UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-43108
Once Upon a Farm, PBC
(Exact Name of Registrant as Specified in its Charter)
Delaware
47-3648280
( State or other jurisdiction of
incorporation or organization)
(I.R.S. EmployerIdentification No.)
950 Gilman Street, Suite 100
Berkeley, CA
94710
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (888) 983-1606
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.0001
OFRM
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 31, 2026, the registrant had 41,990,653 shares of common stock, $0.0001 par value per share, outstanding.
Table of Contents
Page
PART I.
FINANCIAL INFORMATION
Item 1.
Financial Statements (Unaudited)
1
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations and Comprehensive Loss
2
Condensed Consolidated Statements of Convertible Preferred Stock And Stockholders’ Equity (Deficit)
3
Condensed Consolidated Statements of Cash Flows
5
Notes to Unaudited Condensed Consolidated Financial Statements
6
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
21
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
36
Item 4.
Controls and Procedures
37
PART II.
OTHER INFORMATION
38
Legal Proceedings
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
39
Signatures
40
i
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that reflect our expectations or beliefs regarding future events, including, but not limited to: statements about the markets in which we operate, including growth of our various markets, statements about potential new products and product innovation, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance. These forward-looking statements, including expectations and projections about future matters, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution that such statements involve numerous risks and uncertainties and are subject to variables that could impact our future performance. These statements are based on management’s views and assumptions at the time they are made and are not guarantees of future performance. Actual future events and performance may differ materially from the expectations reflected in our forward-looking statements. We do not undertake any obligation to update forward-looking statements.
A variety of factors could materially affect future outcomes, including, but not limited to: adverse public relations, product recalls, and product liability claims arising if our products are contaminated, alleged to be contaminated, or are rumored to have adverse effects, or if our products are alleged to cause illness or injury; factors outside of our and our suppliers’ control that disrupt our operations or impact the inputs, commodities, and ingredients that we use in our business; the failure to manage our supply chain effectively, including inventory levels and transportation and freight services; the availability of natural, plant-rich, and organic ingredients; the failure to increase our cooler count or lack of productivity in our cooler base; our ability to protect personal, proprietary, and confidential information and prevent security incidents; damage to the reputation of the Company, products, management team, or co-founders; adverse weather conditions, natural disasters, pestilence, climate change, and other conditions beyond our control that could disrupt our operations; the failure to retain and motivate our management team or other key team members, including our co-founders; our reliance on a limited number of independent contract manufacturers and suppliers, including co-packers; the loss of a significant customer; changing consumer preferences, perceptions, and spending habits; the failure to successfully pursue growth or implement our growth strategy on a timely basis or at all; changes in global and domestic economic and business conditions, and financial market conditions, such as continued inflation, interest rate increases, tariffs, trade wars, recession, government or regulator shutdowns or defunding, regulatory delays or uncertainty, supply chain disruptions or agricultural labor shortages; changes in global trade policy, including the imposition of tariffs on certain goods imported into the United States of America, uncertainty regarding the timing and amount of any tariff refund payments, or resultant trade wars that may lead to reduced economic activity, increased costs, reduced demand and changes in retail consumer purchasing behaviors for some or all of our products, or other potentially adverse economic outcomes; significant volatility in the cost or availability of inputs to our business (including freight, raw materials, packaging, energy, labor and other supplies), including as a result of tariffs or inflationary pressures; the impact of various worldwide or macroeconomic events, such as the ongoing conflicts in Europe, the Middle East and South America, and the continued effects of such conflict on U.S. and global economics, our employees, suppliers, customers and end consumers, which could adversely and materially impact our business, financial condition and results of operations; the inability to compete successfully in our highly competitive markets; any damage or disruption at any facility where our finished goods inventory is located; our ability to expand existing customer relationships and acquire new customers; the failure of our enterprise resource planning system or any deficient information-sharing capabilities; the sufficiency and effectiveness of our marketing and trade spending programs and whether we are able to develop and maintain our brand; the fluctuation in our business as a result of promotional activities and seasonality; our ability to implement initiatives to improve productivity and streamline operations to control or reduce costs; our ability to achieve or sustain profitability; our compliance and the compliance of our suppliers, co-packers, and co-manufacturers with applicable governmental laws and regulations; the ability of our information technology systems, including artificial intelligence technologies, to perform adequately and accurately; changes in tax laws; our status as a public benefit corporation and our duty to balance a variety of interests as a public benefit corporation; volatility of the market price of our common stock; the incurrence of increased costs as a result of operating as a public company; and the other factors set forth under Part II, Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q, Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings that we make with the Securities and Exchange Commission (the “SEC”).
This list is not exhaustive and is intended for illustrative purposes only. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.
ii
Unless otherwise specified or unless the context requires otherwise, all references in this Quarterly Report on Form 10-Q to “Once Upon a Farm,” “the Company,” “we,” “us,” and “our,” or similar references, refer to Once Upon a Farm, PBC.
iii
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
ONCE UPON A FARM, PBC
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share amounts)
June 30,
December 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
93,541
10,860
Accounts receivable, net
36,959
28,783
Inventory
51,887
46,981
Prepaid expenses and other current assets
4,727
15,520
Total current assets
187,114
102,144
Property and equipment, net
9,794
8,903
Intangible assets, net
522
561
Goodwill
4,244
Other non-current assets
955
567
Total assets
202,629
116,419
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable
16,005
19,606
Accrued expenses and other current liabilities
30,675
24,269
Total current liabilities
46,680
43,875
Nonconvertible debt, net
—
43,000
Convertible notes
17,214
Derivative liability
32,413
Other non-current liabilities
667
2,017
Total liabilities
47,347
138,519
Commitments and contingencies (Note 6)
Convertible preferred stock, $0.0001 par value; 100,000,000 and 1,347,305 shares authorized; no shares and 1,164,696 shares issued and outstanding as of June 30, 2026 and December 31, 2025; aggregate liquidation preference of $0 and $94,261 as of June 30, 2026 and December 31, 2025
101,967
Stockholders’ equity (deficit):
Common stock, $0.0001 par value; 1,000,000,000 and 38,250,607 shares authorized; 41,979,811 and 7,458,069 shares issued and outstanding as of June 30, 2026 and December 31, 2025
4
Additional paid-in capital
311,776
11,669
Accumulated deficit
(156,498
)
(135,737
Total stockholders’ equity (deficit)
155,282
(124,067
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
Net sales
85,392
60,017
158,112
110,620
Cost of goods sold
54,743
35,564
97,785
67,074
Gross profit
30,649
24,453
60,327
43,546
Selling, general and administrative expenses
36,288
24,433
82,116
52,713
Income (loss) from operations
(5,639
20
(21,789
(9,167
Other income (expense):
Interest expense
(49
(660
(469
(1,183
Interest income
835
73
1,334
194
Change in fair value of derivative liability
(8,180
340
(17,860
Other expense, net
(132
(528
(135
(985
Total other income (expense)
654
(9,295
1,070
(19,834
Net loss before income tax provision
(4,985
(9,275
(20,719
(29,001
Income tax (provision) benefit
35
237
(42
497
Net loss
(4,950
(9,038
(20,761
(28,504
Net loss per share attributable to common stockholders:
Basic and diluted
(0.12
(1.36
(0.60
(4.30
Weighted-average shares used in computing net loss per share attributable to common stockholders:
41,934,553
6,652,399
34,454,883
6,624,282
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Convertible Preferred Stock
Common Stock
AdditionalPaid-In
Accumulated
TotalStockholders’
Shares
Amount
Capital
Deficit
Equity (Deficit)
Balances at December 31, 2025
1,164,696
7,458,069
Issuance of common stock upon initial public offering, net of underwriting costs and offering costs of $16,551
9,281,118
138,814
138,815
Conversion of convertible preferred stock into common stock
(1,164,696
(101,967
21,779,817
101,965
Conversion of convertible notes
2,819,512
18,678
Reclassification of derivative liability to equity
32,073
Issuance of common stock upon net exercise of warrants and reclassification of related warrant liability to equity
542,879
1,871
Exercise of stock options
8,997
17
Stock-based compensation
4,338
(15,811
Balances at March 31, 2026
41,890,392
309,425
(151,548
157,881
Additional offering costs related to the initial public offering
(349
89,419
229
2,471
Balances at June 30, 2026
41,979,811
(UNAUDITED) - CONTINUED
Balances at December 31, 2024
6,575,609
6,349
(118,488
(112,138
59,748
127
805
(19,466
Balances at March 31, 2025
6,635,357
7,281
(137,954
(130,672
47,129
104
1,093
Balances at June 30, 2025
6,682,486
8,478
(146,992
(138,513
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
OPERATING ACTIVITIES
Adjustments to reconcile net loss to net cash used in operating activities:
(340
17,860
Change in fair value of convertible preferred stock warrant liability
(13
928
Change in fair value of SARs liability
72
9
6,809
1,898
SARs issued to a customer recorded as a reduction to revenue
109
24
Inventory adjustments
1,877
441
Depreciation and amortization
1,049
554
Amortization of debt discounts and deferred financing costs
99
284
Non-cash interest
29
149
Changes in operating assets and liabilities:
Accounts receivable
(8,176
(8,414
(6,783
(11,931
Prepaid expenses and other assets
(3,093
(1,326
(689
7,546
Accrued expenses and other liabilities
11,950
3,309
Net cash used in operating activities
(17,861
(17,173
INVESTING ACTIVITIES
Purchase of property and equipment
(2,429
(2,024
Net cash used in investing activities
FINANCING ACTIVITIES
Proceeds from issuance of common stock
155,366
Proceeds from term loan facility
14,000
Proceeds from exercise of stock options
246
231
Payment of debt issuance costs
(253
Repayment of line of credit
(43,000
Payment of offering costs
(9,641
Payment of deferred offering costs
(1,428
Net cash provided by financing activities
102,971
12,550
Net change in cash and cash equivalents
82,681
(6,647
Cash and cash equivalents, beginning of period
17,306
Cash and cash equivalents, end of period
10,659
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest
342
681
Cash paid for income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Reallocation of borrowings from term loan to line of credit
22,000
Capital expenditures included in accounts payable and accrued expenses
110
321
Debt issuance costs included in accrued expenses
176
Deferred offering costs included in accounts payable and accrued expenses
2,318
Deferred offering costs transferred to additional paid in capital
13,987
Conversion of convertible preferred stock to common stock
Conversion of convertible notes to equity
Issuance of common stock upon net exercise of warrants
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Once Upon a Farm, PBC (the “Company”) is a Delaware public benefit corporation, which began operations in 2014. The Company is engaged in the manufacturing; distribution; marketing and related sale of innovative, nutrient-packed, delicious food for babies and kids of on-the-go parents (under the brand name, Once Upon a Farm). The Company's products include Pouches and snacks. Sales of the Company’s products are made primarily throughout the United States. The Company's headquarters is in Berkeley, California.
Initial Public Offering
On February 9, 2026, the Company completed its initial public offering (the “IPO”) of 7,631,537 shares of its common stock at the public offering price of $18.00 per share, plus an additional 1,649,581 shares of common stock at the same public offering price pursuant to the exercise of the underwriters' option to purchase additional shares. The Company received approximately $138.5 million in aggregate proceeds, net of underwriting discounts and commissions and offering costs. In connection with the IPO, certain of the Company's stockholders (the “Selling Stockholders”) sold 3,365,672 shares of common stock. The Company did not receive any of the proceeds from the sale of shares by the Selling Stockholders.
Immediately prior to the closing of the IPO, all outstanding convertible notes (“Convertible Notes”) (See Note 8, Convertible Notes) were converted into their respective classes of convertible preferred stock, which then immediately converted into 2,819,512 shares of common stock (see Note 8, Convertible Notes). Further, all outstanding shares of the Company’s convertible preferred stock were converted into 21,779,817 shares of the Company’s common stock at the applicable conversion ratio then in effect (see Note 9, Convertible Preferred Stock) and the related carrying value of $102.0 million was reclassified from temporary equity to additional paid in capital. Subsequent to the closing of the IPO, there were no shares of convertible preferred stock outstanding. The carrying values of the notes, together with accrued interest, and related derivative liability, which was remeasured to fair value on the IPO date, were reclassified to additional paid-in capital. Additionally, upon the consummation of the IPO, all of the then-outstanding convertible preferred stock warrants issued to a customer were automatically net exercised into 438,983 shares of common stock and the convertible preferred stock warrants issued in connection with a credit facility were net exercised into 103,896 shares of common stock.
Forward Stock Split and Change in Par Value
On January 23, 2026, the Company effected an 18.7-for-1 forward stock split (the “Forward Stock Split”) of its issued and outstanding shares of common stock, as well as stock options to purchase shares of common stock, restricted stock awards and stock appreciation rights. In connection with the Forward Stock Split, the Company changed the par value of its capital stock from $0.001 to $0.0001 and amended its certificate of incorporation to authorize the issuance of up to 1,000,000,000 shares of common stock, $0.0001 par value per share, and 100,000,000 shares of preferred stock, $0.0001 par value per share. Accordingly, all share and per share amounts related to common stock for all periods presented in the accompanying condensed financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the effect of the Forward Stock Split. As the number of all outstanding convertible preferred stock remained unchanged, the conversion ratios for each series of the Company’s convertible preferred stock were retroactively adjusted as a result of the Forward Stock Split.
The significant accounting policies and estimates used in the preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025, and the notes thereto, which are included in the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 16, 2026. During the six months ended June 30, 2026, there were no significant changes to the Company’s significant accounting policies as described in the Company’s audited financial statement as of and for the year ended December 31, 2025.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include all the accounts of the Company's wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of these condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to, net realizable value of inventory; revenue recognition, including variable consideration for sales promotions and discounts; the valuation of stock-based awards, including the valuation of common stock; useful lives and valuation of long-lived assets; intangible assets and goodwill; valuation of derivative liability; valuation of preferred stock warrant liabilities; and provision for income taxes, including related reserves. Management periodically evaluates its estimates, which are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of demand deposit accounts, money market accounts and accounts receivable. The Company maintains its cash and cash equivalents, which may, at times, exceed federally insured limits, with financial institutions of high credit standing. As of June 30, 2026, the Company has not experienced any losses on its deposit accounts and money market accounts. As of June 30, 2026, the Company does not believe there is significant financial risk from nonperformance by the issuers of the Company’s deposit accounts and money market accounts.
Customers with 10% or more of the Company’s net sales or accounts receivable consist of the following for the periods indicated:
Accounts Receivable
Net Sales
For the Three Months Ended June 30,
For the Six Months Ended June 30,
Customer A
33%
31%
21%
23%
19%
Customer B
**
12%
Customer C
14%
13%
15%
Customer D
10%
Customer E
11%
16%
18%
** Represents less than 10% of accounts receivable or net sales as applicable
7
Deferred Offering Costs
The Company capitalized certain legal, professional accounting and other third-party fees that are directly associated with its IPO as deferred offering costs until such offering is consummated. As of December 31, 2025, there was $14.0 million of deferred offering costs capitalized and included in prepaid expenses and other current assets in the condensed consolidated balance sheets. Upon closing of the IPO in February 2026, $16.9 million of offering costs, including $14.0 million of deferred offering costs capitalized as of December 31, 2025, were offset against the IPO proceeds and reclassified to additional paid-in capital.
Vendor Rebates
On February 20, 2026, the U.S. Supreme Court invalidated reciprocal tariffs collected under the International Emergency Economic Powers Act. Following subsequent Court of International Trade enforcement orders, the Company’s vendors, who passed along tariffs costs to the Company, may claim refunds through U.S. Customs and Border Protection's Consolidated Administration and Processing of Entries portal. Some of the Company’s vendors must contractually reimburse the Company a portion of passed-through tariff costs upon receiving their refund, while others have no such contractual obligation. For the latter, the Company is negotiating to receive a portion of the refunds.
The Company accounts for these tariff reimbursements as vendor rebates. Contractually required rebates are recognized as a reduction of product purchase prices (and thus costs of goods sold) when the receipt from the vendor becomes probable. For rebates received that are not required to be paid under a pre-existing contractual arrangements, when it becomes probable that the rebate will be received, the rebate will be deferred and recognized as a reduction of future purchase prices.
The Company recorded no tariff related vendor rebates during the three and six months ended June 30, 2026 and 2025.
Recently Adopted Accounting Pronouncements
In July 2025, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2025-05, Financial Instruments – Credit Losses (Topic 326):Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. The Company adopted ASU 2025-05 effective for the annual period beginning January 1, 2026 and it did not have a material impact on the accompanying condensed consolidated financial statements and disclosures.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures. Adjustments to the annual disclosure of income taxes include: (1) a tabular rate reconciliation comprised of eight specific categories, (2) incomes taxes paid, disaggregated between significant national, state, and foreign jurisdictions, (3) eliminates requirements to disclose the nature and estimate of reasonably possible changes to unrecognized tax benefits in the next 12 months or that an estimated range cannot be made, and (4) adds a requirement to disclose income (or loss) from continuing operations before income tax expense (or benefit) by national and foreign; and income tax expense (or benefit) from continuing operations disaggregated between national, state and foreign. The ASU is effective for public business entities for fiscal years beginning on or after December 15, 2024, and for all other entities for fiscal years beginning on or after December 31, 2025, with early adoption permitted. Due to the Company's Emerging Growth Company status, the Company may elect not to adopt new or revised accounting standards until they become effective for private companies.
8
Accordingly, the Company will adopt ASU 2023-09 for its annual financial statements for the year ending December 31, 2026. The Company is currently evaluating the requirements of the new standard and the effect on its condensed consolidated financial statements and the related disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions within the income statement. In January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Clarifying the Effective Date. The amendments in this update may be applied either prospectively or retrospectively, and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is evaluating the impact that this guidance will have on its condensed consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration From a Customer in a Revenue Contract (“ASU 2025-07”). ASU 2025-07 introduces guidance for applying derivative accounting to contracts that include features tied to the operations or activities of one of the parties to the contract. It also aims to reduce diversity in how share-based payments are accounted for in revenue contracts. ASU 2025-07 will be effective for the annual periods beginning after December 15, 2026 with early adoption permitted. The Company is evaluating the impact that this guidance will have on its condensed consolidated financial statements and related disclosures.
The Company had no financial assets or liabilities measured at fair value on a recurring basis at June 30, 2026.
The following table presents the Company’s financial liabilities measured at fair value on a recurring basis for the period indicated (in thousands):
December 31, 2025
Level 1
Level 2
Level 3
Total
Liabilities:
Convertible preferred stock warrant liability
1,884
34,297
Derivative Liability
The Convertible Notes contained a conversion feature that met the definition of an embedded derivative that required bifurcation and measurement at fair value (Note 8, Convertible Notes). The Company estimated the fair value of the embedded derivative using a “with-and-without” model. The “with-and-without” methodology involves valuing the whole instrument on an as-is basis and then valuing the instrument without the individual embedded derivative. The difference between the entire instrument with the embedded derivative compared to the instrument without the embedded derivative was the fair value of the derivative liability on issuance. The estimated probability and timing of underlying events triggering the conversion features contained within the Convertible Notes are inputs used to determine the estimated fair value of the entire instrument with the embedded derivative. The fair values are subjective and are affected by certain significant inputs. Changes in the estimated fair value were recognized in the Company's statements of operations and comprehensive loss. Upon conversion of the Convertible Notes in connection with Company’s IPO in February 2026, the derivative liability was remeasured to fair value, and the carrying values of the Convertible Notes and the derivative liability were reclassified to additional paid-in capital.
The Company used the following assumptions to determine the fair value of the derivative liability for the period indicated:
Risk-free interest rate
3.58%
Expected term (in years)
0.10
Volatility
62.90%
Dividend yield
—%
The following table provides a summary of the change in the estimated fair value of the Company’s derivative liability (in thousands):
Fair value as of December 31, 2025
Change in fair value
Reclassification to additional paid-in capital upon conversion
(32,073
Fair value as of June 30, 2026
Fair value as of December 31, 2024
23,847
Fair value as of June 30, 2025
41,707
Convertible Preferred Stock Warrant Liability
The Company estimated the fair values of its convertible preferred stock warrant liability using a hybrid valuation approach. The hybrid approach assigns a probability weighting to both a merger and acquisition (“M&A”) scenario and an initial public offering scenario. For the M&A scenario, the Company utilized the Income Approach and Guideline Public Company (“GPC”) to determine the estimated fair value of equity, which was then allocated to the various classes of equity using approach and the Option Pricing Method (“OPM”). Under the OPM, the shares are valued by creating a series of call options with exercise prices based on the liquidation preferences and conversion terms of each equity class. The estimated fair values of the common stock, preferred stock and preferred stock warrants are then inferred by analyzing these options. The OPM assumptions are based on the individual characteristics of the warrants on the valuation date, and assumptions related to fair value of the underlying stock, risk-free rate, expected volatility, dividends and an expected term based on the estimated time to a liquidity event.
For the initial public offering scenario, the Company estimated the exit value upon an IPO and then performed a waterfall analysis to systemically allocate the equity value across share classes accordingly to their fully diluted ownership percentages. This method estimates the future value of each share class under the initial public offering scenario, adjusts for option and warrant proceeds and discounts the resulting value to present terms using an appropriate discount rate.
In determining the fair value of the convertible preferred stock warrant liability, the following assumptions were used:
OPM
Waterfall
N/A
Discount Rate
12.50%
0.50
0.08
10
The following table provides a summary of the change in the estimated fair value of the Company’s convertible preferred stock warrant liability (in thousands):
Reclassification to additional paid-in capital upon net exercise
(1,871
1,396
2,324
In February 2026, following the consummation of the IPO, all then-outstanding convertible preferred stock warrants issued in connection with a credit facility were net exercised, resulting in the issuance of 103,896 shares of common stock, and the related warrant liability was remeasured to fair value as of the IPO date and reclassified to stockholders’ equity (deficit) (see Note 7, Nonconvertible Debt and Warrants).
The following table presents disaggregated net sales by product category (in thousands):
Kid
Pouches
36,271
29,928
65,648
58,203
Snacks
7,640
6,145
12,412
10,270
Total Kid
43,911
36,073
78,060
68,473
Baby
11,290
6,466
22,763
11,961
29,639
16,802
56,411
28,884
Other
552
676
878
1,302
Total Baby
41,481
23,944
80,052
42,147
Total net sales
Inventory consists of the following (in thousands):
Raw materials
22,524
21,539
Finished goods
29,363
25,442
Total inventory
11
Property and Equipment, net
Property and equipment, net consists of the following (in thousands):
Machinery and equipment
12,051
7,948
Leasehold improvements
78
Purchased software
555
Construction in progress
778
2,980
Total property and equipment
13,462
11,561
Accumulated depreciation and amortization
(3,668
(2,658
Total property and equipment, net
Depreciation and amortization of property and equipment was $0.5 million and $0.3 million for the three months ended June 30, 2026 and 2025, and $1.0 million and $0.5 million for the six months ended June 30, 2026 and 2025.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
Accrued promotional activities
8,263
6,015
Accrued inventory purchases
8,697
1,939
Accrued marketing
2,443
2,320
Accrued third-party manufacturing fees
3,249
565
Accrued payroll expenses
2,913
2,811
Accrued deferred offering costs
3,783
Accrued interest
1,435
Accrued other expenses
4,944
5,351
Operating lease liabilities, current portion
166
50
Total accrued expenses and other current liabilities
Purchase Commitments
The Company has a minimum purchase commitment with an outsourced manufacturer of its snack bars of 10,000,000 units per year, or 50,000,000 units over five years. Based on the current pricing, the remaining future minimum purchase commitment under the non-cancellable purchase agreement as of June 30, 2026 is as follows (in thousands):
Year Ending December 31,
2026 (remainder)
914
2027
1,900
2028
2029
6,614
12
Litigation
The Company may become involved in legal proceedings from time to time. The Company does not believe that any legal proceeding or claims currently pending against it, individually or in the aggregate, are material, or will have a material adverse effect on its financial condition, results of operations or cash flows.
Nonconvertible Debt
In June 2025, the Company and the lender entered into an agreement to replace an existing term loan and revolving credit facility (together the “Existing Credit Agreement”) for a delayed draw term loan (the “Term Loan Facility”) and a revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Nonconvertible Debt”). The Revolving Credit Facility has a maximum capacity of $65.0 million. The maximum amount available under the Revolving Credit Facility is calculated as the lower of (a) the current maximum capacity and (b) the sum of (i) 80% of the Company’s gross accounts receivable and (ii) 85% of the liquidation value of inventory, each subject to certain adjustments. The Term Loan Facility has a maximum capacity of $30.0 million. The Term Loan Facility is available in two tranches: (i) an $18.0 million tranche that is available immediately and (ii) a $12.0 million tranche that is contingent on the Company achieving certain funding milestones prior to March 31, 2026 (which were achieved upon the completion of the IPO).
Upon closing of the Nonconvertible Debt in June 2025, the Company drew $22.0 million under the Revolving Credit Facility in order to repay the outstanding balances on the Existing Credit Agreement. During the second half of 2025, the Company drew an additional $21.0 million under the Revolving Credit Facility for general corporate purposes. There were no lender fees or third-party expenses incurred related to these draws. As of December 31, 2025, $43.0 million was outstanding under the Revolving Credit Facility and the interest rate applicable to borrowings under the Revolving Credit Facility was 7.0%.
Following completion of the IPO, the Company used a portion of the proceeds to repay all outstanding amounts under the Nonconvertible Debt. Accordingly, the Company repaid $43.0 million on February 10, 2026. As of June 30, 2026, the Company had no outstanding borrowings under the Revolving Credit Facility or the Term Loan Facility and the Company had up to $65.0 million and $30.0 million available to draw under its Revolving Credit Facility and the Term Loan Facility.
For the three months ended June 30, 2025, interest expense for the Nonconvertible Debt was $0.5 million, including amortization of debt issuance costs and discounts, which was immaterial. There was no interest expense for the Nonconvertible Debt for the three months ended June 30, 2026. For the six months ended June 30, 2026 and 2025, interest expense for the Nonconvertible Debt was $0.4 million and $0.8 million, including amortization of debt issuance costs and discounts, which was immaterial in each period. As of June 30, 2026 and December 31, 2025, the Company had $0.3 million and $0.4 million of unamortized debt issuance costs within other assets on the balance sheet related to the Nonconvertible Debt.
The Company is subject to certain financial and nonfinancial covenants under the provisions of the Nonconvertible Debt, including maintaining a minimum cash balance with the lender of $4.0 million, restrictions on paying any dividends to its common and preferred shareholders, limits on the types of other debt financing that can be obtained and limits on certain capital expenditures, among other things. As of June 30, 2026 and December 31, 2025, the Company was in compliance with all covenants.
13
Nonconvertible Debt Warrants
In connection with the initial issuance and various amendments to the Existing Credit Agreement, the Company issued to the lender warrants to purchase shares of the Company's Series B-1 convertible preferred stock and Series D convertible preferred stock (the “Convertible Preferred Stock Warrants”).
The total outstanding Convertible Preferred Stock Warrants as of December 31, 2025 are summarized as follows:
Issuance Date
WarrantsOutstanding
Exercise Price
ExpirationDate
2020 Series B-1 Warrant
February 2020
2,830
58.38
September 2032
2021 Series B-1 Warrant
May 2021
2022 Series D Warrant
September 2022
963
183.03
September 2023
7,586
The above table excludes convertible preferred stock warrants issued to a customer (see Note 11, Stock-based Compensation).
The Convertible Preferred Stock Warrants were accounted for as a derivative liability and classified in other non-current liabilities on the balance sheets because the underlying convertible preferred stock was contingently redeemable outside of the Company's control. The aggregate estimated fair value was $1.9 million as of December 31, 2025.
In February 2026, upon the consummation of the IPO, all then-outstanding Convertible Preferred Stock Warrants issued in connection with a credit facility were net exercised, resulting in the issuance of 103,896 shares of common stock. As a result of the net exercise of the Convertible Preferred Stock warrants associated with the credit facility, the warrant liability was remeasured to fair value at the IPO date and was reclassified to stockholders’ equity (deficit).
The tables below summarize the Company’s outstanding Convertible Notes for the period indicated (in thousands, except per share amounts):
CarryingValue
Fair Value
ConversionPrice
Series C-1 Convertible Notes
3,600
12,461
97.78
Series C-2 Convertible Notes
4,314
21,373
68.32
Series D Convertible Notes
9,300
17,203
51,037
Unamortized debt discounts
Total Convertible Notes, net
Immediately prior to the closing of the IPO in February 2026, the outstanding Convertible Notes were converted into their respective classes of convertible preferred stock, which then immediately converted into 2,819,512 shares of our common stock. Upon conversion, the carrying values of the Convertible Notes, together with accrued interest, and the related derivative liability, which was remeasured to fair value on the IPO date, were reclassified to additional paid-in capital.
14
Convertible preferred stock consists of the following for the period indicated (in thousands, except share amounts):
As of December 31, 2025
AuthorizedShares
Issued andOutstandingShares
LiquidationPreference
Series A-1 convertible preferred stock
94,010
3,000
3,001
Series A-2 convertible preferred stock
82,400
2,395
2,105
Series B-1 convertible preferred stock
374,440
344,730
19,957
20,125
Series B-2 convertible preferred stock
229,258
229,061
16,423
11,366
Series C-1 convertible preferred stock
122,726
85,909
8,293
8,400
Series C-2 convertible preferred stock
157,973
94,825
9,272
6,479
Series D convertible preferred stock
286,498
233,761
42,627
42,785
1,347,305
94,261
The Company classified its convertible preferred stock outside of total stockholders’ deficit because, in the event of certain “liquidation events” that are not solely within the control of the Company (including a merger, acquisition or sale of all or substantially all of the Company’s assets), the shares would become redeemable at the option of the holders. The Company did not adjust the carrying values of the convertible preferred stock to the deemed liquidation values of such shares since a liquidation event was not probable at any of the reporting dates. Subsequent adjustments to increase or decrease the carrying values to the ultimate liquidation values will be made only if and when it becomes probable that such liquidation event will occur.
In February 2026, immediately prior to the completion of the IPO, all of the then-outstanding shares of convertible preferred stock automatically converted into 21,779,817 shares of common stock at the applicable conversion ratio then in effect. Upon conversion, the carrying value of the convertible preferred stock was reclassified to common stock and additional paid-in capital.
In connection with the IPO, in February 2026, the Company filed an amended and restated certificate of incorporation effective immediately prior to the closing of the IPO that authorized the issuance of up to 1,000,000,000 shares of common stock, par value $0.0001 per share, and 100,000,000 shares of preferred stock, par value $0.0001 per share.
The Company had reserved shares of common stock for issuance in connection with the following for the periods indicated on an as-converted basis:
Options outstanding
5,835,840
5,477,425
Options available for future issuance under the 2026 Omnibus Plan
3,510,202
Restricted stock units outstanding
623,794
Conversion of outstanding shares of convertible preferred stock
Convertible Notes
Warrants issued to a customer
514,923
Convertible Preferred Stock Warrants
141,858
Options available for future issuance under the 2021 Plan
58,961
Total reserved shares of common stock
9,969,836
30,792,496
15
For the three months ended June 30, 2026 and 2025, the Company recognized stock-based compensation of approximately $2.5 million and $1.1 million which was recognized in selling, general and administrative expenses in the statements of operations and comprehensive loss. For the six months ended June 30, 2026 and 2025, the Company recognized stock-based compensation of approximately $9.0 million and $1.9 million, which was recognized in selling, general and administrative expenses in the statements of operations and comprehensive loss.
Stock Options
On February 5, 2026, the board of directors of the Company (“Board of Directors”) adopted, and the Company’s stockholders approved, the omnibus equity incentive plan (the “2026 Omnibus Plan”), which became effective on the same date. The 2026 Omnibus Plan replaced the existing omnibus equity incentive plan (“2021 Plan”), as the Board of Directors determined to not make additional grants under the 2021 Plan following the closing of the IPO. However, the 2021 Plan continues to govern outstanding stock option awards granted under the 2021 Plan. The 2026 Omnibus Plan allows the Company to grant incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards and other awards. The number of shares initially available for issuance under awards granted pursuant to the 2026 Omnibus Plan is 4,023,181.
The following table summarizes the stock option activity for the six months ended June 30, 2026:
Number ofOptionsOutstanding
Weighted-AverageExercise Price
Weighted-AverageRemainingContractualLife(Years)
AggregateIntrinsic Value (InThousands)
Balances as of December 31, 2025
3.96
6.8
71,837
Options granted
512,979
17.94
Options exercised
(98,416
2.50
1,297
Options forfeited and expired
(56,148
15.98
Balances as of June 30, 2026
5.09
6.6
89,846
Vested and expected to vest as of June 30, 2026
Options exercisable as of June 30, 2026
4,619,047
3.50
6.1
78,440
The intrinsic value of options exercised during the three months ended June 30, 2026 and 2025 was $1.2 million and $0.7 million. The intrinsic value of options exercised during the six months ended June 30, 2026 and 2025 was $1.3 million and $1.4 million. This intrinsic value represents the difference between the fair value of the Company’s common stock on the date of exercise and the exercise price of each option.
During the three months ended June 30, 2026, the weighted average grant date fair value of options granted, was $10.26 per share. There were no options granted during the three months ended June 30, 2025. During the six months ended June 30, 2026 and 2025, the weighted average grant date fair value of options granted, was $12.66 and $10.30 per share.
During the three months ended June 30, 2026 and 2025, the Company recognized $1.1 million and $1.1 million of stock-based compensation related to stock options. During the six months ended June 30, 2026, the Company recognized $4.6 million of stock-based compensation related to stock options including $2.6 million of stock-based compensation associated with accelerated vesting of the Spokesperson's (defined in Note 12, Related Party Transactions) stock options upon the closing of the IPO in February 2026. During the six months ended June 30, 2025, the Company recognized $1.9 million of stock-based compensation related to stock options.
16
As of June 30, 2026, the unrecognized compensation related to the service-based vesting options is approximately $10.7 million, which will be recognized over a weighted-average remaining requisite service period of 3.0 years. The Company recorded no income tax benefit related to these options for the three and six months ended June 30, 2026, since the Company currently maintains a full valuation allowance against its net deferred tax assets.
The fair value of each service-based vesting stock option granted during the year was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
3.76% - 4.17%
4.09%
6.04 - 6.25
6.02
Expected volatility
77.16% - 77.51%
76.97%
Stock Appreciation Rights granted to employees and executives
During the three and six months ended June 30, 2025, the Company granted 365,715 and 694,835 stock appreciation rights under the 2021 Plan (the “SARs”) to certain employees and executives with weighted-average exercise prices of $14.64 and $15.77 per share.
During the three and six months ended June 30, 2025, 57,970 and 69,190 of SARs issued to employees were forfeited. As of June 30, 2025 there were 1,157,584 of SARs issued to employees outstanding, with a weighted-average exercise price of $13.33.
On February 5, 2026, the Company approved the cash settlement of vested SARs and the conversion of each outstanding unvested SAR held by participants as of the closing of the IPO into a number of restricted stock units (“Replacement RSUs”) to be issued under the 2026 Omnibus Plan. Accordingly, the Company paid $2.2 million of cash consideration to settle 271,760 vested SARs upon consummation of the IPO, and recognized related stock-based compensation of $2.2 million within selling, general and administrative expenses on the condensed consolidated statement of operations. A total of 992,414 outstanding unvested SARs were converted into 169,366 Replacement RSUs, of which a certain portion vests on the six month anniversary of the IPO date, with the remaining portion vesting in equal quarterly installments across the remaining service period of the original SARs. The aggregate grant date fair value of the Replacement RSUs is $3.0 million, which will be recognized on a straight-line basis over their respective service periods.
Restricted Stock Units
During the three and six months ended June 30, 2026, the Company granted 68,027 and 666,236 shares of restricted stock units under the 2026 Omnibus Plan (“RSUs”) to certain employees, executives and directors, including the Replacement RSUs, with a weighted-average grant date fair value of $14.70 and $17.84 per share. RSUs granted to employees and executives, other than the SAR Replacement RSUs, generally vest in quarterly installments on each of the first four anniversaries of the date of grant, subject to the grantee's continued service with the Company. RSUs granted to directors generally vest in full on the earlier of the first anniversary of the date of grant or the next annual stockholder meeting following the date of grant, subject to the grantee's continued service with the Company. 42,442 RSUs were forfeited during three and six months ended June 30, 2026.
During the three and six months ended June 30, 2026, the Company recognized stock-based compensation of $1.4 million and $2.2 million related to RSUs.
As of June 30, 2026, no RSUs have vested and the total unrecognized stock-based compensation related to the Company’s unvested RSUs was $8.9 million, which is expected to be recognized over a weighted-average period of 2.4 years.
Stock Appreciation Rights issued to a customer
On March 27, 2025, the Company granted 187,000 SARs to a customer at an exercise price of $19.58 per share. The SARs issued to a customer vest based on the customer achieving specified milestones of sales of the Company’s products over a three year period beginning April 1, 2025 (the “Vesting Period”). Following the Vesting Period, any vested SARs issued to the customer may be exercised by the holder at any time while any unvested SARs issued to the customer will be forfeited. Any vested SARs issued to the customer will be automatically exercised on the earlier of March 27, 2035 or upon the occurrence of a change of control after the end of the Vesting Period. The SARs issued to a customer are liability-classified instruments. Such SARs are recognized as the corresponding revenue is earned, provided it is probable that the performance conditions will be satisfied, and reduce the transaction price of revenue earned under the customer contract based on the grant date fair value of the awards. Vested SARs will be remeasured each period with changes in the fair value of vested SARs recognized in other income (expense), net in the Company's condensed consolidated statement of operations. During the three months ended June 30, 2026 and 2025, 5,741 and 2,169 SARs issued to a customer vested. During the six months ended June 30, 2026 and 2025, 9,444 and 2,169 SARs issued to a customer vested. As of June 30, 2026, the total of 18,345 SARs issued to a customer were vested. The assumptions used to determine the fair value of the SARs using the Black-Scholes option-pricing model are as follows:
June 30, 2026
Grant Date
4.38%
4.18%
4.23%
8.75
9.25
10.00
77.38%
77.24%
75.57%
Expected dividend yield
The aggregate grant date fair value of the SARs issued to a customer is $2.1 million. For the three and six months ended June 30, 2026 and 2025, the Company recorded $0.1 million and an immaterial amount as a reduction of revenue related to the SARs issued to a customer. As of June 30, 2026, the liability related to the vested SARs issued to a customer was $0.3 million and was recorded within other non-current liabilities on the Company’s balance sheets. For the three months ended June 30, 2026 and 2025, the Company recorded $0.1 million and an immaterial amount for the changes in the fair value of vested SARs. For the six months ended June 30, 2026 and 2025, the Company recorded $0.1 million and an immaterial amount for the changes in the fair value of vested SARs.
During 2018, 2020 and 2024, the Company granted an aggregate 33,046 warrants to a customer to purchase Series B-1 convertible preferred stock, which vested based on the customer achieving defined performance conditions. These warrants issued to a customer were equity-classified instruments and recognized over the applicable vesting period, provided it was probable that the performance conditions would be satisfied, reducing the transaction price of revenue earned under the customer contract. No warrants were issued to customers in the six months ended June 30, 2026 and 2025.
As of December 31, 2025, 27,536 outstanding warrants issued to a customer were outstanding, all of which were vested. Upon closing of the IPO in February 2026, all of the outstanding convertible preferred stock warrants issued to a customer were net exercised into 438,983 shares of common stock.
18
12. Related-Party Transactions
At the time the Convertible Notes were issued, the holder held more than 10% of the voting interests in the Company; therefore, meeting the definition of a related party. At no point during the six months ended June 30, 2026 and 2025, did the holder hold 10% or more of the Company’s voting interests. As such, the holder is not considered a related party for the periods presented.
Spokesperson Transactions
Prior to January 1, 2024, the Company contracted with a Co-Founder and board member (the “Spokesperson”) for personal branding, marketing and promotional services, as well as licensing intellectual property (the “Spokesperson Agreement”). Original compensation included cash payments contingent upon a change in control as defined by the agreement, which includes an IPO, and stock options that accelerated upon such change in control.
In January 2025, the Company amended the agreement with the Spokesperson (the “Amended Spokesperson Agreement”) and added an additional $8.0 million to the contingent cash consideration under the Spokesperson agreement the Spokesperson agreement payable in installments through December 2027, plus additional stock options, for ongoing services. The cash payments and unvested options were to accelerate upon a change in control. Consequently, in connection with the consummation of the Company’s IPO in February 2026, all remaining cash was paid and all unvested options fully vested.
In May 2026, the Amended Spokesperson Agreement was further amended (the “First Amended Spokesperson Agreement”) to add $3.0 million of cash payments payable in equal installments through January 2028 for advertising, marketing, and promotional activities. In the event of a change in control, termination without cause, or resignation for good reason, each as defined by the agreement, all unpaid cash accelerates in full and must be paid to the Spokesperson.
Cash consideration is expensed on a straight-line basis over the requisite service period. Compensation expense recognized in selling, general and administrative expenses on a straight-line basis over the requisite service period related to cash payments made to the Spokesperson were $0.4 million and $0.7 million for the three months ended June 30, 2026 and 2025. For the six months ended June 30, 2026, the Company recognized $5.8 million of expense related to cash payments made to the Spokesperson. These cash payments included $7.0 million of contingent cash consideration triggered by the IPO in February 2026. For the six months ended June 30, 2025, the Company recognized $1.3 million related to cash payments made to the Spokesperson.
Share-based Compensation
The Spokesperson holds stock options from the agreements referenced above and through grants awarded in the normal course of business and the related expense is recorded within selling, general and administrative expense on the Company’s condensed consolidated statement of operations. Stock-based compensation for stock options granted to the Spokesperson was no amount and $0.3 million for the three months ended June 30, 2026 and 2025, and $2.6 million and $0.5 million for the six months ended June 30, 2026 and 2025.
IPO Bonus
In May 2026, the Company paid a $1.0 million one-time bonus to the Spokesperson in connection with the IPO that was included in selling, general and administrative expenses in the condensed consolidated statement of operations. The Company also reimbursed the Spokesperson $0.2 million for expenses incurred in connection with the IPO during the six months ended June 30, 2026.
19
The Company operates as a single operating segment, as the Chief Operating Decision Maker (“CODM”) reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. All of the Company’s long-lived assets are located in the United States and less than 1% of the Company’s net sales are from customers located outside the United States.
The CODM uses net loss to assess performance, evaluate cost optimization, and allocate financial, capital and personnel resources. The CODM reviews segment assets on a consolidated basis as presented on the Company’s balance sheet.
The following table sets forth significant expense categories and other specified amounts included in net loss that are reviewed by the CODM, or are otherwise regularly provided to the CODM (in thousands):
Less:
Cost of goods sold1
54,402
35,407
97,185
66,798
Marketing
9,413
6,168
25,642
16,894
Payroll expenses
8,893
5,852
17,879
11,553
Outbound freight
3,714
3,284
7,353
6,482
Selling expenses
3,938
2,891
7,343
5,281
Warehousing & distribution
2,349
1,520
4,542
2,998
General and administrative costs
7,523
4,451
18,492
9,034
Other segment items2
9,482
437
20,084
Segment net loss
The following outstanding balances of securities have been excluded from the calculation of diluted weighted average common shares outstanding and diluted net loss per share because the effect of including them would have been antidilutive.
Three and Six Months Ended June 30,
Stock options
6,253,008
Restricted stock units
Convertible preferred stock
Total common shares equivalent
6,459,634
31,509,118
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those set forth in Part II, Item 1A. “Risk Factors,” and “Cautionary Statement Concerning Forward-Looking Statements” in this Quarterly Report on Form 10-Q. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on March 16, 2026.
Overview
Once Upon a Farm is driving systemic change in childhood nutrition with real, organic, farm-fresh food –made with no added sugar, no preservatives, and nothing artificial. From baby’s first bites to kid’s school-ready snacks, we are a rapidly growing leader in modern childhood nutrition that provides innovative, nutrient-packed, delicious food to on-the-go parents for their babies and kids. We revolutionized the childhood nutrition category with what we believe is the first-ever cold-pressed Pouch, setting a new standard for nutrition that parents love and kids crave. Our mission and commitment to our consumers guide every decision we make and are at the heart of our identity and journey ahead. We are a Public Benefit Corporation, which requires us to uphold high social and environmental standards and provide transparency for all of our stockholders. Additionally, we believe we are the first baby through kid parent-ally brand with a deep commitment to superior, fresh products with high nutritional standards and incredible taste. Our thoughtful recipes are crafted with high-quality organic ingredients, from cold-pressed Pouches, to Refrigerated Oat Bars and Dry Baby Snacks, earning us the trust of parents, and fostering a loyal, passionate, and fast-growing consumer base.
In February 2026, we closed the initial public offering (“IPO”) of our common stock, in which we issued and sold an aggregate of 7,631,537 shares of common stock at a price to the public of $18.00 per share. Shortly following the close of the offering, the underwriters exercised their option to purchase an additional 1,649,581 shares at the initial public offering price. In the aggregate, we received net proceeds from the offering of approximately $138.5 million, after deducting underwriting discounts, commissions and offering expenses.
Key Factors Affecting our Performance
Our ability to achieve sustainable growth and profitability is impacted by many factors, including those described below. Certain factors are strategically tied to key metrics that define our success:
Increasing Brand Awareness and Household Penetration
Growing our brand awareness and household penetration is central to our strategy for long-term growth. Our approach and creation of great-tasting, high-quality, nutritional and organic products that kids love establishes trust in parents and fosters brand-loyalty from our customers. As we continue to expand our innovative product offerings, we plan to establish trust with parents in the early stages of their baby’s development, building brand loyalty that allows us to strategically deliver great-tasting, healthy and convenient products to kids of all ages. We plan to increase our brand awareness and household penetration by leveraging a full-funnel modern marketing approach that includes retail media networks, influencer programs, high-frequency national media campaigns, engaging social media, impactful sponsorships, and immersive activations. To grow and maintain our brand, we must invest in sales and marketing to promote word-of-mouth sharing of our brand to attract new customers. We believe that once consumers are introduced to our brand and products, we will be able to drive conversion to repeat purchases and long-term loyalty.
Investment in Retail Partnerships and Distribution Expansion
Our long-term growth strategy relies on our ability to cultivate and maintain relationships with our retail customers to expand our presence and optimize distribution across all retail stores. Our success is dependent on deepening the assortment of our product offerings and ensuring that our products are prominently displayed in both our retail customers’ brick-and-mortar stores and e-commerce platforms. Our relationships with our retail customers also allow
us to deepen the assortment of our product offerings by extending our reach to new product categories and expanding the number of shelves that our products are displayed on at stores in major classes of retail, including grocery, mass, club, natural and specialty stores.
We also intend to grow our sales and in-store footprint through the expansion and productivity of our cooler program. Our coolers, which can be found replacing standard shelving in the baby aisle, as an end-cap display or free standing in the baby aisle, currently feature our widest selection of Baby Pouches and our new Meat, Meat & Bone Broth and Legume Blend pouches introduced in the quarter ended June 30, 2026. As of June 30, 2026, we have deployed over 4,100 coolers in stores to date and believe there is an opportunity to expand the footprint to more than 15,000 coolers in stores in North America. We invest in slotting fees and offer other incentives to encourage our retail customers to place our coolers in more of their stores and display our coolers in ideal locations within their stores. As we accelerate the expansion and productivity of our cooler program, we expect to continue to see increases in overall sales velocity and believe there are further opportunities for sales velocity enhancement as our cooler base matures and we continue to optimize the product assortment offered in the cooler and encourage excitement for our product across aisles. The presence of baby coolers also drives an increase in basket size for the whole baby department, which encourages our retail customers to participate in this initiative with us. The direct impact of the new cooler additions on our net sales varies based on numerous factors including store traffic and cooler size.
In addition to our primary retail growth strategy of increasing depth of our product offerings with our existing retail customers, we believe there is a significant opportunity to increase sales through e-commerce and delivery platforms and expand into new retail customers and international markets.
Product Innovation and Category Leadership
We are confident that through innovation in new products, product line extensions, and packaging types, we will drive meaningful growth for our Company. Investment in strategic product innovation is vital for meeting evolving consumer needs and complementing our existing product portfolio to expand our brand’s reach. We continue to expand and enhance our product offerings, including launches of Refrigerated Oat Bars, shelf-stable baby snacks, as well as Meat, Meat & Bone Broth, and Legume Blend pouches, introduced in the quarter ended June 30, 2026, to meet the evolving needs of our consumers and drive demand for our products.
Aligning our innovation pipeline with consumer demands for organic, nutritious, delicious, and convenient products has positioned us as a leader in the baby and kids’ food market. We plan to invest in exploring new flavor combinations and innovative formats that enhance taste and nutritional value, and in expanding our existing functional product offerings across various formats, such as immunity, brain health, and protein, to provide parents with the functionality they are looking for and satisfy the cravings of babies and kids.
Drive Sustainable, Profitable Growth
Our future success is dependent on our ability to drive sustainable and profitable growth. We have made significant investments in assembling our strong leadership team, implementing strategic sales management principles, and building our global procurement network infrastructure to support long-term growth and to enhance the profitability of our core operating model as we grow. We also plan to continue to invest in expansion and automation of our scalable production platform with our co-manufacturing partners to increase our capacity and operational efficiency to support our growth and achieve economies of scale. With these investments, we believe we will be well-positioned to consistently deliver the highest quality, premium products to our consumers while also ensuring profitability and sustainability.
As we extend our presence with existing retail customers, we believe there is also opportunity to further increase our operating margins. The strength of our brand and ability to efficiently deliver industry-disrupting products to our consumers have consistently resulted in attractive and expanding gross margins.
22
Macroeconomic and Geopolitical Uncertainty and Supply Chain Costs
Uncertainty in the macroeconomic environment resulting from geopolitical and economic instability, including the imposition of tariffs, embargoes, or similar restrictions could cause disruption in our supply chain. For example, in 2025, the U.S. presidential administration announced the imposition of tariffs on numerous countries that trade with the United States, and in February 2026 the United States Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). Following the Supreme Court’s decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariff. On July 24, 2026, the U.S. presidential administration imposed additional tariffs on certain imports, further contributing to the evolving and uncertain tariff landscape. As the implementation of tariffs is ongoing, more tariffs may be added in the future and countermeasures may be adopted by other countries.
Following the February 2026 ruling, and effective on April 20, 2026, the U.S. Customs and Border Protection launched a platform for importers of record to begin submitting IEEPA tariff refund requests. The imposition of new tariffs (or uncertainty regarding the timing and amount of any tariff refund payments) remains uncertain as the situation is dynamic and rapidly evolving. See Note 2 (Summary of Significant Accounting Policies – Vendor Rebates) of our unaudited condensed consolidated financial statements. New or increased tariffs could also negatively affect U.S national or regional economies or lead to increased inflation or a recession, which also could negatively impact our sales growth, and our business and results of operations. Any tariffs or other barriers to trade affecting Mexico and South America in particular, two regions from which we source a significant portion of our key fruit and vegetable ingredients, could lead to, among other things, shortages and higher cost of procurement, and could negatively impact our business and profitability.
In addition, in recent years, we have experienced elevated commodity and supply chain costs, including the costs of raw materials, packaging, labor, energy, fuel, freight, and other inputs necessary for the production and distribution of our products, and we expect elevated levels of inflation to continue in 2026. In particular, fuel costs have been subject to heightened volatility due to persistent inflationary pressures and ongoing geopolitical uncertainty, including disruptions to global energy markets. Such elevated commodity and supply chain costs and inflation levels did not have a material impact on our results of operations for the three and six months ended June 30, 2026 and 2025, however, there can be no assurance that continued volatility in fuel costs driven by inflationary conditions or geopolitical developments will not have a material effect on our results of operations or financial condition in future periods. In an effort to mitigate the impact of these elevated costs, we have taken actions to: diversify the regions from which we source the raw materials used in our business, remove intermediate third parties in our supply chain, scale our business and work with co-manufacturing partners to increase our capacity and operational efficiency, including through investment in equipment used by our co-manufacturers. We also continue to monitor fuel cost trends and evaluate strategies to mitigate the impact of fuel price volatility on our operations, including optimizing distribution routes and logistics arrangements and, where appropriate, and negotiating fuel surcharge provisions in our transportation contracts.
For a further discussion of the risks and challenges posed by these events, see Part II, Item 1A. “Risk Factors—Risks Relating to Our Business and Industry” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and Part I, Item 1A. “Risk Factors—Risks Relating to Our Business and Industry” in our Annual Report on Form 10-K.
Components of Results of Operations
We generate revenue through sales of organic, nutrient-packed, farm-fresh Pouches, snacks, and other products for babies and kids through retail channels, which include traditional brick-and-mortar stores, e-commerce platforms, and delivery platforms, as well as directly to consumers through our direct-to-consumer (“DTC”) platform that we operate. Our revenue is recognized net of allowances for sales discounts and promotions and any sales or other similar taxes collected from consumers. We offer sales discounts and promotions to our retail and DTC customers through various programs. These programs include sales incentives, trade allowances, slotting fees, coupon offers, rebates, and term discounts. We anticipate that these sales discounts and promotions will impact our net sales and that changes in these activities could impact period over period results.
23
Cost of Goods Sold
Cost of goods sold consists primarily of product costs, third-party manufacturing fees, inbound freight of raw materials and finished goods, storage and handling costs during the manufacturing process, product loading and handling at our outsourced production facilities for distribution, depreciation of machinery, and equipment used in the manufacturing process as well as duties and tariffs.
We source our organic raw materials from farmers both in the United States and international markets. We also contract with outsourced partners in the United States to manufacture, package, and distribute our products to our customers.
Gross Profit and Gross Margin
Gross profit represents net sales less cost of goods sold. Gross margin is gross profit expressed as a percentage of net sales.
Our gross margin may in the future fluctuate from period to period based on a number of factors, including costs of produce and commodities, manufacturing, warehousing and transportation rates for inbound raw materials. Gross margin may also fluctuate in the future based on changes in the promotional environment in the marketplace, the mix of products we sell, the channel through which we sell our products and innovation initiatives we undertake in each of our product categories, among other factors.
Selling, General and Administrative
Selling, general and administrative expenses primarily consist of payroll and payroll-related benefits, stock-based compensation, marketing content and agency fees, customer growth and acquisition costs, warehouse and distribution costs, and freight costs associated with shipping goods to customers. Selling, general and administrative expenses also include depreciation and amortization and product development costs.
We expect selling, general and administrative expenses to increase in the future as we continue to scale our operations to meet our product demand, continue to build our product portfolio, and add personnel to our sales and marketing organization. We also expect to incur additional costs associated with operating as a public company, including increased expenses related to legal, audit, accounting, regulatory, and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance costs, investor and public relations costs, and other administrative and professional services.
Other Income (Expense)
Interest income consists of interest earned on our cash and cash equivalents. Interest expense is attributable to interest on our outstanding borrowings under our Nonconvertible Debt and Convertible Notes agreements (each as defined below). Following our initial public offering, we expect our interest expense to decrease, as a portion of the proceeds from the initial public offering were used to repay borrowings then outstanding under the Revolving Credit Facility and our outstanding Convertible Notes were converted into shares prior to or at the time of the offering. However, our Revolving Credit Facility provides for availability of up to $65.0 million of borrowings and our Term Loan Facility for availability of up to $30.0 million. From time to time, we may draw amounts under our Revolving Credit Facility and our Term Loan Facility and expect to incur interest expense as a result of any such draws.
Change in fair value of derivative liability consists of adjustments to the fair value of our derivative liability. As a result of our initial public offering in February 2026 and the conversion of our outstanding Convertible Notes into shares of common stock, the derivative liability was eliminated and there will be no subsequent change in its fair value.
Other income (expense), net primarily consists of gains or losses due to adjustments to the fair value of our convertible preferred stock warrant liability. Subsequent to our initial public offering, the convertible preferred stock warrant liability was eliminated as a result of the exercise of the underlying warrants, and there will be no subsequent changes in its fair value.
Results of Operations
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
The results of operations data have been derived from the unaudited condensed consolidated financial statements included in Part I, Item 1. in this Quarterly Report on Form 10-Q. The following table sets forth our results of operations for the periods presented:
(in thousands)
Selling, general and administrative
$ Change
%Change
(dollars in thousands)
6,343
%
7,445
1,495
2,142
7,838
9,587
4,824
75
10,802
90
12,837
76
27,527
95
(124
(18
)%
(424
(33
17,537
37,905
25,375
42
47,492
43
For the three months ended June 30, 2026, net sales increased $25.4 million, or 42%, compared to the three months ended June 30, 2025, primarily due to an increase in volume growth of more than 40%, driven by both the incremental distribution of existing products and the introduction of new products into our portfolio. Additionally, since 2025, we have launched 91 new SKUs across categories, with 12 new SKUs introduced during the three months ended June 30, 2026. A “new SKU” is a unique product configuration, represented by a distinct GTIN/UPC, or barcode, that differs from existing SKUs in formulation, flavor, size, or format, and is introduced for commercial sale in our markets for the first time. Our snacks categories resulted in a combined $14.3 million increase in net sales period over period. Net sales from Pouches increased by $11.2 million period over period. Our trade spending, which includes sales incentives, trade allowances, discounts, and slotting fees, and is recognized as a reduction of net sales, increased for the three months ended June 30, 2026 compared to three months ended June 30, 2025 primarily due to promotional programs for increased distribution of our products and introduction of new products. For the three months ended June 30, 2026 and 2025, we incurred $1.5 million and $3.1 million in trade spending related to slotting fees paid to retail customers
25
for placement of new coolers in their stores. The slotting fees paid related to placement of new coolers in stores decreased compared to three months ended June 30, 2025 due to timing of installation of coolers in stores; however, these slotting fees are expected to increase in the future as we continue the expansion of our baby cooler program and increase our presence in our retail customers' stores.
For the six months ended June 30, 2026, net sales increased $47.5 million, or 43%, compared to the six months ended June 30, 2025, primarily due to an increase in volume growth of more than 31%, driven by both the incremental distribution of existing products and the introduction of new products into our portfolio. The increase in net sales was also driven by a more favorable product mix. We have launched 46 new SKUs introduced during the six months ended June 30, 2026. Our snacks categories resulted in a combined $29.7 million increase in net sales period over period. Net sales from Pouches increased by $18.2 million period over period. For the six months ended June 30, 2026 and 2025, we incurred $2.1 million and $5.7 million in trade spending related to slotting fees paid to retail customers for placement of new coolers in their stores, which was recognized as a reduction of net sales. The slotting fees paid related to placement of new coolers in stores, decreased compared to six months ended June 30, 2025, primarily due to timing of installation of coolers in stores; however, these slotting fees are expected to increase in the future as we continue the expansion of our baby cooler program and increase our presence in our retail customers' stores.
$Change
19,179
54
30,711
46
Percentage of net sales
64
59
62
61
For the three months ended June 30, 2026, cost of goods sold increased $19.2 million, or 54%, compared to three months ended June 30, 2025, primarily due to increased sales volume. Cost of goods sold as a percentage of net sales increased by 5% primarily due to increased trade spending for promotional programs related to increased distribution of our products, which was recognized as a reduction of net sales and a less favorable product mix.
For the six months ended June 30, 2026, cost of goods sold increased $30.7 million, or 46%, compared to six months ended June 30, 2025, primarily due to increased sales volume. Cost of goods sold as a percentage of net sales increased by 1% primarily due to less favorable product mix.
6,196
16,781
Gross margin
41
(5
(1
For the three months ended June 30, 2026, gross profit increased $6.2 million, or 25%, compared to the three months ended June 30, 2025, due to higher net sales. The decrease in gross margin of 5% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025 was primarily driven by increased cost of goods sold as a percentage of net sales.
For the six months ended June 30, 2026, gross profit increased $16.8 million, or 39% compared to the six months ended June 30, 2025, due to higher net sales. The decrease in gross margin of 1% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025 was primarily driven by increased cost of goods sold as a percentage of net sales.
26
11,855
49
29,403
56
52
48
For the three months ended June 30, 2026, selling, general and administrative expenses increased by $11.9 million, or 49%, compared to the three months ended June 30, 2025, primarily due to:
For the six months ended June 30, 2026, selling, general and administrative expenses increased by $29.4 million, or 56%, compared to the six months ended June 30, 2025, primarily due to:
27
Interest Expense
611
(93
714
(60
For the three months ended June 30, 2026, interest expense decreased $0.6 million, or 93%, compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, interest expense decreased $0.7 million, or 60%, compared to the six months ended June 30, 2025. These decreases in interest expense were due to repayment of borrowings in February 2026.
Interest Income
762
1044
1,140
588
For the three months ended June 30, 2026, interest income increased $0.8 million, or 1044% compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, interest income increased $1.1 million, or 588%, compared to the six months ended June 30, 2025. These increases in interest income are due to higher average cash balances in our money market accounts, driven by IPO proceeds received in February 2026.
Change in Fair Value of Derivative Liability
8,180
18,200
** not meaningful
For the three and six months ended June 30, 2026, there was no change and a $0.3 million change in fair value of our derivative liability as immediately prior to the IPO in February 2026, our Convertible Notes converted into their respective classes of convertible preferred stock, which then immediately converted into shares of our common stock. For the three and six months ended June 30, 2025, the change in fair value of our derivative liability was driven by a change in fair value of our convertible preferred stock underlying the convertible notes.
Other Expense, Net
396
(75
850
(86
28
For the three months ended June 30, 2026, change in other expense, net of $0.4 million, compared to the three months ended June 30, 2025, was primarily due to the absence of changes in the fair value of the convertible preferred stock warrant liability during the three months ended June 30, 2026, as the warrants were settled upon the closing of the IPO in February 2026.
For the six months ended June 30, 2026, change in other expense, net of $0.9 million, compared to the six months ended June 30, 2025, was primarily due to a decrease in the change in fair value of our convertible preferred stock warrant liability and its settlement upon the closing of the IPO in February 2026.
On February 9, 2026, we completed an IPO in which we issued and sold 7,631,537 shares of common stock, at the public offering price of $18.00 per share, plus an additional 1,649,581 shares of common stock at a public offering price of $18.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. We received net proceeds of approximately $138.5 million from the IPO, after deducting underwriting discounts and commissions and offering expenses payable by us. Historically, we have generated operating losses and have relied on private sales of securities and proceeds from debt financing to fund our operations. As of June 30, 2026, we had cash and cash equivalents of $93.5 million and accumulated deficit of $156.5 million. For the three and six months ended June 30, 2026, we incurred a net loss from operations of $5.0 million and $20.8 million and net cash flow used in operating activities totaled $17.9 million during the six months ended June 30, 2026. We expect that our existing cash and cash equivalents, along with available borrowing capacity under the Revolving Credit Facility and Term Loan Facility, will be sufficient to support our operations for at least the next 12 months as well as to meet our cash requirements for the longer term.
Our future capital requirements will depend on many factors, including our pace of new and existing customer growth, our investments in innovation, our investment in cooler placements at retail stores, our investments in partnerships, and unexplored channels. We may be required to seek additional equity or debt financing. There can be no assurance that additional equity or debt financing will be available to us at terms acceptable to us, or at all and such financing will be impacted by many factors, including the liquidity of the overall capital markets and the future state of the U.S. and global economy.
On June 27, 2025 (the “Initial Closing Date”), we entered into a Credit Agreement with Western Alliance Bank (the “Credit Agreement”) for a delayed draw term loan (the “Term Loan Facility”) and a revolving credit facility (the “Revolving Credit Facility”, and together with the Term Loan Facility, the “Nonconvertible Debt”). The Revolving Credit Facility had an initial funding commitment of up to $65.0 million which included (i) an initial commitment of $45.0 million and (ii) a $20.0 million uncommitted option, subject to syndication at terms acceptable to prospective lenders (with such increase implemented through the amendment executed on September 11, 2025). The Term Loan Facility had a commitment of $30.0 million which includes (i) an $18.0 million available on the Initial Closing Date and (ii) a $12.0 million available upon achieving certain milestones and lender approval (which were achieved upon the completion of the IPO). On the Initial Closing Date, we borrowed $22.0 million under the Revolving Credit Facility to repay all outstanding amounts under its previously existing debt facilities.
On September 11, 2025, the Credit Agreement was amended to, among other things, increase the Revolving Credit Facility funding commitment to up to $65.0 million. This increase reflects our lender’s commitment to fund the previously uncommitted $20.0 million option.
In February 2026, following completion of the IPO, we used a portion of the proceeds to repay all outstanding amounts under the Nonconvertible Debt. As of June 30, 2026, we have no outstanding debt under the Nonconvertible Debt.
Interest on borrowings under the Term Loan Facility is calculated at a rate equal to (i) 2.50% plus the highest of (w) the prime rate (as determined by reference to the Wall Street Journal), (x) the federal funds rate plus 0.50% per annum and (y) one month Term SOFR plus 1.00% per annum or (ii) one month Term SOFR plus 3.50% per annum, subject to a 2.00% Term SOFR floor. Interest-only payments are required to be made until July 10, 2027, then (i) with respect to $18.0 million of the Term Loan Facility, equal payments of outstanding principal and (ii) with respect to $12.0 million of the Term Loan Facility, 24 months after the borrowing of such amount with equal payments of outstanding principal, plus monthly interest payments, through the maturity date. As of June 30, 2026, there were no amounts outstanding under the Term Loan Facility. As of June 30, 2026, the maximum remaining capacity under the Term Loan Facility was $30.0 million.
Interest on borrowings under the Revolving Credit Facility is calculated at a rate equal to (i) 2.25% plus the highest of (w) the prime rate (as determined by reference to the Wall Street Journal), (x) the federal funds rate plus 0.50% per annum and (y) one month Term SOFR plus 1.00% per annum, or (ii) one month Term SOFR plus 3.25% per annum, subject to a 2.00% Term SOFR floor. Interest-only payments are required with a balloon principal payment on the maturity date. The interest rate applicable to borrowings under the Revolving Credit Facility was 7.0% as of December 31, 2025. As of June 30, 2026, there were no amounts outstanding under the Revolving Credit Facility.
The borrowing base for the Revolving Credit Facility requires us to maintain collateral in the form of accounts receivable and inventory. Amounts available to us are determined as the lower of (a) the current maximum capacity and (b) the sum of (i) 80% of our gross accounts receivable and (ii) 85% of the liquidation value of inventory, each subject to certain adjustments. The Nonconvertible Debt includes financial and nonfinancial covenant provisions. As of June 30, 2026, we were in compliance with all covenants related to the Nonconvertible Debt. As of June 30, 2026, the maximum remaining capacity under the Revolving Credit Facility was $65.0 million, with $58.4 million available for borrowing based on existing inventory and accounts receivable balances as described by the Credit Agreement.
Cash Flows
The following table summarizes our cash flows for the periods indicated:
Operating Activities
Net cash used in operating activities of $17.9 million for the six months ended June 30, 2026 was primarily driven by net loss of $20.8 million, non-cash adjustments of $9.7 million, and a net decrease in cash related to changes in operating assets and liabilities of $6.8 million. Non-cash adjustments primarily consisted of stock-based compensation of $6.8 million, inventory adjustments of $1.9 million, and depreciation and amortization expense of $1.0 million, partially offset by a change in fair value of derivative liability of $0.3 million. Changes in cash flows related to operating assets and liabilities primarily consisted of a $8.2 million increase in accounts receivable driven by growth in our net sales, a $6.8 million increase in inventory to support the increase in sales volume, and a $3.1 million increase in prepaid expenses and other assets, primarily due to increases in prepaid insurance and other receivables. These uses of cash were partially offset by a $11.3 million increase in accounts payable and accrued expenses and other current liabilities, primarily related to third-party manufacturing fees and raw material purchases to support growth in sales volume.
Net cash used in operating activities of $17.2 million for the six months ended June 30, 2025 was primarily driven by net loss of $28.5 million, non-cash adjustments of $22.1 million and a net decrease in cash related to changes in operating assets and liabilities of $10.8 million. Non-cash adjustments primarily consisted of a change in fair value of derivative liability of $17.9 million, stock-based compensation totaling $1.9 million, a change in fair value of
30
convertible preferred stock warrant liability of $0.9 million, depreciation and amortization expense of $0.6 million, inventory adjustments of $0.4 million, amortization of debt discounts and deferred financing costs of $0.3 million, and interest expense of $0.1 million. Changes in cash flows related to operating assets and liabilities primarily consisted of an $11.9 million increase in inventory to support the increase in sales volume, a $8.4 million increase in accounts receivable due to growth in our net sales, and a $1.3 million increase in prepaid expenses and other assets, primarily due to increases in prepaid insurance and deferred taxes. These uses of cash were partially offset by a $10.8 million increase in accounts payable and accrued expenses and other current liabilities primarily related to increased third-party manufacturing fees, raw materials costs, accrued trade spend, and accrued marketing costs to support the growth in sales volume.
Investing Activities
For the six months ended June 30, 2026 and 2025, net cash used in investing activities was $2.4 million and $2.0 million, related to purchases of property and equipment used in ongoing operations.
Financing Activities
For the six months ended June 30, 2026, net cash provided by financing activities was $103.0 million, primarily consisting of $145.8 million of proceeds from our IPO, net of underwriting discounts and offering costs paid during the period and $0.2 million in proceeds from the exercise of stock options. This source of cash was partially offset by the repayment of our outstanding borrowings under our Credit Agreement of $43.0 million.
For the six months ended June 30, 2025, net cash provided by financing activities was $12.5 million, primarily consisting of $14.0 million in borrowings from existing credit facilities and $0.2 million in proceeds from the exercise of stock options. These sources of cash were partially offset by payments of deferred offering costs of $1.4 million and payments of debt issuance costs of $0.3 million.
To supplement our financial statements prepared and presented in accordance with GAAP, we use the non-GAAP financial measures Contribution Margin and Adjusted EBITDA to provide investors with additional information about our financial performance and to enhance the overall understanding of our past performance and future prospects. We are presenting these non-GAAP financial measures because we believe they provide an additional tool for investors to use in comparing our core financial performance over multiple periods with the performance of other companies.
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our financial statements prepared and presented in accordance with GAAP.
To address these limitations, we provide a reconciliation of Contribution Profit to gross profit and Adjusted EBITDA to net loss. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view Contribution Margin and Adjusted EBITDA in conjunction with their respective related GAAP financial measures.
31
Contribution Margin
We use Contribution Margin, which we define as Contribution Profit divided by net sales, to measure our financial and operating performance (“Contribution Margin”). To derive Contribution Profit, we subtract from gross profit our outbound freight costs associated with shipping goods to customers included in selling, general and administrative expenses (“Contribution Profit”).
We use Contribution Margin as part of our overall assessment of performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors (“Board of Directors") concerning our financial performance. We believe Contribution Margin is useful to investors for year-to-year comparisons of our business and in evaluating and understanding our operating results and ability to scale. Contribution Margin is also useful to investors because our management uses Contribution Margin, in conjunction with financial measures prepared in accordance with GAAP, to evaluate our operating results and financial performance.
The decrease in Contribution Margin by 3% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by the aforementioned factors mentioned in the discussion of gross profit in the results of operations above. This decrease was partially offset by increased order sizes and increased customer pickups, which reduced freight costs per case and positively impacted Contribution Margin. For the six months ended June 30, 2026 and 2025, Contribution Margin remained consistent.
The following table provides a calculation of Contribution Margin:
Less: Outbound freight
(3,714
(3,284
(7,353
(6,482
Contribution Profit
26,935
21,169
52,974
37,064
32
34
Adjusted EBITDA
We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA, a non-GAAP financial measure, provides investors with additional useful information in evaluating our performance.
We calculate Adjusted EBITDA as net loss, adjusted to exclude: (1) change in fair value of derivative liability; (2) change in fair value of convertible preferred stock warrant liability; (3) stock-based compensation, including expense related to the acceleration of certain awards in connection with our IPO; (4) depreciation and amortization; (5) amortization and acceleration of certain payments under the Spokesperson Agreement (as defined in Note 12, Related-Party Transactions in Part I, Item 1. of this Quarterly Report on Form 10-Q) for services received in connection with our IPO; (6) one-time bonuses related to our IPO; (7) interest expense; (8) interest income; and (9) provision for income taxes.
Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations, or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation, and evaluating our operating performance, as well as for internal planning and forecasting purposes.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of stock-based compensation, (4) it does not reflect other non-operating expenses, including interest expense, (5) it does not consider the impact of any derivative liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us, and (7) it does not consider amortization of payments under the Spokesperson Agreement for services received in connection with our IPO. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net income and other results stated in accordance with GAAP.
The following table presents a reconciliation of Adjusted EBITDA to net (loss) income, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:
Change in fair value of derivative liability (1)
Change in fair value of convertible preferred stock warrant liability (1)
464
8,973
574
297
Amortization and acceleration of Spokesperson Agreement expense for services received in connection to the IPO
649
5,405
1,298
IPO transaction bonus
1,000
1,699
660
469
1,183
(835
(73
(1,334
(194
Provision (benefit) for income tax
(35
(237
(497
(1,726
1,995
(4,811
(5,474
The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the amounts reported in the financial statements and related notes thereto. Critical accounting estimates are those estimates that, in accordance with GAAP, involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial statements. Management has determined that our most critical accounting estimates are those relating to revenue recognition, valuation of derivative liability, fair value of common stock and stock-based compensation. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ materially from those estimates. The following is a summary of certain accounting estimates we consider critical. For further discussion about our accounting policies, see Note 2 “Summary of Significant Accounting Policies” to our financial statements in Part I, Item 1. in this Quarterly Report on Form 10-Q.
Revenue Recognition
Our revenue is generated through sales of Pouches, snacks and other products for babies and kids through retail channels, which include traditional brick-and-mortar stores and e-commerce platforms, as well as directly to
33
consumers through our DTC platform that we operate. We recognize revenue when control of the products transfers to the customer, which occurs upon customer pickup or delivery of the products to the customer for retail sales or when the product is delivered to the carrier for DTC sales. Our revenue is recognized net of allowances for sales discounts and promotions and any taxes collected from consumers.
We offer sales discounts and promotions to our customers through various programs. These programs include sales incentives, trade allowances, slotting fees, including baby cooler slotting fees, coupon offers, rebates and term discounts. The costs of these sales discounts and promotions are accounted for as reductions in the transaction price. We estimate variable consideration related to the cost of sales discounts and promotions during the period the product is sold. We recognize an allowance for estimated trade discounts that have been incurred but the corresponding trade receivable was not settled as of each balance sheet date. We also recognize an accrual for the estimated cost of promotional activities. Our estimate of trade discounts and accrued promotional activities is a management estimate based on the terms and timing of our programs offered, expected participation based on our historical experience with similar programs and forecasted sales volumes.
We do not believe it is reasonably likely that there will be a material change in the estimates or assumptions used to recognize revenue. Estimates are made based on historical experience and other factors. Typically, programs that are offered have a short duration and historical differences between actual experience compared to estimated volumes, performance and redemptions have not been significant to the annual financial statements. However, if the level of redemption rates, volumes or performance were to vary significantly from our estimates, we may be exposed to gains or losses that could be material.
Our Convertible Notes contain conversion features that meet the definition of an embedded derivative that requires bifurcation from the Convertible Notes and measurement at fair value. The derivative liability is initially measured at fair value on issuance and is subject to remeasurement at each reporting period with changes in fair value recognized in change in fair value of derivative liability in the statements of operations and comprehensive loss.
We determine the fair value of our derivative liability related to Convertible Notes using a “with-and-without” methodology. This involves valuing the instrument with and without the embedded derivative, with the difference representing the derivative liability’s fair value at issuance. Key assumptions include the estimated fair value of the underlying preferred stock, the probability and timing of conversion events, dividend yields, volatility, discount rate, risk-free rate and remaining expected life. Changes in these inputs can materially impact the fair value and reported financial results, including loss and comprehensive loss for the applicable reporting period.
Fair Value of Common Stock
Prior to our initial public offering in February 2026 the fair value of the common stock underlying our stock-based awards was determined by management with the assistance of third-party valuation specialists using a hybrid approach. Under the hybrid approach, a probability weighting was assigned to both a merger and acquisition (“M&A”) scenario and an initial public offering scenario. For the M&A scenario, management uses the Income Approach and Guideline Public Company (“GPC”) approach to determine the estimated fair value of equity, which was then allocated to the various classes of equity using the Option Pricing Method (“OPM”). Under the OPM, the shares were valued by creating a series of call options with exercise prices based on the liquidation preferences and conversion terms of each equity class. The estimated fair values of the common stock, preferred stock and preferred stock warrants are then inferred by analyzing these options. For the initial public offering scenario, we estimated the exit value upon an initial public offering and then performed a waterfall analysis to systematically allocate the equity value across share classes according to their fully diluted ownership positions.
For the income approach, we use a discounted cash flow analysis and the significant assumptions used in determining the estimated fair value of our common stock under the income approach primarily relate to the selection of the revenue growth rate, the forecasted EBITDA margin, and the selected discount rate used to discount the future cash flows. Under the GPC approach, the selection of revenue and EBITDA multiples requires significant judgment. Under the initial public offering scenario there is significant judgment used in determining the exit value upon the completion
of a successful initial public offering. There is also significant judgment in weighting the probability of the M&A scenario versus the initial public offering scenario.
Subsequent to the completion of our IPO in February 2026, our Board of Directors determines the fair value of our common stock based on the closing price of our common stock as reported on the date of grant on the primary stock exchange on which our common stock is listed.
Stock-Based Compensation
We recognize stock-based compensation related to equity classified awards based on the grant-date fair value of the awards. For awards that vest based only on continued service, we recognize stock-based compensation cost on a straight-line basis over the requisite service period, which is generally the vesting period of the awards. For stock options with performance vesting conditions, we recognize stock-based compensation using an accelerated attribution method when it is probable the performance condition will be achieved. The grant date fair value of stock options that contain service or performance conditions is estimated using the Black-Scholes option-pricing model. The grant date fair value of restricted stock awards that contain service vesting conditions is estimated based on the fair value of the underlying shares on grant date.
The fair value of liability classified awards such as stock appreciation rights awards, is determined using the Black-Scholes option-pricing model on the date of grant and is remeasured each reporting period through the date of settlement. Our liability classified stock appreciation rights are subject to both service and performance conditions. The performance condition, which includes either an initial public offering or a change in control event, is not considered achievable for accounting purposes until it happens. As a result, we will not recognize any compensation for these awards until it is probable that the performance condition will be met.
Determining the fair value of stock-based awards requires judgment. The Black-Scholes option-pricing model is used to estimate the fair value of stock options that have service and/or performance vesting conditions. The assumptions used in these option-pricing models require the input of subjective assumptions and are as follows:
The determination of stock-based compensation cost is inherently uncertain and subjective and involves the application of valuation models and assumptions requiring the use of judgment. If factors change and different assumptions are used, stock-based compensation and net losses could be significantly different.
We will continue to use judgment in evaluating the expected volatility and expected terms utilized in our stock-based compensation calculations on a prospective basis. As we continue to accumulate additional data related to our common stock, we may refine our estimates, which could materially impact our future stock-based compensation. See Note 11 to our unaudited condensed consolidated financial statements in Part I, Item 1. in this Quarterly Report on Form 10-Q for information concerning certain of the specific assumptions we used in applying the Black-Scholes option pricing model to determine the estimated fair value of our stock options granted in the three and six months ended June 30, 2026 and 2025.
During the three months ended June 30, 2026 and 2025, we recorded $2.5 million and $1.1 million in stock-based compensation. There was $0.1 million and an insignificant reduction in net sales associated with stock appreciation rights issued to a customer and no reduction in net sales associated with warrants issued to a customer during the three months ended June 30, 2026 and 2025.
During the six months ended June 30, 2026 and 2025, we recorded $9.0 million and $1.9 million in stock-based compensation. There was $0.1 million and an insignificant reduction in net sales associated with stock appreciation rights issued to a customer and no reduction in net sales associated with warrants issued to customers as no warrants to customers were issued during the six months ended June 30, 2026 and 2025.
As of June 30, 2026, there was $10.7 million in unrecognized compensation related to unvested service-based vesting options which is expected to be recognized over a weighted-average period of 3.0 years.
As of June 30, 2026, there was $8.9 million in unrecognized compensation related to unvested RSUs which is expected to be recognized over a weighted-average period of 2.4 years.
See the sections titled “Summary of Significant Accounting Policies—Recently Adopted Accounting Pronouncements” and “—Recent Accounting Pronouncements Not Yet Adopted” in Note 2 to our unaudited condensed consolidated financial statements in Part I, Item 1. in this Quarterly Report on Form 10-Q for additional details.
We are an emerging growth company, as defined in the JOBS Act. Section 107 of the JOBS Act provides that an “emerging growth company” may take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 (“Securities Act”) for complying with new or revised accounting standards. Therefore, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period under the JOBS Act. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in raw material prices, interest rates, and inflation.
Raw Materials Pricing Risk
Our profitability is dependent on, among other things, our ability to anticipate and react to commodity and packaging costs. The prices and availability of ingredients we use in the process of manufacturing our products are subject to many factors beyond our control, such as the number, size and production levels of farms that provide ingredients, the vagaries of these farming businesses, including poor harvests due to adverse weather conditions, natural disasters and pestilence and changes in national and world economic conditions.
In addition, we purchase some ingredients and other materials offshore. The price and availability of such ingredients and materials is affected by political events, labor shortages, transportation and logistics disruptions or other conditions in these countries or tariffs or trade wars. New or increased tariffs or resultant trade wars, as well as labor shortages or disruptions in transportation and logistics networks, could have an adverse effect on us or on our suppliers, distributors or customers, which could lead to significant increases in the costs of materials and services, resulting in product cost increases and reduced consumer demand.
A hypothetical 10% increase or decrease in the weighted-average cost of these commodities and raw materials would have resulted in an increase or decrease to cost of goods sold of approximately $2.0 million and $3.5 million for the
three and six months ended June 30, 2026. We seek to mitigate the impact of raw materials cost increases by negotiating pricing agreements and by a combination of cost savings initiatives and efficiencies and price increases to our customers.
Interest Rate Risk
We are subject to interest rate risk on amounts drawn under our Nonconvertible Debt, which incurs interest at variable rates. See Part I, Item 2. “Management’s Discussion of Results of Operation and Financial Condition —Liquidity and Capital Resources—Nonconvertible Debt.” Following completion of the IPO in February 2026, we used a portion of the proceeds therefrom to repay all outstanding amounts under the Nonconvertible Debt.
Our interest-earning instruments, including cash held in on demand interest-bearing accounts, also carry a degree of interest rate risk.
We do not believe that a hypothetical 100 basis points change in interest rates would have a material effect on our results of operations or financial condition.
We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage our interest rate risk exposure.
Inflation Risk
Inflation generally affects us by increasing our cost of labor, logistics, commodities, packaging and manufacturing costs, as well as fuel and energy costs. We do not believe that inflation has had a material effect on our business, results of operations or financial condition. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, results of operations and financial condition.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), under the supervision and with the participation of Company management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our CEO and CFO concluded that, as of June 30, 2026, our disclosure controls and procedures were effective.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
For information regarding our legal proceedings, refer to Note 6 of our Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Item 1A. Risk Factors.
For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 16, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 7, 2026 (the “Quarterly Report”). There have been no material changes to the risk factors disclosed in our Annual Report or the Quarterly Report.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Recent Sales of Unregistered Equity Securities
None.
Issuer Purchases of Equity Securities
Use of Proceeds
On January 30, 2026, our Registration Statement on Form S-1 (File No. 333-290577) relating to our initial public offering (the “IPO”) was declared effective by the SEC. On February 9, 2026, we completed our IPO of 7,631,537 shares of our common stock at the public offering price of $18.00 per share, plus an additional 1,649,581 shares of common stock at the same public offering price pursuant to the exercise of the underwriters' option to purchase additional shares. We received approximately $138.5 million in proceeds, net of underwriting discounts and commissions and offering costs. In connection with the IPO, certain of our stockholders (the “Selling Stockholders”) sold 3,365,672 shares of common stock. We did not receive any of the proceeds from the sale of shares by the Selling Stockholders.
As contemplated in the IPO final prospectus dated February 9, 2026, we used all of the proceeds from the IPO to (i) repay $43.0 million of outstanding borrowings under the Revolving Credit Facility, (ii) to pay approximately $7.0 million of cash consideration in connection with the Spokesperson Agreement, and (iii) to settle approximately $2.2 million of vested SARs issued to certain employees, using approximately $52.2 million of the proceeds. The Company plans to use the remaining net proceeds for the purchase of an additional $25.0 million of new equipment for operations and general corporate purposes.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Item 6. Exhibits.
Exhibit
Number
Description
3.1
Amended and Restated Certificate of Incorporation of Once Upon a Farm, PBC (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the Company on February 9, 2026)
3.2
Bylaws of Once Upon a Farm, PBC (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by the Company on February 9, 2026)
10.1+
First Amendment to the Amended and Restated Personal Brand Services and Spokesperson/Co-Founder Master Agreement, dated as of May 5, 2026, by and between the Spokesperson and Once Upon a Farm, PBC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on May 6, 2026)
31.1*
Certification of the Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of the Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**
Certification of the Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**
Certification of the Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*
Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH*
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104*
Cover page formatted as Inline XBRL and contained in Exhibit 101
* Filed herewith.
** This exhibit is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Securities Exchange Act of 1934.
+ A management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Name
Title
Date
/s/ John Foraker
Chief Executive Officer and Chair of the Board(Principal Executive Officer)
August 6, 2026
John Foraker
/s/ Lawrence Waldman
Chief Financial Officer(Principal Financial Officer)
Lawrence Waldman
/s/ Chris Folena
Chief Accounting Officer(Principal Accounting Officer)
Chris Folena