Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 182

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 182
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 be reasonably estimated. Estimating liabilities and costs associated with these matters require significant judgment based upon the professional knowledge and experience of management and its legal counsel.Deferred Offering Costs—Deferred offering costs, which consist of direct incremental legal, consulting, accounting, and other fees relating to the Company’s IPO, were capitalized and recorded as a reduction of proceeds upon the consummation of the IPO in June 2023.JOBS Act Election—In April 2012, the JOBS Act was enacted. Section 107(b) of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay adoption of certain accounting standards until those standards would apply to private companies. The Company was an emerging growth company until December 29, 2024, the date on which it qualified as a large accelerated filer, and previously elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, during the time in which it was an emerging growth company, the Company was not subject to the same implementation timing for new or revised accounting standards as other public companies that were not emerging growth companies and, as a result, the Company’s financial statements may not have been comparable to companies that complied with new or revised accounting pronouncements as of public company effective dates.As of July 12, 2024, the last trading day of the Company’s most recently completed second fiscal quarter, the market value of the Company’s common stock held by non-affiliates exceeded $700.0 million. As a result, the Company became a large accelerated filer as of the end of fiscal 2024 and is no longer an emerging growth company. As a large accelerated filer, the Company is subject to certain disclosure and compliance requirements that apply to other public companies that did not previously apply to the Company due to its status as an emerging growth company. These requirements include, but are not limited to: the requirement that the Company’s independent registered public accounting firm attest to the effectiveness of the Company’s internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; compliance with any requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors’ report providing additional information about the audit and the financial statements; the requirement that