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We are subject to various legal proceedings and claims that arise in the ordinary course of our business. Although the outcome of these and other claims cannot be predicted with certainty, except as set forth below, we do not believe the ultimate resolution of the current matters will have a material adverse effect on our business, financial condition, results of operations or cash flows. For further details, see “Contingencies” in “Note 11 - Commitments and Contingencies” to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
PPP Loans and RRF Grants
In June 2026, the Operating Company received a civil investigative demand (“CID”) from the U.S. Department of Justice issued pursuant to the False Claims Act. The investigative inquiry concerns applications for Restaurant Revitalization Fund (“RRF”) grants and Paycheck Protection Program (“PPP”) loans and loan forgiveness by certain companies acquired by the Operating Company and/or its affiliates.
The PPP loans and RRF grants at issue date to 2020 and 2021, prior to the Company’s initial public offering. As previously disclosed, certain companies acquired by the Operating Company received aggregate proceeds of approximately $23.0 million from the PPP loans, and the RRF grants totaled approximately $16.8 million.
The Company is cooperating fully with the investigative inquiry, including producing records responsive to the CID. While the ultimate outcome and timing of the inquiry are uncertain, the Company does not currently expect this matter to have a material impact on its results of operations or financial condition.