IPO and Financial Overview - The Company completed its IPO on July 26, 2021, issuing 10,700,000 shares of Class A common stock at an offering price of $14.00 per share, resulting in net proceeds of approximately $139.7 million after deducting underwriting discounts and commissions of $10.1 million[23]. - Offering costs incurred in connection with the IPO amounted to approximately $8.4 million, primarily for accounting, legal, and regulatory expenses[24]. - The company completed its IPO on July 26, 2021, selling 10,700,000 shares at an IPO price of $14.00 per share, resulting in gross proceeds of $149.8 million[92]. - Approximately $90.1 million of the IPO net proceeds were used to acquire 6,900,000 newly issued Class A units of Zevia LLC[92]. - The Company has a controlling equity interest of 53.5% in Zevia LLC, with the remaining 46.5% representing non-controlling interest[28]. - The Company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of new accounting standards until they apply to private companies[19]. - The Company is treated as a subchapter C corporation and is subject to both federal and state income taxes[25]. Financial Performance - Net sales for Q2 2021 reached $34,352,000, a 24% increase from $27,677,000 in Q2 2020[34]. - Gross profit for the six months ended June 30, 2021, was $30,428,000, compared to $22,867,000 for the same period in 2020, reflecting a 33% increase[34]. - The company reported a net loss of $749,000 for Q2 2021, compared to a net income of $3,107,000 in Q2 2020[34]. - For the six months ended June 30, 2021, Zevia LLC reported a net loss of $502,000, compared to a net income of $513,000 for the same period in 2020[87]. - Net sales for the six months ended June 30, 2021, were $65.0 million, a 30% increase from $50.2 million in 2020, attributed to a 26% rise in the number of equivalized cases sold and a 3% increase in net average price per equivalized case[135]. - Adjusted Net Income (Loss) for the three months ended June 30, 2021, was $(713) thousand, compared to $3,136 thousand for the same period in 2020[168]. Expenses and Liabilities - Operating expenses for the six months ended June 30, 2021, totaled $30,892,000, up from $22,087,000 in the same period of 2020, representing a 40% increase[34]. - Selling and marketing expenses rose by 87% to $10.7 million for the three months ended June 30, 2021, compared to $5.7 million in the same period of 2020, driven by higher freight costs and increased marketing spend[132]. - General and administrative expenses for the three months ended June 30, 2021, were $6.0 million, up from $4.6 million in the same period of 2020[125]. - Total liabilities increased to $18,834,000 as of June 30, 2021, from $14,311,000 as of December 31, 2020, marking a 32% rise[31]. Cash Flow and Liquidity - Cash at the end of the period was $6,380,000, down from $14,936,000 at the beginning of the period[40]. - Net cash used in operating activities was $37,000 for the six months ended June 30, 2021, primarily driven by a net loss of $0.5 million and changes in operating assets and liabilities[158]. - The company had $6.4 million in cash and expects this, along with cash from operations and IPO proceeds, to provide adequate liquidity for at least the next 12 months[146]. Market and Competitive Landscape - The company has a history of losses and may be unable to achieve profitability in the future[1]. - The Company faces risks related to competition, consumer preferences, and supply chain challenges that could impact its business operations[1]. - The company was the highest selling carbonated soft drink brand on Amazon in 2020, indicating strong online sales performance[101]. - The company has sold over one billion cans of Zevia to date, reflecting significant market penetration and consumer acceptance[100]. Supply Chain and Cost Management - The company has long-term contracts with certain suppliers for raw materials, which are expected to stabilize costs as the business scales[112]. - The company is working to diversify its sources of supply to ensure stability of raw material prices[178]. - A hypothetical 10% increase in the weighted average cost of stevia would result in an increase of approximately $0.2 million to cost of goods sold[176]. - A hypothetical 10% increase in the weighted average cost of aluminum cans would result in an increase of approximately $0.9 million to cost of goods sold[177]. Corporate Social Responsibility - The Company has been designated as a "Certified B Corporation," indicating its commitment to social and environmental performance[18]. - The Company aims to balance the interests of stockholders with the well-being of stakeholders affected by its operations, promoting better-for-you beverages and a supportive environment for employees[17].