Company: CELH
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001341766-25-000104
Chunk: 29

Company: Celsius Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 Holdings, Inc.Notes to the Condensed Consolidated Financial Statements (Unaudited)June 30, 2025(Tabular dollars in thousands, except per share amounts)

10.    ACCOUNTS PAYABLE AND ACCRUED EXPENSES

As of June 30, 2025 and December 31, 2024, accounts payable was approximately $121.0 million and $41.3 million, respectively.Accrued expenses consisted of the following:June 30,2025December 31,2024Accrued legal$62,697 $63,328 Accrued marketing54,316 34,774 Unbilled purchases39,442 13,754 Accrued freight25,337 5,098 Contractual co-packer obligations6,565 9,350 Other accrued expenses37,502 22,476 Accrued expenses$225,859 $148,780 As of June 30, 2025 and December 31, 2024, accrued legal included $56.9 million and $54.9 million, respectively, related to ongoing litigation, refer to Note 15. Commitments and Contingencies.

11.    RELATED PARTY TRANSACTIONS

Transactions with PepsiAs further described in Note 12. Mezzanine Equity, on August 1, 2022, the Company issued approximately 1.5 million shares of non-voting Series A Preferred Stock to Pepsi. The shares accounted for approximately 8.5% of the Company’s outstanding common stock on the date of issuance, on an if-converted method. The securities purchase agreement (the "Purchase Agreement"), pursuant to which Pepsi acquired the Series A Preferred Stock, grants Pepsi the right to designate a nominee for election to the Company’s Board of Directors (the "Board"), provided that Pepsi meets certain ownership requirements.Pepsi provided the Company $227.8 million in cash under the Transition Agreement in 2022. This amount was used to settle termination fees with former distributors, and any excess cash was contractually restricted and due back to Pepsi. During the year ended December 31, 2023, $38.3 million of such funds were refunded to Pepsi. Amounts received pursuant to the Transition Agreement relating to the costs associated with terminating the Company’s prior distributors were accounted for as deferred revenue and are being recognized ratably over the 20 year term of the Distribution Agreement. Unam