Company: CHEF
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001517175-25-000002
Chunk: 110

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 8
Chunk 110
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 as of December 29, 2023, the Company utilized Level 3 inputs including prevailing market interest rates to estimate the debt portion of the instrument and a Black Scholes valuation model to estimate the fair value of the conversion option. The Black Scholes model utilizes the market price of the Company’s common stock, estimates of the stock’s volatility and the prevailing risk free interest rate in calculating the fair value estimate. The fair value of the GreenLeaf Note was determined based upon observable market prices of similar debt instruments. 

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 December 27, 2024December 29, 2023Fair Value HierarchyCarrying ValueFair ValueCarrying ValueFair Value2028 Convertible Senior NotesLevel 2(1)$287,500 $365,556 $287,500 $277,354 2024 Convertible Senior NotesLevel 3$— $— $39,684 $38,609 GreenLeaf NoteLevel 2$5,000 $5,070 $10,000 $9,991  (1) The fair value of the 2028 Convertible Senior Notes was based on Level 1 inputs as of December 29, 2023.

Note 5 – Acquisitions

 The Company paid approximately $315 during fiscal 2024 upon settlement of net working capital true-ups on prior year acquisitions, resulting in measurement period adjustments which increased goodwill by $656 and reduced prepaid expenses and other current assets by $341. The Company recognized professional fees related to acquisition activities of $3,481 and $4,357 for fiscal 2023 and 2022, respectively, presented within other operating expenses, net on the consolidated statements of operations. There were no professional fees related to acquisition activities recorded during fiscal 2024.GreenLeafOn May 1, 2023, the Company entered into a stock purchase agreement to acquire substantially all of the equity interests of Oakville Produce Partners, LLC (“GreenLeaf”), a leading produce and specialty food distributor in Northern California. The final purchase price was $88,204 consisting of $72,157 paid in cash at closing, $3,551 paid upon settlement of net working capital true-ups, the issuance of a $10,000 unsecured note and 75,008 shares of the Company’s common stock with an approximate value of $2,496 based on the trading price of the Company’s common stock on the date of acquisition. The acquisition was partially funded by a $40,000 incremental draw on