Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 30

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 30
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 Company believes Eniva’s claims are without merit and the likelihood of loss is remote. However, the ultimate outcome of these actions may differ materially from the Company’s current expectations, and the Company is unable to reasonably estimate a range of losses at this time. The Company will vigorously defend its rights to use its intellectual property. CommitmentsAs of March 31, 2025, the Company had purchase commitments to third parties of $518.7 million. These purchase obligations are primarily related to third-party suppliers and have arisen through the normal course of business. Contracts that specify that the Company will purchase all or a portion of its requirements of a specific product or service from a supplier, but do not include a fixed or minimum quantity, are excluded from the obligations quantified above.

As of March 31, 2025, the Company had long term contractual obligations aggregating to approximately $25.9 million, which related primarily to suppliers, sponsorships and other related marketing activities. 

15.    SUBSEQUENT EVENTS

Acquisition of Alani Nutrition LLC On April 1, 2025, the Company completed its acquisition of Alani Nu. The transaction was executed pursuant to the Membership Interest Purchase Agreement dated February 20, 2025 (the “Alani Nu Purchase Agreement”). The acquisition aligns with the Company's focus on the performance energy and health-focused wellness segments. The combination is consistent with the Company’s strategy of leveraging operational synergies across sales, marketing, and distribution channels.Under the terms of the Alani Nu Purchase Agreement, the Company acquired all of the issued and outstanding membership interests of Alani Nu from the Sellers. Total consideration consisted of the following:•$1,275.0 million in cash, subject to customary post-closing adjustments; •22,451,224 shares of Celsius common stock, subject to a lock-up agreement that restricts the sale or transfer of the Company's common stock, with one-third of the common stock released from restrictions on each April 1, 2026, October 1, 2026 and April 1, 2027; and•up to $25.0 million in cash consideration, payable only if net sales of Alani Nu’s products meet or exceed an agreed target for 2025 as set forth in the Alani Nu purchase agreement. 

To fund part of the cash portion of the purchase price, on April 1, 2025, the Company, certain of the Company's subsidiaries, the lenders and issuing banks from