Loss Per Share

9 Months Ended

Sep. 30, 2022

15. LOSS PER SHARE

Basic earnings per share of Class A common stock is computed by dividing net loss attributable to the Company for the period by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is computed by dividing net loss attributable to the Company by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. There were no shares of Class A or Class B common stock outstanding prior to July 22, 2021, and therefore, no earnings per share information has been presented for any period prior to that date.

Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Zevia PBC and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Zevia LLC Class B Common Units, are exchangeable into shares of Class A common stock on a one-for-one basis.

Prior to the IPO, the Zevia LLC membership structure included various classes of preferred units. The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. Therefore, earnings per share information has not been presented for any period prior to the IPO.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Three Months Ended September 30,							Nine Months Ended September 30,
	2022			2021				2022			2021
(in thousands, except for share and per share amounts)
Net loss per share:
Numerator:
Net loss and comprehensive loss	$	(9,196	)	$	(49,761	)		$	(41,477	)	$	(50,263	)
Less: net loss attributable to Zevia LLC prior to the Reorganization Transactions		—		$	1,411				—		$	1,913
Less: net loss attributable to non-controlling interests		1,712			22,527				12,005			22,527
Net loss to Zevia PBC	$	(7,484	)	$	(25,823	)		$	(29,472	)	$	(25,823	)

Denominator:
Weighted-average shares of Class A common stock outstanding – basic		44,072,985			34,440,982				40,393,978			34,440,982
Weighted-average shares of Class A common stock outstanding – diluted		44,072,985			34,440,982				40,393,978			34,440,982
Loss per share of Class A common stock – basic	$	(0.17	)	$	(0.75	)	(1)	$	(0.73	)	$	(0.75	)	(1)
Loss per share of Class A common stock – diluted	$	(0.17	)	$	(0.75	)	(1)	$	(0.73	)	$	(0.75	)	(1)

(1) Represents earnings per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period from July 22,2021 through September 30, 2021, the period following the Reorganization Transactions and IPO.

Zevia LLC Class B Common Units, stock options and restricted stock units were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. The following weighted average outstanding shares were excluded from the computation of diluted net loss per share available to common stockholders:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Zevia LLC Class B Common Units exchangeable to shares of Class A common Stock		24,394,109		30,113,152		26,936,871		30,113,152
Stock Options		2,637,539		1,433,264		2,044,472		1,433,264
Restricted stock units		2,911,356		7,993,444		3,742,307		7,993,444
Restricted stock units vested but unsettled		1,865,507		—		1,761,485		—