Zevia PBC 10-K

Item 8. Financial Statements and Supplementary Data. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm 45 Consolidated Balance Sheets 46 Consolidated Statements of Operations and Comprehensive Loss 47 Consolidated Statements of Changes in Equity 48 Consolidated Statements of Cash Flows 49 Notes to Consolidated Financial Statements 50 44 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Zevia PBC: Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Zevia PBC and its subsidiary (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, consolidated statements of changes in equity, and consolidated statements of cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLP Los Angeles, California February 25, 2026 We have served as the Company’s auditor since 2020. 45 Table of Contents ZEVIA PBC CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) December 31, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 25,354 $ 30,653 Accounts receivable, net 11,106 10,795 Inventories 20,393 18,618 Prepaid expenses and other current assets 1,367 1,843 Total current assets 58,220 61,909 Property and equipment, net 867 1,261 Right-of-use assets under operating leases, net 549 1,099 Intangible assets, net 3,135 3,179 Other non-current assets 849 503 Total assets $ 63,620 $ 67,951 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 17,565 $ 15,295 Accrued expenses and other current liabilities 9,786 8,340 Current portion of operating lease liabilities 668 587 Total current liabilities 28,019 24,222 Operating lease liabilities, net of current portion — 726 Other non-current liabilities — 58 Total liabilities 28,019 25,006 Commitments and contingencies (Note 9) Stockholders’ equity Preferred Stock, $ 0.001 par value. 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2025 and December 31, 2024. — — Class A common stock, $ 0.001 par value. 550,000,000 shares authorized, 67,486,641 and 61,646,478 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively. 67 61 Class B common stock, $ 0.001 par value. 250,000,000 shares authorized, 7,614,823 and 11,551,235 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively. 8 12 Additional paid-in capital 182,226 186,148 Accumulated deficit ( 131,262 ) ( 121,342 ) Total Zevia PBC stockholders’ equity 51,039 64,879 Noncontrolling interests ( 15,438 ) ( 21,934 ) Total equity 35,601 42,945 Total liabilities and equity $ 63,620 $ 67,951 The accompanying notes are an integral part of these consolidated financial statements. 46 Table of Contents ZEVIA PBC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Year Ended December 31, (in thousands, except share and per share amounts) 2025 2024 Net sales $ 161,259 $ 155,049 Cost of goods sold 83,839 83,120 Gross profit 77,420 71,929 Operating expenses: Selling and marketing 52,386 57,132 General and administrative 30,024 30,024 Equity-based compensation 3,763 4,961 Depreciation and amortization 868 1,329 Restructuring 2,169 2,137 Total operating expenses 89,210 95,583 Loss from operations ( 11,790 ) ( 23,654 ) Other income (expense), net 678 ( 63 ) Loss before income taxes ( 11,112 ) ( 23,717 ) Provision for income taxes 54 66 Net loss and comprehensive loss ( 11,166 ) ( 23,783 ) Loss attributable to noncontrolling interest 1,246 3,778 Net loss attributable to Zevia PBC $ ( 9,920 ) $ ( 20,005 ) Net loss per share attributable to common stockholders Basic $ ( 0.15 ) $ ( 0.34 ) Diluted $ ( 0.15 ) $ ( 0.34 ) Weighted average common shares outstanding Basic 66,016,155 58,683,445 Diluted 66,016,155 58,683,445 The accompanying notes are an integral part of these consolidated financial statements. 47 Table of Contents ZEVIA PBC CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Class A Common Stock Class B Common Stock Additional (in thousands, except for share amounts) Shares Amount Shares Amount Paid in Capital Accumulated Deficit Noncontrolling interest Total Equity Balance at January 1, 2024 54,220,017 $ 54 17,283,177 $ 17 $ 191,144 $ ( 101,337 ) $ ( 28,111 ) $ 61,767 Vesting and release of common stock under equity incentive plans, net 1,554,847 2 — — ( 2 ) — — — Exchange of Class B common stock for Class A common stock 5,731,942 5 ( 5,731,942 ) ( 5 ) ( 9,955 ) — 9,955 — Exercise of stock options 139,672 — — — — — — — Equity-based compensation — — — — 4,961 — — 4,961 Net loss — — — — — ( 20,005 ) ( 3,778 ) ( 23,783 ) Balance at December 31, 2024 61,646,478 $ 61 11,551,235 $ 12 $ 186,148 $ ( 121,342 ) $ ( 21,934 ) $ 42,945 Vesting and release of common stock under equity incentive plans, net 1,819,563 2 — — ( 2 ) — — — Exchange of Class B common stock for Class A common stock 3,936,412 4 ( 3,936,412 ) ( 4 ) ( 7,742 ) — 7,742 — Exercise of stock options 84,188 — — — 59 — — 59 Equity-based compensation — — — — 3,763 — — 3,763 Net loss — — — — — ( 9,920 ) ( 1,246 ) ( 11,166 ) Balance at December 31, 2025 67,486,641 $ 67 7,614,823 $ 8 $ 182,226 $ ( 131,262 ) $ ( 15,438 ) $ 35,601 The accompanying notes are an integral part of these consolidated financial statements. 48 Table of Contents ZEVIA PBC CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (in thousands) 2025 2024 Operating activities: Net loss $ ( 11,166 ) $ ( 23,783 ) Adjustments to reconcile net loss to net cash used in operating activities: Non-cash lease expense 550 587 Sublease impairment loss — 351 Depreciation and amortization 868 1,329 Loss on disposal of property, equipment and software, net 7 57 Amortization of debt issuance cost 76 76 Equity-based compensation 3,763 4,961 Changes in operating assets and liabilities: Accounts receivable, net ( 311 ) 324 Inventories ( 1,775 ) 15,932 Prepaid expenses and other assets 534 3,220 Accounts payable 2,008 ( 5,863 ) Accrued expenses and other current liabilities 1,388 2,367 Operating lease liabilities ( 645 ) ( 635 ) Other non-current liabilities — 58 Net cash used in operating activities ( 4,703 ) ( 1,019 ) Investing activities: Purchases of property, equipment and software ( 307 ) ( 283 ) Net cash used in investing activities ( 307 ) ( 283 ) Financing activities: Proceeds from revolving line of credit — 8,000 Repayment of revolving line of credit — ( 8,000 ) Proceeds from exercise of stock options 59 — Financing costs paid ( 348 ) — Net cash used in financing activities ( 289 ) — Net change from operating, investing, and financing activities ( 5,299 ) ( 1,302 ) Cash and cash equivalents at beginning of period 30,653 31,955 Cash and cash equivalents at end of period $ 25,354 $ 30,653 Non-cash investing and financing activities Capital expenditures included in accounts payable $ 131 $ 1 Financing costs included in accounts payable $ 132 — Conversion of Class B common stock to Class A common stock $ 7,742 $ 9,955 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 57 $ 93 Cash paid for income taxes $ 45 $ 85 The accompanying notes are an integral part of these consolidated financial statements. 49 Table of Contents ZEVIA PBC NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. DESCRIPTION OF BUSINESS Organization and operations Zevia PBC (the “Company,” “we,” “us,” “our”), is a better-for-you beverage company that develops, markets, sells, and distributes naturally delicious, zero sugar beverages. We are a Delaware public benefit corporation and have been designated as a “Certified B Corporation,” and are focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are Non-GMO Project verified, gluten-free, Kosher, and vegan, and include a variety of flavors across Soda, Energy Drinks and Tea drinks. Our products are distributed and sold principally across the United States (“U.S.”) and Canada through a diverse network of major retailers in the grocery, drug, warehouse club, mass, natural, convenience and e-commerce channels and in natural product stores and specialty outlets. The Company’s products are manufactured and maintained at third -party beverage production and warehousing facilities located in both the U.S. and Canada. The Company completed its initial public offering (“IPO”) of 10,700,000 shares of its Class A common stock at an offering price of $ 14.00 per share on July 26, 2021. Its Class A common stock is listed on the New York Stock Exchange trading under the ticker symbol “ZVIA.” In connection with the IPO, the Company also completed certain reorganization transactions (the “Reorganization Transactions”), pursuant to which Zevia LLC became the predecessor of the Company for financial reporting purposes. The Company is a holding company, and its sole material asset is its controlling equity interest in Zevia LLC. As the sole managing member of Zevia LLC, the Company operates and controls all of the business and affairs of Zevia LLC. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiary, Zevia LLC, that it controls due to ownership of a majority equity interest. All intercompany transactions and balances have been eliminated in consolidation. The Company owns a majority economic interest in, and operates and controls all of the businesses and affairs of, Zevia LLC. Accordingly, the Company has prepared these accompanying consolidated financial statements in accordance with Accounting Standards Codification (“ASC”) Topic 810, Consolidation . On January 1, 2022, the Company and Zevia LLC entered into a service agreement to transfer the services of all employees of the Company to Zevia LLC. Under terms of the service agreement between the entities, the payroll costs of employees are borne by Zevia LLC while certain other non-payroll costs, such as those associated with stock compensation arrangements, remain with the Company. In addition, pursuant to the Thirteenth Amended and Restated Limited Liability Company Agreement of Zevia LLC, dated as of July 21, 2021, Zevia LLC shall reimburse the Company for certain expenses for overhead, administrative, and other expenses, at the Company’s discretion. For the years ended December 31, 2025 and 2024 , it was determined that the majority of such costs will be retained by the Company, with certain costs directly attributable to Zevia LLC being borne by that entity. These costs impacted the amount of net loss reported by Zevia LLC and consequently impacted the amount allocated to noncontrolling interest. Use of estimates The preparation of the accompanying consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the reported amount of net sales and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by the Company relate to: net sales and associated cost recognition; the useful lives assigned to and the recoverability of property and equipment; adjustments recorded for inventory obsolescence and adjustments made for net realizable value; the incremental borrowing rate for lease liabilities; allowance for credit losses; the useful lives assigned to and the recoverability of intangible assets; realization of deferred tax assets; and the determination of the fair value of equity instruments, including restricted unit awards, and equity-based compensation awards. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of its assets and liabilities. Cash, cash equivalents and investments Cash and cash equivalents include cash and investments in short-term, highly liquid securities, with original maturities of three months or less. Investments with original maturities at the date of acquisition of more than three months are classified as short-term investments or long-term investments based on the remaining contractual maturity of the security at the reporting date. As of December 31, 2025 and 2024 , the Company did not hold any investments. The Company maintains cash deposits with high credit quality financial institutions. The deposits with these financial institutions may exceed the federally insured limits; however, these deposits typically are redeemable upon demand. The Company has not experienced any loss because of these deposits and does not expect to incur any losses in the future. 50 Table of Contents Fair value of financial instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurement or assumptions that market participants would use in pricing the assets or liabilities, such as inherent risk, transfer restrictions, and credit risk. The three -level hierarchy for disclosure of fair value measurements is as follows: ● Level 1. Quoted prices in active markets for identical assets or liabilities. ● Level 2. Inputs other than Level 1 inputs that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or market-corroborated inputs. ● Level 3. Unobservable inputs for the asset or liability. The Company’s material financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities. The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximated their fair values at December 31, 2025 and 2024 due to the short period of time to maturity or repayment. As of December 31, 2025 and 2024 , all cash and cash equivalents were considered Level 1. As of December 31, 2025 and 2024 , the Company did not have any assets or liabilities measured on a recurring basis without observable market values that would require a high level of judgment to determine fair value (Level 3 ). The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. For the years ended December 31, 2025 and 2024 , there were no transfers between levels of the fair value hierarchy. Other comprehensive loss The nature of the Company’s operations does not give rise to consequential other comprehensive loss. Accounts receivable and allowance for credit losses Trade receivables are recorded at net realizable value, which includes an appropriate allowance for credit losses. Credit is extended to customers based on an evaluation of their financial condition, credit rating, and trade references. The Company monitors exposure to credit losses and maintains an allowance for anticipated losses based on each customer’s credit condition and payment behavior. The Company’s accounts receivable balance is net of an allowance for credit losses. The allowance for credit losses was not material at December 31, 2025 and 2024 . Changes in the allowance for credit losses were not material for the years ended December 31, 2025 and 2024 . Inventories Inventories consist of raw materials and finished goods. Raw materials include costs for the Company’s ingredients and packaging inventories. The costs of finished goods inventories include production fees from third -party manufacturers. Inventories are stated at the lower of average cost or net realizable value. The Company regularly reviews whether the net realizable value of its inventory is lower than its carrying value. Indicators that could result in inventory write downs include age of inventory, damaged inventory, slow moving products, and products at the end of their life cycles. While management believes that inventory is appropriately stated at the lower of average cost or net realizable value, judgment is involved in determining the net realizable value of inventory. Prepaid expenses Prepaid expenses represent amounts paid in advance for products or services to be delivered in the future and are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets. Prepaid expenses are expensed as incurred and were $ 0.8 million as of December 31, 2025 and 2024. Property and equipment, net Property and equipment are recorded at cost. Additions, replacements, and leasehold improvements are capitalized, while maintenance and repairs that do not extend the useful life of an asset are expensed as incurred. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvement. When assets are retired or otherwise disposed, the cost and accumulated depreciation are removed from the respective accounts and any related gain or loss is recognized. Depreciation and amortization are computed using the following estimated useful lives of the assets: Asset Years Leasehold improvements (Shorter of lease term or estimated useful life) Computer equipment 3 Furniture and equipment 4 - 7 Quality control equipment 2 - 5 The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, the Company compares the estimated undiscounted future pre-tax cash flows from the use of the group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the group of assets over the long-lived asset’s fair value. The Company recognized an impairment charge associated with long-lived assets of $ 0.1 million during the year ended December 31, 2024. The impairment charge of $ 0.1 million was the result of sublease arrangement entered by the Company during the year ended December 31, 2024 and included in restructuring expense on the consolidated statement of operations and comprehensive loss. There was no impairment during the year ended December 31, 2025 . 51 Table of Contents Leases The Company leases office space. Right of use (“ROU”) lease assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments. Both the ROU lease asset and liability are recognized as of the lease commencement date based on the present value of the lease payments over the lease term. The Company’s leases do not provide an implicit borrowing rate that can readily be determined. Therefore, the Company applies a discount rate based on the incremental borrowing rate, which is determined using the Company’s synthetic credit rating and other information available as of the lease commencement date. ROU lease assets also include any lease payments made before their contractual due dates and exclude any lease incentives. The Company’s lease agreements may include options to extend the lease term or to terminate the lease early. The Company includes options to extend or terminate leases upon determination of the ROU lease asset and liability when it is reasonably certain the Company will exercise these options. Operating lease expense attributable to lease payments is recognized on a straight-line basis over the lease term and is included in general and administrative expense on the consolidated statements of operations and comprehensive loss. The Company has lease arrangements that include lease and non-lease components. The non-lease components in the arrangements are not significant when compared to the lease components. For all leases, the Company accounts for the lease and non-lease components as a single component. The Company evaluates ROU assets for impairment consistent under the impairment of long-lived assets policy. See Note 8, Leases for discussion on impairment. The Company had no material finance leases as of December 31, 2025 and 2024 . Intangible assets, net Intangible assets subject to amortization consist of customer relationships, which were acquired and are amortized over their estimated useful life of 15 years and computer software costs which are amortized over their estimated useful life of three years. In accordance with Accounting Standard Codification (“ASC”) Topic 350, Intangibles — Goodwill and Other , intangible assets with definite lives are treated as a long-lived asset and are evaluated for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. If impaired, the asset is written down to its estimated fair market value, which is generally measured by discounting future cash flows. Non-amortizable intangible assets consist of trademarks which represent the Company’s exclusive ownership of the Zevia® brand used in connection with the manufacture, marketing, and distribution of its carbonated beverages. The Company also owns several other trademarks in both the U.S. and in foreign countries. Intangible assets not subject to amortization are evaluated for impairment annually, or sooner if management believes such assets may be impaired. An impairment loss is recognized if the asset’s carrying amount exceeds its estimated fair market value. For the years ended December 31, 2025 and 2024 , no impairment losses were recorded. Certain external and internal computer software costs acquired for internal use are capitalized. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Capitalized costs are included within intangible assets, net. Debt issuance cost Costs incurred in connection with securing a revolving line of credit agreement are capitalized. These costs are amortized over the term of the credit agreement. Debt issuance costs are included in other non-current assets in the accompanying consolidated balance sheets. Net debt issuance costs totaled $ 0.1 million and $ 0.2 million as of December 31, 2025 and 2024 , respectively. Customer incentives and allowances The Company offers its customers sales incentives that are designed to support the distribution of its products to consumers. These incentives and discounts include cash discounts, price allowances, volume-based rebates, product placement fees and certain other financial support for items such as trade promotions, displays, new products, consumer incentives and advertising assistance. These amounts are deducted from gross sales and are included under net sales in the accompanying consolidated statements of operations and comprehensive loss. The Company maintains an allowance representing the estimated cost of certain customer incentives incurred but not yet realized as of the end of each respective year, which is recorded as an offset against customer accounts receivable, and is included under accounts receivable, net in the accompanying consolidated balance sheets. The accrual for customer incentives and allowances were $ 5.1 million and $ 5.7 million as of December 31, 2025 and 2024 , respectively. Revenue recognition The Company recognizes revenue when performance obligations under the terms of a contract with the customer are satisfied. Product sales occur once control is transferred either upon shipment or delivery to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods, net of accruals for customer incentives and allowances. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in customer incentives the Company offers to its customers. Customer incentives and allowances are estimated based on agreed upon terms as well as historical trends and current economic and market conditions, while cash discounts are based on trade terms and require management judgment with respect to estimating customer participation and performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. The Company accounts for costs associated with shipping and handling activities that occur after the transfer of control as a fulfillment activity, instead of a separate performance obligation. The Company excludes from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed and concurrent with a specific revenue-producing transaction and collected by the Company from a customer. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. 52 Table of Contents Cost of goods sold Cost of goods sold consists of all costs to acquire and manufacture the Company’s products including the cost of the various ingredients, packaging, in-bound freight and logistics, and third -party production fees—which are typically incurred at a flat rate per case produced—and all other costs incurred to bring the product to salable condition. The Company’s cost of goods sold is generally subject to price fluctuations in the marketplace for aluminum, logistics costs such as fuel, inbound freight, bottling tolling fees, as well as shifting product mix. Selling and marketing expenses Selling and marketing expenses in the accompanying consolidated statements of operations and comprehensive loss include warehousing and distribution costs, shipping and handling costs, advertising, and marketing costs, which generally are expensed as incurred. Selling expenses consist mainly of warehousing and distribution costs which include storage, transfer, repacking and handling fees, and out-bound freight and delivery charges. The Company has elected to classify shipping and handling costs for salable product outside of cost of goods sold, in selling and marketing expenses in the accompanying consolidated statements of operations and comprehensive loss. Such costs amounted to approximately $ 12.3 million and $ 12.7 million for the years ended December 31, 2025 and 2024 , respectively. Advertising and marketing expenses represent costs associated with the promotion of the Zevia® brand and products as outlined in ASC Topic 730 - 25, Other Expenses – Advertising Costs , such as those for digital and other forms of advertising. Advertising and marketing expenses amounted to approximately $ 19.5 million and $ 17.1 million for the years ended December 31, 2025 and 2024 , respectively. General and administrative expenses General and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss include personnel-related expenses, including salaries, bonuses, and benefits, technology expenses, professional fees, facility costs, including insurance, utilities and rent relating to our headquarters, and overhead costs. These costs are expensed as incurred. Equity-based compensation expense The Company records equity-based compensation expense for employees and nonemployees under the provisions of ASC Topic 718, Compensation — Stock compensation , using a Black-Scholes-Merton option pricing model to calculate the fair value of stock options by date granted. The determination of the grant date fair value of stock options issued is affected by a number of variables, including the fair value of the Company’s common stock, the expected common stock price volatility over the expected life of the options, the expected term of the stock option, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The Company derived its expected volatility based on historical volatility of the Company’s stock. The Company estimates the expected term based on the simplified method prescribed by guidance provided by the Securities and Exchange Commission. This decision was based on the lack of relevant historical data due to the Company’s limited experience for the Company’s common stock. The risk-free interest rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term. Expected dividend yield is 0.0 % as the Company has not paid and does not anticipate paying dividends on its common stock. The fair value of stock options is recognized as expense on a straight-line basis over the requisite service period, which is typically four years. Equity-based compensation cost for restricted stock awards is measured based on the fair market value of the Company’s common stock at the date of grant and is recognized as expense over the requisite service period, which is the vesting period on a straight-line basis. Forfeitures are recognized as incurred. Depreciation and Amortization Depreciation is primarily related to building and related improvements, computer equipment, quality control and marketing equipment, and leasehold improvements. Intangible assets subject to amortization consist of customer relationships and software applications. Non-amortizable intangible assets consist of trademarks, which represent the Company’s exclusive ownership of the Zevia® brand used in connection with the manufacturing, marketing, and distribution of its beverages. The Company also owns several other trademarks in both the U.S. and in foreign countries. Restructuring The Company can initiate management-approved restructuring activities to achieve cost savings and to position the Company strategically in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring activities can include employee severance and benefit costs to terminate a specified number of employees as well as costs for restructuring consulting services, impairment loss of certain assets, contract termination costs and other related charges. Foreign currency transactions The functional currency of the Company is the U.S. dollar. The Company sells and distributes its products to Canadian customers, who are invoiced and remit payment in Canadian dollars. All Canadian dollar transactions are translated into U.S. dollars using period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for net sales and expenses. Foreign currency transaction gain (losses) for the years ended December 31, 2025 and 2024 amounted to approximately less than $ 0.1 million gain and $ 0.7 million losses, respectively, and are included under other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss. Income Taxes The Company is the managing member of Zevia LLC and, as a result, consolidates the financial results of Zevia LLC in the consolidated financial statements. Zevia LLC is a pass-through entity for U.S. federal and most applicable state and local income tax purposes. As an entity classified as a partnership for tax purposes, Zevia LLC is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Zevia LLC is passed through to its members, including the Company. The Company is taxed as a corporation and pays corporate federal, state and local taxes with respect to income allocated from Zevia LLC based on the Company’s economic interest in Zevia LLC, which was 89.8 % and 84.2 % as of December 31, 2025 and 2024 , respectively. Subsequent changes in economic ownership in Zevia LLC of the Company can occur as Zevia LLC holders may convert their shares of Class B common stock into an equivalent number of shares of Class A common stock with income (loss) allocated to the Company based on the economic interest applicable during each reporting period. 53 Table of Contents The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and deferred tax liabilities (“DTAs” and “DTLs,” respectively) for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date. We recognize DTAs to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. If we determine that we would be able to realize our DTAs in the future in excess of their net recorded amount, we would make an adjustment to the DTA valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740, Income Taxes on the basis of a two -step process in which ( 1 ) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and ( 2 ) for those tax positions that meet the more-likely-than- not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize both accrued interest and penalties, when appropriate, in provision for income taxes in the accompanying consolidated statements of operations and comprehensive loss. Recent accounting pronouncements The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Pronouncements – Not Yet Adopted In December 2023, the FASB issued ASU No. 2023 - 09 Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures . The guidance requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The ASU 2023 - 09 is effective for private companies for annual periods beginning after December 15, 2025, with early adoption permitted. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The Company elected not to early adopt this guidance. The Company is currently evaluating the impact of adopting this guidance. In November 2024, the FASB issued ASU No. 2024 - 03, Disaggregation of Income Statement Expenses . The new guidance requires disclosures about specific types of expenses included in the expense captions presented on the face of income statement as well as disclosures about selling expenses. This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of adopting this guidance. In September 2025, the FASB issued ASU No. 2025 - 06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 - 40 ) to modernize the accounting for internal-use software. The new guidance eliminates accounting consideration of software project development stages; cost capitalization would begin when ( 1 ) management has authorized and committed to funding the project and ( 2 ) it is probable the project will be completed and the software used to perform its intended function (the “probable- to-complete” threshold). This guidance is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. The requirements can be applied prospectively, retrospectively or modified transition approach. The Company is currently evaluating the impact of adopting this guidance. In December 2025, the FASB issued ASU No. 2025 - 11, Interim Reporting (Topic 270 ): Narrow-Scope Improvements , by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments in this update can be applied either ( 1 ) prospectively or ( 2 ) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance. Any other recently issued accounting pronouncements are neither relevant, nor expected to have a material impact on the Company’s financial statements. 3. REVENUES Disaggregation of Revenue The Company’s products are distributed and sold principally across the U.S. and Canada through a diverse network of major retailers, including: grocery stores, drug stores, warehouse clubs, mass stores, natural product stores, convenience, and online/e-commerce channels. 54 Table of Contents The following table disaggregates the Company’s sales by geographic location of the respective customers based on ship to location: Year Ended December 31, (in thousands) 2025 2024 U.S. $ 144,933 $ 139,746 Canada 16,326 15,303 Net sales $ 161,259 $ 155,049 Contract liabilities The Company did not have any material unsatisfied performance obligations as of December 31, 2025 and 2024. 4. INVENTORIES Inventories consist of the following as of: (in thousands) December 31, 2025 December 31, 2024 Raw materials $ 115 $ 600 Finished goods 20,278 18,018 Inventories $ 20,393 $ 18,618 5. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following as of: (in thousands) December 31, 2025 December 31, 2024 Leasehold improvements $ 1,215 $ 1,215 Computer equipment 383 406 Furniture and equipment 804 804 Quality control and marketing equipment 1,079 1,834 Assets not yet placed in service — 29 3,481 4,288 Less accumulated depreciation ( 2,614 ) ( 3,027 ) Property and equipment, net $ 867 $ 1,261 For the years ended December 31, 2025 and 2024 , depreciation expense, including the amortization of leasehold improvements, amounted to approximately $ 0.7 million and $ 1.0 million, respectively. These amounts are included under depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss. 6. INTANGIBLE ASSETS, NET The following table provides information pertaining to the Company’s intangible assets as of: December 31, 2025 (in thousands) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite lives: Software 2.6 $ 1,289 $ ( 1,156 ) $ 133 Customer relationships 5.0 3,007 ( 3,005 ) 2 4,296 ( 4,161 ) 135 Intangible assets with indefinite lives: Trademarks N/A 3,000 — 3,000 Intangible assets, net $ 7,296 $ ( 4,161 ) $ 3,135 December 31, 2024 (in thousands) Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite lives: Software 1.2 $ 1,167 $ ( 1,124 ) $ 43 Customer relationships 0.8 3,007 ( 2,871 ) 136 4,174 ( 3,995 ) 179 Intangible assets with indefinite lives: Trademarks N/A 3,000 — 3,000 Intangible assets, net $ 7,174 $ ( 3,995 ) $ 3,179 For the years ended December 31, 2025 and 2024 , total amortization expense amounted to $ 0.2 million and $ 0.3 million, respectively, including less than $ 0.1 million and $ 0.1 million, respectively, of amortization expense related to software. No impairment losses have been recorded on any of the Company’s intangible assets for the years ended December 31, 2025 and 2024 , respectively. 55 Table of Contents Amortization expense for intangible assets with definite lives is expected to be as follows: (in thousands) 2026 $ 56 2027 47 2028 32 Expected amortization expense for intangible assets with definite lives $ 135 7. DEBT ABL Credit Facility On February 22, 2022, Zevia LLC (the “Borrower”) obtained a revolving credit facility (the “Secured Revolving Line of Credit”) by entering into a Loan and Security Agreement with Bank of America, N.A. (the “Loan and Security Agreement”). The Borrower may draw funds under the Secured Revolving Line of Credit up to an amount not to exceed the lesser of (i) a $ 20 million revolving commitment and (ii) a borrowing base which is comprised of inventory and receivables. Up to $ 2 million of the Secured Revolving Line of Credit may be used for letter of credit issuances and the Borrower has the option to increase the commitment under the Secured Revolving Line of Credit by up to $ 10 million, subject to certain conditions. The Secured Revolving Line of Credit matures on February 22, 2027. During the first quarter of 2024, the Company drew $ 8 million on the Secured Revolving Line of Credit which was subsequently repaid in the same period. As of December 31, 2025 , there was no amount outstanding on the Secured Revolving Line of Credit. The Secured Revolving Line of Credit is secured by a first priority security interest in substantially all of the Company’s assets. Loans under the Secured Revolving Line of Credit bear interest based on either, at the Borrower’s option, the Term Secured Overnight Financing rate plus an applicable margin between 1.50 % to 2.00 % or the Base Rate (customarily defined) plus an applicable margin between 0.50 % to 1.00 % with margin, in each case, determined by the average daily availability under the Secured Revolving Line of Credit. Under the Secured Revolving Line of Credit, the Borrower must satisfy a financial covenant requiring a minimum fixed charge coverage ratio of 1.00 to 1.00 as of the last day of any fiscal quarter following the occurrence of certain events of default that are continuing or any day on which availability under the Secured Revolving Line of Credit is less than the greater of $ 3 million and 17.5 % of the borrowing base, and must again satisfy such financial covenant as of the last day of each fiscal quarter thereafter until such time as there are no events of default and availability has been above such threshold for 30 consecutive days. As of December 31, 2025 , the Company was in compliance with its financial covenant. 8. LEASES The Company leases its office space for its corporate headquarters which has a remaining lease term of 12 months. In September 2024, the Company entered into an agreement to sublease 8,468 square feet of the 20,185 square feet of leased office space. The sublease term is from October 8, 2024 to December 31, 2026 . The sublease arrangement resulted in impairment of ROU asset and leasehold improvement of $ 0.3 million and $ 0.1 million, respectively for the year ended December 31, 2024 and is included in restructuring expense on the consolidated statement of operations and comprehensive loss. The Company determined the impairment using the discounted cash flow of expected receipts from sublease which is considered a level 2 fair value measurement. The level 3 inputs in the calculation were insignificant. The calculated fair value of the sublease was $ 0.5 million. The Company’s recognized lease costs include: Year Ended December 31, (in thousands) 2025 2024 Statements of Operations and Comprehensive Loss Operating lease cost (1) $ 631 $ 715 Sublease income (1) 207 52 ( 1 ) Operating lease cost and sublease income are recorded within general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss. December 31, 2025 December 31, 2024 Weighted-average remaining lease term (months) 12.0 24.0 Weighted-average discount rate 7.6 % 7.6 % The Company’s variable lease costs and short-term lease costs were not material. The Company is obligated under a non-cancelable lease agreement providing for office space that expires on December 31, 2026. Maturities of lease payments under the non-cancelable lease were as follows: (in thousands) December 31, 2025 2026 $ 757 Total lease payments 757 Less imputed interest ( 89 ) Present value of lease liabilities $ 668 56 Table of Contents 9. COMMITMENTS AND CONTINGENCIES Purchase commitments As of December 31, 2025 , the Company does not have any material agreements with suppliers for the purchase of raw material with minimum purchase quantities. Our contract manufacturers are obligated to fulfill against purchase orders that are aligned with our forecast based on terms and conditions of the contract. Our forecasts provided to our contract manufacturers are short term in nature and at no time extend beyond a year. Legal proceedings The Company is involved from time to time in various claims, proceedings, and litigation. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable, and the amount of loss can be reasonably estimated. Management does not believe that the resolution of these matters would have a material impact on the consolidated financial statements. The Company is subject to litigation in the United States District Court in the Central District of California where the plaintiff alleges that certain claims on the Company’s product labels are misleading. Although the Company has denied these allegations and intends to vigorously defend itself, the expense of defending against such claims or litigation can be significant, and there can be no assurance that the Company will be successful in any defense. Due to the nature of the litigation, the Company is currently unable to predict the final outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. 10. EMPLOYEE BENEFIT PLAN Employees of the Company may participate in the Zevia LLC 401 (k) Plan (the “Plan”), a defined contribution plan which qualifies under Section 401 (k) of the Internal Revenue Code. Participating employees may contribute from 1% to 90% of their pre-tax earnings, up to the statutory limit. Effective January 1, 2020, the Company began offering matching contributions to the Plan of up to 4% of employee pre-tax earnings. For the years ended December 31, 2025 and 2024 , the Company incurred contribution expense of $ 0.4 million and $ 0.4 million, respectively. 11. BALANCE SHEET COMPONENTS Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following as of: (in thousands) December 31, 2025 December 31, 2024 Accrued employee compensation benefits $ 3,762 $ 1,548 Accrued direct selling costs 1,422 1,376 Accrued customer paid bottle deposits 2,510 2,895 Accrued marketing expenses 730 1,775 Accrued other 1,362 746 Total $ 9,786 $ 8,340 12. EQUITY-BASED COMPENSATION In July 2021, prior to the IPO, the Company adopted the Zevia PBC 2021 Equity Incentive Plan (the “2021 Plan”) under which the Company may grant options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards, other equity-based awards and incentive bonuses to employees, officers, non-employee directors and other service providers of the Company and its affiliates. The number of shares available for issuance under the 2021 Plan is increased on January 1 of each year beginning in 2022 and ending with a final increase in 2031 in an amount equal to the lesser of: (i) 5 % of the total number of shares of Class A common stock outstanding on the preceding December 31, or (ii) a smaller number of shares determined by the Company’s Board of Directors. In October and November 2021, the Company’s Board of Directors approved an amendment to its equity-based compensation plans for a certain number of employees to allow immediate vesting upon retirement of all outstanding RSUs and stock options, and to extend the exercisability of outstanding stock options up to five years after retirement, if they meet certain conditions, including a resignation after the holder has reached 50 years of age with at least 10 years of service to the Company, so long as the holder provides advance notice of his or her resignation to the Company’s Board of Directors. As of December 31, 2025 , the 2021 Plan provides for future grants and/or issuances of up to approximately 4.6 million shares of our common stock. Equity-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose. 57 Table of Contents Stock Options The Company uses a Black-Scholes valuation model to measure stock option expense as of each respective grant date. Generally, stock option grants vest ratably over four years, have a 10 -year term, and have an exercise price equal to the fair market value as of the grant date. The fair value of stock options is amortized to expense over the vesting period. There were no stock options granted during the year ended December 31, 2025. The fair value of stock option awards granted in 2024 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions: Year Ended December 31, 2024 Stock price $ 1.36 Exercise price 1.36 Expected term (years) (1) 6.25 Expected volatility (2) 80.3 % Risk-free interest rate (3) 4.1 % Dividend yield (4) 0.0 % ( 1 ) Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method. ( 2 ) Expected volatility is based on historical volatility of the Company’s stock. ( 3 ) The risk-free interest rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term. ( 4 ) We have assumed a dividend yield of zero as the Company has no plans to declare dividends in the foreseeable future. The weighted average grant date fair values for stock options granted for the year ended December 31, 2024 was $ 0.98 . The following is a summary of stock option activity for the year ended December 31, 2025 : Shares Weighted average exercise price Weighted average remaining life Intrinsic value (in thousands) Outstanding balance as of January 1, 2025 2,872,995 $ 3.24 Exercised ( 84,188 ) $ 0.76 Forfeited and expired ( 243,316 ) $ 4.67 Balance as of December 31, 2025 2,545,491 $ 3.19 6.1 $ 1,282 Exercisable at the end of the period 1,704,187 $ 3.32 5.5 $ 1,039 Vested and expected to vest 2,545,491 $ 3.19 6.1 $ 1,282 The total intrinsic values of stock options exercised during the years ended December 31, 2025 and 2024 was $ 0.3 million and $ 0.2 million, respectively. As of December 31, 2025 , total unrecognized compensation expense related to unvested stock options was $ 0.8 million, which is expected to be recognized over a weighted-average period of 1.4 years. Restricted Stock Units In March 2021, the Company’s Board of Directors approved an amendment to the RSUs granted by Zevia LLC in August 2020 ( “the RSU Amendment”). The RSU Amendment changed the vesting of such RSUs to occur as follows: (i) in the event of a change of control, the RSUs shall vest effective as of such change of control or (ii) in the event of an initial public offering as in the case of the IPO, the RSUs shall vest in equal monthly installments over a 36 -month period following the termination of any lockup period and shall be subject to the participant’s continued employment through such vesting date. Additionally, settlement shall occur within 30 days following the vesting of the RSUs and the participant shall be entitled to receive one share of Class A common stock for each vested RSU. All other terms remained unchanged. As a result of the RSU Amendment, the estimated fair value of the modified awards was $ 48.9 million and are being recognized as expense over the vesting period subsequent to the performance condition being met. As of December 31, 2025 , the service period of the awards has been completed. The following is a summary of RSU activity for the year ended December 31, 2025 : Shares Weighted average grant date fair value Aggregate Intrinsic Value (in thousands) Balance unvested shares at January 1, 2025 3,717,919 $ 1.65 Granted 2,040,341 $ 2.31 Vested ( 1,605,153 ) $ 1.60 Forfeited ( 585,362 ) $ 1.65 Balance unvested at December 31, 2025 3,567,745 $ 2.06 $ 8,277 Expected to vest at December 31, 2025 3,567,745 $ 2.06 $ 8,277 As of December 31, 2025 , total unrecognized compensation expense related to unvested RSUs was $ 5.3 million, which is expected to be recognized over a weighted-average period of 2.7 years. 58 Table of Contents 13. SEGMENT REPORTING The Company has one operating and reporting segment and operates as a product portfolio with a single business platform. In reaching this conclusion, management considered the definition of the Chief Operating Decision Maker (“CODM”); how the business is defined by the CODM; the nature of the information provided to the CODM and how that information is used to make operating decisions; and how resources and performance are assessed. The Company’s CODM is the Chief Executive Officer. The results of the operations are provided to and analyzed by the CODM at the Company’s level and accordingly, key resource decisions and assessment of performance are performed at the Company’s level. The Company has a common management team across all product lines and does not manage these products as individual businesses, and as a result, cash flows are not distinct. The CODM assesses the Company’s performance by using net loss as shown in the consolidated statements of operations and comprehensive loss. The CODM uses net loss in the annual operating plan. The CODM considers budget-to-actual variances on monthly basis for both profit measures when making decisions about the allocation of operating and capital resources, evaluating pricing strategy and to assess performance of the Company. Since the Company operates as a single operating segment, the consolidated statements of operations and comprehensive loss present the significant expenses. Significant expenses also include direct selling expenses of $ 32.9 million and $ 40.0 million, and marketing expenses of $ 19.5 million and $ 17.1 million for the years ended December 31, 2025 and 2024 , respectively, presented as selling and marketing expenses in the statements of operations and comprehensive loss. The Company has no intra-entity transfers or sales. The other information required under ASC 280, Segment Reporting , is provided in the notes to consolidated financial statements including the Company’s products in Note 1, Description of Business and Note 3, Revenues. In addition, interest income for the years ended December 31, 2025 and 2024 was $ 0.8 million and $ 0.8 million, respectively. 14. MAJOR CUSTOMERS, ACCOUNTS RECEIVABLE AND VENDOR CONCENTRATION The table below represents the Company’s major customers that accounted for more than 10% of total net sales for the periods: Year Ended December 31, 2025 2024 Customer A 12 % 13 % Customer C 12 % 11 % Customer J 14 % * The table below represents the Company’s customers that accounted for more than 10% of total accounts receivable, net as of: December 31, 2025 December 31, 2024 Customer C * 10 % Customer H 11 % * Customer I 10 % * Customer J 22 % 12 % The table below represents raw material and finished goods vendors that accounted for more than 10% of all raw material and finished goods purchases for the following periods: Year Ended December 31, 2025 2024 Vendor D 34 % 34 % Vendor E 33 % 27 % Vendor F 33 % 27 % * Less than 10% of total net sales, accounts receivable, net or raw material and finished goods purchases in the respective periods. 15. LOSS PER SHARE Basic loss per share of Class A common stock is computed by dividing net loss attributable to the Company for the period by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted loss per share of Class A common stock is computed by dividing net loss attributable to the Company by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities and assumed conversion of Class B common stock into shares of Class A common stock on a one -for- one basis using the if-converted method. 59 Table of Contents The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted loss per share of Class A common stock: Year Ended December 31, 2025 2024 (in thousands, except for share and per share amounts) Net loss per share: Numerator: Net loss and comprehensive loss $ ( 11,166 ) $ ( 23,783 ) Less: net loss attributable to non-controlling interests 1,246 3,778 Add: adjustment to reallocate net loss to controlling interest ( 163 ) (1) 58 (1) Net loss to Zevia PBC - basic and diluted $ ( 10,083 ) $ ( 19,947 ) Denominator: Weighted-average shares of Class A common stock outstanding – basic 66,002,515 58,405,992 Add: weighted average shares of vested and unreleased RSUs 13,640 (2) 277,453 (2) Weighted-average basic and diluted shares 66,016,155 58,683,445 Loss per share of Class A common stock – basic $ ( 0.15 ) $ ( 0.34 ) Loss per share of Class A common stock – diluted $ ( 0.15 ) $ ( 0.34 ) ( 1 ) The numerator for the basic and diluted loss per share is adjusted for additional losses being attributed to controlling interest as a result of the impacts of vested but unreleased RSUs being included in the denominator of the basic and diluted loss per share. ( 2 ) The denominator for basic and diluted loss per share includes vested and unreleased RSUs as there are no conditions that would prevent these RSUs from being issued in the future as shares of Class A common stock except for the mere passage of time. Zevia LLC Class B units, stock options and RSUs were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. The following weighted average outstanding shares were excluded from the computation of diluted loss per share available to Class A common stockholders as they were anti-dilutive: Year Ended December 31, 2025 2024 Zevia LLC Class B units exchangeable to shares of Class A common stock 8,465,729 14,099,368 Stock options 2,677,311 3,110,466 Restricted stock units 3,853,782 3,574,043 16. CAPITAL STOCK At-The-Market Offering Program On August 12, 2025, the Company and its wholly-owned subsidiary, Zevia LLC, entered into an Equity Distribution Agreement (the “Agreement”) with Piper Sandler & Co. as sales agent (the “Agent”), pursuant to which the Company may sell from time to time through the Agent, shares of the Company’s Class A common stock, par value $ 0.001 (the “Common Stock”), having an aggregate gross sale price of up to $ 20 million (the “Offering”). Sales of Common Stock, if any, under the Agreement may be made in any transactions that are deemed to be an “at-the-market offering” as defined in Rule 415 (a)( 4 ) under the Securities Act of 1933, as amended. In addition, with the Company’s prior consent and subject to the terms it may establish, the Agent may also sell the Common Stock by any other method permitted by law, including privately negotiated transactions. Under the Agreement, the Company will pay the Agent a commission equal to 3.0 % of the gross sales price of the Common Stock sold in the Offering. The Agent has agreed to use its commercially reasonable efforts to sell the shares of common stock in the Offering, subject to the terms of the Agreement. The Agreement contains customary representations, warranties and covenants of the Company and Zevia LLC, and conditions to the Agent’s obligations to sell the Common Stock in the Offering. The Company and Zevia LLC have agreed jointly and severally to provide to the Agent customary indemnification and contribution rights. The Company will also reimburse the Agent for certain specified expenses in connection with establishing and maintaining the Offering. The Company has no obligation to sell any Common Stock under the Agreement, and may at any time suspend solicitation and sales in the Offering. The Agreement may be terminated at any time, for any reason, by either the Company or the Agent upon prior notice to the other party. During the year ended December 31, 2025 , the Company elected not to issue shares under this Agreement. 17. RESTRUCTURING In May 2024, the Company initiated certain restructuring actions designed to reduce costs and improve efficiency while continuing to invest in our brand and related initiatives (the “Productivity Initiative”). As a result, the Company recognized $ 2.2 million and $ 2.1 million of restructuring costs for the years ended December 31, 2025 and 2024, respectively. The restructuring costs were primarily related to employee termination expenses, restructuring consulting services, impairment loss of certain assets from sublease arrangement and costs to exit two of our third -party warehouse and distribution facilities. These amounts are included under restructuring in the accompanying consolidated statements of operations and comprehensive loss. As of December 31, 2025 and 2024, accrued restructuring costs of $ 0.5 million and $ 0.4 million, respectively, are included under accrued expenses and other current liabilities in the consolidated balance sheets. These expenses are expected to be substantially paid at the end of 2026. 60 Table of Contents 18. INCOME TAXES AND TAX RECEIVABLE AGREEMENT Income Taxes The Company is the managing member of Zevia LLC and as a result, consolidates the financial results of Zevia LLC in the consolidated financial statements of Zevia PBC. Zevia LLC is a pass-through entity for U.S. federal and most applicable state and local income tax purposes following the Reorganization Transactions effected in connection with the IPO. As an entity classified as a partnership for tax purposes, Zevia LLC is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Zevia LLC is passed through to its members, including the Company. The Company is taxed as a C corporation and pays corporate federal, state and local taxes with respect to income allocated from Zevia LLC based on Zevia PBC’s economic interest in Zevia LLC, which was 89.8 % and 84.2 %, as of December 31, 2025 and 2024 , respectively. The provision for income taxes consists of the following: Year Ended December 31, 2025 2024 Current Federal $ — $ — State 54 66 Total 54 66 Deferred Federal — — State — — Total — — Provision for income taxes $ 54 $ 66 A reconciliation between the Company’s effective tax rate and the applicable U.S. federal statutory income tax rate is summarized as follows: Year Ended December 31, 2025 2024 Tax computed at federal statutory rate 21.0 % 21.0 % State tax, net of federal tax benefit 2.0 % 0.8 % Permanent items and other 2.9 % ( 6.3 )% Non-controlling interests ( 4.0 )% ( 6.7 )% Equity-based compensation ( 1.8 )% ( 4.1 )% Valuation allowance ( 20.6 )% ( 5.0 )% Effective Tax Rate ( 0.5 )% ( 0.3 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. The components that comprise the Company’s net DTAs s consist of the following: Year Ended December 31, 2025 2024 Deferred tax assets Investment in Zevia LLC $ 48,896 $ 50,418 Net operating loss carryforwards 33,187 26,723 Equity-based compensation 979 1,251 Other temporary differences 628 526 Total deferred tax assets 83,690 78,918 Valuation allowance for deferred tax assets ( 83,690 ) ( 78,918 ) Net deferred tax assets $ — $ — The Company records a valuation allowance to reduce DTAs to the amount the Company believes is more likely than not to be realized. The determination of recording or releasing tax valuation allowances is made, in part, pursuant to an assessment performed by management regarding the likelihood that the Company will generate sufficient future taxable income against which benefits of the DTAs may or may not be realized. This assessment requires management to exercise significant judgment and make estimates with respect to the Company’s ability to generate revenue, gross profits, operating income and taxable income in future periods. The Company has recorded a full valuation allowance of $ 83.7 and $ 78.9 million as of December 31, 2025 and 2024 , respectively, as it cannot conclude that it is more likely than not that the DTAs will be realized primarily due to the generation of pre-tax book losses from its inception. The following table summarizes the activity related to the Company’s valuation allowance: Year Ended December 31, 2025 2024 Balance, beginning of the year $ 78,918 $ 75,541 Increases related to current year positions 4,772 3,377 Balance, end of the year $ 83,690 $ 78,918 61 Table of Contents As of December 31, 2025 , the Company has federal and state net operating loss carryforwards of $ 136.9 million and $ 84.2 million, respectively. The federal net operating loss can be carried forward indefinitely but are limited to 80% utilization against future taxable income each year in accordance with the Tax Cuts and Jobs Act of 2017. The state net operating loss carryforwards will begin to expire in 2031 unless previously utilized by the Company. The Company recognizes liabilities for uncertain tax positions based on a two -step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes that it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcome of examinations by tax authorities in determining the adequacy of its provision for income taxes. As of December 31, 2025 , the Company has no uncertain tax positions and does not expect a significant change in unrecognized tax benefits during the next 12 months. The Company is subject to taxation in the U.S. and various states. The Company is not currently under examination by any taxing authorities. Due to the carryover of tax attributes, the statute of limitations is currently open for tax years since inception for Zevia PBC. On June 27, 2024, California enacted Senate Bill 167. SB 167 suspended the net operating loss deduction for tax years beginning on or after January 1, 2024, and before January 1, 2027. The suspension applies to taxpayers with greater than $1 million in net income for the tax year. There was no material impact from the provisions of SB 167. On July 4, 2025, the presidential administration signed the One Big Beautiful Bill Act. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic research and development expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. These changes were reflected in the income tax provision for the year ended December 31, 2025, but did not have a significant effect on the Company's financial statements due to the full valuation allowance against DTAs. Tax Receivable Agreement The Company expects to obtain an increase in its share of tax basis in the net assets of Zevia, LLC when Class B units are exchanged by the holders of Class B units for shares of Class A common stock of the Company and upon certain qualifying transactions. Each change in outstanding shares of Class A common stock of the Company results in a corresponding change in the Company’s ownership of Class A units of Zevia, LLC. The Company intends to treat any exchanges of Class B units as direct purchases of LLC interests for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that Zevia PBC would otherwise pay in the future to various taxing authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. In connection with the IPO, the Company entered into a Tax Receivable Agreement (“TRA”) with continuing members of Zevia LLC and the shareholders of blocker companies (“Blocker Companies”) of certain pre-IPO institutional investors (“the Direct Zevia Stockholders”). In the event that such parties exchange any or all of their Class B units for Class A common stock, the TRA requires the Company to make payments to such holders for 85 % of the tax benefits realized, or in some cases deemed to be realized, by the Company by such exchange as a result of (i) certain favorable tax attributes acquired from the Blocker Companies in certain mergers (including net operating losses and the Blocker Companies’ allocable share of existing tax basis), (ii) increases in tax basis resulting from Zevia PBC’s acquisition of continuing member’s Zevia LLC units in connection with the IPO and in future exchanges and, (iii) tax basis increases attributable to payments made under the TRA (including tax benefits related to imputed interest). The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. The Company expects to benefit from the remaining 15 % of any tax benefits that it may actually realize. The TRA payments are not conditioned upon any continued ownership interest in Zevia LLC or the Company. To the extent that the Company is unable to timely make payments under the TRA for any reason, such payments generally will be deferred and will accrue interest until paid. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Company generates each year and the tax rate then applicable. The Company calculates the liability under the TRA using a complex TRA model, which includes an assumption related to the fair market value of assets. Payments are generally due under the TRA within a specified period of time following the filing of the Company’s tax return for the taxable year with respect to which the payment obligation arises, although interest on such payments will begin to accrue at a rate of the Secured Overnight Financing Rate plus 300 basis points from the due date (without extensions) of such tax return. The TRA provides that if (i) certain mergers, asset sales, other forms of business combinations, or other changes of control were to occur; (ii) there is a material uncured breach of any obligations under the TRA; or (iii) the Company elects an early termination of the TRA, then the TRA will terminate and the Company’s obligations, or the Company’s successor’s obligations, under the TRA will accelerate and become due and payable, based on certain assumptions, including an assumption that the Company would have sufficient taxable income to fully utilize all potential future tax benefits that are subject to the TRA and that any Class B units that have not been exchanged are deemed exchanged for the fair market value of the Company’s Class A common stock at the time of termination. As of December 31, 2025 , the Company has concluded, based on applicable accounting standards, that it was more likely than not that its DTAs subject to the TRA would not be realized; therefore, the Company has not recorded a liability related to the tax savings it may realize from utilization of such DTAs. The TRA liability that would be recognized if the associated tax benefits were determined to be fully realizable totaled $ 58.9 million and $ 56.5 million as of December 31, 2025 and 2024 , respectively. The increase in the TRA liability is primarily related to Class B to Class A exchanges during the year ended December 31, 2025 . If utilization of the DTAs subject to the TRA becomes more likely than not in the future, the Company will record a liability related to the TRA which will be recognized as an expense within its consolidated statements of operations and comprehensive loss. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None 62 Table of Contents