SCHER JASON SCOTT 4

What happened

• Jason Scott Scher, a Lifeway Foods (LWAY) director, received equity awards and converted vested restricted stock units (RSUs) into phantom stock. The filing shows RSU grants of 828 shares (6/30/2026) and 2,038 shares (7/1/2026), and a conversion on 7/1/2026 of 1,356 vested RSUs into 1,356 shares of phantom stock under the company’s Non‑Employee Director Equity and Deferred Compensation Plan. No cash prices are reported (N/A).

Key details

• Transaction dates: 2026-06-30 (grant of 828 RSUs); 2026-07-01 (grant of 2,038 RSUs; conversion/exchange of 1,356 RSUs to 1,356 phantom shares).
• Prices: N/A (awards/conversions, not open‑market trades).
• Shares reported granted: 2,866 RSUs total (828 + 2,038). Converted: 1,356 RSUs exchanged for 1,356 phantom shares.
• Shares owned after transaction: not specified in the filing.
• Notable footnotes:
  • Each RSU = right to one common share (F1).
  • Phantom stock = right to one common share payable when the director leaves service (F6).
  • The 1,356 phantom shares reported were received in lieu of vested RSUs (deferred) under the Director Plan (F8). The filing also notes phantom shares can be acquired by deferral of cash compensation (F7).
  • Remaining RSUs vest on various future dates (Dec 30, 2026; Aug 31, 2026; Jul 1, 2027) as specified in the footnotes (F2–F5).
• Filing timeliness: Report filed 2026-07-02 for activity through 2026-06-30/07-01 — no late filing flag noted.

Context

• These transactions are awards and internal conversions (derivative instruments), not open‑market purchases or sales. RSU grants and conversions into phantom stock are common director compensation and deferral mechanisms; phantom shares are bookkeeping rights that pay out in the future rather than current shares available for sale. Such transactions are routine and reflect compensation/deferral choices rather than immediate market buying or selling.