REED's, INC. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by REED's, INC. (REED) on May 20, 2020. The report discloses a specific corporate governance event regarding executive compensation arrangements.
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 the grant of stock options and does not contain financial performance data.
Material Changes and Executive Compensation
On May 20, 2020, the Board of Directors granted incentive stock options to two key executives under the Reed's Inc. 2017 Second Amended and Restated Incentive Compensation Plan:
- Norman E. Snyder, Jr. (CEO): Granted options to purchase 250,000 shares.
- Neal Cohane (Chief Sales Officer): Granted options to purchase 200,000 shares.
Terms of the Awards:
- Exercise Price: $0.70 per share.
- Vesting Structure: 50% of each award is time-based, vesting in equal increments over four years. The remaining 50% is performance-based, contingent on goals set by the Board.
- Performance Vesting Schedule (CEO): Up to 26,712 shares (2021), 35,788 shares (2022), and 31,250 shares each in 2023 and 2024.
- Performance Vesting Schedule (CSO): Up to 21,370 shares (2021), 28,630 shares (2022), and 25,000 shares each in 2023 and 2024.
Mr. Snyder's award is also subject to his amended and restated employment agreement, which was in the process of finalization at the time of filing.
Guidance, Outlook, and Risks
The filing text does not provide a clear value for guidance, outlook, management commentary on operations, or specific risk factors beyond the standard terms of the compensation plan.
Investor Verification Checklist
- Verify the final terms of the amended and restated employment agreement for CEO Norman E. Snyder, Jr.
- Review the specific performance goals set by the Board for the performance-based portion of the stock options.
- Confirm the dilution impact of the 450,000 total options granted against the current share count.
- Check subsequent filings for the finalization of the CEO's employment agreement.