BEYOND MEAT, INC.

Note 3. Fair Value of Financial Instruments

There were no transfers of financial assets or liabilities into or out of Level 1, Level 2 or Level 3 in the three months ended March 28, 2026 and March 29, 2025.

Valuation of Warrant Liability

The Company remeasured the fair value of the total warrant liability as of March 28, 2026, marking it to market, and recognized a reduction in fair value in the amount of $1.3 million in the Company’s unaudited condensed consolidated statements of operations in Other income (expense), net. The following were the assumptions used in the Black-Scholes option-pricing model to mark-to-market the fair value of the total warrant liability as of March 27, 2026, the last trading day of the period:

The following table sets forth a summary of the changes in the fair value of the warrant liability for the periods indicated:

Valuation of 2030 Notes Embedded Derivative

The Company determined that the conversion option embedded within the 2030 Notes required bifurcation as a derivative liability under ASC 815. The sensitivity of the fair value calculation to these methods, assumptions and estimates included could create materially different results under different conditions or using different assumptions. The mandatory conversion feature along with the make whole interest, the mandatory equitization feature along with the make whole interest and the holder’s optional conversion feature with the make whole interest require bifurcation and therefore, these embedded derivatives were bifurcated, along with the conversion option, from the debt host as a single, compound derivative liability.

The Company uses a binomial lattice valuation model in order to estimate the fair value of the 2030 Notes Embedded Derivative at inception and on subsequent period end dates. The fair value of the 2030 Notes Embedded Derivative at the issuance date was $26.9 million, recorded as a debt discount to the 2030 Notes and is being amortized to interest expense over the term of the debt. The debt discount carrying value is also reduced, on a pro rata basis, on each 2030 Notes conversion settlement date further discussed above under the heading 2030 Notes Conversions and Gain on Debt Extinguishment (see Note 1). For the three months ended March 28, 2026, the Company recognized $1.3 million in interest expense related to the amortization of this discount, and a reduction of the carrying value of the debt discount of $0.7 million related to settled conversions to equity. Furthermore, the change in fair value of the 2030 Notes Embedded Derivative from December 31, 2025 to March 28, 2026 was $11.9 million and recognized in the Company’s unaudited condensed consolidated statements of operations. As of March 28, 2026 and December 31, 2025, the 2030 Notes Embedded Derivative liability was $26.1 million and $39.2 million, respectively. See Note 7.

Due to the use of a qualitative adjustment for estimating volatility, the binomial lattice valuation used is considered Level 3 in the valuation hierarchy.

The following table sets forth selected inputs to the binomial lattice valuation model used to value the 2030 Notes Embedded Derivative as of the respective dates indicated: