Business Context and Reporting Period
This Form 8-K Current Report was filed by Reed's, Inc. on March 9, 2015. The filing discloses the appointment of a new executive officer effective immediately.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation arrangements.
- Base Annual Salary: $175,000
- Stock Options Granted: 70,000 options
- Option Exercise Price: $6.46
- Option Expiration: March 11, 2020
Material Changes
The primary material change is the appointment of Mark Beaton as Chief Operating Officer (COO). Mr. Beaton brings over 17 years of experience in high-volume, multi-site operations for major CPG companies, including Dr. Pepper/Snapple Group, Pepsi Bottling Group, and UPS. He previously served as Vice President of Operations at Dr. Pepper/Snapple Group, managing a network of 160 distribution facilities.
Outlook, Risks, and Unusual Items
The filing outlines the vesting schedule for the granted stock options as follows:
- 17,500 options vest March 11, 2016
- 17,500 options vest March 11, 2017
- 17,500 options vest March 11, 2018
- 17,500 options vest March 11, 2019
There are no family relationships between Mr. Beaton and any director or executive officer. The filing states there are no other material plans, contracts, or arrangements between the Company and Mr. Beaton beyond the salary and options described.
Investor Verification Checklist
- Verify the total number of outstanding shares to assess the dilution impact of the 70,000 new options.
- Confirm the current market price of Reed's stock relative to the $6.46 exercise price to evaluate the immediate value of the grant.
- Review prior 10-K or 10-Q filings for the Company's current operational challenges that necessitated this specific executive hire.
- Check for any subsequent filings regarding changes to the vesting schedule or additional compensation.