Item 8.01 Other Events.
In its Annual Report on Form 10-K for the year ended December 31, 2019 ("2019
Form 10-K"), Liberated Syndication Inc. (the "Company") disclosed that it had a
profit-sharing plan (the "Plan") for the benefit of the employees of the
Company, in which "profit sharing contributions" were made at the discretion of
the Company's Board of Directors (the "Board"). The Company has since determined
that such Plan involved a practice operated by the Company's management, in
which contributions were made to the 401(k) plans of certain Company employees
without prior Board approval. For the years ended December 31, 2020, 2019 and
2018, the Company made contributions to the Plan of $121,566, $111,431 and
$100,000, respectively.
For the years ended December 31, 2020, 2019 and 2018, (i) Mr. Christopher
Spencer, the Company's former Chief Executive Officer, received contributions
made by the Plan to his 401(k) plan of $21,000, $24,750 and $19,513,
respectively; and (ii) Mr. John Busshaus, the Company's former Chief Financial
Officer, received contributions made by the Plan to his 401(k) plan of $0,
$24,750 and $19,513, respectively. Ms. Laurie Sims, the Company's current
President and Chief Operating Officer, received contributions made by the Plan
to her 401(k) plan including a payment of $21,000 for the year ended December
31, 2020. The amounts for Mr. Spencer and Mr. Busshaus were inadvertently
omitted from the executive compensation reported for Mr. Spencer and Mr.
Busshaus in the Company's proxy statement filed with the Securities and Exchange
Commission on October 15, 2020 as well as in the 2019 Form 10-K and the Annual
Report on Form 10-K for the year ended December 31, 2018. Ms. Sims was not a
named executive officer (as defined in Item 402 of Regulation S-K) of the
Company for the years ended December 31, 2019 and 2018. Going forward, the
Company intends to adopt a written version of the Plan and obtain Board approval
for any future awards made under the Plan.
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