ACCRUED DISTRIBUTOR TERMINATION FEES

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

In connection with the A&R U.S. Distribution Agreement, the Company issued termination notices to existing Alani Nu distributors

and is transferring certain territory rights to Pepsi. As a result, the Company estimated the amounts expected to be paid to former

distributors and recorded the corresponding termination costs as distributor termination fees within the condensed consolidated

statements of operations and comprehensive income for the three and nine months ended September 30, 2025. The majority of

termination notices were delivered prior to or as of September 30, 2025, and the related expenses were recognized upon delivery of

such notices in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. The Company expects any remaining

termination-related obligations to be substantially settled during the fourth quarter of 2025.


	Accrued Distributor Terminations
Balance as of December 31, 2024	$—
Current period change for expected termination fees [1]	252,953
Balance as of September 30, 2025	$252,953

[1] This amount includes the distributor termination fees of $246.7 million recognized in the condensed consolidated statements of operations and

comprehensive income for the three months ended, plus an additional $6.2 million of previously recorded deferred revenue related to pre-acquisition

distributor transition payments that also became due to the former distributors upon the termination of such distributors during the three months ended

September 30, 2025.