Equity Method Investment

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

(6)

Equity Method Investment

On April 1, 2016, GEN Hawaii made an investment of $200 thousand for a 50% interest in GKBH, which operates a GEN restaurant in Hawaii. The Company accounted for this investment as an equity method investment since the Company did not control major operational and financial decisions, which required consent from the previous co-owner.

On February 18, 2024, the Company purchased the remaining 50% membership interest for a total purchase price of $6.0 million and controls 100% of GKBH as of the acquisition date. See “Note 3. Business Combinations.”

Prior to the purchase of the remaining 50% membership interest in GKBH, during the nine months ended September 30, 2024, and September 30, 2023, the Company received distributions of $0 thousand and $575 thousand, respectively, from GKBH.

A summary of the GKBH financial position as of December 31, 2023 and results of operations for the three and nine months ended September 30, 2023 is as follows (unaudited):


(in thousands)	December 31, 2023
Current assets		808
Noncurrent assets		2,290
Current liabilities		972
Noncurrent liabilities		1,064


	Three months ended September 30,		Nine months ended September 30,
(in thousands)	2023		2023
Net sales or gross revenue		1,888		5,657
Operating income		1,263		3,805
Net income		107		1,040
Net income attributable to the entity		53		520