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 59 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Oregon, New Jersey, Washington, North Carolina, Florida and six stores in South Korea. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across our 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 54 company-owned restaurants located in California, Arizona, Hawaii, Nevada, Texas, New York, Oregon, Washington, North Carolina, Florida and four restaurants in South Korea. Our restaurants have modern décor, lively Korean pop music playing in the background and embedded grills in the center of each table. We believe we offer our customers a unique dining experience in which guests cook the majority of the food themselves, reducing the need for chefs and servers and providing a similar customer experience across our restaurants. We have also extended the GEN brand beyond our restaurants into consumer-packaged goods (“CPG”), bringing our signature flavors to grocery retailers across the country.

Previous wording

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

Current wording

During 2023 and 2024 we opened six new restaurants. During the year 2025, we opened 15 new restaurants, including six in South Korea. In the first half of 2026, we opened three restaurants in Tucson, AZ, Denton, TX and McAllen, TX. During the six months ended June 30, 2026, we closed six restaurants, including two in Korea (GEN Guwol and KAN Sushi Guwol) and four restaurants (San Antonio, Texas, Mountain View, California, Edison, New Jersey, and Jacksonville, Florida) that were closed as part of the previously disclosed Chubby Cattle transaction and became unconsolidated equity method investment. We intend to continue optimizing our restaurant portfolio and to further reduce our corporate overhead and general and administrative expenses.

Previous wording

On September 29, 2023, the Company entered into a loan agreement for a $20.0 million line of credit with PCB Bank. The line of credit matures on September 25, 2026, and bears interest at a variable rate per annum equal to 7.00% as of March 31, 2026. The balance outstanding under the line of credit is $4.5 million as of March 31, 2026.

Current wording

On September 25, 2023, the Company entered into a loan agreement for a $20.0 million line of credit with PCB Bank. The line of credit matures on September 25, 2026, and bears interest at a variable rate per annum equal to 7.00% as of June 30, 2026. The balance outstanding under the line of credit is $12.0 million as of June 30, 2026.

Previous wording

On April 25, 2025, the Company entered into a loan agreement for a $2.0 million loan with PCB Bank. The loan matures on April 25, 2027, and bears interest at a variable interest rate per annum equal to 7.00% as of March 31, 2026. The balance as of March 31, 2026 was $1.1 million.

Current wording

On April 25, 2025, the Company entered into a loan agreement for a $2.0 million loan with PCB Bank. The loan matures on April 25, 2027, and bears interest at a variable interest rate per annum equal to 7.00% as of June 30, 2026. The balance as of June 30, 2026 was $978 thousand.

Previous wording

On July 29, 2025, the Company entered into a loan agreement for $4.0 million with PCB Bank. The loan matures on July 29, 2027, and bears interest at a variable rate per annum equal to 0.25% over the Wall Street Journal Index rate (prime rate), which equals 7.00% as of March 31, 2026. The balance as of March 31, 2026 was $2.8 million.

Current wording

On July 29, 2025, the Company entered into a loan agreement for $4.0 million with PCB Bank. The loan matures on July 29, 2027, and bears interest at a variable rate per annum equal to 0.25% over the Wall Street Journal Index rate (prime rate), which equals 7.00% as of June 30, 2026. The balance as of June 30, 2026 was $2.6 million.

Previous wording

Net (Loss) Income Margin is net income measured under accounting principles generally accepted in the United States of America (“GAAP”) divided by revenue.

Current wording

Net (Loss) Income Margin is net (loss) income measured under accounting principles generally accepted in the United States of America (“GAAP”) divided by revenue.

Previous wording

Adjusted EBITDA represents net (loss) income excluding interest expense, net, income taxes, depreciation and amortization, stock-based compensation, employee retention credits, litigation accruals, non-cash lease expense, non-cash lease expense related to pre-opening costs and gain on remeasurement of previously held interest. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Current wording

Adjusted EBITDA represents net (loss) income excluding interest expense (income), net, income taxes, depreciation and amortization, stock-based compensation, employee retention credits, litigation accrual for a discrete claim, non-cash lease expense, non-cash lease expense included in pre-opening costs, loss on lease termination, and gain on deconsolidation of restaurants. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Previous wording

Restaurant-Level Adjusted EBITDA is (Loss) Income from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expenses, and non-cash lease expense. Non-cash items such as charges for asset impairments and asset disposals are not included in Restaurant-Level Adjusted EBITDA. Restaurant-level Adjusted EBITDA Margin is the calculation of Restaurant-Level Adjusted EBITDA divided by revenue. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Current wording

Restaurant-Level Adjusted EBITDA is (Loss) Income from operations adjusted to exclude the following items: depreciation and amortization, pre-opening costs, loss on lease termination, gain on deconsolidation of restaurants, general and administrative expenses, and non-cash lease expense. Non-cash items such as charges for asset impairments and asset disposals are not included in Restaurant-Level Adjusted EBITDA. Restaurant-level Adjusted EBITDA Margin is the calculation of Restaurant-Level Adjusted EBITDA divided by revenue. For a discussion of why we consider these measures to be useful and their material risks and limitations, see “Non-GAAP Financial Measures.”

Previous wording

Adjusted Net (Loss) Income represents net (loss) income, adjusted for pre-opening costs, gain on remeasurement of previously held interest and stock-based compensation, and the related tax impact of the adjustments. Adjusted net (loss) income per share is defined as adjusted net income divided by the weighted-average number of shares of Class A common stock outstanding for the applicable period.

Current wording

Adjusted Net (Loss) Income represents net (loss) income, adjusted for pre-opening costs, stock-based compensation, the costs of a discrete legal settlement, loss on lease termination, gain on deconsolidation of restaurants, and the related tax impact of the adjustments. Adjusted net (loss) income per share is defined as adjusted net income divided by the weighted-average number of shares of Class A common stock outstanding for the applicable period.

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. The following table shows the change in our restaurant base for the three months ended March 31, 2026 and 2025:

Current wording

The change in number of restaurants reflects the number of restaurants opened or closed 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 and closings has had, and is expected to continue to have, an impact on our results of operations. The following table shows the change in our restaurant base for the three and six months ended June 30, 2026 and 2025:

Previous wording

Revenues. Revenues represent sales of food and beverages in restaurants and, to a minor extent, through our online portal. Restaurant revenues in a given period are directly impacted by the number of restaurants we operate, menu pricing, the number of customers visiting and comparable restaurant sales change. Revenue also includes gift card revenue earned, and revenue earned through retail or wholesale distribution.

Current wording

Revenues. Revenues consist primarily of sales of food and beverages in our restaurants, including orders placed through our online portal, and, increasingly, sales of our consumer packaged goods ("CPG") products through grocery retailers and other retail, wholesale and direct-to-consumer channels. Restaurant revenue in a given period is directly impacted by the number of restaurants we operate, menu pricing, customer traffic and comparable restaurant sales change. Revenue also includes gift card revenue earned.

Previous wording

Food costs. Food costs are variable in nature, change with sales volume and are influenced by menu mix and subject to increases or decreases based upon fluctuations in commodity costs. Another important factor causing fluctuations in food costs includes restaurant management of food waste. Food costs are a substantial expense and are expected to grow proportionally as our sales grow.

Current wording

Food costs. Food costs are variable in nature, change with sales volume and are influenced by menu mix and subject to increases or decreases based upon fluctuations in commodity costs. Another important factor causing fluctuations in food costs includes restaurant management of food waste. Food costs are a substantial expense and are expected to change proportionally as our sales levels change.

Previous wording

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

Current wording

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

Previous wording

Food costs. Food costs were $20.5 million for the three months ended March 31, 2026, compared to $19.3 million for the three months ended March 31, 2025, an increase of $1.2 million, or 6.4%. The increase in food costs reflects inflationary cost increases and more restaurants in operation. As a percentage of revenue, food costs increased to 38.0% from 33.6%.

Current wording

Food costs. Food costs were $21.8 million for the three months ended June 30, 2026, compared to $18.6 million for the three months ended June 30, 2025, an increase of $3.2 million, or 16.9%. The CPG accounted for $2.5 million, or 81%, of the increase. The increase in food costs reflects inflationary cost increases and more restaurants in operation. As a percentage of revenue, food costs increased to 39.1% from 33.8%.

Previous wording

Payroll and benefits. Payroll and benefits costs were $17.3 million for the three months ended March 31, 2026, compared to $18.2 million for the three months ended March 31, 2025, a decrease of $0.9 million, or 5.0%, as the Company implemented labor efficiencies. As a percentage of revenue, payroll and benefits costs increased slightly from 31.7% to 32.1%.

Current wording

Payroll and benefits. Payroll and benefits costs were $15.6 million for the three months ended June 30, 2026, compared to $16.6 million for the three months ended June 30, 2025, a decrease of $0.9 million, or 5.7%, as the Company implemented labor efficiencies. As a percentage of revenue, payroll and benefits costs decreased from 30.1% to 28.0%.

Previous wording

Occupancy expenses. Occupancy expenses were $5.8 million for the three months ended March 31, 2026 compared to $5.1 million for the three months ended March 31, 2025, an increase of $0.7 million, or 13.5%. The increase in occupancy expenses reflects the addition of 10 new locations. As a percentage of revenue, occupancy expenses were 10.7% in the three months ended March 31, 2026 compared to 8.9% in the three months ended March 31, 2025.

Current wording

Occupancy expenses. Occupancy expenses were $5.3 million for the three months ended June 30, 2026 compared to $5.1 million for the three months ended June 30, 2025, an increase of $0.2 million, or 4.2%. reflecting locations opened in 2025 and 2026. The restaurants transferred during the second quarter of 2026 operated through their respective transfer dates, so these transactions did not significantly reduce occupancy expenses in the period; we expect the reduction in occupancy expenses from these exits to be reflected beginning in the third quarter of 2026. As a percentage of revenue, occupancy expenses were 9.6% in the three months ended June 30, 2026 compared to 9.3% in the three months ended June 30, 2025.

Previous wording

Operating expenses. Operating expenses were $6.5 million for the three months ended March 31, 2026 compared to $5.9 million for the three months ended March 31, 2025, an increase of $0.6 million, or 13.5%, as expenses increased to support revenue growth from the new stores and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 12.0% in the three months ended March 31, 2026 and 10.3% in the three months ended March 31, 2025.

Current wording

Operating expenses. Operating expenses were $6.8 million for the three months ended June 30, 2026 compared to $5.9 million for the three months ended June 30, 2025, an increase of $0.9 million, or 14.5%, as expenses increased to support revenue growth from the new stores and reflected inflationary cost increases. As a percentage of revenue, operating expenses were 12.1% in the three months ended June 30, 2026 and 10.7% in the three months ended June 30, 2025.

Previous wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $2.3 million for the three months ended March 31, 2026 and $2.0 million for the three months ended March 31, 2025. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level were 4.3% during the three months ended March 31, 2026 and 3.5% during the three months ended March 31, 2025, with the increase related to more restaurants in operation.

Current wording

Depreciation and amortization expenses. Depreciation and amortization expenses were $2.4 million for the three months ended June 30, 2026 and $2.2 million for the three months ended June 30, 2025. As a percentage of revenue, depreciation and amortization expenses at the restaurant-level remained flat at 4.2% during the three months ended June 30, 2026 and 4.0% during the three months ended June 30, 2025.

Previous wording

Pre-opening costs. Pre-opening costs were $1.8 million for the three months ended March 31, 2026 compared to $2.7 million for the three months ended March 31, 2025.This represents less restaurants in development during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Current wording

Pre-opening costs. Pre-opening costs were $1.3 million for the three months ended June 30, 2026 compared to $2.1 million for the three months ended June 30, 2025. This reflects fewer restaurants in development during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025.

Previous wording

General and administrative expenses. General and administrative expenses were $6.9 million for the three months ended March 31, 2026 compared to $6.4 million for the three months ended March 31, 2025, an increase of $0.5 million, or 8.3%. The increase is primarily due to additional marketing costs. As a percentage of revenue, general and administrative expenses increased from 11.1% for the three months ended March 31, 2025 to 12.8% for the three months ended March 31, 2026.

Current wording

General and administrative expenses. General and administrative expenses were $7.1 million for the three months ended June 30, 2026 compared to $6.4 million for the three months ended June 30, 2025, an increase of $0.7 million, or 11.1%. The increase was primarily due to investment in our CPG go-to-market efforts, including marketing and in-store demonstrations; excluding our CPG division, corporate and restaurant general and administrative expenses declined year over year. As a percentage of revenue, general and administrative expenses increased from 11.6% for the three months ended June 30, 2025 to 12.8% for the three months ended June 30, 2026.

Previous wording

Interest (expense) income, net. During the three months ended March 31, 2026, interest expense, net was $226 thousand compared to $60 thousand of interest income, net during the three months ended March 31, 2025. The increase in interest expense is related to higher debt levels, partially offset by lower net interest income was primarily due to the interest income earned on the proceeds from the IPO transaction and the reduction of proceeds used for development of new restaurants.

Current wording

Interest (expense) income, net. During the three months ended June 30, 2026, interest expense, net was $314 thousand compared to $67 thousand of interest income, net during the three months ended June 30, 2025. The change from interest income, net to interest expense, net is related to higher debt levels and lower interest income due to lower average cash balances during the three months ended June 30, 2026.

Previous wording

Adjusted EBITDA represents net (loss) income excluding interest (income) expense, income taxes, depreciation and amortization, and also excludes non-recurring and certain other non-cash items, such as stock-based compensation expense, employee retention credits, litigation accruals, non-cash lease expense, non-cash lease expense included in pre-opening costs and gain on remeasurement of previously held interest. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures reflect normal recurring cash operating expenses essential to supporting the operations of our company. We expect Adjusted EBITDA to increase with the number of new restaurants we open and with comparable restaurant sales growth.

Current wording

Adjusted EBITDA represents net (loss) income excluding interest expense (income), net, income taxes, depreciation and amortization, and also excludes unusual and certain other non-cash items, such as stock-based compensation expense, employee retention credits, litigation accrual for a discrete claim, non-cash lease expense, non-cash lease expense included in pre-opening costs, loss on lease termination and gain on deconsolidation of restaurants . Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures reflect normal recurring cash operating expenses essential to supporting the operations of our company. We expect Adjusted EBITDA to increase with the number of new restaurants we open and with comparable restaurant sales growth.

Previous wording

The following table reconciles net loss to Adjusted EBITDA for the three months ended March 31, 2026 and 2025.

Current wording

The following table reconciles net loss to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025.

Previous wording

Litigation accrual: This is an expense related to a specific, one-time, litigation claim. See “Note 11 - Commitments and Contingencies” in the condensed consolidated financial statements.

Current wording

Litigation accrual: This is an expense related to a specific, discrete, litigation claim. See “Note 11 - Commitments and Contingencies” in the condensed consolidated financial statements.

Previous wording

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

Current wording

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

Previous wording

We define Restaurant-Level Adjusted EBITDA as loss from operations plus adjustments to add-back the following expenses: depreciation and amortization, pre-opening costs, general and administrative expense, and non-cash lease expense. We define Restaurant-Level Adjusted EBITDA Margin as Restaurant-Level Adjusted EBITDA divided by revenue.

Current wording

We define Restaurant-Level Adjusted EBITDA as loss from operations adjusted to exclude the following items: depreciation and amortization, pre-opening costs, loss on lease termination, gain on deconsolidation of restaurants, general and administrative expense, and non-cash lease expense. We define Restaurant-Level Adjusted EBITDA Margin as Restaurant-Level Adjusted EBITDA divided by revenue.

Previous wording

As with Adjusted EBITDA and Adjusted EBITDA Margin, we believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as these measures depict normal, recurring cash operating expenses essential to supporting the operations of our restaurants. We expect Restaurant-Level Adjusted EBITDA to increase in proportion to the number of new restaurants we open and with increases in comparable restaurant sales change.

Current wording

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

Previous wording

The following table reconciles Income from Operations to Restaurant-Level Adjusted EBITDA for the three months ended March 31, 2026 and 2025:

Current wording

The following table reconciles Loss from Operations to Restaurant-Level Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:

Previous wording

The following table reconcile net (loss) income to Adjusted net (loss) income and Adjusted net income per share for the three months ended March 31, 2026 and 2025:

Current wording

The following table reconciles net (loss) income to Adjusted net (loss) income and Adjusted net (loss) income per share for the three and six months ended June 30, 2026 and 2025:

Previous wording

As of March 31, 2026 we had $4.4 million of cash and $37.8 million of working capital deficit, which is calculated by subtracting current liabilities from current assets, compared with $2.8 million in cash and $31.3 million of working capital deficit as of December 31, 2025.

Current wording

As of June 30, 2026 we had $5.9 million of cash and $41.7 million of working capital deficit, which is calculated by subtracting current liabilities from current assets, compared with $2.8 million in cash and $31.3 million of working capital deficit as of December 31, 2025.

Previous wording

Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant equipment and fixtures. During the year ended 2025, we opened 15 new restaurants which were all self-funded. There is no guarantee that if we need to raise any additional capital that we will be able to do so.

Current wording

Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant equipment and fixtures, as well as investments in our CPG business, including inventory and go-to-market costs. During the year ended 2025, we opened 15 new restaurants which were all self-funded. There is no guarantee that if we need to raise any additional capital that we will be able to do so.

Previous wording

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

Current wording

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

Previous wording

Net cash provided by operating activities during the three months ended March 31, 2026 was $2.7 million, the result of net loss of $7.2 million, adjusted by non-cash charges of depreciation and amortization of $2.4 million, amortization of operating lease assets of $1.9 million, and stock-based compensation expense of $0.7 million. The net cash outflows from changes in operating assets and liabilities were collectively an increase of $5.1 million.

Current wording

Net cash used in operating activities during the six months ended June 30, 2026 was $826 thousand, the result of net loss of $11.8 million, adjusted by non-cash charges of depreciation and amortization of $4.8 million, amortization of operating lease assets of $3.6 million, stock-based compensation expense of $1.5 million, loss from lease termination of $0.6 million, gain on deconsolidation of restaurants and a deferred tax benefit of $0.4 million. Changes in operating assets and liabilities provided $1.0 million, primarily the collection of gift card distributor receivables of $8.4 million, largely offset by a $7.9 million reduction in gift card liabilities from redemptions.

Previous wording

Net cash provided by operating activities during the three months ended March 31, 2025 was $2.1 million, the result of net loss of $2.0 million, adjusted by non-cash charges of depreciation and amortization of $2.0 million, and amortization of operating lease assets of $1.6 million, stock-based compensation of $0.7 million. The net cash outflows from changes in operating assets and liabilities were collectively a decrease of $52 thousand.

Current wording

Net cash provided by operating activities during the six months ended June 30, 2025 was $5.5 million, the result of net loss of $3.6 million, adjusted by non-cash charges of depreciation and amortization of $4.3 million, amortization of operating lease assets of $3.2 million, and stock-based compensation of $1.5 million. Changes in operating assets and liabilities provided $424 thousand.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2026 was $3.4 million, reflecting the purchase of property and equipment.

Current wording

Net cash used in investing activities during the six months ended June 30, 2026 was $5.3 million, reflecting the purchase of property and equipment.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2025 was $6.8 million, reflecting the purchase of property and equipment.

Current wording

Net cash used in investing activities during the six months ended June 30, 2025 was $16.5 million, reflecting the purchase of property and equipment.

Previous wording

Net cash provided by financing activities during the three months ended March 31, 2026 was $2.4 million, primarily due to net proceeds on the PCB Bank line of credit of $3.5 million, partially offset by payments of $1.1 million on third party notes payable.

Current wording

Net cash provided by financing activities during the six months ended June 30, 2026 was $9.4 million, primarily due to net proceeds on the PCB Bank line of credit of $11.0 million, partially offset by payments of $1.6 million on third party notes payable.

Previous wording

Net cash used in financing activities during the three months ended March 31, 2025 was $3.6 million, primarily due to a payment of $3.0 million on the line of credit and $200 thousand for the repurchase of common stock.

Current wording

Net cash used in financing activities during the six months ended June 30, 2025 was $3.2 million, primarily due to a payment of $3.0 million on the line of credit and $200 thousand for the repurchase of common stock.

Previous wording

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startup Act (the “JOBS Act”), and we have taken advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” We may take advantage of these exemptions until we are no longer an “emerging growth company.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. We may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of our IPO or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if 1) we have more than $1.235 billion in annual revenue, 2) we have more than $700.0 million in market value of our stock held by non-affiliates (and we have been a public company for at least 12 months) or 3) we issue more than $1.0 billion of non-convertible debt securities over a three-year period.

Current wording

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”), and we have taken advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” We may take advantage of these exemptions until we are no longer an “emerging growth company.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. We may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of our IPO or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if 1) we have more than $1.235 billion in annual revenue, 2) we have more than $700.0 million in market value of our stock held by non-affiliates (and we have been a public company for at least 12 months) or 3) we issue more than $1.0 billion of non-convertible debt securities over a three-year period.