Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 131

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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 or payment out of the assets of the Company may be made to or set aside for the holders of any junior stock, including the common stock, and subject to the rights of the holders of any senior stock or parity stock and the rights of the Company’s existing and future creditors, to receive in full a liquidating distribution in cash and in the amount per share of Series B Preferred Stock equal to the greater of (i) the sum of 100% of the then Stated Value per share of Series B Preferred Stock plus accrued and unpaid Regular Dividends and unpaid Participating Dividends to, but excluding, the date of such Liquidation Event and (ii) the amount the holder of such share of Series B Preferred Stock would receive if such share of Series B Preferred Stock was converted into Common Stock at the Conversion Ratio on the date of such Liquidation Event. In addition, (a) if the Conversion has not occurred prior to September 12, 2026, then upon the commencement of any voluntary or involuntary case under the United States Bankruptcy Code, Title 11 of the United States Code, the liquidation preference described in clause (i) of the preceding sentence will automatically increase to 150% of the Stated Value and (b) if the Conversion has occurred but shares of Series B Preferred Stock remain outstanding due to the Beneficial Ownership Limitation, then percentage described in clause (i) of the preceding sentence will remain 100% of the Stated Value as of the date of Conversion.Protective ProvisionsThe Series B Preferred Stock includes certain protective rights, such as requiring the approval of holders of a majority of then-outstanding Series B Preferred Stock before the Company may amend the Certificate of Incorporation, Bylaws, or other governing documents in a manner that would materially and adversely affect the rights or preferences of the Series B Preferred Stock. The holders of the Series B Preferred Stock also have the right to approve any changes to the powers, preferences, or rights of the Series B Preferred Stock and to restrict the payment of dividends on junior securities, including common stock, while any dividends on the Series B Preferred Stock remain unpaid.Classification of Series B Preferred Stock The Series B Preferred Stock should be classified outside of stockholders’ equity because it is contingently redeemable upon certain Fundamental Transactions, which are outside the Company’s control. Accordingly, the Series B Preferred Stock is presented outside of permanent equity in the mezzanine section of the consolidated balance sheets. None of the Fundamental Transactions are deemed probable to occur at any time during the