Company: CHEF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001517175-25-000008
Chunk: 17

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 17
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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, net on the condensed consolidated statements of operations.Contingent earn-out liabilities of $750 as of March 28, 2025 and December 27, 2024 are reflected as accrued liabilities on the Company’s condensed consolidated balance sheets. Contingent earn-out liability payments in excess of the acquisition date fair value of the underlying contingent earn-out liability are classified as operating activities on the Company’s condensed consolidated statements of cash flows and all other such payments are classified as financing activities.Fair Value of