FitLife Brands, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by FitLife Brands, Inc. (FTLF) on June 18, 2019, reporting events occurring on June 13, 2019. The company is incorporated in Nevada and its common stock trades on the OTC Pink Marketplace.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on a corporate governance and compensation event rather than financial performance results.
Material Changes
The primary material change reported is the execution of a new three-year employment agreement with Patrick Ryan, the Company's Chief Retail Officer, effective June 7, 2019.
Management Commentary and Compensation Details
Under the new agreement, Mr. Ryan's compensation structure includes:
- Base Salary: $125,000 annually, increasing to $130,000 on the first anniversary and $135,000 on the second anniversary.
- Commissions: 2.5% of adjusted gross profit from the sale of franchise exclusive products (domestic and international), paid monthly in arrears.
- Annual Bonus: Discretionary cash bonus determined by the Compensation Committee.
- Benefits: Eligibility for standard company plans including life insurance, disability, medical, dental, stock, and retirement plans.
- Restrictions: Subject to non-competition and non-solicitation provisions for one year following termination for any reason.
Investor Verification Checklist
- Review the full text of the Employment Agreement attached as Exhibit 10.1 for specific definitions of "adjusted gross profit" and expense deductions.
- Verify the total number of outstanding shares to assess the potential dilution impact of any stock plan participation.
- Check subsequent filings for the actual commission payouts and bonus amounts awarded to Mr. Ryan.
- Confirm if this agreement supersedes any prior compensation arrangements for the Chief Retail Officer.