Primarily in connection with the A&R Distribution Agreements and the Channel Transition Amendment, the Company issued termination notices to, and negotiated termination agreements directly with, existing Alani Nu distributors to facilitate the transfer of certain distribution territory rights to Pepsi. The majority of the termination fees under the A&R Distribution Agreements were recognized during the year ended December 31, 2025 while termination fees under the Channel Transition Amendment were recognized during the three months ended June 30, 2026. Distributor termination fees recognized during the six months ended June 30, 2026 primarily consisted of terminations incurred under the Channel Transition Amendment, with the remainder representing adjustments to accrued distributor termination fees incurred under the A&R Distribution Agreements based on new information that was not available as of December 31, 2025. Distributor termination fees were recognized upon the Company’s delivery of termination notices or execution of such termination agreements in accordance with ASC 420, Exit or Disposal Cost Obligations. The corresponding amounts were recorded as distributor termination fees within the Condensed Consolidated Statements of Operations and Comprehensive Income.


	Accrued Distributor Termination Fees
Balance as of December 31, 2024	$	—
Distributor termination fees [1]	333,708
Less: Settlement of accrued distributor termination fees	(69,620)
Balance as of December 31, 2025	$	264,088
Distributor termination fees	85,287
Less: Settlement of accrued distributor termination fees	(340,614)
Balance as of June 30, 2026	$	8,761

[1] Includes $327.5 million of distributor termination fees recognized during the year ended December 31, 2025 and $6.2 million of pre-acquisition distributor payments previously recorded as deferred revenue that became due upon termination of the former distributors.