Company: CELH
Filing Date: 2025-04-02
Form Type: PRE 14A
Source: 0001193125-25-071343
Chunk: 93

Company: Celsius Holdings, Inc.
Filing Date: 2025-04-02
Form: PRE 14A
Chunk 93
---
 In particular, federal tax law specifies certain minimum holding periods that have to be satisfied in order to receive favorable tax treatment under current U.S. federal income tax laws. Federal Tax Code Holding Periods Satisfied If the ESPP Shares are sold or disposed of (i) more than one year from the date of purchase and more than two years after the first day of the offering period in which they were purchased, or (ii) upon or following the employee’s death while owning the ESPP Shares, the employee will recognize ordinary income in an amount generally equal to the lesser of: (a) the excess of the fair market value of the ESPP Shares on the first day of the offering period over the purchase price; and (b) the excess of the sale price of the ESPP Shares over the purchase price. Any additional gain will be treated as long-term capital gain. If the ESPP Shares held for the periods described above are sold and the sale price is less than the purchase price, then the employee will recognize a long-term capital loss in an amount equal to the excess of the purchase price over the sale price of the ESPP Shares. Federal Tax Code Holding Periods Not Satisfied If the ESPP Shares are sold or otherwise disposed of before the expiration of the holding periods described above, other than following the employee’s death while owning the ESPP Shares, the employee generally will recognize as ordinary income an amount equal to the excess of the fair market value of the ESPP Shares on the date the ESPP Shares were purchased over the purchase price. Any additional gain or loss on such sale or disposition will be long-term or short-term capital gain or loss, depending on the employee’s holding period with respect to the ESPP Shares. We are not entitled to a deduction for amounts taxed as ordinary income or capital gain to an employee except to the extent of ordinary income recognized upon a sale or disposition of ESPP Shares prior to the expiration of the holding periods described above. THE BOARD RECOMMENDS A VOTE “FOR” APPROVAL OF THE CELSIUS HOLDINGS, INC. 2025 EMPLOYEE STOCK PURCHASE PLAN.

| 74 |     | 2025 PROXY STATEMENT |

PROPOSAL NO. 7: RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP PROPOSAL NO. 7 RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING