Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 69

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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121,946 119,144 Dilutive impact of:Stock options1,278 — RSUs1,300 — ESPP purchase rights103 — Weighted average shares, diluted124,627 119,144 Earnings Per ShareBasic$0.03 $(0.02)Diluted$0.03 $(0.02)The following potentially dilutive shares were excluded from the computation of diluted earnings per share because including them would have been antidilutive:Three Months Ended March 31,20252024Stock options— 2,089 Unvested restricted stock units982 4,063 Unvested performance stock units4,633 4,398 ESPP purchase rights61 456 

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 March 31, 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 4.3 years at March 31, 2025.During both the three months ended March 31, 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 March 31, 2025, the Company entered into 3 operating lease agreements for retail space in the U.S., with terms ranging from 5 to 7 years. Total commitments under these agreements are approximately $2.0 million,