LIFEVANTAGE CORPORATION (NASDAQ:LFVN) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.
the Company) issued a press release>announcing its financial
results for the fiscal year 2016 and the first quarter of fiscal
2017. A copy of the Companys press release is attached as Exhibit
99.1 to this report and incorporated by reference.
hereto shall not be deemed to be filed for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the Exchange
Act), or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange
Act, regardless of any general incorporation language in such
filing.
of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
approved an amendment and restatement of the employment agreement
(the Amended Agreement) between the Company and the Companys
President and Chief Executive Officer, Darren Jensen. A copy of
the Amended Agreement is attached as Exhibit 99.2 and
incorporated herein by reference.
noncompete restrictive covenants that apply to Mr. Jensen, makes
explicit that a Company incentive compensation clawback policy
will apply when adopted to Mr. Jensens qualifying incentive
compensation, and eliminates certain obsolete provisions in his
original employment agreement. In addition, Mr. Jensen agreed to
waive for future fiscal years his rights to certain cash
incentive bonus awards described in his original employment
agreement and the Company agreed to provide him with the cash
incentive bonus awards beginning with the Companys fiscal year
2018 and ending with the fiscal year in which the Company first
achieves annual revenue of at least $500 million to which he will
receive annual incentive payments granted under the Companys
shareholder-approved long-term incentive plan, as currently in
effect or as may be in effect in the future, for incremental
increases in annual revenue from sales of each of the Companys
product lines listed below over prior year product line revenue
in amounts equal to the percentages indicated for the respective
product line as set forth below:
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Product Line
|
Annual Bonus Will Equal % of the Increase in
Year-over-Year Revenues for the Product Line |
|
|
Protandim
|
3%
|
|
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TrueScience
|
2%
|
|
|
PhysIQ
|
2%
|
Companys overall gross profit margin for a completed fiscal year
falls below the overall gross profit margin for the prior year,
then the annual incentive payments described above relating to
such year shall be reduced by twenty-five percent (25%) for each
ten percent (10%) reduction in overall gross profit margin (with
straight line interpolation applied to any decline in overall
gross margin of other than ten percent (10%)).
year during which the Company first achieves annual revenue of at
least $500 million, Mr. Jensen will also be eligible to earn the
following additional amounts:
|
a one-time cash bonus of $300,000 when Company annual net
revenue exceeds $300 million; |
|
a one-time cash bonus of $400,000 when annual net revenue
exceeds $400 million; and |
|
a one-time cash bonus of $500,000 when annual net revenue
exceeds $500 million. |
during a single fiscal year, Mr. Jensen will be paid the sum of
the bonus amounts that relate to each Revenue Milestone achieved
during such year. If, following achievement of a Revenue
Milestone, the Companys annual revenue for a subsequent fiscal
year is less than the previously achieved Revenue Milestone, the
next Revenue Milestone is voided and no bonus will be paid for
achievement of such next Revenue Milestone.
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Exhibit
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Description
|
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99.1
|
Press Release issued by the Company on December 12,
2016, announcing its financial results for the fiscal year 2016 and the first quarter of fiscal 2017. |
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99.2*
|
Amended and Restated Employment Agreement, dated
December 6, 2016, by and between Darren Jensen and LifeVantage Corporation. |
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About LIFEVANTAGE CORPORATION (NASDAQ:LFVN)
LifeVantage Corporation is a science-based network marketing company. The Company focuses on helping people achieve their health, wellness and financial independence goals. The Company provides products and a financially rewarding direct sales business opportunity to customers and independent distributors seeking a healthy lifestyle and financial freedom. It sells its products to preferred customers, retail customers and independent distributors located in the United States, Japan, Hong Kong, Australia, Canada, Philippines, Mexico, Thailand and the United Kingdom. The Company engages in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin care products, including Protandim, its scientifically-validated dietary supplement; LifeVantage TrueScience, its line of anti-aging skin care products; Canine Health; Axio, its energy drink mixes, and PhysIQ. LIFEVANTAGE CORPORATION (NASDAQ:LFVN) Recent Trading Information
LIFEVANTAGE CORPORATION (NASDAQ:LFVN) closed its last trading session down -0.31 at 8.36 with 295,618 shares trading hands.
