Dalto Juan Carlos 4

What Happened

• Juan Carlos Dalto, a director of Lifeway Foods, received equity awards and converted vested RSUs into phantom stock. He was granted 503 RSUs on June 30, 2026 and 2,038 RSUs on July 1, 2026 (total new RSUs = 2,541). On July 1, 2026, 1,356 previously vesting RSUs were reported as disposed of and an equal number of phantom stock shares were acquired—effectively a conversion/deferral of vested RSUs into phantom stock under the Company's Non-Employee Director Equity and Deferred Compensation Plan. No cash prices or market sale proceeds are reported (all transactions show N/A).

Key Details

• Transaction dates: June 30, 2026 (503 RSUs granted); July 1, 2026 (2,038 RSUs granted; 1,356 RSUs converted to phantom stock).
• Transaction codes: A = award/grant (RSUs); M = exercise/conversion of derivative (conversion of RSUs into phantom stock).
• Prices/values: N/A in filing (these are equity awards/derivative conversions, not open-market trades).
• Shares owned after transaction: Not specified in the filing.
• Footnotes of note:
  • Each RSU equals a contingent right to one share (F1).
  • Some RSUs vest on Dec 30, 2026, Aug 31, 2026, and July 1, 2027 per vesting schedule (F2–F5).
  • Phantom stock equals a right to one share and is payable when the director ceases service (F6).
  • The 1,356-share conversion reflects deferral of vested RSUs into phantom stock under the Director Plan (F8); additional phantom shares were also acquired via deferral of cash compensation for the quarter ended June 30, 2026 (F7).
• Filing timeliness: Form 4 was filed July 2, 2026 (appears within the standard 2-business-day reporting window).

Context

• These transactions are grants and a deferral/conversion, not open‑market purchases or sales—they reflect compensation and deferral elections rather than a buy/sell signal. Phantom stock and RSUs are derivative rights (RSUs convert to shares; phantom stock pays out later), so there was no immediate cash sale or market transaction reported.