Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 38

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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925 3,640 Unvested performance stock units4,633 4,398 4,633 4,398 ESPP purchase rights290 362 — 362 

12. Related-Party Transactions

As a private company, the Company issued secured promissory notes collateralized by the stock purchased by certain Company executives in relation to the exercise of employee stock options. As the promissory notes are secured by the underlying shares they have been treated as non-recourse notes in the condensed consolidated financial statements. The promissory notes were issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes were recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options funded by the notes.The loans had a balance of $2.2 million at both June 30, 2025 and December 31, 2024. No loans are outstanding with any of our named executive officers, and no new promissory notes have been issued since 2021. The loans outstanding had a weighted average remaining term of 4.1 years at June 30, 2025.During both the three and six months ended June 30, 2025 and 2024, the outstanding loan balance increased by an immaterial amount due to interest.

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Table of ContentsWarby Parker Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited)(Amounts in thousands, except per share data)

13. Subsequent Events

Lease ObligationsSubsequent to June 30, 2025, the Company entered into 3 operating lease agreements and extended the term of 4 operating lease agreements for retail space in the U.S., with terms ranging from 3 to 7 years. Total commitments under these agreements are approximately $3.8 million, payable over the terms of the related agreements.Income TaxesOn July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. OBBBA provides changes to U.S. tax law including provisions related to bonus depreciation and research and development expenditures. The Company is currently evaluating the effect of the legislation on its condensed consolidated financial statements.

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Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

You should read the following discussion and analysis of