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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of immaterial correction of previously issued consolidated financial statements

The tables below reflect the sections of the Company’s condensed consolidated financial statements that were impacted by the error.

Condensed Consolidated Balance Sheet:

						December 31, 2021
(in thousands)						As Reported						Adjustments						As Corrected
Current liabilities:
Accrued liabilities						$	24,513					$	(3,543)					$	20,970
Total current liabilities						142,277						(3,543)						138,734
Total liabilities						343,514						(3,543)						339,971
Stockholders’ equity:
Additional paid in capital						106,410						783						107,193
Accumulated deficit						(12,914)						235						(12,679)
Total stockholders’ equity attributable to Dutch Bros Inc. / members’ equity						93,498						1,018						94,516
Non-controlling interests						116,688						2,525						119,213
Total equity						$	210,186					$	3,543					$	213,729

Condensed Consolidated Statements of Operations:

						Three Months Ended September 30, 2021
(in thousands)						As Reported						Adjustments						As Corrected
Costs and expenses
Cost of sales						$	91,060					$	(281)					$	90,779
Selling, general and administrative						153,727						(27)						153,700
Total costs and expenses						244,787						(308)						244,479
Loss from operations						(114,984)						308						(114,676)
Loss before income taxes						(118,418)						308						(118,110)
Net loss						$	(117,138)					$	308					$	(116,830)
Less: Net loss attributable to non-controlling interests 1						(31,531)						219						(31,312)
NET LOSS ATTRIBUTABLE TO DUTCH BROS INC.1						$	(11,166)					$	89					$	(11,077)

_________________

1    Amounts and balances have been updated to reflect reclassifications based on updated timing and sequence of certain Reorganization Transactions and purchase of Dutch Bros OpCo Class A common units in connection with the IPO from previously reported figures in the Company’s Form 10-Q for the period ended September 30, 2021, as filed with the SEC on November 12, 2021.

						Nine Months Ended September 30, 2021
(in thousands)						As Reported						Adjustments						As Corrected
Costs and expenses
Cost of sales						$	239,869					$	(1,115)					$	238,754
Selling, general and administrative						223,595						(421)						223,174
Total costs and expenses						463,464						(1,536)						461,928
Loss from operations						(105,668)						1,536						(104,132)
Loss before income taxes						(112,015)						1,536						(110,479)
Net loss						$	(111,299)					$	1,536					$	(109,763)
Less: Net loss attributable to Dutch Bros OpCo prior to the Reorganization Transactions						(68,602)						1,228						(67,374)
Less: Net loss attributable to non-controlling interests 1						(31,531)						219						(31,312)
NET LOSS ATTRIBUTABLE TO DUTCH BROS INC. 1						$	(11,166)					$	89					$	(11,077)

_________________

1    Amounts and balances have been updated to reflect reclassifications based on updated timing and sequence of certain Reorganization Transactions and purchase of Dutch Bros OpCo Class A common units in connection with the IPO from previously reported figures in the Company’s Form 10-Q for the period ended September 30, 2021, as filed with the SEC on November 12, 2021.

Condensed Consolidated Statements of Stockholders’/Members’ Equity:

						Three Months Ended September 30, 2021
(in thousands)						As Reported 1						Adjustments						As Corrected
Members' Equity
Balance, June 30, 2021						$	(127,279)					$	2,725					$	(124,554)
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						50,745						(2,725)						48,020
Additional Paid-in-Capital
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						(196,515)						579						(195,936)
Purchase of OpCo Units in connection with the initial public offering						(239,622)						201						(239,421)
Effect of exchange of Dutch Bros OpCo Class A common units						285						4						289
Balance, September 30, 2021						104,259						784						105,043
Accumulated Deficit
Net loss subsequent to the Reorganization Transactions						(11,166)						89						(11,077)
Balance, September 30, 2021						(11,166)						89						(11,077)
Non-Controlling Interests
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						145,768						2,146						147,914
Purchase of OpCo Units in connection with the initial public offering						(13,648)						(201)						(13,849)
Net loss subsequent to the Reorganization Transactions						(31,531)						219						(31,312)
Effect of exchange of Dutch Bros OpCo Class A common units						(285)						(4)						(289)
Balance, September 30, 2021						116,527						2,160						118,687
Total Equity
Balance, June 30, 2021						(127,279)						2,725						(124,554)
Net loss subsequent to the Reorganization Transactions						(42,697)						308						(42,389)
Balance, September 30, 2021						209,622						3,033						212,655

_________________

1    Amounts and balances have been updated to reflect reclassifications based on updated timing and sequence of certain Reorganization Transactions and purchase of Dutch Bros OpCo Class A common units in connection with the IPO from previously reported figures in the Company’s Form 10-Q for the period ended September 30, 2021, as filed with the SEC on November 12, 2021.

						Nine Months Ended September 30, 2021
(in thousands)						As Reported 1						Adjustments						As Corrected
Members' Equity
Balance, December 31, 2020						$	75,990					$	1,497					$	77,487
Net loss prior to the Reorganization Transactions						(68,602)						1,228						(67,374)
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						50,745						(2,725)						48,020
Additional Paid-in-Capital
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						(196,515)						579						(195,936)
Purchase of OpCo Units in connection with the initial public offering						(239,622)						201						(239,421)
Effect of exchange of Dutch Bros OpCo Class A common units						285						4						289
Balance, September 30, 2021						104,259						784						105,043
Accumulated Deficit
Net loss subsequent to the Reorganization Transactions						(11,166)						89						(11,077)
Balance, September 30, 2021						(11,166)						89						(11,077)
Non-Controlling Interests
Effect of the Reorganization Transactions and initial public offering on non-controlling interests						145,768						2,146						147,914
Purchase of OpCo Units in connection with the initial public offering						(13,648)						(201)						(13,849)
Net loss subsequent to the Reorganization Transactions						(31,531)						219						(31,312)
Effect of exchange of Dutch Bros OpCo Class A common units						(285)						(4)						(289)
Balance, September 30, 2021						116,527						2,160						118,687
Total Equity
Balance, December 31, 2020						75,990						1,497						77,487
Net loss prior to the Reorganization Transactions						(68,602)						1,228						(67,374)
Net loss subsequent to the Reorganization Transactions						(42,697)						308						(42,389)
Balance, September 30, 2021						209,622						3,033						212,655

_________________

1    Amounts and balances have been updated to reflect reclassifications based on updated timing and sequence of certain Reorganization Transactions and purchase of Dutch Bros OpCo Class A common units in connection with the IPO from previously reported figures in the Company’s Form 10-Q for the period ended September 30, 2021, as filed with the SEC on November 12, 2021.

Condensed Consolidated Statement of Cash Flows:

						Nine Months Ended September 30, 2021
(in thousands)						As Reported						Adjustments						As Corrected
Cash flows from operating activities:
Net loss						$	(111,299)					$	1,536					$	(109,763)
Changes in operating assets and liabilities, net of acquisitions:
Accrued liabilities						7,888						(1,536)						6,352

Schedule of vendor incentives and advertising costs

Vendor incentives recognized in cost of sales were as follows for the periods presented:

						Three Months Ended September 30,												Nine Months Ended September 30,
(in thousands)						2022						2021						2022						2021
Vendor incentives						$	13,808					$	11,585					$	32,700					$	30,348

Advertising expense was as follows for the periods presented:

						Three Months Ended September 30,												Nine Months Ended September 30,
(in thousands)						2022						2021						2022						2021
Advertising expense						$	8,158					$	7,602					$	22,840					$	19,948

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Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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Tabular disclosure of each detailed component of other operating costs and expenses that are applicable to sales and revenues, but not included in the cost of sales in the income statement.

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