0001654954-19-000826.txt : 20190128 0001654954-19-000826.hdr.sgml : 20190128 20190128171459 ACCESSION NUMBER: 0001654954-19-000826 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190128 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190128 DATE AS OF CHANGE: 20190128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RumbleON, Inc. CENTRAL INDEX KEY: 0001596961 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 463951329 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38248 FILM NUMBER: 19546338 BUSINESS ADDRESS: STREET 1: 1350 LAKESHORE DRIVE STREET 2: SUITE 160 CITY: COPPELL STATE: TX ZIP: 75019 BUSINESS PHONE: 469-250-1185 MAIL ADDRESS: STREET 1: 1350 LAKESHORE DRIVE STREET 2: SUITE 160 CITY: COPPELL STATE: TX ZIP: 75019 FORMER COMPANY: FORMER CONFORMED NAME: Smart Server, Inc DATE OF NAME CHANGE: 20140114 8-K 1 rmbl_8k.htm CURRENT REPORT Blueprint
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
 
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): January 28, 2019
 
 
RumbleOn, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
 
(State or Other Jurisdiction of Incorporation)
 
001-38248
46-3951329
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
1350 Lakeshore Drive
Suite 160
Coppell, Texas
75019
(Address of Principal Executive Offices)
(Zip Code)
 
(704) 448-5240
 
(Registrant’s Telephone Number, Including Area Code)
 
(Former Name or Former Address, If Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 


 
 
Item 8.01.            Other Events.
 
The Executive Compensation disclosures of RumbleOn, Inc. required by Item 402 of Regulation S-K for the year ended December 31, 2018 are attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
 
 
Item 9.01.            Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit No.         Description   
 
99.1                       
Executive Compensation disclosures for the year ended December 31, 2018.
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
RUMBLEON, INC.
 
 
 
Date: January 28, 2019
By:  
/s/ Steven R. Berrard
 
 
Steven R. Berrard 
 
 
Chief Financial Officer
 

EX-99.1 2 rmbl_ex991.htm EXECUTIVE COMPENSATION Blueprint
 
Exhibit 99.1
 
Executive and Director Compensation
 
Summary Compensation Table
 
The following table provides the compensation paid to the principal executive officer and principal financial officer of RumbleOn, Inc. (the “Company”), who are the only executive officers of the Company.
 
Name and Principal Position
 
Fiscal Year
 
 
Salary
 
 
Bonus
 
 
Stock Awards
($)
 
 
Option Awards ($)
 
 
All Other
Compensation
 
 
Total
 
Marshall Chesrown
2018
 $240,000 
 $150,000(2)
  - 
  - 
  - 
 $390,000 
Chief Executive Officer
2017
 $215,385(1)
  - 
  - 
  - 
  - 
 $215,385 
 
    
    
    
    
    
    
Steven R. Berrard
2018
 $240,000 
 $150,000(2)
  - 
  - 
  - 
 $390,000 
Chief Financial Officer
2017
 $215,385(1)
  - 
  - 
  - 
  - 
 $215,385 
____________
(1) This compensation was paid in a single lump sum during the fourth quarter of 2017.
(2) Represents a discretionary bonus approved by the Company’s Compensation Committee (the “Committee”) for service provided to the Company in connection with the acquisitions of Wholesale, Inc. and Wholesale Express, LLC in October 2018.
 
Executive Employment Arrangements
 
Marshall Chesrown
 
We have not entered into an employment agreement or arrangement with Mr. Chesrown. Accordingly, he is employed as our Chief Executive Officer on an at-will basis. Mr. Chesrown currently receives an annual salary of $240,000, which is paid weekly, in accordance with our standard payroll practice. Mr. Chesrown is eligible for equity compensation under our equity compensation plans, as determined from time to time by the Committee, however through the date of this filing, no grants of equity awards have been made to Mr. Chesrown.
 
In January 2019, the Committee approved a discretionary bonus of $100,000 to Mr. Chesrown in connection with the launch of the Company’s consumer classified listing site.
 
Steven Berrard
 
We have not entered into an employment agreement or arrangement with Mr. Berrard. Accordingly, he is employed as our Chief Financial Officer on an at-will basis. Mr. Berrard currently receives an annual salary of $240,000, which is paid weekly, in accordance with our standard payroll practice. Mr. Berrard is eligible for equity compensation under our equity compensation plans, as determined from time to time by the Committee, however through the date of this filing, no grants of equity awards have been made to Mr. Berrard.
 
In January 2019, the Committee approved a discretionary bonus of $100,000 to Mr. Berrard in connection with the launch of the Company’s consumer classified listing site.
 
Non-Employee Director Compensation
 
We have not yet established a policy for non-employee director compensation. During the year ended December 31, 2018, no compensation was paid to our non-employee directors, except (i) consulting fees paid to our director Kartik Kakarala under the terms of a consulting agreement with us, which we further describe under “Consulting Agreement” below, (ii) an award of 85,000 restricted stock units (“RSUs”) under the RumbleOn, Inc. 2017 Stock Incentive Plan (the “Incentive Plan”) to Mr. Dixon for his service as the Chair of the Audit Committee, and (iii) an award of 35,000 RSUs under the Incentive Plan to Messrs. Gray, Kakarala, and Westfall, and 15,115 RSUs to Mr. Reece for their service to the Board.
 
 
1
 
 
The following table summarizes the compensation paid to our non-employee directors for the year ended December 31, 2018.
 
Name
 
Fees Earned or Paid in Cash
 
 
Stock Awards (1)(2)
 
 
All Other Compensation
 
 
Total
 
Denmar Dixon
  - 
 $515,100 
  - 
 $515,100 
Richard A. Gray, Jr.
  - 
 $212,100 
  - 
 $212,100 
Kartik Kakarala
  - 
 $212,100 
 $15,000(3)
 $227,100 
Mitch Pierce (4)
  - 
  - 
  - 
  - 
Kevin Westfall
  - 
 $212,100 
  - 
 $212,100 
Joseph Reece (5)
  - 
 $125,001 
  - 
 $125,001 
____________
(1) Represents RSUs granted under the Incentive Plan. Represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. In determining the grant date fair value, we used $6.06 per share, except for Mr. Reece, in which case we used $8.27. The RSUs vest (1) 20% on the last day of the thirteenth month following the grant date, (2) 2.5% monthly on the last day of each month beginning on the last day of the fourteenth month following the grant date through the last of the twenty-fifth month following the grant date and (3) 4.17% monthly on the last day of each month beginning on the last day of the twenty-sixth month following the grant date through the last day of the thirty-seventh month following the grant date. The shares underlying the vested RSUs will be delivered to the director on an annual basis during the thirteenth months following the grant date.
 
(2) As of December 31, 2018, each of Messrs. Dixon, Gray, Kakarala, Pierce, Westfall and Reece held RSUs as follows: Mr. Dixon – 70,000; Mr. Gray – 70,000; Mr. Kakarala – 35,000; Mr. Pierce – 0; Mr. Westfall – 70,000 and Mr. Reece – 15,115.
 
(3) Represents consulting fees paid to Mr. Kakarala pursuant to the consulting agreement. For additional information regarding these consulting fees, see “Consulting Agreement” below.
 
(4) Mr. Pierce served as a director of the Company through the Company’s Annual Meeting of Stockholders held on June 25, 2018.
 
(5) Mr. Reece was appointed a director of the Company on October 8, 2018.
 
Consulting Agreement
 
In connection with the acquisition of substantially all of the assets of NextGen Dealer Solutions, LLC (“NextGen”), on February 8, 2017, we entered into a Consulting Agreement with Kartik Kakarala, who formerly served as the Chief Executive Officer of NextGen and now serves as a director of the Company. Under the Consulting Agreement, Mr. Kakarala serves as our consultant. The Consulting Agreement may be cancelled by either party, effective upon delivery of a written notice to the other party. During the year ended December 31, 2018, we paid an aggregate of $15,000 under the Consulting Agreement.
 
 
2
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