Company: CHEF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001517175-25-000008
Chunk: 34

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 34
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 net of tax, is added back to net income in order to calculate diluted earnings available to common shareholders.The following table sets forth the computation of basic and diluted net income per common share: Thirteen Weeks Ended March 28, 2025March 29, 2024Net income per share:  Basic$0.27 $0.05 Diluted$0.25 $0.05 Weighted average common shares:  Basic38,695,791 37,820,725 Diluted46,091,441 38,626,885 Reconciliation of net income per common share: Thirteen Weeks Ended March 28, 2025March 29, 2024Numerator:  Net income$10,288 $1,931 Add effect of dilutive securities  Interest on convertible notes, net of tax1,212 — Net income available to common shareholders$11,500 $1,931 Denominator:  Weighted average basic common shares outstanding38,695,791 37,820,725 Dilutive effect of unvested common shares827,795 756,440 Dilutive effect of stock options and warrants72,885 49,720 Dilutive effect of convertible notes6,494,970 — Weighted average diluted common shares outstanding46,091,441 38,626,885  Potentially dilutive securities that have been excluded from the calculation of diluted net income per common share because the effect is anti-dilutive are as follows: Thirteen Weeks Ended March 28, 2025March 29, 2024Restricted share awards (“RSAs”) and restricted stock units (“RSUs”)114,866 146,810 Convertible notes— 7,392,817 

10

Note 4 – Fair Value Measurements

 Assets and Liabilities Measured at Fair Value The Company’s contingent earn-out liabilities are measured at fair value. These liabilities were estimated using Level 3 inputs. The fair value of contingent consideration was predominantly determined based on a probability-based approach which includes projected results, percentage probability of occurrence and the application of a discount rate to present value the payments. A significant change in projected results, discount rate, or probabilities of occurrence could result in a significantly higher or lower fair value measurement. Changes in the fair value of contingent earn-out liabilities are reflected in other operating expenses,