What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-18 compared with 2025-02-26 · 309 added, 292 removed, 941 unchanged (39% of the section changed)

6 unchanged sentences

Consolidated Balance Sheets as of December 31, 2025 and 2024

Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022

Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022

Consolidated Statements of Operations & Other Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2025, 2024 and 2023

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Trade Promotion Accrual — Refer to Note 2 to the financial statement s

Trade Promotion Accruals — Refer to Note 2 to the financial statements

Critical Audit Matter Description

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• We tested the effectiveness of management’s controls over the estimation and calculation of the trade promotion accruals, including management’s controls over the review of the period-end accrual.

• We selected a sample of individual customers and promotional periods included in management’s detail of the recorded trade promotion accruals, and evaluated inputs relevant to recorded amounts, including contractual pricing and rebate arrangements with customers and customer claims received subsequent to the accrual period, which were compared to source documents.

• We selected a sample of subsequent credits submitted by customers,inspected relevant source documents and compared to recorded amounts.

• We tested the trade promotion accrual at year-end by developing an expectation of the amount by applying the ratio of gross sales and trade promotion accrual balances at interim periods to gross sales in the fourth quarter and compared it to the balance recorded by management.

• We selected a sample of individual customers included in management’s detail of the recorded trade promotion accruals, and evaluated inputs relevant to recorded amounts, including contractual pricing and rebate arrangements with customers, which were compared to source documents.

• We selected a sample of subsequent payments, inspected relevant source documents, determined if they pertained to trade promotions that should have been recorded as of year-end, and compared to recorded amounts.

/s/ Deloitte & Touche LLP

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Accounts payable $ 25,464 $ 30,758

Accrued expenses 65,603 59,533

Accrued expenses and other current liabilities

89,458 65,603

Notes payable, current 3 10

2 unchanged sentences

Notes payable, long-term — 3

Operating lease liability, long-term 13,087 —

Other long-term liabilities 97 295

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Retained earnings 228,014 156,694

Accumulated other comprehensive loss ( 860 ) ( 649 )

Accumulated other comprehensive gain (loss)

Treasury stock, 7,104,376 shares at cost as of December 31, 2025, and 6,740,446 as of December 31, 2024.

6 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS &

OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

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Unrealized gain/(loss) on derivative instruments 4,737 ( 8,176 ) ( 872 )

Foreign currency gain/(loss) ( 1,571 ) ( 251 ) 1,387

Interest income 6,715 2,581 51

Interest expense — ( 31 ) ( 258 )

Foreign currency loss

( 1,037 ) ( 1,571 ) ( 251 )

Interest income, net

6,548 6,715 2,550

Total other income (expense) 10,439 ( 3,032 ) 1,427

2 unchanged sentences

Net income $ 71,320 $ 55,952 $ 46,629

Other comprehensive income (loss)

Foreign currency translation adjustment $ 1,346 $ ( 211 ) $ 345

Total comprehensive income attributable to The Vita Coco Company, Inc.

$ 72,666 $ 55,741 $ 46,974

Net income attributable to The Vita Coco Company, Inc.

8 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands)

Year Ended December 31,

2024 2023 2022

Net income $ 55,952 $ 46,629 $ 7,814

Other comprehensive income:

Foreign currency translation adjustment ( 211 ) 345 ( 378 )

Total comprehensive income attributable to The Vita Coco Company, Inc.

$ 55,741 $ 46,974 $ 7,436

See accompanying notes to the consolidated financial statements.

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

12 unchanged sentences

Net income — — — — — — — 46,629 — — — 46,629

Cumulative-effect adjustment related to the adoption of accounting guidance for credit losses — — — — — — — ( 1,070 ) — — — ( 1,070 )

Purchase of treasury stock — — — — — — — — — 30,000 ( 773 ) ( 773 )

Stock-based compensation — — — — — — 9,128 — — — — 9,128

3 unchanged sentences

Net income — — — — — — — 55,952 — — — 55,952

Cumulative-effect adjustment related to the adoption of accounting guidance for credit losses — — — — — — — ( 1,070 ) — — — ( 1,070 )

Purchase of treasury stock — — — — — — — — — 504,246 ( 12,030 ) ( 12,030 )

21 unchanged sentences

Depreciation and amortization 1,072 745 660

(Gain)/loss on disposal of equipment 13 19 1

Bad debt expense 1,603 260 2,641

Amortization of debt issuance costs

Loss on disposal of equipment

Provision for credit losses

2,023 1,603 260

Unrealized (gain)/loss on derivative instruments ( 4,737 ) 8,176 872

1 unchanged sentence

Impairment loss on assets held for sale — — 363

Impairment of intangible assets — — 6,714

Impairment loss on Runa assets

Noncash lease expense 1,356 1,021 1,288

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11,223 15,669 24,340

Net cash provided by (used in) operating activities 42,899 107,155 ( 10,935 )

Net cash provided by operating activities

47,174 42,899 107,155

Cash flows from investing activities:

1 unchanged sentence

Proceeds from sale of property and equipment — — 5

Equity method investment in joint venture ( 104 ) — —

Net cash used in investing activities ( 8,253 ) ( 974 ) ( 594 )

2 unchanged sentences

3,745 3,747 7,086

Borrowings on credit facility — — 22,000

Repayments of borrowings on credit facility — — ( 22,000 )

Cash received (paid) on notes payable ( 13 ) ( 23 ) ( 28 )

Cash paid on notes payable

( 10 ) ( 13 ) ( 23 )

Cash paid to acquire treasury stock ( 11,269 ) ( 12,030 ) ( 773 )

2 unchanged sentences

Effects of exchange rate changes on cash and cash equivalents 834 ( 563 ) 387

Net (decrease) increase in cash and cash equivalents 33,066 113,238 ( 9,061 )

Cash and cash equivalents at beginning of the period 132,867 19,629 28,690

Net increase in cash and cash equivalents

32,221 33,066 113,238

Cash, cash equivalents and restricted cash at beginning of the period

165,933 132,867 19,629

Cash, cash equivalents and restricted cash at end of the period (1)

1 unchanged sentence

Supplemental disclosures of cash flow information:

Cash paid for income taxes $ 12,981 9,905 4,624

Cash paid for interest $ — 1 75

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The Vita Coco Company, Inc.

and subsidiaries (the “Company”) develops, markets, and distributes various coconut water products under the brand name Vita Coco and for retailers' own brands, predominantly in the United States ("U.S.").

Other products include coconut milk, coconut oil, water (under the brand name Ever & Ever ), protein infused fitness drinks (under the brand name PWR LIFT) and coconut as a commodity.

We also offered a natural energy drink (under the brand name Runa ), which we ceased selling in December 2023.

and subsidiaries (the “Company”) develops, markets, and distributes various coconut water products under the brand name Vita Coco and for retailers' own brands ("Private Label"), predominantly in the United States ("U.S.").

Other products include coconut milk, coconut oil, and protein infused fitness drinks (under the brand name PWR LIFT) .

The Company was incorporated in Delaware as All Market Inc.

on January 17, 2007.

On September 9, 2021, we changed our name to The Vita Coco Company, Inc.

On September 9, 2021, the Company changed its name to The Vita Coco Company, Inc.

In 2018, the Company purchased certain assets and liabilities of Runa , which was marketed and distributed primarily in the U.S.

until the Company ceased selling the brand in December 2023.

until the Company ceased selling the brand in December 2023 and impaired all remaining assets in September 2025.

The Company completed an initial public offering (the "IPO") of common stock in October 2021.

We are a public benefit corporation under Section 362 of the Delaware General Corporation Law.

As a public benefit corporation, our Board is required by the Delaware General Corporation Law to manage or direct our business and affairs in a manner that balances the pecuniary interests of our stockholders, the best interests of those materially affected by our conduct and the specific public benefits identified in our certificate of incorporation.

The Company is a public benefit corporation under Section 362 of the Delaware General Corporation Law.

As a public benefit corporation, the Company's Board is required by the Delaware General Corporation Law to manage or direct its business and affairs in a manner that balances the pecuniary interests of its stockholders, the best interests of those materially affected by its conduct and the specific public benefits identified in its certificate of incorporation.

The Company has ten wholly-owned subsidiaries including four wholly-owned Asian subsidiaries established between fiscal 2012 and 2015, four North American subsidiaries established between 2012 and 2018, as well as All Market Europe, Ltd.

(“AME”) in the United Kingdom ("U.K.") established during 2009, and one subsidiary in Germany established during 2024.

Through one of its subsidiaries, the Company has a 60 % joint venture interest in a company, Coco Ventures Limited, which provides for the development, marketing, distribution and branding of coconut water-based products under the Vita Coco brand in China.

See Note 22, Joint Venture, for further details.

Basis of Presentation

The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S.

Certain reclassifications have been made to previously reported consolidated financial statements to conform to the presentation as of and for the year ended December 31, 2025.

Principles of Consolidation

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Impact of Global Events Causing Macroeconomic Uncertainty

Uncertainty in the macroeconomic environment resulting from current geopolitical and economic instability (including the effects of current wars and other international conflicts) and the high interest rates, foreign exchange rates, potential tariffs and other import related fees, and inflationary cost environment may affect our global supply chain.

Uncertainty in the macroeconomic environment resulting from current geopolitical and economic instability (including the effects of current wars and other international conflicts) and the high interest rates, foreign exchange rates, tariffs, and other import related fees, and inflationary cost environment may affect the Company's global supply chain.

It is not currently possible to ascertain the overall impact of these macroeconomic uncertainties on the Company’s business, results of operations, financial condition or liquidity.

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GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Management considers many factors in selecting appropriate financial accounting policies and controls in developing the estimates and assumptions that are used in the preparation of these consolidated financial statements.

Management must apply significant judgement in this process.

In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends.

The estimation process may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within

Management considers many factors in selecting appropriate financial accounting policies and controls in

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

that range of reasonable estimates.

The most significant estimates in the consolidated financial statements relate to share-based compensation, assessing long-lived assets for impairment, estimating the net realizable value of inventories, the determination of the current expected credit losses allowance, assessing goodwill for impairment, the determination of the value of trade promotions and assessing the realizability of deferred income taxes.

developing the estimates and assumptions that are used in the preparation of these consolidated financial statements.

Management must apply significant judgment in this process.

The estimation process may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates.

The most significant estimates in the consolidated financial statements relate to the determination of the value of trade promotions, share-based compensation, estimating the net realizable value of inventories, the determination of the current expected credit losses, assessing the realizability of deferred income taxes, assessing long-lived assets for impairment, and assessing goodwill for impairment.

Actual results could differ from those estimates.

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Each contract includes a single performance obligation to transfer control of the product to the customer.

Our revenue is recognized net of allowances for returns, discounts, credits and any taxes collected from consumers.

The Company's revenue is recognized net of allowances for returns, discounts, credits and any taxes collected from consumers.

For the Company’s various products in the Vita Coco Coconut Water and Other product categories (refer to Note 3, Revenue Recognition ), control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue.

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The Company provides trade promotions and sales discounts to its customers and distributors.

Since these sales promotions and sales discounts do not meet the criteria for a distinct good or service, they are primarily accounted for as a reduction of revenue and include payments to customers and distributors for performing activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices.

These consolidated financial statements include accruals for these promotion and discounts.

The accruals are made for invoices that have not yet been received as of year-end and are recorded as a reduction of sales, and are based on contract terms and our historical experience with similar programs and require management judgement with respect to estimating customer and consumer participation and performance levels.

Since these sales promotions and sales discounts do not meet the criteria for a distinct good or service, they are primarily accounted for as a reduction of revenue and include payments to customers and distributors for performing activities on its behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices.

These consolidated financial statements include accruals for these promotions and discounts.

The accruals are made for invoices that have not yet been received as of year-end and are recorded as a reduction of sales, and are based on contract terms and the Company's historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels.

Cost of Goods Sold

1 unchanged sentence

Shipping and Handling Costs

Shipping and handling costs related to the sale of inventory represent outbound distribution costs, and are included in cost of goods sold in the consolidated statement of operations.

Shipping and handling costs were $ 13,100 , $ 13,261 and $ 13,387 for the years ended December 31, 2024, 2023, and 2022, respectively.

THE VITA COCO COMPANY, INC.

3 unchanged sentences

(Amounts in thousands, except for share and per share data)

Shipping and handling costs related to the sale of inventory represent outbound distribution costs, and are included in cost of goods sold in the consolidated statement of operations.

Shipping and handling costs were $ 17,424 , $ 13,100 and $ 13,261 for the years ended December 31, 2025, 2024, and 2023, respectively.

Marketing and Promotional Expenses

4 unchanged sentences

Research and development expenses were $ 399 , $ 398 , and $ 418 for the years ended December 31, 2025, 2024, and 2023, respectively.

The Company leases certain office space and machinery and equipment, which are classified as operating leases.

These leases expire at various dates through 2034.

The Company's lease agreements do not contain any material restrictive covenants.

Right of use ("ROU") assets and corresponding lease liabilities are recognized at the commencement date based on the present value of future lease payments over the expected lease term and are included within ROU assets, net, in accrued expenses, and other long-term liabilities in its Consolidated Balance Sheets.

Lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised.

Operating lease expense is recognized on a straight‑line basis over the lease term.

The Company does not have any finance leases.

The Company has also elected the short‑term lease exemption and therefore does not recognize ROU assets or lease liabilities for leases with terms of 12 months or less.

Payments for short‑term leases are recognized as expense on a straight‑line basis over the lease term.

Stock-Based Compensation

3 unchanged sentences

If the actual forfeitures differ from those estimated by management, adjustment to compensation expense may be required in future periods.

Stock awards are equity-classified, as they do not contain a cash settlement option or other features requiring them to be liability-classified.

The Company issues stock-based awards with service-based and performance-based and market-based vesting conditions.

The Company recognizes expense for performance-based awards when it becomes probable that such awards will be earned over a requisite service period.

The Company defers the recognition of compensation expense for the stock awards that vest upon qualifying liquidity events until the qualifying events are probable of occurrence.

Stock awards are equity-classified, as they do not contain a cash settlement option or other features requiring them to be liability-classified.

The actual number of shares ultimately earned may range from zero up to a contractual maximum and may exceed the target number of shares granted if performance results exceed the applicable performance targets .

Compensation expense for performance‑based awards is recognized over the requisite service period based on the Company’s assessment of whether the performance conditions are probable of achievement and the estimated number of shares expected to vest.

The Company uses the Black-Scholes option-pricing model to determine the fair value of stock awards with service-based vesting conditions and performance-based vesting conditions.

For stock awards with performance-based and market-based vesting conditions, the Company uses the Barrier option valuation model to determine the fair value.

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

The Company has classified most of its stock-based compensation expense in its consolidated statements of operations in selling, general, and administrative expenses, reflecting the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.

There are restricted stock units previously granted to entities affiliated with a major customer, which was recognized as a stock-based sales incentive based on guidance in ASC 606 and reflected as a reduction in the transaction price revenue.

There are restricted stock units ("RSUs") previously granted to entities affiliated with a major customer, which was recognized as a stock-based sales incentive based on guidance in ASC 606 and reflected as a reduction in the transaction price revenue.

See Note 14, Stockholders' Equity for further information.

The Company accounts for income taxes under ASC 740, which requires an asset and liability approach to financial accounting and reporting for income taxes.

The Company accounts for income taxes under ASC Topic 740, Income Taxes ("ASC 740"), which requires an asset and liability approach to financial accounting and reporting for income taxes.

Deferred income tax assets and liabilities are computed annually for differences between the consolidated financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future.

Such deferred income tax assets and liabilities computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income.

Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.

Valuation allowances are established when necessary to reduce deferred income tax assets to the amount that is more likely than not to be realized.

Interest and penalties related to unrecognized tax positions are included in income tax expense in the consolidated statement of operations and comprehensive income and accrued expenses in the consolidated balance sheets.

3 unchanged sentences

Net Income per Common Share

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

In accordance with ASC Topic 260 Earnings Per Share ("ASC 260"), net income per common share, on a basic and diluted basis, is presented for all periods, calculated using the treasury stock method.

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Accounts Receivable

Accounts receivable are reported net of an allowance for doubtful accounts.

Accounts receivable are reported net of an allowance for credit losses.

In determining such an allowance, the Company considers historical losses and existing economic conditions, as well as the credit quality of each customer.

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The estimated useful lives of the Company’s property and equipment are as follows:

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

• Equipment and computer software and hardware – 3 - 7 years

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The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, or a triggering event.

When a triggering event is identified, a test of recoverability is performed by estimating the undiscounted future cash flows

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

associated with such assets and comparing them to the carrying value of the asset.

When a triggering event is identified, a test of recoverability is performed by estimating the undiscounted future cash flows associated with such assets and comparing them to the carrying value of the asset.

When the recoverability test fails, the Company measures the impairment loss based on the fair value of the assets compared to the carrying amount of the asset.

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The fair value of the distributor relationships is determined through an income approach using the excess earnings method.

The Company evaluates each of its acquisitions under the accounting framework in Accounting Standards Codification Topic 805, Business Combinations ("ASC 805").

ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill.

The acquiree’s results are included in the consolidated financial statements from the date of the acquisition.

The Company allocated the purchase price, including the fair value of any non-cash and contingent consideration, to the identifiable assets and liabilities of the relevant acquired business at their acquisition date fair values.

Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill.

Contingent consideration payable in cash or a fixed dollar amount settleable in a variable number of shares is classified as a liability and recorded at fair value, with changes in fair value recorded as a component of operating expenses in the accompanying consolidated statements of operations.

Transaction costs associated with business combinations are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of operations.

The Company performs valuations of assets acquired, liabilities assumed, and contingent consideration and allocates the purchase price to its respective assets and liabilities.

Determining the fair value of assets acquired, liabilities assumed, and contingent consideration requires the use of significant judgment and estimates including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, the probability of the achievement of specified milestones, and selection of comparable companies.

The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired, liabilities assumed, and contingent consideration in a business combination.

Goodwill represents the purchase price paid in excess of the fair value of net identifiable tangible and intangible assets acquired in a business combination and is measured in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other ("ASC 350").

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These valuation approaches consider a number of factors that include, but are not limited to, expected future cash flows, growth rates, discount rates, and comparable multiples from publicly-traded companies in the Company’s industry, and require to make certain assumptions and estimates regarding industry economic factors and future profitability of the Company’s business.

It is the Company’s policy to conduct impairment testing based on its most current business plans, projected future revenues and cash flows,

It is the Company’s policy to conduct impairment testing based on its most current business plans, projected future revenues and cash flows, which reflect changes anticipated in the economy and the industry.

The cash flows are based on five-year financial forecasts developed internally by management and are discounted to a present value using discount rates that properly

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

which reflect changes anticipated in the economy and the industry.

The cash flows are based on five-year financial forecasts developed internally by management and are discounted to a present value using discount rates that properly account for the risk and nature of the respective reporting unit’s cash flows and the rates of return market participants would require to invest their capital in the Company’s reporting unit.

account for the risk and nature of the respective reporting unit’s cash flows and the rates of return market participants would require to invest their capital in the Company’s reporting unit.

The Company will recognize an impairment for the amount by which the carrying amount exceeds a reporting unit’s fair value.

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The Company has not experienced credit issues with these customers.

Recently Adopted Accounting Pronouncements

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which requires public entities to provide disclosure of specific categories in the rate reconciliation, detail out reconciling items that are equal to or greater than 5% of income from continuing operations before income tax expense multiplied by the applicable statutory income tax rate, and break out income taxes by jurisdiction.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company adopted the guidance on a retrospective basis for the year ended December 31, 2025.

The adoption did not have a material effect on its consolidated financial statements.

Segment Reporting

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07 , Segment Reporting (Topic 280):

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis.

Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-07 was effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company adopted the standard for the year ended December 31, 2024.

The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations and disclosures.

The Company leases certain office space and machinery and equipment, which are primarily classified as operating leases.

These leases expire at various dates through 2025.

The Company's lease agreements do not contain any material restrictive covenants.

Operating leases are included within right-of-use assets, net, accrued expenses, and other long-term liabilities within our Consolidated Balance Sheets.

Finance leases are included within Property, plant and equipment, net, Accrued expenses, and Other long-term liabilities.

Leases with an initial term of 12 months or less are not recognized on the Consolidated Balance Sheets.

In February 2016, the FASB issued ASC 842 , ASU 2016-02 , Leases (Topic 842), which was amended by subsequent Accounting Standard Updates ("ASUs"), to enhance the comparability and usefulness of financial reporting around leasing activity.

The new standard supersedes the existing authoritative literature for lease accounting under ASC 840 , with a focus on applying a “right-of-use model.” The guidance for leases under ASC 842 results in a right-of-use asset (“ROU asset”) and lease liability being reported on the balance sheet for leases with a lease term greater than twelve months.

In June 2020, the FASB issued ASU 2020-05 , Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842):

Effective Dates for certain entities, which deferred the effective date of ASU 2016-02 for certain entities.

ASC 842 was effective for the Company, as an Emerging Growth Company (“EGC”), for annual reporting periods beginning after December 15, 2021 and for interim periods beginning after December 15, 2022.

The Company adopted the standard on January 1, 2022 using the alternative modified retrospective transition approach in accordance with ASU 2018-11 , Leases (Topic 842):

Targeted Improvements, where the adoption date represents the initial date of application.

As part of its adoption, the Company elected to apply the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or the capitalization of initial direct costs for any existing leases.

Additionally, the Company elected the practical expedient that permits the exclusion of leases considered to be short-term.

Under the alternative modified retrospective transition approach, the reported results for 2022 reflect the application of ASC 842 guidance, whereas comparative periods and the respective disclosures prior to the adoption of ASC 842 are presented using the legacy guidance of ASC 840 .

As a result of adopting the new standard, the Company recognized right-of-use assets and lease liabilities of $ 1,866 and $ 2,097 , respectively, on the Company’s consolidated balance sheet as of January 1, 2022.

The difference of $ 231 between the operating lease right-of-use assets and operating lease liabilities represents reclassification of deferred rent liability from other liabilities to operating lease right-to-use assets at the adoption date.

The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations, or consolidated statements of cash flows.

Current Expected Credit Losses

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ASU 2016-13 was effective for the Company, as an EGC, for annual and interim reporting periods beginning after December 15, 2022.

The Company adopted the standard on January 1, 2023 using the modified retrospective method

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

for all financial assets in scope.

The amounts for reporting periods beginning after January 1, 2023 are presented under ASC 326 methodology, while prior period amounts continue to be reported in accordance with previously applicable U.S.

The Company adopted the standard on January 1, 2023 using the modified retrospective method for all financial assets in scope.

As a part of the adoption, the Company selected to apply roll-rate method to estimate current expected credit losses for its accounts receivable population and weighted average remaining maturity ("WARM") method for supplier advances.

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Recently Issued Accounting Pronouncements

In December 2025, the FASB issued ASU 2025‑11, Interim Reporting (Topic 270):

Narrow‑Scope Improvements.

The amendments clarify the applicability, content, and disclosure requirements for interim financial statements prepared in accordance with U.S.

generally accepted accounting principles (GAAP).

The objective of ASU 2025‑11 is to improve the clarity and navigability of Topic 270 by consolidating existing interim reporting guidance, specifying required disclosures,

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

and establishing a principle that entities disclose events and changes occurring after the most recent annual reporting period that have a material impact on the entity.

ASU 2025‑11 is effective for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted.

The Company is evaluating the impact on the Company’s interim reporting and disclosures.

In September 2025, the FASB issued ASU 2025‑06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06").

ASU 2025-06 removes the existing project stage model and introduces new capitalization criteria based on management authorization and the probability of project completion.

It also clarifies the treatment of software development uncertainty and incorporates guidance on website development costs.

ASU 2025-06 is effective for annual periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025‑05, Financial Instruments—Credit Losses (“Topic 326”):

Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”).

ASU 2025-05 introduces a practical expedient that allows entities to estimate expected credit losses for current trade receivables and contract assets (within the scope of ASC 606) based on the assumption that current economic conditions will persist over the asset’s remaining life.

The expedient applies only to receivables and contract assets that are expected to be collected within one year (or the operating cycle, if longer) and is intended to reduce complexity in applying the credit loss model under Topic 326.

The standard is effective for the Company for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years.

Early adoption is permitted.

The amendments must be applied prospectively.

The Company is currently evaluating the impact of ASU 2025-05 on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03 , Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

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The Company is currently evaluating the impact of adopting ASU 2024-03 .

In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740):

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company will adopt the guidance on a prospective basis when it becomes effective.

The Company is currently evaluating the impact of adopting ASU 2023-09 .

REVENUE RECOGNITION

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Since there is no alternative use for these products and the Company has the right to payment for performance completed to date, the Company recognizes the revenue for the production of these Private Label products over time as the production for open purchase orders occurs, which may be prior to any shipment.

• Other – This product category includes Vita Coco product extensions beyond coconut water, such as coconut milk products, including Vita Coco Treats;

Ever & Ever ;

Runa (until the Company ceased selling in December 2023);

Vita Coco coconut oil sold internationally;

and other revenue transactions (e.g., bulk product sales).

For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue.

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

• Other – This product category consists of all other products, which included Runa (until we ceased selling it in December 2023), and includes Ever & Ever and PWR LIFT product offerings and Vita Coco product extensions beyond coconut water, coconut milk products, including the recently launched Vita Coco Treats, and other revenue transactions (e.g., bulk product sales).

For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

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Balance at January 1, 2024 $ 2,486

Provision charged to operating results 3,135

Current period provision for expected credit losses

Account write-offs and other deductions, net of recoveries ( 3,197 )

3 unchanged sentences

Balance as of December 31, 2025 $ 2,660

Inventory consists of the following:

THE VITA COCO COMPANY, INC.

3 unchanged sentences

(Amounts in thousands, except for share and per share data)

Inventory consists of the following:

Raw materials and packaging $ 5,353 $ 3,536

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Prepaid expenses and other current assets consist of the following:

Tax receivables $ 5,737 $ 3,622

Contract assets 4,804 8,629

Supplier prepaid

State and Federal Tax receivables $ 7,198 $ 5,737

VAT receivables 7,005 1,790

Supplier incentives receivable

Supplier prepaid 3,473 4,767

Contract assets 3,131 4,804

Lease Incentive Receivables 1,690 —

Supplier Incentives Receivables 1,442 1,590

Restricted Cash 1,281 1,264

Prepaid IT Subscriptions 1,230 566

Prepaid insurance 678 1,230

GST/HST receivable

Interest Receivable 525 462

GST/HST Receivable 353 893

Other prepaid expenses 1,557 2,077

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Property and equipment, net consist of the following:

Machinery and equipment

$ 2,271 $ 1,927

Computer software and hardware

Leasehold improvements $ 6,290 $ 393

Vehicles 624 685

Land and improvements 140 140

Computer software and hardware

Machinery and equipment

Furniture and fixtures 1,575 708

Land and improvements — 140

Total Property and equipment 15,825 8,031

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Property and equipment—net $ 9,298 $ 2,351

Depreciation expense related to property and equipment, net for the years ended December 31, 2025, 2024, and 2023 was $ 1,072 , $ 745 and $ 660 , respectively.

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

Depreciation expense related to property and equipment, net for the years ended December 31, 2024, 2023, and 2022 was $ 745 , $ 660 and $ 681 , respectively.

In the year ended December 31, 2023, the Company reclassified its long-lived assets in Ecuador related to its Runa product and related production assets from held for sale to held and used within property and equipment and recorded an impairment charge to reduce the carrying amount of the asset group to its estimated fair value of $ 140 .

In 2025, the Company recorded an impairment loss of $ 140 related to this land and impaired the remaining assets related to Runa , which is included in selling, general and administrative expenses in the Consolidated Statements of Operations for the year ended December 31, 2025.

GOODWILL AND INTANGIBLE ASSETS

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The Company’s goodwill is allocated to the Americas reporting unit and is tax deductible.

In December 31, 2024, the Company performed the qualitative assessment only, which did not indicate that it is more likely than not that the carrying value of each of the reporting units exceeds their fair value, resulting in no further quantitative testing.

As of December 31, 2025, the Company performed the qualitative assessment only, which did not indicate that it is more likely than not that the carrying value of each of the reporting units exceeds their fair value, resulting in no further quantitative testing.

Based on the results of the annual impairment test, the Company concluded that no impairment to goodwill existed as of December 31, 2025, 2024, and 2023.

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The excess of the carrying value of the asset group over its fair value, if any, would be recognized as an impairment loss.

In 2022, the Company identified facts and circumstances indicating the carrying value of the intangible assets associated with the acquisition of Runa , including the trade names and distributor relationships, may not be recoverable, resulting in the determination that a triggering event had occurred.

The Company performed step 1 and determined that the Runa intangible assets were not recoverable based on a test of recoverability using expected undiscounted future cash flows for the Runa brand in the Americas.

For both trade names and distributor relationships, the Company applied step 2, by determining the fair value of these intangible assets, which concluded that the fair value was significantly below the carrying amount.

Accordingly, the total net book value of these intangible assets of $ 6,714 was impaired in the year ended December 31, 2022 and was recorded in selling, general and administrative expenses on the Company’s consolidated statements of operations.

Intangible assets, net was $ 0 as of December 31, 2025 and December 31, 2024.

Amortization expense for the years ended December 31, 2024.

December 31, 2023 and December 31, 2022 was $ 0 , $ 0 and $ 1,220 , respectively, and was recorded in selling, general and administrative expenses on the Company's consolidated statements of operations.

Amortization expense for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 was $ 0 , $ 0 and $ 0 , respectively, and was recorded in selling, general and administrative expenses on the Company's consolidated statements of operations.

ACCRUED EXPENSES

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Accrued promotions and marketing $ 22,048 $ 22,380

Shipping and handling costs 11,932 5,957

Income Tax payable 21,093 10,559

Payroll and benefits related expenses 15,841 10,388

Shipping and handling costs 12,102 11,932

Accrued trade payable 6,361 1,242

VAT Payable 3,642 2,652

Operating Lease Liabilities - ST 1,727 422

Accrued Professional fees 1,200 1,269

Accrued trade payable 1,242 1,236

Current operating lease liabilities 422 1,189

Other accrued expenses 5,444 4,759

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Credit Facility

In May 2020, the Company entered into the five-year credit facility (the "2020 Credit Facility") with Wells Fargo Bank, National Association consisting of a revolving line of credit, which currently provides for committed borrowings of $ 60 million.

As of December 31, 2024, the maturity date on the 2020 Credit Facility was May 12, 2026.

Starting in December 2022, borrowings on the 2020 Credit Facility bear interest at rates based on either:

In May 2020, the Company entered into a five-year credit facility (the "Credit Facility") with Wells Fargo Bank, National Association consisting of a revolving line of credit, which currently provides for committed borrowings of $ 60,000 .

On February 14, 2025, the Credit Facility was amended, extending the maturity date five years to February 13, 2030.

In connection with the amendment, the Company capitalized $ 90 of deferred financing costs, which are being amortized over the term of the facility.

As of December 31, 2025, the unamortized deferred financing fees related to the revolver totaled $ 74 and are included in Other assets on the Company’s consolidated balance sheet.

Borrowings on the Credit Facility bear interest at rates based on either:

1) a fluctuating rate per annum determined to be the sum of Daily Simple Secured Overnight Financing Rate ("SOFR") plus a spread defined in the credit agreement (the "Spread");

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The Spread ranges from 1.00 % to 1.75 %, which is based on the Company’s leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement.

In addition, the Company is currently subject to an unused commitment fee ranging from 0.10 % and 0.20 % on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the credit agreement).

The borrowings made before December 2022 bore interest at rates based on either:

1) London Interbank Offered Rate ("LIBOR");

or 2) a specified base rate (determined by reference to the greatest of the prime rate published by Wells Fargo, the federal funds effective rate plus 1.5 % and one-month LIBOR plus 1.5 %), as selected periodically by the Company.

The LIBOR-based loans bore interest at LIBOR plus the Spread.

The unused commitment fee prior to the December 2022 amendment was the same.

In addition, the Company was subject to unused commitment fees ranging from 0.10 % and 0.20 % on the unused amount of the line of credit through February 13, 2025, with the rate based on the Company’s leverage ratio (as defined in the Credit Facility).

Starting February 14, 2025, the unused commitment fees range from 0.13 % and 0.23 % on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the Credit Facility).

As of December 31, 2025 and December 31, 2024, the Company had no outstanding balance and $ 60,000 undrawn and available under its amended Credit Facility.

Unused commitment fee for the 2020 Credit Facility amounted to $ 61 for the year ended December 31, 2024.

Interest expense and unused commitment fee for the 2020 Credit

The Company incurred no interest expense for the Credit Facility for the year ended December 31, 2025 and 2024, respectively.

The unused commitment fee for the Credit Facility amounted to $ 73 and $ 61 for the year ended December 31, 2025 and 2024, respectively.

Interest expense and unused

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

Facility amounted to $ 14 and $ 46 , respectively, for the year ended December 31, 2023.

Interest expense and unused commitment fee for the 2020 Credit Facility amounted to $ 255 and $ 51 , respectively, for the year ended December 31, 2022.

commitment fee for the Credit Facility amounted to $ 14 and $ 46 , respectively, for the year ended December 31, 2023.

The effective interest rate was 0.13 %, 0.10 %, and 0.10 %, respectively, as of December 31, 2025, 2024, and 2023.

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As of December 31, 2025, the Company was compliant with all financial covenants.

On February 14, 2025, the 2020 Credit Facility was amended, extending the maturity five years to February 13, 2030, and amending the unused commitment fees to range from 0.125 % to 0.225 %.

Vehicle Loans

The Company periodically enters into vehicle loans.

Interest rate on these vehicle loans range from 4.56 % to 5.68 %.

The Company is required to make principal payments of $ 2 on a monthly basis.

Aggregate future principal payments on the notes payable are as follows:

Total notes payable $ 13

COMMITMENTS AND CONTINGENCIES

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As of December 31, 2025 and 2024, the Company did not record liabilities relating to such legal matters.

Business Risk —The Company imports finished goods predominantly from manufacturers located in South American and Southeast Asian countries.

Business Risk —The Company imports finished goods predominantly from manufacturers located in South American and Asian countries.

The Company may be subject to certain business risks due to potential instability in these regions.

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Customer B 25 % 23 % 23 % 30 % 17 %

One of the customers acquired less than 5% ownership in the Company upon consummation of the IPO.

The same customer also was granted 200,000 restricted stock awards at the time of the IPO, of which 100,000 vested on March 31, 2023 and 100,000 vested on March 31, 2024.

The customer monetized its investment in the Company during the first quarter of 2025.

In 2023, the Company agreed to start to discontinue the Private Label coconut water and coconut oil supply relationship with one of the significant customers as the terms required to retain the business were contrary to the long term margin targets.

However, at the request of this customer, the supply relationship continued for a significant portion of their Private Label coconut water needs in 2024.

During 2025, the Company experienced a decrease in the number of regions that the Company services for Private Label for this customer.

Major Suppliers — The Company’s suppliers that accounted for 10% or more of the Company’s purchases were as follows:

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

One of the customers acquired less than 5% ownership in the Company upon consummation of the IPO.

The same customer also vested in 100,000 restricted stock awards during the period ended March 31, 2023 as discussed in Note 10, Stockholders' Equity.

The customer continues to hold less than 5% ownership in the Company as of December 31, 2024.

In 2023, the Company agreed to start to discontinue the private label coconut water and coconut oil supply relationship with one of the significant customers as the terms required to retain the business were contrary to the long term margin targets.

However, at the request of this customer, the supply relationship continued for a significant portion of their private label coconut water needs in 2024.

The Company expects the number of regions that the Company services for private label to decrease in 2025.

Major Suppliers — The Company’s suppliers that accounted for 10% or more of the Company’s purchases were as follows:

Year Ended December 31,

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Supplier B 13 % 15 %

Supplier C 10 % 8 %

DERIVATIVE INSTRUMENTS

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Foreign currency exchange contracts

Receive USD/pay EUR $ 9,060 $ 458 Derivative assets

Receive USD/pay GBP 26,303 464 Derivative assets

Receive USD/pay CAD $ 8,486 $ 460 Derivative assets

Receive BRL/sell USD $ 21,769 $ 543 Derivative assets

Receive THB/sell USD 23,620 189 Derivative assets

Foreign currency exchange contracts

Receive THB/sell USD $ 28,066 $ ( 623 ) Derivative liabilities

Receive BRL/sell USD 35,443 ( 6,272 ) Derivative liabilities

Receive USD/pay GBP $ 39,878 $ ( 854 ) Derivative liabilities

Receive USD/pay EUR 27,531 ( 324 ) Derivative liabilities

Receive USD/pay CAD 16,043 ( 329 ) Derivative liabilities

December 31, 2024

3 unchanged sentences

Foreign currency exchange contracts

Receive BRL/sell USD $ 62,253 $ 3,876 Derivative assets

Receive USD/pay EUR $ 9,060 $ 458 Derivative assets

Receive USD/pay GBP 26,303 464 Derivative assets

Receive USD/pay CAD 8,486 460 Derivative assets

Foreign currency exchange contracts

Receive THB/sell USD $ 28,066 $ ( 623 ) Derivative liabilities

Receive USD/pay EUR 5,627 ( 90 ) Derivative liabilities

Receive USD/pay GBP $ 23,512 $ ( 749 ) Derivative liabilities

Receive USD/pay CAD 7,666 ( 89 ) Derivative liabilities

Receive BRL/sell USD 35,443 ( 6,272 ) Derivative liabilities

The amount of realized and unrealized gains and losses and consolidated statements of operations and comprehensive income location of the derivative instruments as of December 31, 2025 and 2024 are as follows:

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The Company repurchased 5,192,005 shares of its own common stock from the Seller at a purchase price of $ 9.63 per share, or an aggregate purchase price of approximately $ 50,000 .

The purchase price per share approximated the most recent third-party common stock valuation prepared in conjunction with the accounting of stock-based compensation discussed within this Note 14.

The purchase price per share approximated the most recent third-party common stock valuation prepared in conjunction with the accounting of stock-based compensation discussed within Note 15.

THE VITA COCO COMPANY, INC.

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On October 30, 2023, the Board approved a share repurchase program ("Program") authorizing the Company to repurchase up to $ 40,000 of the Company's common stock.

On April 28, 2025, the Company's Board approved an additional $ 25,000 to the Repurchase Program, authorizing the Company to repurchase up to a total of $ 65,000 of the Company's Common Stock.

There were no other changes made to the terms of the Repurchase Program.

Shares of the Company's common stock may be repurchased under the Program from time to time through open market purchases, block trades, private transactions or accelerated or other structured share repurchase programs.

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The Company repurchased 504,246 shares under this program at a cost of $ 12,030 during the year ended December 31, 2024.

Stock-based Compensation — The stockholders of the Company approved the adoption of the Company’s 2014 Stock Option and Restricted Stock Plan (the “2014 Plan”).

As of December 31, 2025, $ 40,928 remained available for future purchases under the Program.

STOCK-BASED COMPENSATION

The stockholders of the Company approved the adoption of the Company’s 2014 Stock Option and Restricted Stock Plan (the “2014 Plan”).

The 2014 Plan allowed for a maximum of 8 % of the sum of the Available Equity defined as the sum of (i) the total then outstanding shares of common shares and (ii) all available stock option (i.e., granted and outstanding stock options and stock options not yet granted).

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provided, however, no more than 3,431,312 shares may be issued upon the exercise of incentive stock options, or ISOs.

The 2021 Plan provides for the grant of stock options, including ISOs and nonqualified stock options, or NSOs, restricted stock, dividend equivalents, stock payments, restricted stock units, or RSUs, other incentive awards, SARs, and cash awards.

The 2021 Plan provides for the grant of stock options, including ISOs and nonqualified stock options, or NSOs, restricted stock, dividend equivalents, stock payments, RSUs, other incentive awards, stock appreciation rights, and cash awards.

Stock options, restricted stock, and RSU's were granted under 2021 Plan.

As of December 31, 2025, there were 2,941,343 shares of the Company's common stock reserved for future issuance pursuant to the 2021 Plan.

The Company recognized stock-based compensation expense of $ 8,771 , $ 7,805 and $ 6,134 for the years ended December 31, 2024, 2023 and 2022, respectively in selling, general, and administrative expenses.

The Company also recognized a reduction of revenue of $ 151 , $ 1,323 and $ 1,250 for the years ended December 31, 2024, 2023 and 2022 related to stock-based compensation awards granted to entities affiliated with a major customer that was accounted for as a stock-based sales incentive.

The total impact to additional paid-in capital related to stock-based compensation arrangements in 2024 and 2023 were $ 8,922 and $ 9,128 , respectively.

For the year ended December 31, 2025, 2024, and 2023 the Company recorded stock compensation costs totaling:

Year Ended December 31,

2025 2024 2023

Reduction in revenue (1)

$ — $ 151 $ 1,323

Selling, general & administrative expenses

$ 10,843 $ 8,771 $ 7,805

Total stock compensation expense

$ 10,843 $ 8,922 $ 9,128

(1) The cost recognized as a reduction in revenue is related to the RSUs previously granted to a major customer based on guidance in ASC 606 as a stock-based sales incentive.

These awards are shares of restricted Common Stock valued at $ 3,000 granted at the time of the IPO to an entity affiliated with a significant customer, at $ 15.00 per share, or 200,000 restricted shares, in connection with an amendment to extend the distributor agreement term to June 10, 2026.

Since the distribution agreement had not been terminated by either party for cause as of March 31, 2023, 50 % of the shares were released on March 31, 2023.

The remaining 50 % were released on March 31, 2024.

Stock Option Awards with Service-based Vesting Conditions

Most stock option awards granted under the 2014 and 2021 Plans vest based on the continuous service.

The stock options awarded to the employees have different vesting schedules as specified in each grant agreement.

The following table summarizes the service-based stock option activity during the year ended December 31, 2024:

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

Most stock option awards granted under the 2014 and 2021 Plans vest based on the continuous service.

The stock options awarded to the employees have different vesting schedules as specified in each grant agreement.

The following table summarizes the service-based stock option activity during the year ended December 31, 2025:

Options Weighted-

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As such, the dividend yield has been estimated to be zero .

Fair Value of Common Stock — For stock awards granted subsequent to the IPO, the fair value of the Company's common stock assumed for the grant date fair value of the awards will be based on the closing price of the Company's common stock as reported on the day of grant.

Prior to the IPO in October 2021, because there has been no public market for the Company’s common stock, the Board has determined the estimated fair value of the Company's common stock at the time of grant of options by considering valuations performed by an independent third-party valuation specialist, which considers a number of objective and subjective factors including valuations of comparable companies, operating and

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

financial performance, the lack of liquidity of capital stock, the likelihood of achieving an initial public offering and general and industry specific economic outlook.

common stock as reported on the day of grant.

These third-party valuations were performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation .

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During the years ended December 31, 2025 and December 31, 2024, there were no modifications to these awards.

During the year ended December 31, 2022, certain awards that contained a performance-based vesting condition were modified.

The modification adjusted the performance condition to allow for 50 % of the performance awards to meet the criteria to vest, and no other terms were modified.

Since it did not affect any terms that would affect the fair value, and only the number of awards, it is considered an improbable-to-probable modification.

The impact of the modification was not material.

The following table summarizes the stock option activity during the year ended December 31, 2025:

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The Company did not grant any performance based options for the year ended December 31, 2025.

The Company uses Black-Scholes option-pricing model to assess the fair value of the awards with performance-based vesting conditions pursuant to the 2021 Plan.

There were no performance based options grants for the year ended December 31, 2024.

As of December 31, 2025, total unrecognized compensation cost related to the unvested stock option awards containing performance conditions was $ 185 , which is expected to be recognized over the period of approximately 0.2 years.

THE VITA COCO COMPANY, INC.

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(Amounts in thousands, except for share and per share data)

As of December 31, 2024, total unrecognized compensation cost related to the unvested stock option awards containing performance conditions was $ 1,525 , which is expected to be recognized over the period of approximately 1.0 years.

Service & Performance Based Restricted Stock Awards ("RSUs")

RSUs were granted under the 2021 Plan.

and primarily vest based on continuous service.

RSUs were granted under the 2021 Plan and primarily vest based on continuous service.

The RSUs with service-based vesting conditions awarded to employees have differing vesting schedules as specified in each grant agreement.

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Non-vested - December 31, 2025 608,203 $ 24.95 144,191 $ 28.35

Also included in these awards are $ 3 million of shares of restricted common stock granted to entities affiliated with a significant customer, granted at the IPO price per share of $ 15.00 , or 200,000 restricted shares, in exchange for an amendment to extend the distributor agreement term to June 10, 2026.

Since the distribution agreement has not been terminated by either party for cause as of March 31, 2023, 50 % of the shares were released on March 31, 2023.

The remaining 50 % were released on March 31, 2024.

The grant was accounted for as a stock-based sales incentive based on guidance in ASC 606 and is reflected as a reduction in the transaction price of revenue on the basis of the grant-date fair-value measure in accordance with the stock compensation guidance in ASC 718.

The aggregate grant date fair value of service and performance based RSUs granted during 2025 and 2024 was $ 7,219 and $ 8,609 , respectively.

At December 31, 2024, there was $ 5,886 of unrecognized stock compensation expense related to non-vested service-based RSUs, which is expected to be recognized over a weighted average period of 1.9 years.

At December 31, 2024, there was $ 1,196 of unrecognized stock compensation expense related to non-vested performance based RSUs, which is expected to be recognized over a weighted average period of 2.1 years.

At December 31, 2023, there was $ 5,259 of unrecognized stock compensation expense related to non-vested service-based RSUs, which is expected to be recognized over a weighted average period of 2.0 years.

At December 31, 2023, there was $ 219 of unrecognized stock compensation expense related to non-vested performance based RSUs, which is expected to be recognized over a weighted average period of 2.2 years.

At December 31, 2025, there was $ 6,217 of unrecognized stock compensation expense related to non-vested service-based RSUs, which is expected to be recognized over a weighted average period of 1.8 years and $ 1,954 of unrecognized stock compensation expense related to non-vested performance based RSUs, which is expected to be recognized over a weighted average period of 1.2 years.

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

The domestic and foreign components of the Company’s income before income taxes are as follows:

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The income tax expense for the years ended December 31, 2025, 2024, and 2023 consist of the following:

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

Year Ended December 31,

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2025 2024 2023

Income tax benefit using U.S.

Amount Percentage Amount Percentage Amount Percentage

Federal Statutory Rate

State and local taxes.

federal income tax benefit 3.6 % 1.8 % 4.7 %

$ 19,524 21.0 % $ 14,865 21.0 % $ 12,163 21.0 %

State and Local Income Taxes, Net of Federal Income Tax Effect

2,945 3.2 % 2,723 3.8 % 1,048 1.8 %

Foreign Tax Effects

Statutory tax rate difference between Singapore and United States ( 1,210 ) ( 1.3 %) ( 943 ) ( 1.3 %) ( 840 ) ( 1.5 %)

Other 331 0.4 % ( 104 ) ( 0.1 %) 443 0.8 %

Other foreign jurisdictions 366 0.4 % 401 0.6 % — — %

Effect of Cross-Border Tax Laws

Global intangible low-taxed income 4,804 5.2 % 3,615 5.1 % 2,953 5.1 %

Stock compensation ( 2.0 %) ( 3.0 %) ( 3.9 %)

Officer's compensation limitation 1.2 % 1.1 % 4.4 %

Permanent differences 0.4 % 0.5 % 0.3 %

Foreign rate differential ( 1.0 %) ( 1.2 %) ( 2.9 %)

Foreign-derived intangible income ( 730 ) ( 0.8 %) ( 727 ) ( 1.0 %) ( 188 ) ( 0.3 %)

Valuation allowance ( 0.7 %) ( 0.4 %) 5.4 %

Tax credits ( 5.2 %) ( 5.1 %) ( 0.6 %)

Other ( 0.4 %) — % 3.1 %

Provision for income taxes 21.0 % 19.5 % 27.9 %

Deferred tax assets and liabilities at December 31, 2024 and 2023, consist of the following:

Federal foreign tax credit

( 4,804 ) ( 5.2 %) ( 3,927 ) ( 5.5 %) ( 2,951 ) ( 5.1 %)

Nontaxable or Nondeductible Items

Stock option exercise windfall ( 2,892 ) ( 3.1 %) ( 1,383 ) ( 2.0 %) ( 1,932 ) ( 3.3 %)

162(m) limitation 2,445 2.6 % 872 1.2 % 660 1.1 %

Other nontaxable or nondeductible items

97 0.1 % 105 0.1 % 104 0.2 %

Other Adjustments 775 0.8 % ( 661 ) ( 0.9 %) ( 169 ) ( 0.3 %)

Effective Tax Rate

$ 21,651 23.3 % $ 14,836 21.0 % $ 11,291 19.5 %

1 State taxes in CA, NY, NJ and IL made up the majority (greater than 50 percent) of the tax effect in this category

THE VITA COCO COMPANY, INC.

3 unchanged sentences

(Amounts in thousands, except for share and per share data)

Deferred tax assets and liabilities at December 31, 2025 and 2024, consist of the following:

Deferred Tax Assets

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Net operating loss carryforwards 3,639 3,577

Charitable contributions carryforward — 2

Lease liability 3,129 291

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Fixed assets ( 1,764 ) ( 329 )

Other—Net 163 106

Total deferred tax liabilities ( 5,728 ) ( 2,200 )

Net deferred tax assets (liability) $ 6,463 $ 6,100

A valuation allowance of $ 3,587 and $ 4,374 was recorded against the non-US deferred tax asset balance as of December 31, 2024 and 2023, respectively.

A valuation allowance of $ 3,651 and $ 3,587 was recorded against the non-U.S.

deferred tax asset balance as of December 31, 2025 and 2024, respectively.

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets.

As of December 31, 2024 and 2023, management determined that there is sufficient positive evidence to conclude that it is more likely than not that the US deferred taxes are realizable.

A valuation allowance has been established against the net operating loss carryforwards which have been generated by our foreign jurisdictions.

As of December 31, 2025 and 2024, management determined that there is sufficient positive evidence to conclude that it is more likely than not that the U.S.

deferred taxes are realizable.

A valuation allowance has been established against the net operating loss carryforwards which have been generated by the Company's foreign jurisdictions.

As of December 31, 2025 and 2024, the Company had no U.S.

1 unchanged sentence

As of December 31, 2025 and 2024, the Company had net operating loss carryforwards related to foreign operations of $ 17,572 and $ 18,309 , respectively.

These net operating loss carryforwards have various lives ranging from 10 years to indefinite carryforward periods.

These net operating loss carryforwards have various lives remaining ranging from 10 years to indefinite carryforward periods.

A reconciliation of the beginning and ending amount of income tax uncertainties is as follows:

4 unchanged sentences

As of December 31, 2025 and 2024, there were $ 89 and $ 106 liabilities for income tax uncertainties recorded in the Company’s consolidated balance sheets.

The Company recognized interest and penalties related to income tax uncertainties of $ 37 and $ 37 in its consolidated balance sheets for years ended December 31, 2024 and 2023, respectively.

The Company recognized interest and penalties related to income tax uncertainties of $ 31 and $ 37 in its consolidated statements of operations for years ended December 31, 2025 and 2024, respectively.

The Company is subject to income tax examinations by the IRS and various state and local jurisdictions for the open tax years between December 31, 2022 and December 31, 2025.

4 unchanged sentences

(Amounts in thousands, except for share and per share data)

Cash paid for income taxes (net of refunds) is as follows:

Year Ended December 31,

2025 2024 2023

$ 5,048 $ 5,337 $ 6,200

State and local 2,433 2,571 2,326

Foreign 5,639 5,073 1,379

Total income taxes paid (net of refunds)

$ 13,120 $ 12,981 $ 9,905

Income Taxes Paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

$ 4,010 $ 3,679 $ 1,378

United Kingdom

$ 1,214 $ 1,395 *

*Jurisdiction below the threshold for period presented.

As of December 31, 2025 and 2024, income taxes on undistributed earnings of the Company’s foreign subsidiaries have not been provided for as the Company plans to indefinitely reinvest these amounts.

The cumulative undistributed foreign earnings were not material as of December 31, 2025 and 2024.

During 2021, the Finance Act 2021 (the "Finance Act") was enacted in the U.K.

The Finance Act increases the corporate income tax rate from 19% to 25% effective April 1, 2023 and enhances the first-year capital allowance on qualifying new plant and machinery assets effective April 1, 2021.

The effects on the Company’s existing deferred tax balances have been recorded.

On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law by the Biden Administration, with tax provisions primarily focused on implementing a 15% corporate alternative minimum tax (“CAMT”) on global adjusted financial statement income and a 1% excise tax on share repurchases.

On December 12, 2022, the European Union member states also reached an agreement to implement the Organization for Economic Cooperation and Development's ("OECD") reform of international taxation known as GloBE, which broadly mirrors the Inflation Reduction Act by imposing a 15% global minimum tax on multinational companies.

On July 4, 2025, the United States enacted tax reform legislation through the passage of H.R.1, One Big Beautiful Bill Act, which changes existing U.S.

tax laws, including extending or making permanent certain provisions of the 2017 Tax Cuts and Jobs Act, and repealing certain clean energy initiatives, in addition to other changes.

The impact of these changes was not material as of December 31, 2025 .

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

EARNINGS PER SHARE

21 unchanged sentences

The Company has two operating and reportable segments:

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

• Americas—The Americas segment is comprised primarily of the U.S.

and Canada and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products (e.g., coconut oil and milk).

The Company’s guayusa leaf products ( Runa ), aluminum bottle canned water ( Ever & Ever ), and protein infused fitness drink ( PWR LIFT ) are or were, in the case of Runa , marketed only in the Americas segment.

As of December 2023, we ceased offering the Runa brand.

The Company’s sustainably packaged water ( Ever & Ever ) and protein infused fitness drink ( PWR LIFT ), guayusa leaf products ( Runa ), are or were, in the case of Runa , marketed only in the Americas segment.

As of December 2023, the Company ceased offering the Runa brand.

• International—The International segment is comprised primarily of Europe, Middle East, and Asia Pacific, which includes the Company’s procurement arm and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products, which in some cases may be shipped directly to customers outside of Asia Pacific regions.

2 unchanged sentences

The CODM evaluates segment business performance based primarily on net sales and gross profit.

The CODM considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments and also uses segment gross profit for evaluating product pricing.

The CODM considers

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments and also uses segment gross profit for evaluating product pricing.

All intercompany transactions between the segments have been eliminated.

21 unchanged sentences

Total segment assets 209,984 75,698 285,682

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

Year Ended December 31,

4 unchanged sentences

Unrealized gain/(loss) on derivative instruments 4,737 ( 8,176 ) ( 872 )

Foreign currency gain/(loss) ( 1,571 ) ( 251 ) 1,387

Interest income 6,715 2,581 51

Interest expense — ( 31 ) ( 258 )

Foreign currency loss

( 1,037 ) ( 1,571 ) ( 251 )

Interest income, net

6,548 6,715 2,550

$ 191 $ — $ —

Income before income taxes $ 92,971 $ 70,788 $ 57,920

1 unchanged sentence

The following table provides information related to the Company’s net revenues by country, which is presented on the basis of the location that revenue from customers is recorded:

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(Amounts in thousands, except for share and per share data)

Twelve Months Ended December 31, 2025 2024 2023

8 unchanged sentences

Singapore 2,224 1,280

United Kingdom 655 173

All other countries(1) — 140

7 unchanged sentences

RELATED-PARTY TRANSACTIONS

Director Nominee Agreements - On May 24, 2022, two members of the Board appointed as nominees under the Investor Rights Agreement by Verlinvest Beverages SA, a stockholder of the Company, entered into nominee agreements instructing the Company to pay all cash and equity compensation earned in connection with their board of director services to Verlinvest Beverages SA.

Based on the aforementioned nominee agreements, RSUs granted to these two directors will be held by them as nominees for Verlinvest Beverages SA and, upon vesting of the RSUs, the shares will be transferred to Verlinvest Beverages SA.

The nominee agreements are primarily between the directors and Verlinvest Beverages SA.

The Company is a party to this arrangement solely to agree to the manner in which it would satisfy the compensation obligations to these directors.

As of December 31, 2024, there is only one active member of the Board that is subject to this nominee agreement.

Director Nominee Agreements - On May 24, 2022, a member of the Board appointed as a nominee under the Investor Rights Agreement by Verlinvest Beverages SA ("Verlinvest"), a stockholder of the Company, entered into a nominee agreement instructing the Company to pay all cash and equity compensation earned in connection with his board of director service to Verlinvest.

Based on the aforementioned nominee agreement, until the termination of the agreement, RSUs granted to this director were held by him as a nominee for Verlinvest and, upon vesting of the RSUs, the shares were transferred to Verlinvest.

The nominee agreement terminated on June 3, 2025 and is no longer in effect.

Following termination of the agreement, the director receives all cash and equity compensation directly.

The nominee agreement was primarily between the director and Verlinvest.

The Company was a party to this arrangement solely to agree to the manner in which it would satisfy the compensation obligations to this director.

As of December 31, 2025, there are no active members of the Board subject to this nominee agreement.

Registration Rights and Underwriting Agreements - Under the Registration Rights agreement by and among the Company, Verlinvest Beverages SA ("Verlinvest") and certain other investors, in connection with each demand registration, piggyback or shelf offering, the Company agreed to reimburse the holders of registrable securities for the reasonable fees and disbursements of not more than one law firm.

15 unchanged sentences

(Amounts in thousands, except for share and per share data)

ASSET HELD FOR SALE

The asset group held for sale consists of a farm in Ecuador which was the source of guayusa leaves for our Runa products.

Because the Company was able to source guayusa through alternative means to produce the Runa products before the Company ceased offering this brand, as of September 30, 2022, the Company committed to a plan for disposal through sale.

The Company performed a fair value assessment on the asset group held for sale consisting of land, a production plant, equipment and inventory.

The Company obtained a valuation of the assets and adjusted the carrying amount down to their fair value less costs to sell, which resulted in a $ 619 impairment loss recorded in SG&A during the third quarter of 2022.

These assets held for sale did not qualify for discontinued operations reporting.

As of September 30, 2023, since the asset had been held for sale beyond one year, the Company has reclassified it as held and used within property, plant and equipment and remeasured it at its fair value of $ 140 , which resulted in an additional $ 363 impairment loss.

The remaining carrying amount was $ 0 as of December 31, 2024 and December 31, 2023.

THE VITA COCO COMPANY, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

(Amounts in thousands, except for share and per share data)

The Company leases certain office space and machinery and equipment.

Leases with an initial term of 12 months or less are not recognized on the Consolidated Balance Sheets.

In January 2016, the Company entered into an operating lease for office space in New York, New York, which was set to expire in January 2023.

In June 2022, the Company extended its lease agreement for the New York office to April 30, 2025 and remeasured the lease liability and right-of-use asset as of June 30, 2022.

The Company pays for its proportionate share of building operating costs such as maintenance, utilities, and insurance that are treated as variable costs and excluded from the measurement of the lease.

The lease was extended to October 31, 2025 to allow for a smooth transition to the Company's new New York office.

In August 2024, the Company signed a lease agreement for a new office in New York, New York.

The operating lease will commence in fiscal year 2025, ending in 2034 with an option to extend for an additional two years .

The operating lease commenced on January 1, 2025, and terminates in December 2034, with an option to extend for an additional two years .

Total undiscounted future payments for this new office lease are $ 15,766 .

The Company recognized ROU assets and lease liabilities of $ 10,002 and $ 11,692 , respectively, upon lease commencement on the Company’s consolidated balance sheet.

Additionally, upon signing the agreement, the Company was required to establish a letter of credit of $ 920 which may be used in case of delinquency.

As of December 31, 2024, the Company accounted for the letter of credit for $ 920 as restricted cash included in Prepaid and other current assets on the consolidated balance sheet.

In addition, the Company signed a lease agreement for a new office in London, United Kingdom.

The operating lease will commence in fiscal year 2025, ending in 2030.

As of December 31, 2025, the Company accounted for this letter of credit as restricted cash included in Prepaid and other current assets on the consolidated balance sheet.

In November 2024, the Company signed a lease agreement for a new office in London, United Kingdom.

The operating lease commenced on January 2, 2025 and terminates in December 2029.

Total undiscounted future payments for this new office lease are $ 1,152 .

Additionally, the Company agreed to establish a security deposit of $ 109 , which is refundable at the end of the lease period.

The Company also maintains additional leases for office space and equipment in London and Singapore, which are operating leases.

On March 31, 2022, the Company renewed the lease for the Singapore office, extending it through June 30, 2025, which is reflected in the lease term.

The Company recognized ROU assets and lease liabilities of $ 1,140 and $ 1,252 respectively, upon lease commencement on the Company’s consolidated balance sheet .

The Company agreed to establish a security deposit of $ 117 , which is refundable at the end of the lease period.

In April 2025, the Company signed an agreement for a new office in Singapore.

The operating lease commenced on April 1, 2025 and terminates in June 2030.

Total undiscounted future payments for this new office lease are $ 1,675 .

The Company recognized ROU assets and lease liabilities of $ 1,564 and $ 1,564 respectively, upon lease commencement on the Company’s consolidated balance sheet .

As of December 31, 2025, the Company did not have any additional operating leases that have not yet commenced with future undiscounted lease payments.

8 unchanged sentences

Noncurrent assets:

Operating lease right-of-use assets Right-of-use assets $ 385 $ 1,406

Operating lease right-of-use assets Right-of-use assets, net

$ 11,592 $ 385

Current liabilities:

16 unchanged sentences

Year ending December 31, Maturity of Lease Payments

Thereafter 7,429

Total lease payments $ 18,592

9 unchanged sentences

It is anticipated that Coco Ventures will initially purchase coconut water products from the Company.

The Company acquired this interest on August 2, 2024, the date on which the Company obtained significant influence, for $ 0.6 million to be paid in cash within one year.

The Company will record the initial investment in the joint venture upon cash payment.

Since the Company is deemed not to have a controlling interest in Coco Ventures Limited, the Company’s investment will be accounted using the equity method of accounting in accordance with ASC 323.

As of December 31, 2024, Coco Ventures Limited had not completed any activity and had no operations.

Coco Ventures Limited purchases coconut water products from the Company.

The Company acquired this interest on August 2, 2024, the date on which the Company obtained significant influence, for $ 585 to be paid in cash within one year.

Per the joint venture agreement, the Company shall contribute its portion of capital funding per the operational funding requirement of the joint venture's business operations.

The Company recorded the initial investment in the joint venture upon cash payment.

Since the Company is deemed not to have a controlling interest in Coco Ventures Limited, the Company’s investment is accounted for using the equity method of accounting in accordance with ASC 323.

As of December 31, 2025, the Company recognized an investment of $ 587 in Coco Ventures Limited.

This amount includes $ 104 contributed during 2025 and $ 483 that was legally committed as of year‑end and subsequently funded on January 2, 2026.

Coco Ventures Limited commenced operations in February 2025.

The equity method investment is recorded in other assets on the consolidated balance sheet.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data