consist of the following: (in thousands) September 30, December 31, Other Assets Security Deposits $ 465 $ 444 Liquor Licenses 215 224 Other 12 15 Total Other Assets $ 692 $ 683 Other Current Liabilities as of September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, Other Current Liabilities Sales tax payable $ 1,259 $ 1,468 Accrued percentage rent 1,268 1,246 Deferred offering costs 1,374 319 Misc. accrued expenses 2,201 1,591 Total Other Current Liabilities $ 6,102 $ 4,624 (k) Advances from members Advances from members consist of funding received from member owners. As of September 30, 2023 , the members had funded a total of $ 7.7 million of which $ 4.8 million was paid and immediately received as an equity contribution as part of the IPO transaction. As of December 31, 2022 , the members had funded a total of $ 4.4 million in cash to cover a portion of the costs of the IPO. (See Note 14 for further discussion). (l) Pre-Opening Costs Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $ 0.7 million and $ 0.4 million for the three months ended September 30, 2023 and September 30, 2022 , respectively, and $ 2.1 million and $ 1.0 million for the nine months ended September 30, 2023 and September 30, 2022 , respectively. (m) Income Taxes Prior to the IPO, the Company and its related entities are organized as limited liability companies or limited partnerships and are treated as pass-through entities for federal and state income tax purposes. As the Company and its related entities have elected to be treated as partnerships for income tax purposes and are not subject to federal or state income taxes, income or loss is included in the tax returns of the members or the partners of the Company and its related entities based on their respective shares. Deferred tax assets are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes positions taken or expected to be taken in a tax return in accordance with existing accounting guidance on income taxes which prescribes a recognition threshold and measurement process. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 % likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other non-interest expense, respectively. In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. (n) Long-Lived Assets Long-lived assets, such as property and equipment owned, are reviewed quarterly for impairment and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long- lived asset or asset group to be tested for possible impairment, undiscounted cash flows expected to be generated by that asset or asset group are compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not expected to be recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. We assessed our long-lived assets for potential impairment with the result that no impairment charges were recorded in any of the periods presented. (o) Interest Expense A reconciliation of total interest cost to interest expense as reported in the condensed consolidated income statement for the three and nine months ended September 30, 2023 and September 30, 2022 is as follows: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Interest cost capitalized $ — $ — $ — $ — Interest expense 216 244 733 582 PPP interest expense forgiven — — — ( 4 ) Interest income ( 406 ) ( 41 ) ( 527 ) ( 138 ) Interest expense, net $ ( 190 ) $ 203 $ 206 $ 440 (p) Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are qualitatively tested on an annual basis for impairment. Liquor licenses are included in other assets in the accompanying balance sheets. (q) Sales Taxes Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the condensed consolidated income statements as restaurant sales are recorded net of sales tax. (r) Advertising Costs Advertising costs are expensed as incurred and are included in General and Administrative costs in the accompanying condensed consolidated income statements. The Company incurred approximately $ 42 thousand and $ 35 thousand in advertising expenses for the three months ended September 30, 2023 and September 30, 2022 , respectively. The Company incurred approximately $ 131 thousand and $ 126 thousand in advertising expenses for the nine months ended September 30, 2023 and September 30, 2022 , respectively. (s) Risks and Uncertainties. We have been subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of all of our restaurants. In the second quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurants. While restrictions on the type of operations and occupancy capacity may continue to change, by the end of the first quarter of 2022 all of our restaurants were operating at full capacity with no capacity restrictions remaining. We cannot predict whether COVID-19 outbreaks will reoccur or whether variants will spike, what additional restrictions may be enacted, to what extent we can maintain sales volumes during or following any resumption of mandated social distancing protocols or vaccination or mask mandates and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The ongoing effects of the COVID-19 pandemic, including, but not limited to, labor-related impacts, supply chain disruptions and changes in consumer behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position. The Company has experienced, and in the future may experience, inflation related to its purchase of certain food products that the Company needs to operate its business. This price volatility could potentially have a material impact on the Company’s financial condition and/or its results of operations. In order to mitigate price volatility, the Company monitors cost fluctuations and may adjust its prices accordingly. The Company’s ability to compensate for higher costs through increased pricing may be limited by the competitive environment in which the Company operates. (t) Restaurant Revitalization Fund Several of the Company’s restaurants received, between May and August 2021, a total of approximately $ 16.8 million from the Restaurant Revitalization Fund (“RRF”). The RRF funds must be used for specific purposes, and the Company was required to provide use of funds validation on an annual basis through March 2023. The Company accounted for the RRF funds as a government grant and has recognized the amounts as income as related expenses were incurred. During the year ended December 31, 2021 , the Company recognized approximately $ 13.0 million as RRF grant income and had deferred the remaining balance of $ 3.8 million. No RRF grant income was recognized during the nine months ended September 30, 2023 and September 30, 2022 . (u) Employee Retention Credits In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit (“ERC”), a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. We qualified for the ERC in the first and second quarters of 2019, second and fourth quarters of 2020 and first, second and third quarters of 2021. During the three months ended September 30, 2023 and September 30, 2022 , we recorded an aggregate benefit of $ 0 and $ 64 thousand, respectively, in our condensed consolidated income statements to reflect the ERC. During the nine months ended September 30, 2023 and September 30, 2022 , we recorded an aggregate benefit of $ 2.5 million and $ 2.6 million, respectively, in our condensed consolidated income statements to reflect the ERC. (u) Deferred Offering Costs The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximatel y $ 3.3 m illion were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at September 30, 2023 . (v) Net Income Per Share Basic net income per share is computed by dividing net income attributable to the Company by the weighted average number of shares outstandin g during the period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.” |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (3) Fair Value of Financial Instruments T he Company's financial instruments consist of cash and cash equivalents and investments. The carrying amounts reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents approximate fair value because of the short-term maturity of those instruments. Fair value measurements are classified and disclosed in one of the following three categories: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets of liabilities. As of September 30, 2023, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs. The Company's financial assets valued based on Level 1 inputs consist of cash and money market funds. The Company's financial assets based on Level 2 inputs consist of U.S. treasury securities. Fair Value Measurements at September 30, 2023 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 32,149 $ 32,149 $ — $ — U.S. Treasury Securities (included in cash and cash equivalents) $ 20,012 $ 20,000 $ 12 $ - |
Notes Receivable from Related P
Notes Receivable from Related Party | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Notes Receivable from Related Party | (4) Notes Receivable from Related Party The Notes receivable from related party balance as of December 31, 2022 , was $ 10.9 million with accrued interest income receivable of $ 164 thousand. During the period ended June 30, 2023, the Company provided an additional $ 2.1 million in loans to the related party. The Company recorded $ 94 thousand and $ 172 thousand as interest income during the three and nine months ended September 30, 2023, respectively. As part of the IPO transaction in June 2023, the loan along with the accrued interest was repaid in full and immediately distributed to owners’ equity and the balance was zero as of September 30, 2023 . |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (5) Property and Equipment, Net The costs and related accumulated depreciation and amortization of major classes of property: Nine months ended Year ended (in thousands) September 30, December 31, Equipment 13,206 9,578 Furniture and fixtures 4,309 4,050 Leasehold improvements 35,618 32,157 Other assets 449 448 Construction in progress 5,145 2,435 $ 58,727 $ 48,668 Less accumulated depreciation and amortization ( 30,919 ) ( 27,385 ) Property and Equipment, Net $ 27,808 $ 21,283 The construction in progress balance on September 30, 2023 is related to new stores currently being developed for openings expected in 2023 and 2024. Total depreciation and amortization for the nine months ended September 30, 2023 and September 30, 2022 was $ 3.5 million and $ 3.3 million, respectively, of which $ 105 thousand and $ 134 thousand for those periods were related to assets acquired under a finance lease. |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | (6) Equity Method Investment On April 1, 2016, GEN Hawaii made an investment of $ 200 thousand for a 50 % interest in GKBH Restaurant LLC (“GKBH”), which operates a GEN restaurant in Hawaii. The Company does not control major operational and financial decisions, which require consent from the other owner. During the nine months ended September 30, 2023, and September 30, 2022, the Company received distributions of $ 575 thousand and $ 400 thousand, respectively, from GKBH. A summary of the GKBH financial position for the nine months ended September 30, 2023 and December 31, 2022 and results of operations as of September 30, 2023, and September 30, 2022 is as follows (unaudited): (in thousands) September 30, December 31, Current assets 740 846 Noncurrent assets 2,480 892 Current liabilities 883 367 Noncurrent liabilities 1,206 130 Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Net sales or gross revenue 1,888 1,932 5,657 5,517 Operating income 1,263 1,295 3,805 3,726 Interest expense — — — — Net income 107 140 1,040 1,843 Net income attributable to the entity 53 70 520 921 |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | (7) Line of Credit During March 2022 the Company entered into a line of credit for $ 8.0 million with Pacific City Bank (“PCB”). These funds were used to pay off related party loans payable. The line of credit matured on September 3, 2023 , and bore interest at a variable interest rate which was defined as the Wall Street Journal Prime Rate plus 1.75 %, re sulting in an interest rate of 10.25 % on August 16, 2023, when paid in full. Only interest payments were due monthly with the principal balance to be paid in one payment at the maturity date. On August 16, 2023, the Company repaid in full the obligation under the line of credit plus accrued interest of $ 29 thousand. The balance as of September 30, 2023 and December 31, 2022 was $ 0 and $ 6.9 million, respectively. On September 29, 2023, the Company entered into a new line of credit agreement for $ 20.0 million with PCB. The line of credit matures on September 25, 2024 , and bears interest at a variable rate per annum equal to The Wall Street Journal Prime Rate, plus 0.25 % resulting in an initial rate of 8.750 %. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | (8) Notes Payable Notes Payable to Bank On September 13, 2017, the Company and a commercial bank entered into a loan agreement in the amount of $ 3.0 million with a maturity date of September 15, 2024 , at an interest rate of 6.00 %. On September 2, 2020 , the loan was amended for the amount of the balloon payment due on September 15, 2024. The Company pays $ 44 thousand each month and will pay one last payment estimated at $ 263 thousand due on September 15, 2024. Interest on this loan is computed on a 365/360 basis, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days in the monthly period. This calculation method results in a slightly higher effective interest rate than the numeric interest rate originally stated. This note is guaranteed by six of the Company’s entities and is cross guaranteed by related party entities. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full. The balance as of September 30, 2023 and December 31, 2022 was $ 0 and $ 1.1 million, respectively. During the first quarter of 2023, the Company and a commercial bank entered into a loan agreement in the amount of $ 1.3 million with a maturity date of February 6, 2030 , at a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.00 %, resulting in an interest rate of 9.25 % as of August 16, 2023. Principal and interest payments were due monthly and commenced in March 2023. On August 16, 2023, the Company paid the outstanding balance plus accrued interest in full. Economic Injury Disaster Loan (EIDL) On July 1, 2020, the Company executed the standard loan documents for six restaurants required for securing an EIDL loan from the United States Small Business Administration (the “SBA”) under its Economic Injury Disaster Loan assistance program. This assistance was sought in light of the impact of the COVID-19 pandemic on the Company’s business. During the twelve months ended December 31, 2022 , the Company received $ 2.6 million in additional EIDL loans. As of September 30, 2023 and December 31, 2022 , the total principal amount of the EIDL loans was $ 4.5 million for both periods and the proceeds were used for working capital purposes. Interest on the EIDL loans accrues at 3.75 % per annum and installment payments, including principal and interest, are due monthly beginning twelve months from the date of each loan. The balance of principal and interest is payable over thirty years from the date of the promissory note. Note Payable to Landlord In August 2017, GEN Fremont entered into a note agreement with a landlord. The Company is making equal monthly payments on this note which has a July 2027 maturity date, with an interest rate of 8.00 % per annum. As of September 30, 2023 and December 31, 2022 , the loan balance outstanding was $ 288 thousand and $ 334 thousand, respectively. The aggregate maturities of all third party notes payable as of September 30, 2023: (in thousands) 2023 - remaining $ 42 2024 170 2025 179 2026 189 2027 169 Thereafter 4,002 $ 4,751 Less current portion of notes payable ( 42 ) Long term portion $ 4,709 |
Related Party Notes Payable
Related Party Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Notes Payable | (9) Related Party Notes Payable Each of the entities, GEN Alhambra, GEN Cerritos, GEN Torrance, GEN Rancho Cucamonga, GEN San Jose, GEN Northridge, GEN Chino Hills, GEN Carrolton, GEN Hawaii, GEN Fremont, GEN Online, GEN Concord, GEN Westgate, GEN Mountain View, GEN Sacramento, GEN Pearlridge, GEN Frisco, and GEN Texas (collectively, the “Borrowers”) had notes payable to Ignite Enterprise, LLC, (“Ignite”), an entity owned by one of the members of the Company, with similar terms. Each note allowed for draws to be made as individual loans. The total amount of loans under each note payable became due on the fifth anniversary of such note. Maturity dates ranged from January 2020 to December 2025 . Interest accrued on each loan using the simple interest method at interest rates ranging from 2.75 % to 5.00 % of the outstanding principal balance. Interest was paid annually, one year in arrears. Ignite had a security interest in the assets of the Borrowers. There were no financial covenants in the note payable agreements. As of December 31, 2021 the outstanding principal under the Ignite notes payable was $ 7.7 million. During the month of March 2022, the Company repaid the entire $ 7.7 million principal balance outstanding on the notes payable. After repaying the notes payable of $ 7.7 million with Ignite, the Company signed additional note agreements with Ignite in 2022 and the outstanding principal under Ignite notes payable was $ 1.1 million as of December 31, 2022. During 2022, the member owners loaned $ 1.9 million to the Company for the construction and pre-opening costs at the new GEN Webster restaurant location. As of September 30, 2023 , the loan balance outstanding was $ 1.1 million. The loans bear interest of 3.00 % per year and mature on November 25, 2023 . In December 2022, the member owners loaned an additional $ 500 thousand to the Company for construction and pre-opening costs. The loan has a variable interest rate which is defined as the Wall Street Journal Prime Rate plus 1.75 %, resulting in an interest rate of 9.25 % at December 31, 2022 . During January 2023, the Company repaid $ 500 thousand towards the Note Payable – related party. During March 2023, the member owner loaned another $ 500 thousand to the Company of which $ 150 thousand was repaid prior to the IPO transaction, and as part of the IPO transaction, the remaining loan balance was repaid in full and immediately contributed to owners’ equity. The aggregate maturities of notes payable from related parties as of September 30, 2023, are as follows: (in thousands) 2023 1,062 2024 — 2025 — Less current portion of notes payable: ( 1,062 ) Notes Payable, net of current portion: — Interest expense incurred for the related party debt was $ 38 thousand and $ 18 thousand for the three months ended September 30, 2023 and September 30, 2022, respectively. Interest expense incurred for the related party debt was $ 109 thousand and $ 44 thousand for the nine months ended September 30, 2023 and September 30, 2022 , respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | (10) Leases At inception of a contract, the Company assesses whether a contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment and kitchen equipment. Our leases have remaining lease terms of less than 1 year to up to 25 years, including options to extend many of the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. Operating leases are accounted for on the balance sheet with the lease assets and liabilities recognized in “Operating lease assets”, “Operating lease liabilities, current” and “Operating lease liabilities, net of current portion”. Finance lease liabilities are recognized on the balance sheet in “Obligations under finance leases, current” and “Obligations under finance leases, net of current portion”. Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the maturities of the leases. We estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. Operating lease assets are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease liabilities are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives. The following table summarizes the operating and finance lease activities to the income statement and balance sheet for the three months ended September 30, 2023 and the nine months ended September 30, 2023: (in thousands) Three months ended Nine months ended Operating lease cost Classification September 30, 2023 September 30, 2023 Operating lease cost Occupancy and related expenses, and General and administrative expenses $ 2,971 $ 8,643 Variable lease cost Occupancy and related expenses, and General and administrative expenses 801 2,233 Total operating lease cost $ 3,772 $ 10,876 Supplemental balance sheet information related to leases: Operating leases September 30, 2023 December 31, 2022 Operating lease assets $ 98,479 $ 90,713 Operating lease liabilities, current 4,376 4,096 Operating lease liabilities, net of current portion 109,389 100,872 Total operating lease liabilities $ 113,765 $ 104,968 Finance lease assets, net September 30, 2023 December 31, 2022 Property and equipment $ 902 $ 905 Accumulated depreciation ( 838 ) ( 714 ) Property and equipment, net $ 64 $ 191 Finance lease liabilities September 30, 2023 December 31, 2022 Obligations under finance leases, current $ 40 $ 134 Obligations under finance leases, net of current portion 130 185 Total finance lease liabilities $ 170 $ 319 Nine months ended September 30, 2023 Weighted Average Remaining Lease Term (Years) Operating leases 15.3 Finance leases 1.0 Weighted Average Discount Rate Operating leases 5.83 % Finance leases 7.42 % Maturities of lease liabilities as of September 30, 2023: Operating Leases Finance Leases (in thousands) 2023 (remaining months) $ 2,408 $ 40 2024 10,793 138 2025 11,062 — 2026 11,264 — 2027 11,472 — Thereafter 143,332 — Total undiscounted lease payments $ 190,331 $ 178 Present value discount/interest ( 76,566 ) ( 8 ) Present value 113,765 170 Lease liabilities, current 4,376 40 Lease liabilities, net of current 109,389 130 Total operating lease liability $ 113,765 $ 170 As of September 30, 2023 , the Company had additional operating leases related to new restaurants the Company has not yet taken possession of that will total $ 38.6 million in future lease payment commitments. These operating leases are expected to commence later in fiscal year 2023 and have lease terms, including option periods, of 20 to 25 years. The Company is obligated under finance leases covering certain property and equipment that expire at various dates during the next 2 years. On September 30, 2023 and September 30, 2022 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows: Period ended (in thousands) September 30, 2023 December 31, 2023 Property and equipment 902 905 Less accumulated depreciation and amortization ( 838 ) ( 714 ) Property and equipment, net $ 64 $ 191 Amortization of assets held under finance leases is included with depreciation expense in the condensed consolidated income statement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies (a) Commitments On November 23, 2016, pursuant to the U.S. government’s Immigrant Investor Program, commonly known as the EB-5 program (the “EB-5 Program”), Gen Restaurant Investment, LLC entered into an operating agreement with an investor (the “EB-5 Investor”). Under the terms and conditions of the EB- 5 program, the Company is subject to certain job creation requirements. As part of the EB-5 Program operating agreement, Gen Restaurant Investment, LLC issued 3 units of Series II Preferred Member Interest in exchange for a 30 % interest and received $ 1.5 million, recorded as equity. Five years from the date of issue, (the “Conversion D ate”), or after approval of the l-829 petition to USCIS, the EB-5 Investor has the option to convert the Series II Units into Series I Units. If the EB-5 Investor does not exercise the conversion option, the Company may exercise its call option to purchase the EB-5 Investor’s interests for the fair market value. If approval of the preferred member's I-526 immigration application is denied, the Company is required to repurchase the preferred member's units f or $ 1.5 million. Accordingly, this has been presented as mezzanine equity, not permanent equity, in the accompanying condensed consolidated balance sheets. (b) Contingencies The Company and its related entities are involved in various claims and legal actions arising in the ordinary course of business. On January 21, 2015, the Company received a class-action lawsuit naming Gen Alhambra, LLC, for alleged wage and hour class violations in Los Angeles County, California. This claim was settled during the year ended December 31, 2022 , for an amount of $ 850,000 and was recorded in the Company’s books as Other income (expense). On September 23, 2021, the Company received a lawsuit from an ex-employee naming Gen Cerritos for alleged labor law violations in Los Angeles County, California. The Company plans to continue to defend against this claim and does not expect the outcome of the lawsuit to have a material impact on the financial statements of the Company. On September 17, 2021, the Company received a lawsuit from an ex-employee naming Gen Restaurant Group, LLC for alleged labor law violations in Los Angeles County, California. The Company plans to defend against this claim and does not expect the outcome of the lawsuit to have a material impact on the financial statements of the Company. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes A s a result of the IPO and the Transactions the Company owns a portion of the common units of the Operating Company, which is treated as a partnership for U.S. federal, and most applicable state and local income tax purposes. As a partnership, the Operating Company is generally not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by the Operating Company is passed through to and included in the taxable income or loss of its members in accordance with the terms of the Operating Agreement. The Company is subject to U.S. federal, state and local income taxes based on its share of the Operating Company’s pass-through taxable income. The effective tax rate differs from the statutory tax rate primarily due to the Operating Company’s pass-through structure for U.S. income tax purposes. For the nine months ended September 30, 2023 , the Company did no t have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. Tax Receivable Agreement (“TRA”) Gen, Inc. entered into the TRA, with the Operating Company and each of the members of the Operating Company (the “Members”) that provides for the payment by Gen Inc. to the Members of 85 % of the amount of tax benefits, if any, that the Company may actually realize (or in some circumstances are deemed to realize) as a result of (i) increases in tax basis resulting from any future redemptions that are funded by Gen Inc. or exchanges of Class A Common Units described above in “Note 1—Organization and Description of Business” and (ii) certain other tax benefits attributable to payments made under the TRA. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. The Operating Company expects to benefit from the remaining 15 % of any tax benefits that it may actually realize. The TRA payments are not conditioned upon any continued ownership interest in the Operating Company. The rights of each noncontrolling interest holder under the TRA are assignable to transferees of its interest in the Operating Company. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Operating Company generates each year and the applicable tax rate. As of September 30, 2023 , the Company did no t have a liability related to its projected obligations under the TRA. During the nine months ended September 30, 2023 , Gen Inc. did no t make any payments to members of the Operating Company pursuant to the TRA. |
Non-controlling Interest
Non-controlling Interest | 9 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | (13) Non-Controlling Interest As discussed in “Note 1 – Organization and Description of Business,” the Company consolidates the financial results of the Operating Company and reports a non-controlling interest related to the Class B Common Units held by non-controlling interest holders on its consolidated statements. As of September 30, 2023 , the Company owned 12.8 % of the economic interests in the Operating Company, with the remaining 87.2 % of the economic interest owned by non-controlling interest holders. The non-controlling interests on the accompanying condensed consolidated income statement represents the portion of the income attributable to the economic interests in the Operating Company held by the non-controlling holders of Class B Common Units calculated based on the weighted average non-controlling interests’ ownership during the periods presented. |
Other Related-Party Transaction
Other Related-Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Other Related-Party Transactions | (14) Other Related-Party Transactions The Company purchased approximately $ 577 thousand and $ 732 thousand for the three months ended September 30, 2023, and September 30, 2022 , respectively, of supplies from Pacific Global (“PGD”), which is 100 % owned by Mr. Jae Chang, our Co-Chief Executive Officer and Mr. Chang's direct family. The Company purchased approximately $ 1.9 million and $ 2.6 million for the nine months ended September 30, 2023, and September 30, 2022 , respectively. Outstanding obligations for supply purchases from PGD of approximately $ 51 thousand and $ 33 thousand are included in accounts payable as of September 30, 2023, and September 30, 2022, respectively. In 2016, the Company entered into a management agreement with JL Restaurant Management, Inc (formerly known as J&J Management Group, Inc.) a third party which shares offices with Mr. Jae Chang, our Co-Chief Executive Officer. Pursuant to the agreement, the Company paid approximately $ 90 thousand and $ 0.6 million during the three months ended September 30, 2023, and September 30, 2022 , respectively. The Company paid $ 1.2 million and $ 1.9 million during the nine months ended September 30, 2023 and September 30, 2022, respectively. As of September 30, 2023 and September 30, 2022 , included in accounts payable were payments due for obligations for management services provided by JL Restaurant Management, Inc. of $ 0 and $ 24 thousand, respectively. Following the IPO on June 27, 2023 this management agreement was terminated. The Company purchased food from Wise Universal Inc., an affiliate 60 % owned by Mr. Chang for approximately $ 3.7 million for the three months ended September 30, 2023 and $ 3.6 million for three months ended September 30, 2022 . The Company purchased approximately $ 3.6 million and $ 11.0 million for the nine months ended September 30, 2023, and September 30, 2022, respectively. As of September 30, 2023 and September 30, 2022 , included in accounts payable were outstanding obligations for food purchases from Wise of approximately $ 248 thousand and $ 250 thousand, respectively. On August 29, 2014, the Company entered into a consulting agreement (the “Consulting Agreement”) with Ignite, 100 % owned by Mr. David Kim, our Co-Chief Executive Officer, which provides for annual fees of up to 25 % of gross revenue in exchange for various consulting services. Such consulting fees are only paid to the extent the Company and its related entities have adequate resources as determined by the controlling member. . The Company paid approximately $ 0 and $ 1.3 million for the three months ended September 30, 2023, and September 30, 2022 , respectively, to Ignite for consulting services. The Company paid approximately $ 2.3 million and $ 4.9 million for the nine months ended September 30, 2023, and September 30, 2022, respectively. Following the IPO on June 27, 2023 this agreement was terminated. During the three months ended September 30, 2023 and September 30, 2022 , the Company paid approximately $ 30 thousand and $ 102 thousand to Fast Fabrications, LLC (“Fast Fabrications”), for services related to restaurant interior construction. Fast Fabrications is an affiliate that is 100 % owned by an employee of the Company. That employee is also a partner in several of the LP entities and a member of GEN Hawaii. As of December 31, 2021 , the Company had notes receivable from Ignite and A/R Put-Forever, LP ( 100 % owned by David Kim) totaling $ 21.5 million with interest accruing at 2.5 % per annum. The $ 13.0 million was collected during the three months ending March 31, 2022. During the month of January 2022, the Company received $ 320 thousand from its partners. The remaining balance of approximately $ 13.0 million was repaid in full and immediately distributed to owner’s equity as part of the IPO transaction during June 2023. As of December 31, 2022 , GEN Mountain View had a related party account payable to a company owned by Mr. David Kim, of approximately $ 353 thousand for purchases of fixed assets during 2018. During the nine months ended September 30, 2023, GEN Mountain View paid $ 41 thousand towards this payable. As of September 30, 2022 Gen Restaurant Management had a related party account payable to Ignite of $ 1.0 million for the purchase of inventory. During October and November 2022, the Company had repaid the entire balance. During the year ended December 31, 2021 the owners advanced $ 2.0 million in cash to cover a portion of the costs of the pending IPO transaction. During the year ended December 31, 2022 , the owners advanced an additional $ 2.4 million. Of this total, $ 4.0 million was expensed during the year as deferred offering costs aborted, reflecting poor IPO market conditions at the end of 2022. As of December 31, 2022 , the deferred offering costs balance was zero . The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximately $ 3.3 million were recorded in the Company’s stockholders’ equity as a reduction of additional paid in capital. The Company had no deferred offering costs at September 30, 2023 . |
Net Income Per Shares
Net Income Per Shares | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Shares | (15) Net Income per Share Basic net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive elements. Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive. Prior to the amendment and restatement of the Operating Company’s LLC Agreement in connection with the IPO, the Operating Company’s membership interests were defined solely as percentage interests as the LLC Agreement did not define a number of membership units outstanding or authorized. As a result, a calculation of basic and diluted earnings per unit for the three and nine months ended September 30, 2022 was not presented in the accompanying condensed consolidated unaudited financial statements as a denominator to the calculation could not be determined. The basic and diluted net income per share for the three and nine months ended September 30, 2023 represents the brief period between the IPO listing on June 28, 2023 through September 30, 2023. A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows: Three months ended Nine months ended (in thousands, except per share data) Sept 30, Sept 30, Numerator: Net income $ 2,634 $ 2,719 Less: Net income attributable to non-controlling interest ( 2,297 ) ( 2,371 ) Net income attributable to Class A common stockholders $ 337 $ 348 Denominator: Weighted average shares of Class A common stock outstanding - basic 4,140 4,140 Weighted average shares of Class A common stock outstanding - diluted 4,140 4,140 Net income per share of Class A common stock - basic $ 0.08 $ 0.08 Net income per share of Class A common stock - basic and diluted $ 0.08 $ 0.08 For the three and nine months ended September 30, 2023 , 28,141,566 shares of Class B common stock was excluded from the weighted-average in the computation of diluted net income per share of Class A common stock because the effect would have been anti-dilutive. Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (16) Stock-Based Compensation In connection with the IPO, the Company has granted RSUs to certain team members that generally vest on the five year anniversary of the grant date, or over a five year period with vesting of 20 % each year. Certain non-employee directors of the Company received RSUs that vest on the first anniversary of the grant date, subject to the grantee's continued service through the vesting period. We award restricted stock units (“RSUs”) to certain employees and certain non-employee members of our Board of Directors. Grants of RSUs to our Board of Director fully vest on the first anniversary of the grant date, or upon termination from the Board of Directors for any reason other than for cause, a pro rated portion of the shares vest on the termination date. The employee grants vest in increments over a five year period. The total stock based compensation for the three and nine months ended September 30, 2023 was $ 759 thousand included in general and administrative expenses. Number of RSUs RSUs (Thousands) Non-vested as December 31, 2022 - Granted 1,209 Vested - Canceled - Non-vested as of September 30, 2023 1,209 The aggregate fair value of the RSU's granted during the period was $ 14.6 million. The unrecognized stock-based compensation of $ 13.7 will be recognized over five years . The Company issued 324,000 (or 9 % of the shares of common stock sold in the offering) warrants in connection with the IPO transaction to the underwriters. The warrants expire five years after the effective date of the registration and can be exercised on a cashless basis. As a result, the conversion of some or all of the Warrants may dilute the ownership interests of existing shareholders. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events The Company and its related parties evaluated subsequent events from the balance sheet date through November 14, 2023, the date at which the condensed consolidated financial statements were issued. Store Opening On October 26, 2023, the Company opened a new restaurant on Westheimer Road in Houston, Texas. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying condensed consolidated financial statements of the Company, collectively, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the registration statement filed for the IPO completed on June 30, 2023. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated financial statements, and, in the opinion of management, reflect all adjustments (all of which were considered of normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2023 and for any other interim period or future year. |
Recently Adopted Accounting Pronouncements | (b) Recently Adopted Accounting Pronouncement s In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-01, Leases (Topic 842): Common Control Arrangements. The new guidance requires all lessees in a lease with a lessor under common control to amortize leasehold improvement over the useful life of the common control group and provides new guidance for recognizing a transfer of assets between entities under common control as an adjustment to equity when the lessee no longer controls the use of the underlying asset. This guidance is effective for fiscal years beginning after December 15, 2023. The Company is in the process of evaluating the impact that the adoption of the ASU will have on the consolidated financial statements and related disclosures, which is not expected to be material. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including receivables. In January 2023 , the Company adopted ASU No. 2016-13, and concluded that the adoption of ASC 326 did no t have a material impact on the Company’s recognition of financial instruments within the scope of the standard. ASC Topic 320, “ Investments-Debt Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading, or available-for-sale. During the quarter ended September 30, 2023, the Company adopted ASC 320 and classified its U.S. Treasury and equivalent securities as held-to-maturity. Held to maturity securities are those securities which the Company has the ability and intent to hold until maturity. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities in the accompanying unaudited condensed consolidated financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP and applicable rules, and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the previously filed registration statement. |
Equity-Based Compensation | (d) Equity-Based Compensation The Company accounts for equity-based compensation grants of equity awards to employees in accordance with ASC Topic 718, “ Stock Based Compensation” . The Company issued restricted stock units to its employees. The Company estimates the fair value of the restricted stock units on the grant-date and recognizes the resulting fair value over the requisite service period. The fair value of each restricted stock unit or award is determined based upon the value of the common stock granted or sold. The Company has elected to treat stock-based awards with graded vesting schedules and time-based service conditions as a single award and recognizes stock-based compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for as they occur. |
Cash and Cash Equivalents | (e) Cash and Cash Equivalents The Company and its related entities consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments are classified as held-to-maturity as the Company has the positive intent and ability to hold the investments until maturity. Held-to-maturity investments are carried at amortized cost. Due to the short-term nature, the carrying amounts reported in the consolidated balance sheet approximate fair value. Cash equivalents consist principally of credit card transactions in transit. As of September 30, 2023 and December 31, 2022 , there were deposits in excess of federally insured amounts of $ 11.6 million and $ 3.5 million, respectively. Carrying Gross Gross Fair Value (in thousands) Cash $ 32,149 $ — $ — $ 32,149 $ 32,149 $ — $ — $ 32,149 U.S. Treasury Securities (included in cash and cash equivalents) $ 20,000 $ 12 $ — $ 20,012 $ 20,000 $ 12 $ — $ 20,012 |
Concentration Risk | (f) Concentration Risk The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligation, the Company may be unable to find alternative suppliers. The Company relies on U.S. Foods, an unrelated third-party for a significant portion of its food products. For the three months ended September 30, 2023 and September 30, 2022 , U.S. Foods accounted for approximately 52.9 % and 37.8 % of total food costs, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , U.S. Foods accounted for approximately 45.0 % and 44.8 % of total food costs, respectively. The Company relies on Pacific Global Distribution, Inc. (“PGD”), which provides restaurant supplies such as tableware, napkins, soda, and sauces. PGD is owned by a related party. For the three months ended September 30, 2023 and September 30, 2022 , PGD accounted for approximately 13.7 % and 5.2 % of total operating expenses, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , PGD accounted for approximately 14.9 % and 6.3 % of total operating expenses, respectively. The Company also relies on Wise Universal, Inc. (“Wise”), an entity 60 % owned by a related party, which provides food products for 13 restaurants. For the three months ended September 30, 2023 and September 30, 2022 , Wise accounted for approximately 26.8 % and 26.5 % of total food costs, respectively. For the nine months ended September 30, 2023 and September 30, 2022 , Wise accounted for approximately 23.6 % and 26.7 % of total food costs, respectively. |
Inventories | (g) Inventories Inventories consist principally of food and beverages and are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories. |
Revenue Recognition | (h) Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” Revenue from the operation of the restaurants is recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. Sales tax amounts collected from customers are remitted to governmental authorities and are excluded from sales. |
Property and Equipment | (i) Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Property and equipment under finance leases are stated at the present value of minimum lease payments. The estimated useful service lives are as follows: Equipment 5 - 7 Years Furniture and fixtures 5 - 7 Years Leasehold improvements Shorter of useful life or remaining lease term The Company and its related entities capitalize certain costs in conjunction with improvements to specific sites for planned future restaurants. The Company and its related entities also capitalize certain costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and equipment and are amortized over the shorter of the life of the related leasehold improvements or the remaining lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying condensed consolidated income statements. The Company and its related entities did not capitalize any internal costs related to site preparation and construction activities during the nine months ended September 30, 2023 and September 30, 2022 as any amounts were deemed immaterial. |
Other Assets and Other Current Liabilities | (j) Other Assets and Other Current Liabilities Other assets as of September 30, 2023 and December 31, 2022 consist of the following: (in thousands) September 30, December 31, Other Assets Security Deposits $ 465 $ 444 Liquor Licenses 215 224 Other 12 15 Total Other Assets $ 692 $ 683 Other Current Liabilities as of September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, Other Current Liabilities Sales tax payable $ 1,259 $ 1,468 Accrued percentage rent 1,268 1,246 Deferred offering costs 1,374 319 Misc. accrued expenses 2,201 1,591 Total Other Current Liabilities $ 6,102 $ 4,624 |
Advances from Members | (k) Advances from members Advances from members consist of funding received from member owners. As of September 30, 2023 , the members had funded a total of $ 7.7 million of which $ 4.8 million was paid and immediately received as an equity contribution as part of the IPO transaction. As of December 31, 2022 , the members had funded a total of $ 4.4 million in cash to cover a portion of the costs of the IPO. (See Note 14 for further discussion). |
Pre-Opening Costs | (l) Pre-Opening Costs Pre-opening costs, incurred in connection with the opening of new restaurants, are expensed as incurred. Pre-opening costs were $ 0.7 million and $ 0.4 million for the three months ended September 30, 2023 and September 30, 2022 , respectively, and $ 2.1 million and $ 1.0 million for the nine months ended September 30, 2023 and September 30, 2022 , respectively. |
Income Taxes | (m) Income Taxes Prior to the IPO, the Company and its related entities are organized as limited liability companies or limited partnerships and are treated as pass-through entities for federal and state income tax purposes. As the Company and its related entities have elected to be treated as partnerships for income tax purposes and are not subject to federal or state income taxes, income or loss is included in the tax returns of the members or the partners of the Company and its related entities based on their respective shares. Deferred tax assets are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes positions taken or expected to be taken in a tax return in accordance with existing accounting guidance on income taxes which prescribes a recognition threshold and measurement process. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 % likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties on tax liabilities, if any, would be recorded in interest expense and other non-interest expense, respectively. In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. |
Long-Lived Assets | (n) Long-Lived Assets Long-lived assets, such as property and equipment owned, are reviewed quarterly for impairment and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long- lived asset or asset group to be tested for possible impairment, undiscounted cash flows expected to be generated by that asset or asset group are compared to its carrying amount. If the carrying amount of the long-lived asset or asset group is not expected to be recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. We assessed our long-lived assets for potential impairment with the result that no impairment charges were recorded in any of the periods presented. |
Interest Expense | (o) Interest Expense A reconciliation of total interest cost to interest expense as reported in the condensed consolidated income statement for the three and nine months ended September 30, 2023 and September 30, 2022 is as follows: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Interest cost capitalized $ — $ — $ — $ — Interest expense 216 244 733 582 PPP interest expense forgiven — — — ( 4 ) Interest income ( 406 ) ( 41 ) ( 527 ) ( 138 ) Interest expense, net $ ( 190 ) $ 203 $ 206 $ 440 |
Liquor Licenses | (p) Liquor Licenses Liquor licenses are deemed to have indefinite useful lives and are qualitatively tested on an annual basis for impairment. Liquor licenses are included in other assets in the accompanying balance sheets. |
Sales Taxes | (q) Sales Taxes Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the condensed consolidated income statements as restaurant sales are recorded net of sales tax. |
Advertising Costs | (r) Advertising Costs Advertising costs are expensed as incurred and are included in General and Administrative costs in the accompanying condensed consolidated income statements. The Company incurred approximately $ 42 thousand and $ 35 thousand in advertising expenses for the three months ended September 30, 2023 and September 30, 2022 , respectively. The Company incurred approximately $ 131 thousand and $ 126 thousand in advertising expenses for the nine months ended September 30, 2023 and September 30, 2022 , respectively. |
Risks and Uncertainties | (s) Risks and Uncertainties. We have been subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of all of our restaurants. In the second quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurants. While restrictions on the type of operations and occupancy capacity may continue to change, by the end of the first quarter of 2022 all of our restaurants were operating at full capacity with no capacity restrictions remaining. We cannot predict whether COVID-19 outbreaks will reoccur or whether variants will spike, what additional restrictions may be enacted, to what extent we can maintain sales volumes during or following any resumption of mandated social distancing protocols or vaccination or mask mandates and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The ongoing effects of the COVID-19 pandemic, including, but not limited to, labor-related impacts, supply chain disruptions and changes in consumer behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position. The Company has experienced, and in the future may experience, inflation related to its purchase of certain food products that the Company needs to operate its business. This price volatility could potentially have a material impact on the Company’s financial condition and/or its results of operations. In order to mitigate price volatility, the Company monitors cost fluctuations and may adjust its prices accordingly. The Company’s ability to compensate for higher costs through increased pricing may be limited by the competitive environment in which the Company operates. |
Restaurant Revitalization Fund | (t) Restaurant Revitalization Fund Several of the Company’s restaurants received, between May and August 2021, a total of approximately $ 16.8 million from the Restaurant Revitalization Fund (“RRF”). The RRF funds must be used for specific purposes, and the Company was required to provide use of funds validation on an annual basis through March 2023. The Company accounted for the RRF funds as a government grant and has recognized the amounts as income as related expenses were incurred. During the year ended December 31, 2021 , the Company recognized approximately $ 13.0 million as RRF grant income and had deferred the remaining balance of $ 3.8 million. No RRF grant income was recognized during the nine months ended September 30, 2023 and September 30, 2022 . |
Employee Retention Credits | (u) Employee Retention Credits In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit (“ERC”), a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. We qualified for the ERC in the first and second quarters of 2019, second and fourth quarters of 2020 and first, second and third quarters of 2021. During the three months ended September 30, 2023 and September 30, 2022 , we recorded an aggregate benefit of $ 0 and $ 64 thousand, respectively, in our condensed consolidated income statements to reflect the ERC. During the nine months ended September 30, 2023 and September 30, 2022 , we recorded an aggregate benefit of $ 2.5 million and $ 2.6 million, respectively, in our condensed consolidated income statements to reflect the ERC. |
Deferred Offering Costs | (u) Deferred Offering Costs The Company capitalized certain legal, accounting, and other third-party fees that were directly attributable to GEN Inc’s IPO. Following the successful consummation of the IPO in June 2023, deferred offering costs of approximatel y $ 3.3 m illion were recorded in the Company’s stockholders’ equity as a reduction of additional paid-in capital. The Company had no remaining deferred offering costs assets at September 30, 2023 . |
Net Income Per Share | (v) Net Income Per Share Basic net income per share is computed by dividing net income attributable to the Company by the weighted average number of shares outstandin g during the period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive shares including stock options, restricted stock units, dividend equivalent units, restricted stock awards, and Class B Common Units exchangeable for shares of Class A common stock for the periods after the closing of the IPO on June 30, 2023. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicable. See “Note 15—Net Income per Share.” |
Organization and Description _2
Organization and Description of Business (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of List of Entities in Operation | The following tables lists the Company’s entities in operation as of September 30, 2023 : Name Operating Name State Purpose GEN Restaurant Group, LLC GEN Tustin CA Restaurant GEN Huntington Beach CA Restaurant GEN Oxnard CA Restaurant JC Group International Inc. (S Corp) GEN Henderson NV Restaurant GEN West Covina CA Restaurant GEN Corona CA Restaurant GEN Restaurant Investment, LLC GEN Glendale CA Restaurant GEN California, LLC GEN Fullerton CA Restaurant GEN Mira Mesa CA Restaurant GEN Arizona, LLC GEN Tempe AZ Restaurant GEN Chandler, LLC GEN Chandler AZ Restaurant GEN Nevada, LLC GEN Sahara NV Restaurant GEN Miracle Mile NV Restaurant GEN Alhambra, LLC GEN Alhambra CA Restaurant GEN Cerritos, LLC GEN Cerritos CA Restaurant GEN Cerritos II, LP Gen Cerritos II CA Restaurant GEN Torrance, LLC GEN Torrance CA Restaurant GEN Rancho Cucamonga, LP GEN Rancho Cucamonga CA Restaurant GEN San Jose, LP GEN San Jose CA Restaurant GEN Northridge, LP GEN Northridge CA Restaurant GEN Chino Hills, LP GEN Chino Hills CA Restaurant GEN Carrollton, LP GEN Carrollton TX Restaurant GEN Fort Lauderdale, LP GEN Fort Lauderdale FL Restaurant GEN Fremont, LP GEN Fremont CA Restaurant GEN Concord, LP GEN Concord CA Restaurant GEN Webster, LP GEN Webster TX Restaurant GEN Westgate, LP GEN Westgate CA Restaurant GEN Manhattan NYU, LP GEN Manhattan NY Restaurant GEN Mountain View, LP GEN Mountain View CA Restaurant GKBH Restaurant, LLC GEN Korean BBQ HI Restaurant GEN Hawaii, LLC Investment Company HI Management of GKBH GEN Online, LLC GEN Online CA Website sales GEN Sacramento, LP GEN Sacramento CA Restaurant GEN Pearlridge, LLC GEN Pearlridge HI Restaurant GEN Frisco, LP GEN Frisco TX Restaurant GEN Houston, LLC GEN Houston TX Restaurant GEN Texas, LLC Investment Company TX Management of GEN Houston and GEN Webster GEN Master, LLC Holding Company NV Management GEN Restaurant Management, LLC GRM DE Management |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Investments in Debt Securities | Carrying Gross Gross Fair Value (in thousands) Cash $ 32,149 $ — $ — $ 32,149 $ 32,149 $ — $ — $ 32,149 U.S. Treasury Securities (included in cash and cash equivalents) $ 20,000 $ 12 $ — $ 20,012 $ 20,000 $ 12 $ — $ 20,012 |
Estimated Useful Service Lives | The estimated useful service lives are as follows: Equipment 5 - 7 Years Furniture and fixtures 5 - 7 Years Leasehold improvements Shorter of useful life or remaining lease term |
Other Assets and Other Current Liabilities | Other assets as of September 30, 2023 and December 31, 2022 consist of the following: (in thousands) September 30, December 31, Other Assets Security Deposits $ 465 $ 444 Liquor Licenses 215 224 Other 12 15 Total Other Assets $ 692 $ 683 Other Current Liabilities as of September 30, 2023 and December 31, 2022 consist of the following: September 30, December 31, Other Current Liabilities Sales tax payable $ 1,259 $ 1,468 Accrued percentage rent 1,268 1,246 Deferred offering costs 1,374 319 Misc. accrued expenses 2,201 1,591 Total Other Current Liabilities $ 6,102 $ 4,624 |
Reconciliation of Total Interest Cost to Interest Expense | A reconciliation of total interest cost to interest expense as reported in the condensed consolidated income statement for the three and nine months ended September 30, 2023 and September 30, 2022 is as follows: Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Interest cost capitalized $ — $ — $ — $ — Interest expense 216 244 733 582 PPP interest expense forgiven — — — ( 4 ) Interest income ( 406 ) ( 41 ) ( 527 ) ( 138 ) Interest expense, net $ ( 190 ) $ 203 $ 206 $ 440 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summay of Financial Assets to Fair Value Measurement Valued Using Observable Inputs | As of September 30, 2023, all of the Company's financial assets that were subject to fair value measurement were valued using observable inputs. The Company's financial assets valued based on Level 1 inputs consist of cash and money market funds. The Company's financial assets based on Level 2 inputs consist of U.S. treasury securities. Fair Value Measurements at September 30, 2023 (in thousands) Total Level 1 Level 2 Level 3 Cash $ 32,149 $ 32,149 $ — $ — U.S. Treasury Securities (included in cash and cash equivalents) $ 20,012 $ 20,000 $ 12 $ - |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Costs and Related Accumulated Depreciation and Amortization | The costs and related accumulated depreciation and amortization of major classes of property: Nine months ended Year ended (in thousands) September 30, December 31, Equipment 13,206 9,578 Furniture and fixtures 4,309 4,050 Leasehold improvements 35,618 32,157 Other assets 449 448 Construction in progress 5,145 2,435 $ 58,727 $ 48,668 Less accumulated depreciation and amortization ( 30,919 ) ( 27,385 ) Property and Equipment, Net $ 27,808 $ 21,283 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of GKBH financial position and results of operations | A summary of the GKBH financial position for the nine months ended September 30, 2023 and December 31, 2022 and results of operations as of September 30, 2023, and September 30, 2022 is as follows (unaudited): (in thousands) September 30, December 31, Current assets 740 846 Noncurrent assets 2,480 892 Current liabilities 883 367 Noncurrent liabilities 1,206 130 Three months ended Nine months ended (in thousands) September 30, September 30, September 30, September 30, Net sales or gross revenue 1,888 1,932 5,657 5,517 Operating income 1,263 1,295 3,805 3,726 Interest expense — — — — Net income 107 140 1,040 1,843 Net income attributable to the entity 53 70 520 921 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Maturities of Notes Payable | The aggregate maturities of all third party notes payable as of September 30, 2023: (in thousands) 2023 - remaining $ 42 2024 170 2025 179 2026 189 2027 169 Thereafter 4,002 $ 4,751 Less current portion of notes payable ( 42 ) Long term portion $ 4,709 |
Related Party Notes Payable (Ta
Related Party Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Aggregate Maturities of Notes Payable from Related Parties | The aggregate maturities of notes payable from related parties as of September 30, 2023, are as follows: (in thousands) 2023 1,062 2024 — 2025 — Less current portion of notes payable: ( 1,062 ) Notes Payable, net of current portion: — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of Operating and Finance Lease Activities | The following table summarizes the operating and finance lease activities to the income statement and balance sheet for the three months ended September 30, 2023 and the nine months ended September 30, 2023: (in thousands) Three months ended Nine months ended Operating lease cost Classification September 30, 2023 September 30, 2023 Operating lease cost Occupancy and related expenses, and General and administrative expenses $ 2,971 $ 8,643 Variable lease cost Occupancy and related expenses, and General and administrative expenses 801 2,233 Total operating lease cost $ 3,772 $ 10,876 Supplemental balance sheet information related to leases: Operating leases September 30, 2023 December 31, 2022 Operating lease assets $ 98,479 $ 90,713 Operating lease liabilities, current 4,376 4,096 Operating lease liabilities, net of current portion 109,389 100,872 Total operating lease liabilities $ 113,765 $ 104,968 Finance lease assets, net September 30, 2023 December 31, 2022 Property and equipment $ 902 $ 905 Accumulated depreciation ( 838 ) ( 714 ) Property and equipment, net $ 64 $ 191 Finance lease liabilities September 30, 2023 December 31, 2022 Obligations under finance leases, current $ 40 $ 134 Obligations under finance leases, net of current portion 130 185 Total finance lease liabilities $ 170 $ 319 Nine months ended September 30, 2023 Weighted Average Remaining Lease Term (Years) Operating leases 15.3 Finance leases 1.0 Weighted Average Discount Rate Operating leases 5.83 % Finance leases 7.42 % |
Schedule Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2023: Operating Leases Finance Leases (in thousands) 2023 (remaining months) $ 2,408 $ 40 2024 10,793 138 2025 11,062 — 2026 11,264 — 2027 11,472 — Thereafter 143,332 — Total undiscounted lease payments $ 190,331 $ 178 Present value discount/interest ( 76,566 ) ( 8 ) Present value 113,765 170 Lease liabilities, current 4,376 40 Lease liabilities, net of current 109,389 130 Total operating lease liability $ 113,765 $ 170 |
Gross Amounts of Property and Equipment and Related Accumulated Depreciation and Amortization Recorded under Finance Leases | On September 30, 2023 and September 30, 2022 the gross amounts of property and equipment and related accumulated depreciation and amortization recorded under finance leases were as follows: Period ended (in thousands) September 30, 2023 December 31, 2023 Property and equipment 902 905 Less accumulated depreciation and amortization ( 838 ) ( 714 ) Property and equipment, net $ 64 $ 191 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share | A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows: Three months ended Nine months ended (in thousands, except per share data) Sept 30, Sept 30, Numerator: Net income $ 2,634 $ 2,719 Less: Net income attributable to non-controlling interest ( 2,297 ) ( 2,371 ) Net income attributable to Class A common stockholders $ 337 $ 348 Denominator: Weighted average shares of Class A common stock outstanding - basic 4,140 4,140 Weighted average shares of Class A common stock outstanding - diluted 4,140 4,140 Net income per share of Class A common stock - basic $ 0.08 $ 0.08 Net income per share of Class A common stock - basic and diluted $ 0.08 $ 0.08 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Unit Awards Activity | Number of RSUs RSUs (Thousands) Non-vested as December 31, 2022 - Granted 1,209 Vested - Canceled - Non-vested as of September 30, 2023 1,209 |
Organization and Description _3
Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) Restaurants $ / shares shares | Dec. 31, 2022 Restaurants | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of restaurants | Restaurants | 34 | 31 | |
Proceeds from issuance of Class A common stock sold in IPO, net of underwriting | $ | $ 46,167 | ||
Percentage of operating outstanding common units after the ipo | 12.80% | ||
Orlando, FL | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease term | 10 years | ||
Manhattan, NY | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease term | 20 years | ||
IPO | TRA | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Stock issued during period, shares | 28,141,566 | ||
Common stock voting power percentage | 98.60% | ||
Class A Common Stock | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |
Stock issued during period, shares | 4,140,000 | ||
Underwriters purchased an additional shares | 540,000 | ||
Class A Common Stock | IPO | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Stock issued during period, shares | 3,600,000 | ||
Stock issued price per share | $ / shares | $ 12 | ||
Proceeds from issuance of Class A common stock sold in IPO, net of underwriting | $ | $ 46,200 | ||
Issued and sold of common shares | 4,140,000 | ||
Percentage of combined voting power of common stock | 1.40% | ||
Class B Common Stock | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |
Stock issued during period, shares | 28,141,566 | ||
GEN Inc | IPO | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership interest | 12.80% | ||
GEN Inc | Class B Common Stock | IPO | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collective Ownership interest | 58.60% | ||
GEN LLC | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Subsidiary, Ownership Percentage, Parent | 12.80% | ||
GEN LLC | GEN Inc | Class A Common Stock | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Subsidiary, Ownership Percentage, Parent | 100% | ||
GEN Hawaii, LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Subsidiary, Ownership Percentage, Parent | 100% | ||
GEN LLC | TRA | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Percentage of payment amount of tax benefits | 85% | ||
GEN LLC | Class A Common Stock | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Percentage of distributions | 12.80% | ||
GEN LLC | Class B Common Stock | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Stock issued during period, shares | 28,141,566 | ||
Maximum [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease term | 25 years | ||
Minimum [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease term | 20 years |
Organization and Description _4
Organization and Description of Business - Summary of List of Entities in Operation (Details) | 9 Months Ended |
Sep. 30, 2023 | |
GEN Tustin [Member] | GEN Restaurant Group LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Huntington Beach [Member] | GEN Restaurant Group LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Oxnard [Member] | GEN Restaurant Group LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Henderson [Member] | JC Group International Inc. (S Corp) [Member] | NV | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN West Covina [Member] | JC Group International Inc. (S Corp) [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Corona [Member] | JC Group International Inc. (S Corp) [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Glendale [Member] | GEN Restaurant Investment LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Fullerton [Member] | GEN California LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Mira Mesa [Member] | GEN California LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Tempe [Member] | GEN Arizona LLC [Member] | AZ | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Chandler [Member] | GEN Chandler LLC [Member] | AZ | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Sahara [Member] | GEN Nevada LLC [Member] | NV | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Miracle Mile [Member] | GEN Nevada LLC [Member] | NV | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Alhambra [Member] | GEN Alhambra LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Cerritos [Member] | GEN Cerritos LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
Gen Cerritos II [Member] | GEN Cerritos II LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Torrance [Member] | GEN Torrance LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Rancho Cucamonga [Member] | GEN Rancho Cucamonga LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN San Jose [Member] | GEN San Jose LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Northridge [Member] | GEN Northridge LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Chino Hills [Member] | GEN Chino Hills LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Carrollton [Member] | GEN Carrollton LP [Member] | TX | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Fort Lauderdale [Member] | GEN Fort Lauderdale LP [Member] | FL | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Fremont [Member] | GEN Fremont LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Concord [Member] | GEN Concord, LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Webster [Member] | GEN Webster, LP [Member] | TX | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Westgate [Member] | GEN Westgate, LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Manhattan [Member] | GEN Manhattan NYU, LP [Member] | NY | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Mountain View [Member] | GEN Mountain View, LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Korean BBQ [Member] | GKBH Restaurant, LLC [Member] | HI | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
Investment Company [Member] | GEN Hawaii, LLC [Member] | HI | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Management of GKBH |
Investment Company [Member] | GEN Texas, LLC [Member] | TX | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Management of GEN Houston and GEN Webster |
GEN Online [Member] | GEN Online, LLC [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Website sales |
GEN Sacramento [Member] | GEN Sacramento, LP [Member] | CA | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Pearlridge [Member] | GEN Pearlridge, LLC [Member] | HI | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Frisco [Member] | GEN Frisco, LP [Member] | TX | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
GEN Houston [Member] | GEN Houston, LLC [Member] | TX | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Restaurant |
Holding Company [Member] | GEN Master, LLC [Member] | NV | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Management |
GRM [Member] | GEN Restaurant Management, LLC [Member] | DE | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Purpose | Management |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 shares | Sep. 30, 2023 USD ($) Restaurants | Sep. 30, 2022 USD ($) | Aug. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) Restaurants | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Restaurants | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deposits in excess of federally insured amount | $ 11,600,000 | $ 11,600,000 | $ 3,500,000 | |||||
Related party ownership percentage | 60% | |||||||
Number of restaurants | Restaurants | 34 | 34 | 31 | |||||
Advance from members | $ 7,700,000 | $ 7,700,000 | $ 4,400,000 | |||||
Advances from members repaid | 4,800,000 | 4,800,000 | ||||||
Pre-opening costs | 723,000 | $ 437,000 | 2,123,000 | $ 975,000 | ||||
Impairment charges | 0 | 0 | ||||||
Advertising expense | 42,000 | 35,000 | 131,000 | 126,000 | ||||
Restaurant revitalization fund received | $ 16,800,000 | |||||||
Restaurant revitalization fund grant income | 0 | 0 | $ 13,000,000 | |||||
Restaurant revitalization fund grant income deferred | $ 3,800,000 | |||||||
Employee retention credits | 0 | $ 64,000 | 2,483,000 | $ 2,583,000 | ||||
Deferred offering costs | 0 | 0 | $ 0 | |||||
Common Stock | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Percentage of stock issued to underwriter as warrant | 9% | |||||||
Number of stock converted as warrants | shares | 324,000 | |||||||
IPO | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Deferred offering costs | $ 3,300,000 | $ 3,300,000 | ||||||
Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Tax benefit | 50% | |||||||
U S Foods | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Percent of food cost | 52.90% | 37.80% | 45% | 44.80% | ||||
Pacific Global Distribution Inc | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating expenses concentration risk percent | 13.70% | 5.20% | 14.90% | 6.30% | ||||
Wise Universal, Inc | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Percent of food cost | 26.80% | 26.50% | 23.60% | 26.70% | ||||
Number of restaurants | Restaurants | 13 | 13 | ||||||
ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | ||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 31, 2023 | Jan. 31, 2023 | ||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Cash, Carrying Value/Amortized Cost | $ 32,149 | $ 11,195 |
Cash, Fair Value | 32,149 | |
Investments, Carrying Value/Amortized Cost | 20,000 | |
Investments, Gross Unrealized Gains | 12 | |
Investments, Fair Value | 20,012 | |
U.S. Treasury Securities (included in cash and cash equivalents) | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Investments, Carrying Value/Amortized Cost | 20,000 | |
Investments, Gross Unrealized Gains | 12 | |
Investments, Fair Value | 20,012 | |
Cash | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Cash, Carrying Value/Amortized Cost | 32,149 | |
Cash, Fair Value | $ 32,149 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Service Lives (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Furniture and Fixtures [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Furniture and Fixtures [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life description | Shorter of useful life or remaining lease term |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Other assets | $ 692 | $ 683 |
Security Deposits | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | 465 | 444 |
Liquor Licenses | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | 215 | 224 |
Other Assets | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | $ 12 | $ 15 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 6,102 | $ 4,624 |
Sales Tax Payable | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | 1,259 | 1,468 |
Accrued Percentage Rent | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | 1,268 | 1,246 |
Deferred Offering Costs | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | 1,374 | 319 |
Misc. Accrued Expenses | ||
Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 2,201 | $ 1,591 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Total Interest Cost to Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Interest expense | $ 216 | $ 244 | $ 733 | $ 582 |
PPP interest expense forgiven | (4) | |||
Interest income | (406) | (41) | (527) | (138) |
Interest expense, net | $ (190) | $ 203 | $ 206 | $ 440 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summay of Financial Assets to Fair Value Measurement Valued Using Observable Inputs (Details) - Fair Value Recurring $ in Thousands | Sep. 30, 2023 USD ($) |
U.S. Treasury Securities (included in cash and cash equivalents) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial assets | $ 20,012 |
Cash | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial assets | 32,149 |
Level 1 | U.S. Treasury Securities (included in cash and cash equivalents) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial assets | 20,000 |
Level 1 | Cash | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial assets | 32,149 |
Level 2 | U.S. Treasury Securities (included in cash and cash equivalents) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Financial assets | $ 12 |
Notes Receivable from Related_2
Notes Receivable from Related Party - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||||
Additional Loans to Related Party | $ 2,100 | |||||
Interest income earned from related parties | $ 406 | $ 41 | $ 527 | $ 138 | ||
Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Notes receivable from related party | 0 | 0 | $ 10,900 | |||
Interest income earned from related parties | $ 94 | $ 172 | $ 164 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Costs and Related Accumulated Depreciation and Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 58,727 | $ 48,668 |
Less accumulated depreciation and amortization | (30,919) | (27,385) |
Property and equipment, net | 27,808 | 21,283 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,206 | 9,578 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,309 | 4,050 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 35,618 | 32,157 |
Other Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 449 | 448 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,145 | $ 2,435 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 3,534 | $ 3,258 |
Depreciation and amortization related to finance lease | $ 105 | $ 134 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Apr. 01, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment | $ 558 | $ 618 | ||
GEN LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 12.80% | |||
GKBH | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions received from GKBH | $ 575 | $ 400 | ||
Investment | $ 200 | |||
GKBH | GEN LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 50% |
Equity Method Investment - Summ
Equity Method Investment - Summary of GKBH financial position and results of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Current assets | $ 35,838 | $ 35,838 | $ 14,731 | |||||
Current liabilities | 24,889 | 24,889 | 37,266 | |||||
Operating income | 2,465 | $ 2,849 | 9,010 | $ 8,960 | ||||
Net income | 2,634 | $ 4,531 | 2,774 | $ 5,419 | $ 3,362 | 11,629 | 11,557 | |
Net income attributable to the entity | 337 | 2,387 | 8,431 | 10,490 | ||||
GKBH | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Current assets | 740 | 740 | 846 | |||||
Noncurrent assets | 2,480 | 2,480 | 892 | |||||
Current liabilities | 883 | 883 | 367 | |||||
Noncurrent liabilities | 1,206 | 1,206 | $ 130 | |||||
Net sales or gross revenue | 1,888 | 1,932 | 5,657 | 5,517 | ||||
Operating income | 1,263 | 1,295 | 3,805 | 3,726 | ||||
Net income | 107 | 140 | 1,040 | 1,843 | ||||
Net income attributable to the entity | $ 53 | $ 70 | $ 520 | $ 921 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Aug. 16, 2023 | Mar. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | |||||
Line of credit matured | Sep. 25, 2024 | Sep. 03, 2023 | |||
Interest rate, paid | 10.25% | ||||
Description of periodic payments | Only interest payments were due monthly with the principal balance to be paid in one payment at the maturity date. | ||||
Repayments of lines of credit with accrued interest | $ 29 | ||||
Line of credit | $ 0 | $ 6,894 | |||
Initial interest rate | 8.75% | ||||
Line of Credit | Wall Street Journal Prime Rate | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 0.25% | 1.75% | |||
Pacific City Bank | |||||
Line of Credit Facility [Line Items] | |||||
New line of credit | $ 20,000 | $ 8,000 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 13, 2017 | Aug. 31, 2017 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Aug. 16, 2023 | Dec. 31, 2022 | |
Notes Payable [Line item] | |||||||
Loan agreement, balance | $ 4,751 | ||||||
Economic Injury Disaster Loan | |||||||
Notes Payable [Line item] | |||||||
Loan agreement | $ 4,500 | $ 4,500 | |||||
Loan agreement, interest rate | 3.75% | ||||||
Loan agreement, frequency of payment | monthly | ||||||
Loan amount received | 2,600 | ||||||
Loan, payment period | 30 years | ||||||
Notes Payable to Bank | Commercial Bank Loan Agreement One | |||||||
Notes Payable [Line item] | |||||||
Loan agreement | $ 3,000 | ||||||
Loan agreement, maturity date | Sep. 15, 2024 | ||||||
Loan agreement, interest rate | 6% | ||||||
Loan agreement, monthly balloon payment | $ 44 | ||||||
Loan agreement, frequency of payment | month | ||||||
Loan agreement, last payment estimated, balloon payment | $ 263 | ||||||
Interest rate, terms | Interest on this loan is computed on a 365/360 basis, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days in the monthly period. This calculation method results in a slightly higher effective interest rate than the numeric interest rate originally stated. | ||||||
Loan agreement, balance | $ 0 | 1,100 | |||||
Date of loan amended for balloon payment | Sep. 02, 2020 | ||||||
Notes Payable to Bank | Commercial Bank Loan Agreement Two | |||||||
Notes Payable [Line item] | |||||||
Loan agreement | $ 1,300 | ||||||
Loan agreement, maturity date | Feb. 06, 2030 | ||||||
Loan agreement, interest rate | 9.25% | ||||||
Loan agreement, frequency of payment | monthly | ||||||
Notes Payable to Bank | Commercial Bank Loan Agreement Two | Wall Street Journal Prime Rate | |||||||
Notes Payable [Line item] | |||||||
Loan agreement, variable interest rate | 1% | ||||||
Note Payable to Landlord | |||||||
Notes Payable [Line item] | |||||||
Loan agreement, interest rate | 8% | ||||||
Loan agreement, balance | $ 288 | $ 334 | |||||
Debt instrument maturity month and year | 2027-07 |
Notes Payable - Aggregate Matur
Notes Payable - Aggregate Maturities of Notes Payable (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Maturities of Long-Term Debt [Abstract] | |
2023 - remaining | $ 42 |
2024 | 170 |
2025 | 179 |
2026 | 189 |
2027 | 169 |
Thereafter | 4,002 |
Long term debt | 4,751 |
Less current portion of notes payable | (42) |
Long term portion | $ 4,709 |
Related Party Notes Payable - A
Related Party Notes Payable - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Notes Payable [Line Item] | ||||||||||
Proceeds from related party loans | $ 500 | $ 2,425 | ||||||||
Interest expense | $ 216 | $ 244 | 733 | 582 | ||||||
Ignite | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Notes payable | $ 7,700 | |||||||||
Repayment of notes payable | $ 7,700 | |||||||||
Related Party | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Loan agreement, interest rate | 9.25% | 9.25% | ||||||||
Proceeds from related party loans | $ 500 | $ 500 | ||||||||
Repayment of notes payable | $ 150 | $ 500 | ||||||||
Interest expense | 38 | $ 18 | 109 | $ 44 | ||||||
Related Party | Wall Street Journal Prime Rate | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Interest rate | 1.75% | |||||||||
Related Party | GEN Webster | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Loan agreement, maturity date | Nov. 25, 2023 | |||||||||
Notes payable | $ 1,100 | $ 1,100 | ||||||||
Proceeds from related party loans | $ 1,900 | |||||||||
Loan interest | 3% | 3% | ||||||||
Notes Payable | Ignite | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Financial covenants terms | There were no financial covenants in the note payable agreements. | |||||||||
Notes payable | $ 1,100 | $ 1,100 | ||||||||
Repayment of notes payable | $ 7,700 | |||||||||
Minimum | Ignite | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Loan agreement, maturity date | Jan. 31, 2020 | |||||||||
Interest rate | 2.75% | |||||||||
Maximum | Ignite | ||||||||||
Related Party Notes Payable [Line Item] | ||||||||||
Loan agreement, maturity date | Dec. 31, 2025 | |||||||||
Interest rate | 5% |
Related Party Notes Payable - S
Related Party Notes Payable - Schedule of Aggregate Maturities of Notes Payable from Related Parties (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Related Party Transaction [Line Items] | |
2023 | $ 42 |
2024 | 170 |
2025 | 179 |
Less current portion of notes payable | (42) |
Notes Payable, net of current portion | 4,709 |
Related Party | |
Related Party Transaction [Line Items] | |
2023 | 1,062 |
2024 | 0 |
2025 | 0 |
Less current portion of notes payable | $ (1,062) |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Activity to the Income Statement - Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Total operating lease cost | $ 3,772 | $ 10,876 |
Occupancy and Related Expenses, and General and Administrative Expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 2,971 | 8,643 |
Variable lease cost | $ 801 | $ 2,233 |
Leases - Summary of Operating_2
Leases - Summary of Operating Lease Activity to the Balance Sheet Statement - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 98,479 | $ 90,713 |
Operating lease liabilities, current | 4,376 | 4,096 |
Operating lease liabilities, net of current portion | 109,389 | 100,872 |
Total operating lease liabilities | $ 113,765 | $ 104,968 |
Leases - Summary of Finance Lea
Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||
Property and equipment | $ 902 | $ 905 |
Accumulated depreciation | (838) | (714) |
Property and equipment, net | $ 64 | $ 191 |
Leases - Summary of Finance L_2
Leases - Summary of Finance Lease Activity to the Balance Sheet Statement - Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Obligations under finance leases, current | $ 40 | $ 134 |
Obligations under finance leases, net of current portion | 130 | 185 |
Total finance lease liabilities | $ 170 | $ 319 |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Lease Activity to the Income Statement and Balance sheet- Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Operating leases, Weighted Average Remaining Lease Term (Years) | 15 years 3 months 18 days |
Finance leases, Weighted Average Remaining Lease Term (Years) | 1 year |
Operating leases, Weighted Average Discount Rate | 5.83% |
Finance leases, Weighted Average Discount Rate | 7.42% |
Leases - Schedule Maturities of
Leases - Schedule Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
2023 (remaining months) | $ 2,408 | |
2024 | 10,793 | |
2025 | 11,062 | |
2026 | 11,264 | |
2027 | 11,472 | |
Thereafter | 143,332 | |
Total undiscounted lease payments | 190,331 | |
Present value discount/interest | (76,566) | |
Present value | 113,765 | |
Lease liabilities, current | 4,376 | $ 4,096 |
Lease liabilities, net of current | 109,389 | 100,872 |
Total operating lease liabilities | 113,765 | 104,968 |
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
2023 (remaining months) | 40 | |
2024 | 138 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 178 | |
Present value discount/interest | (8) | |
Present value | 170 | |
Lease liabilities, current | 40 | 134 |
Lease liabilities, net of current | 130 | 185 |
Total finance lease liabilities | $ 170 | $ 319 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Additional operating leases | $ 38.6 |
Finance lease expiry | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 25 years |
Lease term | 25 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Lease term | 20 years |
Leases - Gross Amounts of Prope
Leases - Gross Amounts of Property and Equipment and Related Accumulated Depreciation and Amortization Recorded under Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization [Abstract] | ||
Property and equipment | $ 902 | $ 905 |
Less accumulated depreciation and amortization | (838) | (714) |
Property and equipment, net | $ 64 | $ 191 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Oct. 14, 2022 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Settlement amount | $ 850,000 | |
Investment Banking | ||
Loss Contingencies [Line Items] | ||
Percentage of interest | 30% | |
Equity | $ 1,500,000 | |
Repurchase preferred member's units | $ 1,500,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Interest or penalties | $ 0 |
Percentage of tax benefits due to equity owners | 85% |
Tax receivable agreement percentage of tax benefits remaining realize | 15% |
Liability related to projected obligations | $ 0 |
Tax receivable agreement payments | $ 0 |
Non-controlling Interest - Addi
Non-controlling Interest - Additional Information (Details) - GEN LLC | Sep. 30, 2023 |
Noncontrolling Interest [Line Items] | |
Economic interest owned by operating company | 12.80% |
Economic interest owned by non-controlling interest holders | 87.20% |
Other Related-Party Transacti_2
Other Related-Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 29, 2014 | Jan. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||||||||
Accounts payable for purchases | $ 353,000 | |||||||||
Advanced cash for pending IPO transaction | 2,400,000 | $ 2,000,000 | ||||||||
Deferred offering costs | $ 0 | $ 0 | 0 | |||||||
Aborted deferred offering costs | $ 4,000,000 | |||||||||
Payment towards accounts payable | 41,000 | |||||||||
Pacific Global (PGD) | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchases of company | 577,000 | $ 732,000 | 1,900,000 | $ 2,600,000 | ||||||
Outstanding obligation | 51,000 | 33,000 | $ 51,000 | 33,000 | ||||||
Other related party transactions ownership percentage rate | 100% | |||||||||
JL Restaurant Management, Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Outstanding obligation | 0 | 24,000 | $ 0 | 24,000 | ||||||
Payments to third party | 90,000 | 600,000 | 1,200,000 | 1,900,000 | ||||||
Wise Universal, Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchases of company | 3,700,000 | 3,600,000 | 3,600,000 | 11,000,000 | ||||||
Outstanding obligation | 248,000 | 250,000 | $ 248,000 | 250,000 | ||||||
Other related party transactions ownership percentage rate | 60% | |||||||||
Ignite | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments to third party | 0 | 1,300,000 | $ 2,300,000 | 4,900,000 | ||||||
Other related party transactions ownership percentage rate | 100% | |||||||||
Accounts payable for purchases | 1,000,000 | $ 1,000,000 | ||||||||
Ignite | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Annual fees of gross revenue for consulting services percentage | 25% | |||||||||
Fast Fabrications, LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments to third party | 30,000 | $ 102,000 | ||||||||
Other related party transactions ownership percentage rate | 100% | |||||||||
Ignite and A/R Put-Forever, LP | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notes receivable from related party | $ 21,500,000 | |||||||||
Accruing interest rate | 2.50% | |||||||||
Other related party transactions ownership percentage rate | 100% | |||||||||
Collection from notes receivable | $ 320,000 | $ 13,000,000 | ||||||||
Repayment of remaining balance | $ 13,000,000 | |||||||||
IPO | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Deferred offering costs | $ 3,300,000 | $ 3,300,000 | ||||||||
IPO | Additional Paid-in Capital | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Deferred offering costs | $ 3,300,000 |
Net Income Per Shares - Calcula
Net Income Per Shares - Calculation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share Disclosure [Line Items] | |||||||
Net income | $ 2,634 | $ 4,531 | $ 2,774 | $ 5,419 | $ 3,362 | $ 11,629 | $ 11,557 |
Less: Net income attributable to non-controlling interest | (2,297) | $ (387) | (3,198) | $ (1,067) | |||
Net income attributable to Class A common stockholders | $ 337 | $ 348 | |||||
Weighted average number of shares outstanding basic | 4,140 | 4,140 | |||||
Weighted average number of shares outstanding diluted | 4,140 | 4,140 | |||||
Net income per share basic | $ 0.08 | $ 0.08 | |||||
Net income per share diluted | $ 0.08 | $ 0.08 | |||||
Class A Common Stock | |||||||
Earnings Per Share Disclosure [Line Items] | |||||||
Net income | $ 2,634 | $ 2,719 | |||||
Less: Net income attributable to non-controlling interest | (2,297) | (2,371) | |||||
Net income attributable to Class A common stockholders | $ 337 | $ 348 | |||||
Weighted average number of shares outstanding basic | 4,140 | 4,140 | |||||
Weighted average number of shares outstanding diluted | 4,140 | 4,140 | |||||
Net income per share basic | $ 0.08 | $ 0.08 | |||||
Net income per share diluted | $ 0.08 | $ 0.08 |
Net Income Per Shares - Additio
Net Income Per Shares - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Class B Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average shares, common stock options excluded | 28,141,566 | 28,141,566 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
General and Administrative Expenses | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock based compensation expense | $ 759 | $ 759 | |
RSU | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Aggregate fair value of RSU's granted | 14,600 | ||
Unrecognized stock-based compensation | $ 13,700 | $ 13,700 | |
Unrecognized stock-based compensation period for recognition | 5 years | ||
RSU | Over a Five Year | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Vesting rights percentage | 20% | ||
Employee | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Common Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of stock converted as warrants | 324,000 | ||
Percentage of stock issued to underwriter as warrant | 9% | ||
Warrants expire years | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Unit Awards Activity (Details) - RSU shares in Thousands | 9 Months Ended |
Sep. 30, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Granted | 1,209 |
Non-vested as of September 30, 2023 | 1,209 |