GEN Restaurant Group Inc

Previous wording

GEN Restaurant Group is an Asian casual dining restaurant concept that offers an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, and seafood, all at a superior value. Founded in 2011 by two Korean immigrants, since the opening of our first restaurant in September 2011 we have grown to 40 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Washington and Florida. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across the restaurants.

Current wording

GEN Restaurant Group is an Asian casual dining restaurant concept that offers an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, and seafood, all at a superior value. Founded in 2011 by two Korean immigrants, since the opening of our first restaurant in September 2011 we have grown to 43 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Washington, Oregon and Florida. as of October 31, 2024. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across the restaurants.

Previous wording

We expect to continue growing our number of restaurants in the future. Our new restaurants have generated average payback periods of approximately 1.4 years prior to the IPO. The projected payback periods for new restaurants range from 2.0 to 2.5 years. Restaurants range in size from 4,500 to 12,000 square feet, and are typically located in high-activity commercial areas.

Current wording

We expect to continue growing our number of restaurants in the future. Our new restaurants have generated average payback periods of approximately 1.4 years prior to the IPO. The projected average payback periods for new restaurants range from 2.0 to 2.5 years. Restaurants range in size from 4,500 to 12,000 square feet, and are typically located in high-activity commercial areas.

Previous wording

Our long-term growth strategy is to continue to open new restaurants in locations that we believe will achieve profitability levels consistent with our pre-pandemic experience. During 2023, we opened six new restaurants and through June 2024, we opened three restaurants in Seattle, WA, Dallas, TX, and Jacksonville, FL. As of June 30, 2024 we have sixteen new restaurant locations with leases that have been signed, including eight leases signed during the second quarter of 2024. These locations are in El Paso, TX, La Jolla (San Diego), CA, Waco, TX, Kona, HI, Allston (Boston), MA, Cary, NC, Nashville, TN and Tucson, AZ. We currently expect to open seven to eight additional restaurants during 2024.

Current wording

Our long-term growth strategy is to continue to open new restaurants in locations that we believe will achieve profitability levels consistent with our pre-pandemic experience. During 2023, we opened six new restaurants. Through October 2024, we opened six restaurants in Seattle, WA, Dallas, TX, Jacksonville, FL, Tigard, OR, Maui, HI and Pflugerville, TX. As of November 8, 2024 we have eighteen new restaurant locations with leases that have been signed, including four leases in Texas, three in Florida, two in New York, two in Massachusetts, and one each in the following states: Tennessee, California, Hawaii, Arizona, North Carolina, New Jersey and Illinois. We currently expect to open four additional restaurants during 2024.

Previous wording

We have received approximately $16.8 million in Restaurant Revitalization Fund, or RRF, grants. These grants were recognized as income as the money was spent, with $13.0 million recorded as income as of December 31, 2021, and $3.8 million was deferred as of December 31, 2023 and June 30, 2024. During the year ended December 31, 2022 we received $2.6 million in additional Economic Injury Disaster Loans, or “EIDLs”. There are no additional EIDLs expected. The EIDLs mature in 2050 and 2051, and carry an interest rate of 3.75%. The range of monthly payments under the EIDLs are from $700 to $9,770. As of June 30, 2024, the balance outstanding on the EIDLs was approximately $4.4 million.

Current wording

During the year ended December 31, 2022 we received $2.6 million in additional Economic Injury Disaster Loans, or “EIDLs”. There are no additional EIDLs expected. The EIDLs mature in 2050 and 2051, and carry an interest rate of 3.75%. The range of monthly payments under the EIDLs are from $700 to $9,770. As of September 30, 2024, the balance outstanding on the EIDLs was approximately $4.4 million.

Previous wording

On September 29, 2023, the Company entered into a $20 million line of credit with a bank. The line of credit matures on September 25, 2024 and bears interest at a variable rate per annum equal to 8.75% as of June 30, 2024. No amounts have been borrowed under the line of credit as of June 30, 2024 and December 31, 2023.

Current wording

On September 29, 2023, the Company entered into a $20 million line of credit with a bank. During September 2024, the Company extended the line of credit, which matures on September 25, 2025 and bears interest at a variable rate per annum equal to

Previous wording

The number of restaurant openings reflects the number of restaurants opened during a particular reporting period. Before we open new restaurants, we incur pre-opening costs. New restaurants may not be profitable, and their sales performance may not follow historical patterns. The number and timing of restaurant openings has had, and is expected to continue to have, an impact on our results of operations. We temporarily stopped opening new restaurants in 2021 and 2020 due to the COVID-19 pandemic, but began openings again in 2022. The following table shows the change in our restaurant base for the six months ended June 30, 2024 and June 30, 2023:

Current wording

The number of restaurant openings reflects the number of restaurants opened during a particular reporting period. Before we open new restaurants, we incur pre-opening costs. New restaurants may not be profitable, and their sales performance may not follow historical patterns. The number and timing of restaurant openings has had, and is expected to continue to have, an impact on our results of operations. We temporarily stopped opening new restaurants in 2021 and 2020 due to the COVID-19 pandemic, but began openings again in 2022. The following table shows the change in our restaurant base for the nine months ended September 30, 2024 and September 30, 2023:

Previous wording

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

Current wording

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

Previous wording

Management fees. Management fees include expenses paid to a related third-party entity, which provided fixed fees for 12 restaurants and a percentage of gross revenue for one restaurant in exchange for management services. Following the IPO, management fees were eliminated and corporate general and administrative expenses increased correspondingly.

Current wording

Management fees. Prior to the IPO, management fees include expenses paid to a related third-party entity, which provided fixed fees for 12 restaurants and a percentage of gross revenue for one restaurant in exchange for management services. Following the IPO, management fees were eliminated and corporate general and administrative expenses increased correspondingly.

Previous wording

Employee retention credits. Employee retention credits include refundable credits recognized under the provisions of the CARES Act and extension thereof. During the three months ended June 30, 2024 and June 30, 2023, $0.2 million and $1.3 million respectively, of these credits were received and recorded.

Current wording

Employee retention credits. Employee retention credits include refundable credits recognized under the provisions of the CARES Act and extension thereof.

Previous wording

Other income (loss). Other gain (loss) consists of one-time legal accruals and other miscellaneous items.

Current wording

Other income (loss). Other income (loss) consists of one-time legal accruals and other miscellaneous items.

Previous wording

Revenues. Revenues were $53.9 million for the three months ended June 30, 2024, compared to $46.5 million for the three months ended June 30, 2023, an increase of $7.4 million, or 15.9%. This reflects revenue increases due to having 40 restaurants open in the three months ended June 30, 2024 compared to 34 restaurants open in the three months ended June 30, 2023

Current wording

Revenues. Revenues were $49.1 million for the three months ended September 30, 2024, compared to $45.6 million for the three months ended September 30, 2023, an increase of $3.5 million, or 7.8%. This reflects revenue increases due to having 41 restaurants open in the three months ended September 30, 2024 compared to 34 restaurants open in the three months ended September 30, 2023.

Previous wording

Food costs. Food costs were $17.7 million for the three months ended June 30, 2024, compared to $14.8 million for the three months ended June 30, 2023, an increase of $2.9 million, or 19.7%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 31.8% to 32.9%.

Current wording

Food costs. Food costs were $15.4 million for the three months ended September 30, 2024, compared to $14.5 million for the three months ended September 30, 2023, an increase of $0.9 million, or 6.3%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs decreased from 31.9% to 31.4%.

Previous wording

Payroll and benefits. Payroll and benefits costs were $16.4 million for the three months ended June 30, 2024, compared to $14.3 million for the three months ended June 30, 2023, an increase of $2.0 million, or 14.2%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs decreased slightly from 30.8% to 30.4%.

Current wording

Payroll and benefits. Payroll and benefits costs were $15.0 million for the three months ended September 30, 2024, compared to $14.4 million for the three months ended September 30, 2023, an increase of $0.5 million, or 3.7%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs decreased from 31.7% to 30.5%.

Previous wording

Occupancy expenses. Occupancy expenses were $4.4 million for the three months ended June 30, 2024 compared to $3.7 million for the three months ended June 30, 2023, an increase of $0.7 million, or 19.5%. The increase in occupancy expenses reflects the addition of six new locations. As a percentage of revenue, occupancy expenses were 8.1% in the three months ended June 30, 2024 compared to 7.9% in the three months ended June 30, 2023.

Current wording

Occupancy expenses. Occupancy expenses were $4.1million for the three months ended September 30, 2024 compared to $3.8 million for the three months ended September 30, 2023, an increase of $0.3 million, or 9.1%. The increase in occupancy expenses reflects the addition of seven new locations. As a percentage of revenue, occupancy expenses were 8.4% in the three months ended September 30, 2024 compared to 8.3% in the three months ended September 30, 2023.

Previous wording

Operating expenses. Operating expenses were $5.4 million for the three months ended June 30, 2024 compared to $4.3 million for the three months ended June 30, 2023, an increase of $1.1 million, or 24.6%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 9.9% in the three months ended June 30, 2024 and 9.3% in the three months ended June 30, 2023.

Current wording

Operating expenses. Operating expenses were $5.7 million for the three months ended September 30, 2024 compared to $4.6 million for the three months ended September 30, 2023, an increase of $1.1 million, or 25.0%. The increase in expenses is related to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 11.7% in the three months ended September 30, 2024 and 10.1% in the three months ended September 30, 2023.

Previous wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $1.7 million for the three months ended June 30, 2024 and $1.1 million for the three months ended June 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.2% during the three months ended June 30, 2024 and 2.4% during the three months ended June 30, 2023, with the increase related to more restaurants in operation.

Current wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $1.7 million for the three months ended September 30, 2024 and $1.2 million for the three months ended September 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.5% during the three months ended September 30, 2024 and 2.7% during the three months ended September 30, 2023, with the increase related to more restaurants in operation.

Previous wording

Pre-opening costs. Pre-opening costs were $1.6 million for the three months ended June 30, 2024 compared to $0.9 million for the three months ended June 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

Current wording

Pre-opening costs. Pre-opening costs were $1.8 million for the three months ended September 30, 2024 compared to $0.7 million for the three months ended September 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

Previous wording

Management Fees. We did not incur management fees during the three months ended June 30, 2024 compared to $0.6 million for the three months ended June 30, 2023. This includes expenses paid to a related third-party entity, which consisted of fixed fees for twelve restaurants and a percentage of gross revenue for one restaurant in exchange for management services. These fees were eliminated following the IPO.

Current wording

Management Fees. We did not incur management fees during the three months ended September 30, 2024 or for the three months ended September 30, 2023. These fees were eliminated following the IPO.

Previous wording

Employee retention credits. During the three months ended June 30, 2024, we received approximately $0.2 million in employee retention credits from the IRS, compared to $1.3 million received in the three months ended June 30, 2023.

Current wording

Employee retention credits. During three months ended September 30, 2024, and September 30, 2023 we did not receive any funds related to employee retention credits from the IRS.

Previous wording

Interest income (expense), net. During the three months ended June 30, 2024, interest income (expense), net was $262 thousand in income compared to $207 thousand in expense during the three months ended June 30, 2023. The increase in net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction.

Current wording

Interest income (expense), net. During the three months ended September 30, 2024, interest income (expense), net was $196 thousand of income compared to $190 thousand of income for the three months ended September 30, 2023.

Previous wording

Equity in income (loss) of equity method investee. We did not have equity in income (loss) of equity method investee during the three months ended June 30, 2024, but we had $86 thousand during the three months ended June 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

Current wording

Equity in income (loss) of equity method investee. We did not have equity in income (loss) of equity method investee during the three months ended September 30, 2024, but we had $53 thousand during the three months ended September 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

Previous wording

Revenues. Revenues were $104.6 million for the six months ended June 30, 2024, compared to $90.3 million for the six months ended June 30, 2023, an increase of $14.3 million, or 15.8%. This reflects revenue increases due to having 40 restaurants open in the six months ended June 30, 2024 compared to 34 restaurants open in the six months ended June 30, 2023.

Current wording

Revenues. Revenues were $153.7million for the nine months ended September 30, 2024, compared to $135.9 million for the nine months ended September 30, 2023, an increase of $17.8 million, or 13.1%. This reflects revenue increases due to having 41 restaurants open in the nine months ended September 30, 2024 compared to 34 restaurants open in the nine months ended September 30, 2023.

Previous wording

Food costs. Food costs were $34.7 million for the six months ended June 30, 2024, compared to $29.1 million for the six months ended June 30, 2023, an increase of $5.6 million, or 19.2%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 32.2% to 33.1%.

Current wording

Food costs. Food costs were $50.1 million for the nine months ended September 30, 2024, compared to $43.6 million for the nine months ended September 30, 2023, an increase of $6.5 million, or 14.9%. The increase in food costs reflects more restaurants in operation and inflationary cost increases. As a percentage of revenue, food costs increased from 32.1% to 32.6%.

Previous wording

Payroll and benefits. Payroll and benefits costs were $32.5 million for the six months ended June 30, 2024, compared to $28.0 million for the six months ended June 30, 2023, an increase of $4.5 million, or 16.2%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs increased slightly from 31.0% to 31.1%.

Current wording

Payroll and benefits. Payroll and benefits costs were $47.5 million for the nine months ended September 30, 2024, compared to $42.4 million for the nine months ended September 30, 2023, an increase of $5.0 million, or 12.0%. The increase in payroll and benefits costs reflects the staffing needed to support the higher customer volumes from new restaurants as well as inflationary payroll increases. As a percentage of revenue, payroll and benefits costs decreased slightly from 31.2% to 30.9%.

Previous wording

Occupancy expenses. Occupancy expenses were $8.7 million for the six months ended June 30, 2024, compared to $7.1 million for the six months ended June 30, 2023, an increase of $1.6 million, or 22.2%. The increase in occupancy expenses reflects the addition of eight new locations. As a percentage of revenue, occupancy expenses were 8.3% in the six months ended June 30, 2024 compared to 7.9% in the six months ended June 30, 2023.

Current wording

Occupancy expenses. Occupancy expenses were $12.8 million for the nine months ended September 30, 2024, compared to $10.9 million for the nine months ended September 30, 2023, an increase of $1.9 million, or 17.7%. The increase in occupancy expenses reflects the addition of seven new locations. As a percentage of revenue, occupancy expenses were 8.3% in the nine months ended September 30, 2024 compared to 8.0% in the nine months ended September 30, 2023.

Previous wording

Operating expenses. Operating expenses were $10.5 million for the six months ended June 30, 2024 compared to $8.4 million for the six months ended June 30, 2023, an increase of $2.0 million, or 24.1%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 10.0% in the six months ended June 30, 2024 and 9.3% in the six months ended June 30, 2023.

Current wording

Operating expenses. Operating expenses were $16.2 million for the nine months ended September 30, 2024 compared to $13.0 million for the nine months ended September 30, 2023, an increase of $3.2 million, or 24.4%, as expenses increased to support the revenue growth and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 10.5% in the nine months ended September 30, 2024 and 9.6% in the nine months ended September 30, 2023.

Previous wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $3.2 million for the six months ended June 30, 2024 and $2.2 million for the six months ended June 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.1% during the six months ended June 30, 2024 and 2.5% during the six months ended June 30, 2023, with the increase related to more restaurants in operation.

Current wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $4.9 million for the nine months ended September 30, 2024 and $3.5 million for the nine months ended September 30, 2023. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 3.2% during the nine months ended September 30, 2024 and 2.6% during the nine months ended September 30, 2023, with the increase related to more restaurants in operation.

Previous wording

Pre-opening costs. Pre-opening costs were $3.5 million for the six months ended June 30, 2024 compared to $1.4 million for the six months ended June 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

Current wording

Pre-opening costs. Pre-opening costs were $5.3 million for the nine months ended September 30, 2024 compared to $2.1 million for the nine months ended September 30, 2023. This increase was due to more restaurants under development in 2024 than in 2023.

Previous wording

General and administrative expenses. General and administrative expenses were $5.1 million for the three months ended June 30, 2024 compared to $2.0 million for the three months ended June 30, 2023, an increase of $3.1 million, or 158.3%. As a percentage of revenue, general and administrative expenses increased from 4.2% for the three months ended June 30, 2023 to 9.4% for the three months ended June 30, 2024 as costs shifted post-IPO from consulting and management fees previously paid to related parties and additional costs were incurred to operate as a public company.

Current wording

General and administrative expenses. General and administrative expenses were $15.0 million for the nine months ended September 30, 2024 compared to $7.8 million for the nine months ended September 30, 2023 an increase of $7.1 million, (including a $1.5 million increase in stock-based compensation), or 91.3%. As a percentage of revenue, general and administrative expenses increased from 5.7% for the nine months ended September 30, 2023 to 9.7% for the nine months ended September 30, 2024 as costs shifted post-IPO from consulting and management fees previously paid to related parties and additional costs were incurred to operate as a public company.

Previous wording

Consulting fees - related party. We did not incur consulting fees-related party during the six months ended June 30, 2024 compared to $2.3 million for the six months ended June 30, 2023. These fees were eliminated following the IPO.

Current wording

Consulting fees - related party. We did not incur consulting fees-related party during the nine months ended September 30, 2024 compared to $2.3 million for the nine months ended September 30, 2023. These fees were eliminated following the IPO.

Previous wording

Management Fees. We did not incur management fees for the six months ended June 30, 2024, compared to $1.2 million for the six months ended June 30, 2023. This includes expenses paid to a related third-party entity, which consisted of fixed fees for twelve restaurants and a percentage of gross revenue for one restaurant in exchange for management services. These fees were eliminated following the IPO.

Current wording

Management Fees. We did not incur management fees for the nine months ended September 30, 2024, compared to $1.2 million for the nine months ended September 30, 2023. This includes expenses paid to a related third-party entity, which consisted of fixed fees for twelve restaurants and a percentage of gross revenue for one restaurant in exchange for management services. These fees were eliminated following the IPO.

Previous wording

Employee retention credits. During the six months ended June 30, 2024, we received approximately $0.2 million in employee retention credits from the IRS, compared to $2.5 million received in the six months ended June 30, 2023.

Current wording

Employee retention credits. During the nine months ended September 30, 2024, we received approximately $0.2 million in employee retention credits from the IRS, compared to $2.5 million received in the nine months ended September 30, 2023.

Previous wording

Other income (loss). These were immaterial amounts in the six months ended June 30, 2024 and 2023.

Current wording

Other income (loss). These were immaterial amounts in the nine months ended September 30, 2024 and 2023.

Previous wording

Interest income (expense), net. During the six months ended June 30, 2024 interest income (expense), net was $0.5 million of income compared to $0.4 million of expense during the six months ended June 30, 2023. The increase in net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction.

Current wording

Interest income (expense), net. During the nine months ended September 30, 2024 interest income (expense), net was $0.7 million of income compared to $0.2 million of expense during the nine months ended September 30, 2023. The increase in net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction.

Previous wording

Equity in income (loss) of equity method investee. We did not have equity in income of equity method investee during the six months ended June 30, 2024, compared to $467 thousand during the six months ended June 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

Current wording

Equity in income (loss) of equity method investee. We had negative $17 thousand equity in income of equity method investee during the nine months ended September 30, 2024, compared to $520 thousand during the nine months ended September 30, 2023. During February 2024, the remaining ownership interest in GKBH was acquired and operations were consolidated as of the date of acquisition, February 18, 2024.

Previous wording

The following table reconciles net income to Adjusted EBITDA for the three and six months ended June 30, 2024 and June 30, 2023.

Current wording

The following table reconciles net income to Adjusted EBITDA for the three and nine months ended September 30, 2024 and September 30, 2023.

Previous wording

Stock-based compensation expense: During the first quarter and second quarter of 2024 we incurred expenses related to the granting of Restricted Stock Units (“RSUs”) to employees.

Current wording

Stock-based compensation expense: During the nine months ended September 30, 2024 we incurred expenses related to the granting of Restricted Stock Units (“RSUs”) to employees.

Previous wording

The following table reconciles Income from Operations to Restaurant-Level Adjusted EBITDA for the three and six months ended June 30, 2024 and June 30, 2023:

Current wording

The following table reconciles Income from Operations to Restaurant-Level Adjusted EBITDA for the three and nine months ended September 30, 2024 and September 30, 2023:

Previous wording

As of June 30, 2024 we had $29.2 million of cash and $1.7 million of working capital, which is calculated as current assets minus current liabilities, compared with $32.6 million in cash and $5.5 million of working capital as of December 31, 2023. On June 30, 2023, we completed the IPO of 4,140,000 shares of Class A common stock. The public offering prices of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to us of approximately $46.2 million after deducting the underwriting discounts and commission and offering expenses payable by us.

Current wording

As of September 30, 2024 we had $22.0 million of cash and $(2.7) million of working capital, which is calculated as current assets minus current liabilities, compared with $32.6 million in cash and $5.5 million of working capital as of December 31, 2023. On June 30, 2023, we completed the IPO of 4,140,000 shares of Class A common stock. The public offering prices of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to us of approximately $46.2 million after deducting the underwriting discounts and commission and offering expenses payable by us.

Previous wording

Net cash provided by operating activities during the six months ended June 30, 2024 was $9.1 million, the result of net income of 5.7 million, adjusted by non-cash charges of depreciation and amortization of $3.3 million, amortization of operating lease assets of $3.7 million, stock-based compensation of $1.5 million and a reduction related to the gain on the acquisition of the remaining ownership interest in GKBH. The net cash outflows from changes in operating assets and liabilities were collectively a decrease of $1.3 million.

Current wording

Net cash provided by operating activities during the nine months ended September 30, 2024 was $10.5 million, the result of net income of $5.9 million, adjusted by non-cash charges of depreciation and amortization of $5.0 million, amortization of operating lease assets of $5.4 million, stock-based compensation of $2.2 million and a reduction related to the gain on the acquisition of the remaining ownership interest in GKBH. The net cash outflows from changes in operating assets and liabilities were collectively a decrease of $4.2 million.