S-3 1 ygyi_dec2018s3.htm FORM S-3 REGISTRATION STATEMENT Blueprint


As filed with the Securities and Exchange Commission on December 21, 2018.
 
Registration Statement No. 333-
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM S-3
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
 
 
YOUNGEVITY INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
Delaware
 
5961
 
90-0890517
(State or other jurisdiction of incorporation or organization)
 
(Primary Standard Industrial Classification Code Number)
 
(I.R.S. Employer Identification Number)
 
2400 Boswell Road
Chula Vista, California 91914
(619) 934-3980
  (Address and telephone number of registrant’s principal executive offices)
 
Stephan Wallach
Chief Executive Officer
Youngevity International, Inc.
2400 Boswell Road
Chula Vista, California 91914
(619) 934-3980
(Name, address, including zip code, and telephone number, including area code, of agent for service)
 
Copies to:
 
Leslie Marlow, Esq.
Hank Gracin, Esq.
Patrick J. Egan, Esq.
Gracin & Marlow, LLP
The Chrysler Building
405 Lexington Avenue, 26th Floor
New York, New York 10174
(212) 907-6457
 
Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this registration statement.
 
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. 
 
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box.
 
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
 
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
 
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
 
 
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
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 to Section 7(a)(2)(B) of the Securities Act.

 
 
 CALCULATION OF REGISTRATION FEE
 
Title of Each Class of Securities to be Registered
 
Amount to be
Registered(1)(2)
 
 
Proposed Maximum Offering Price per Share(3)
 
 
Proposed Maximum Aggregate Offering Price
 
 
Amount of Registration Fee(4)
 
Shares of Common Stock, par value $0.001 per share, issuable
upon exercise of Warrants
  1,648,695 
 $6.70 
 $11,046,257 
 $1,338.81 
TOTAL
  1,648,695 
 $6.70 
 $11,046,257 
 $1,338.81 
 _______________
 
(1) Pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement also covers such additional shares as may hereafter be offered or issued to prevent dilution resulting from stock splits, stock dividends, recapitalizations or certain other capital adjustments.
(2) Represents shares of common stock underlying warrants issued to investors in our previous offering.
(3) Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(c) of the Securities Act which is based upon a $6.70 per share average of high and low prices of the registrant’s common stock on the NASDAQ Capital Market on December 19, 2018.
(4) Calculated under Section 6(b) of the Securities Act as .00012120 of the proposed maximum aggregate offering price.
 
The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
 
 
 
 
 
The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
 
SUBJECT TO COMPLETION,   DATED DECEMBER 21, 2018
PROSPECTUS
 
  
YOUNGEVITY INTERNATIONAL, INC.
 
1,648,695 Shares of Common Stock
  
This prospectus relates to the resale by our securityholders (the “Selling Stockholders”), of the shares of our common stock par value $.001 (the “Common Stock”) underlying warrants (the “Series C Preferred Warrants”) that were issued in December 2018. The Series C Preferred Warrants include Series C Preferred Warrants to acquire (i) 1,394,726 shares of Common Stock issued to the Selling Stockholders in December 2018 in connection with their conversion of the shares of Series C Convertible Preferred Stock (the “Series C Preferred Shares”) that they acquired in our private placement that was consummated in August, September and October 2018 (the “Offering), and (ii) 253,969 shares of Common Stock that were issued to the placement agents in the Offering (collectively, the “Shares”).
  
The Series C Preferred Warrants that were issued to the Selling Stockholders holding Series C Preferred Shares were issued pursuant to the terms of the Series C Preferred Stock purchase agreements (the “Series C Preferred Stock Purchase Agreements”) which provides that the Series C Preferred Warrants are to be issued to each Series C Preferred Selling Stockholders that voluntarily converts their Series C Preferred Shares to Series C Common Shares prior to the two-year anniversary of its issuance. Please refer to the section of this prospectus entitled “The Preferred Stock Transaction” for a description of the Series C Preferred Warrants and the Shares and the section entitled “Selling Stockholders” for additional information regarding the Selling Stockholders. The Series C Preferred Warrants that were issued to the placement agents were issued pursuant to the terms of the placement agent agreement with the placement agents in the Offering which provides that the Series C Preferred Warrants are to be issued to the placement agents to purchase such number of shares of our Common Stock as is equal to ten percent of the number of shares of our Common Stock underlying the Series C Preferred Warrants issued to the investors in the Offering introduced by the placement agents, if and when the warrants are issued to the investors. To date, Series C Preferred Warrants to purchase 1,648,695 Shares have been issued, which number includes Series C Preferred Warrants to purchase 253,969 Shares that were issued to the placement agents in the Offering.
 
We are not selling any Shares in this offering. We, therefore, will not receive any proceeds from the sale of the Shares by the Selling Stockholders. We will, however, receive proceeds upon exercise of the Series C Preferred Warrants, if exercised on a cash basis.
 
We have paid and will pay the expenses incurred in registering the Shares, including legal and accounting fees. See “Plan of Distribution.”
 
The Selling Stockholders may sell the Shares described in this prospectus in a number of different ways and at varying prices. See “Plan of Distribution” for more information about how the selling stockholder may sell the Shares being registered pursuant to this prospectus. The Selling Stockholders may be deemed to be “underwriters” within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended.
 
Our Common Stock is listed on the NASDAQ Capital Market under the symbol “YGYI.” On December 20, 2018, the last reported sale price of our Common Stock on the NASDAQ Capital Market was $6.65 per share. We urge prospective purchasers of our Common Stock to obtain current information about the market prices of our Common Stock. The prices at which the Selling Stockholders may sell the Shares in this offering will be determined by the prevailing market price for the shares of our Common Stock or in negotiated transactions. See “Plan of Distribution” for more information about how the Selling Stockholders may sell the Shares being registered pursuant to this prospectus. The Selling Stockholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute the Shares.
 
We are an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and, as such, elect to comply with certain reduced public company reporting requirements for future filings.
 
Investing in our securities involves various risks. See “Risk Factors” contained herein for more information on these risks. Additional risks will be described in the related prospectus supplements under the heading “Risk Factors.” You should review that section of the related prospectus supplements for a discussion of matters that investors in our securities should consider.
 
Neither the Securities and Exchange Commission, or SEC, nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
 
The date of this prospectus is December         , 2018
 
 
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
 
 
Page
 
 
 
 
 
 
About this Prospectus
 
 
i
 
Prospectus Summary
 
 
1
 
Risk Factors
 
 
5
 
Special Note Regarding Forward-Looking Statements
 
 
6
 
Use of Proceeds
 
 
7
 
Dividend Policy
 
 
7
 
The Preferred Stock Transaction  
 
 
8
 
Selling Stockholders
 
 
9
 
Plan of Distribution
 
 
10
 
Description of Capital Stock
 
 
14
 
Legal Matters
 
 
17
 
Experts
 
 
17
 
Where You Can Find More Information
 
 
17
 
Incorporation of Certain Documents by Reference
 
 
17
 
Disclosure of the Securities and Exchange Commission Position on Indemnification for Securities Act Liabilities
 
 
19
 
 
The registration statement containing this prospectus, including the exhibits to the registration statement, provides additional information about us and the common stock offered under this prospectus. The registration statement, including the exhibits and the documents incorporated herein by reference, can be read on the Securities and Exchange Commission website or at the Securities and Exchange Commission offices mentioned under the heading “Where You Can Find More Information.”  
 
 
 
 
 
 
ABOUT THIS PROSPECTUS
 
This prospectus is not an offer or solicitation in respect to these securities in any jurisdiction in which such offer or solicitation would be unlawful.  This prospectus is part of a registration statement that we filed with the SEC. The registration statement that contains this prospectus (including the exhibits to the registration statement) contains additional information about our company and the securities offered under this prospectus.  The registration statement can be read at the SEC website or at the SEC’s offices listed under the heading “Where You Can Find More Information.”  We have not authorized anyone else to provide you with different information or additional information.  You should not assume that the information in this prospectus, or any supplement or amendment to this prospectus, is accurate at any date other than the date indicated on the cover page of such documents.
 
Company References
 
In this prospectus, “Youngevity,” “the Company,” “we,” “us,” and “our” refer to Youngevity International, Inc., a Delaware corporation, unless the context otherwise requires.
 
 
 
- 1 -
 
 
 
 
PROSPECTUS SUMMARY
 
This summary highlights information contained in other parts of this prospectus or incorporated by reference into this prospectus from our filings with the SEC, listed in the section of the prospectus entitled “Incorporation of Certain Documents by Reference.” Because it is only a summary, it does not contain all of the information that you should consider before purchasing our securities and it is qualified in its entirety by, and should be read in conjunction with, the more detailed information appearing elsewhere or incorporated by reference into this prospectus. You should read the entire prospectus, the registration statement of which this prospectus is a part, and the information incorporated by reference herein in their entirety, including the “Risk Factors” and our financial statements and the related notes incorporated by reference into this prospectus, before purchasing our securities.
 
Our Business
 
Overview
 
We operate in two segments: the direct selling segment where products are offered through a global distribution network of preferred customers and distributors and the commercial coffee segment where products are sold directly to businesses.
 
In the direct selling segment, we sell health and wellness products on a global basis and offer a wide range of products through an international direct selling network of independent distributors. Our multiple independent selling forces sell a variety of products through friend-to-friend marketing and social networking. 
 
We also engage in the commercial sale of coffee. We own a traditional coffee roasting business, CLR Roasters, LLC (“CLR”), that sells roasted and unroasted coffee and produces coffee under its own Café La Rica brand, Josie’s Java House brand and Javalution brands. CLR produces coffee under a variety of private labels through major national sales outlets and major customers including cruise lines and office coffee service operators. During fiscal 2014 CLR acquired the Siles Plantation Family Group, a coffee plantation and dry-processing facility located in Matagalpa, Nicaragua, an ideal coffee growing region that is historically known for high quality coffee production. The dry-processing facility is approximately 26 acres and the plantation is approximately 500 acres and produces 100 percent Arabica coffee beans that are shade grown, Rainforest Alliance Certified™ and Fair Trade Certified™. The plantation, dry-processing facility and existing U.S. based coffee roaster facilities allows CLR to control the coffee production process from field to cup.
 
We conduct our operations primarily in the United States. For the three months ended September 30, 2018 and 2017 approximately 14% and 12%, respectively, of our sales were derived from sales outside the United States. For the nine months ended September 30, 2018 and 2017 approximately 14% and 11%, respectively, of our sales were derived from sales outside the United States.
 
Direct Selling Segment - In the direct selling segment we sell health and wellness, beauty product and skin care, scrap booking and story booking items, packaged food products, other service-based products and more recently our Hemp FX TM hemp-derived cannabinoid products on a global basis and offer a wide range of products through an international direct selling network. Our direct sales are made through our network, which is a web-based global network of customers and distributors. Our independent sales force markets a variety of products to an array of customers, through friend-to-friend marketing and social networking. We consider our company to be an e-commerce company whereby personal interaction is provided to customers by our independent sales network. Initially, our focus was solely on the sale of products in the health, beauty and home care market through our marketing network; however, we have since expanded our selling efforts to include a variety of other products in other markets. Our direct selling segment offers more than 5,500 products to support a healthy lifestyle
 
Since 2010 we have expanded our operations through a series of acquisitions of the assets of other direct selling companies including their product lines and sales forces. We have also substantially expanded our distributor base by merging the assets that we have acquired under our web-based independent distributor network, as well as providing our distributors with additional new products to add to their product offerings.
  
Set forth below is information regarding each of our acquisitions since 2012.
 
Business
 
Date of
Acquisition
 
 
Product Categories
 
 
 
 
 
 
ViaViente
 
March 1, 2018
 
 
Nutritional Supplements
Nature Direct
 
February 12, 2018
 
 
A manufacturer and distributor of essential-oil based nontoxic cleaning and care products for personal, home and professional use
BeautiControl, Inc. 
 
December 13, 2017 
 
 
Cosmetic and Skin Care Products 
Future Global Vision, Inc.  
 
November 6, 2017
 
 
Nutritional Supplements and Automotive Fuel Additive Products 
Sorvana International, LLC (FreeLife International, Inc.)
 
July 1, 2017
 
 
Health and Wellness Products
Ricolife, LLC
 
March 1, 2017
 
 
Teas
Bellavita Group, LLC
 
March 1, 2017
 
 
Health and Beauty Products
Legacy for Life, LLC
 
September 1, 2016
 
 
Nutritional Supplements
Nature’s Pearl Corporation
 
September 1, 2016
 
 
Nutritional Supplements and Skin Care Products
Renew Interest, LLC (SOZO Global, Inc.)
 
July 29, 2016
 
 
Nutritional Supplements and Skin Care Products
South Hill Designs Inc.
 
January 20, 2016
 
 
Jewelry
PAWS Group, LLC
 
July 1, 2015
 
 
Pet Treats
Mialisia & Co., LLC
 
June 1, 2015
 
 
Jewelry
JD Premium LLC
 
March 4, 2015
 
 
Dietary Supplement Company
Sta-Natural, LLC
 
February 23, 2015
 
 
Vitamins, Minerals and Supplements for families and their pets
Restart Your Life, LLC
 
October 1, 2014
 
 
Dietary Supplements
Beyond Organics, LLC
 
May 1, 2014
 
 
Organic Food and Beverages
Good Herbs, Inc.
 
April 28, 2014
 
 
Herbal Supplements
Biometics International, Inc.
 
November 19, 2013
 
 
Liquid Supplements
GoFoods Global, LLC
 
October 1, 2013
 
 
Packaged Foods
Heritage Markers, LLC
 
August 14, 2013
 
 
Digital Products
Livinity, Inc.
 
July 10, 2012
 
 
Nutritional Products
GLIE, LLC (DBA True2Life)
 
March 20, 2012
 
 
Nutritional Supplements
 
 
 
- 2 -
 
 
Coffee Segment -
 
We engage in the commercial sale of one of our products, our coffee through our subsidiary CLR. We own a traditional coffee roasting business that produces coffee under its own Café La Rica brand, Josie’s Java House Brand and Javalution brands. CLR produces a variety of private labels through major national sales outlets and to major customers including cruise lines and office coffee service operators, as well as through our distributor network. CLR was established in 2001 and is our wholly-owned subsidiary. CLR produces and markets a unique line of coffees with health benefits under the JavaFit® brand which is sold directly to consumers. In April 2017, CLR reached an agreement with Major League Baseball's Miami Marlins to feature CLR’s Café La Rica Gourmet Espresso coffee as the “Official Cafecito of the Miami Marlins” at Marlins Park in Miami, Florida.
 
Our roasting facility is located in Miami, Florida, is 50,000 square foot and is SQF Level 2 certified, which is a stringent food safety process that verifies the coffee bean processing plant and distribution facility is in compliance with Certified HACCP (Hazard Analysis, Critical Control Points) food safety plans.
 
In March 2014, we expanded our coffee segment and started our new green coffee business with CLR’s acquisition of Siles Plantation Family Group, which is a wholly-owned subsidiary of CLR located in Matagalpa, Nicaragua. Siles Plantation Family Group includes “La Pita,” a dry-processing facility on approximately 26 acres of land and “El Paraiso,” a coffee plantation consisting of approximately 500 acres of land and thousands of coffee plants which produces 100 percent Arabica coffee beans that are shade grown, Organic, Rainforest Alliance Certified™ and Fair Trade Certified™.
  
The plantation and dry-processing facility allows CLR to control the coffee production process from field to cup. The dry-processing plant allows CLR to produce and sell green coffee to major coffee suppliers in the United States and around the world. CLR has engaged a husband and wife team to operate the Siles Plantation Family Group by way of an operating agreement. The agreement provides for the sharing of profits and losses generated by the Siles Plantation Family Group after certain conditions are met. CLR has made substantial improvements to the land and facilities since 2014. The 2018 harvest season was completed during May 2018 and the 2019 harvest season is expected to be completed during the second quarter of 2019.
 
On July 31, 2018, CLR entered into a 5-year contract for the sale and processing of over 41 million pounds of green coffee on an annual basis. Revenue for this contract covers the period 2019 through 2023 with first shipments beginning as early as fourth quarter 2018.
  
Industry Overview
 
We are engaged in two industries, the direct selling industry and the coffee industry.
 
Direct Selling Industry
 
Direct selling is a business distribution model that allows a company to market its products directly to consumers by means of independent contractors and relationship referrals. Independent, unsalaried salespeople, referred to as distributors, represent us and are awarded a commission based upon the volume of product sold through each of their independent business operations.
 
The World Federation of Direct Selling Association reported in its “2017 Global Sales by Product Category” that the fastest growing product was wellness followed by cosmetics & personal care, representing 66% of retail sales. Top product categories that continue to gain market share: home and family care/durables, personal care, jewelry, clothing, leisure/educations. Wellness products include weight-loss products and dietary supplements. In the United States, as reported by The Direct Selling Association (“DSA”), 18.6 million people were involved in direct selling in 2017 compared to 20.5 million people in 2016, a decrease of approximately 9.27%. Estimated direct retail sales for 2017 was reported by the DSA’s 2018 Growth & Outlook Report to be $34.9 billion compared to $35.54 billion in 2016.
 
Coffee Industry
 
Our coffee segment includes coffee bean roasting and the sales of green coffee beans. Our roasting facility, located in Miami, Florida, procures coffee primarily from Central America. Our green coffee business procures coffee from Nicaragua by way of growing our own coffee beans and purchasing green coffee beans directly from other farmers. CLR sells coffee to domestic and international customers, both green and roasted coffee.
 
The United States Department of Agriculture (“USDA”) reported in its June 2018 “Coffee: World Markets and Trade” report for the 2018/19 Forecast Overview that world coffee production is forecasted to be 11.4 million bags higher than the previous year at a record of 171.2 million bags, and that global consumption is forecasted at a record of 163.2 million bags. The report further indicated that for 2019, Central America and Mexico are forecasted to contribute 20.3 million bags of coffee beans and more than 45% of the exports are destined to the European Union and approximately 33% to the United States. The United States imports the second-largest amount of coffee beans worldwide and is forecasted at 27 million bags in 2019. In addition, in the USDA’s June 2017 report, it was anticipated that world exports of green coffee would remain steady totaling 111 million bags in 2018.
 
 
 
- 3 -
 
 
Emerging Growth Company
 
We are an emerging growth company under the JOBS ACT, which was enacted in April 2012. We shall continue to be deemed an emerging growth company until the earliest of:
 
(a)
the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more;
 
(b)
the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement;
(c)
the date on which we have issued more than $1.0 billion in non-convertible debt, during the previous 3-year period, issued; or.
(d) 
the date on which we are deemed to be a large accelerated filer  
  
As an emerging growth company we are subject to reduced public company reporting requirements and are exempt from Section 404(b) of Sarbanes Oxley. Section 404(a) requires issuers to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. Section 404(b) requires that the registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting.
 
As an emerging growth company we are also exempt from Section 14A (a) and (b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which requires the shareholder approval, on an advisory basis, of executive compensation and golden parachutes.
 
We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
 
Our Corporate History
 
Youngevity International, Inc., formerly AL International, Inc., founded in 1996, operates through two segments including the following wholly-owned domestic subsidiaries: AL Global Corporation, which operates our direct selling networks, CLR Roasters, LLC (“CLR”), our commercial coffee business, 2400 Boswell LLC, MK Collaborative LLC, Youngevity Global LLC and the wholly-owned foreign subsidiaries: Youngevity Australia Pty. Ltd., Youngevity NZ, Ltd., Siles Plantation Family Group S.A. (“Siles”), located in Nicaragua, Youngevity Mexico S.A. de CV, Youngevity Israel, Ltd., Youngevity Russia, LLC, Youngevity Colombia S.A.S, Youngevity International Singapore Pte. Ltd., Mialisia Canada, Inc. and Legacy for Life Limited (Hong Kong). We also operate through the BellaVita Group LLC, with operations in Taiwan, Hong Kong, Singapore, Indonesia, Malaysia and Japan. We also operate subsidiary branches of Youngevity Global LLC in the Philippines and Taiwan.
 
On July 11, 2011, AL Global Corporation, a privately held California corporation (“AL Global”), merged with and into a wholly-owned subsidiary of Javalution Coffee Company, a publicly traded Florida corporation (“Javalution”). After the merger, Javalution reincorporated in Delaware and changed its name to AL International, Inc. In connection with this merger, CLR, which had been a wholly-owned subsidiary of Javalution prior to the merger, continued to be a wholly-owned subsidiary of AL International, Inc. CLR operates a traditional coffee roasting business, and through the merger we were provided access to additional distributors, as well as added the JavaFit® product line to our network of direct marketers.
 
Effective July 23, 2013, we changed our name from AL International, Inc. to Youngevity International, Inc.
 
On June 7, 2017, an amendment to our Certificate of Incorporation became effective which effectuated: (i) a 1-for-20 reverse stock split (the “Reverse Split”) of the issued and outstanding shares of common stock; (ii) a decrease in the number of shares of (a) common stock authorized from 600,000,000 to 50,000,000 and (b) preferred stock authorized from 100,000,000 to 5,000,000.
 
Our Corporate Headquarters
 
Our corporate headquarters are located at 2400 Boswell Road, Chula Vista, California 91914. This is also the location of our operations and distribution center. The facility consists of a 59,000 square foot Class A single use building that is comprised 40% of office space and the balance is used for distribution.
 
Our telephone number is (619) 934-3980 and our facsimile number is (619) 934-3205.
  
Available Information
 
Since June 21, 2017, our common stock has been listed on the NASDAQ Capital Market under the symbol “YGYI.” From June 2013 until June 2017, our Common Stock had been traded on the OTCQX Marketplace operated by the OTC Markets Group under the symbol “YGYI.”
 
Additional information about our company is contained at our website, http://www.youngevity.com. Information contained on our website is not incorporated by reference into, and does not form any part of, this registration statement. We have included our website address as a factual reference and do not intend it to be an active link to our website. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge through the investor relations page of our internet website as soon as reasonably practicable after those reports are electronically filed with, or furnish it to, the SEC. The following Corporate Governance documents are also posted on our website: Code of Business Conduct and Ethics and the Charters for the Audit Committee and Compensation Committee. Our phone number is (619) 934-3980 and our facsimile number is (619) 934-3205.
 
 
- 4 -
 
 
RISK FACTORS
 
You should consider carefully the risks discussed below and the risks discussed under the section captioned “Risk Factors” contained in our annual report on Form 10-K for the year ended December 31, 2017 and in our subsequent quarterly reports on Form 10-Q, as updated by our subsequent filings under the Exchange Act, each of which is incorporated by reference in this prospectus in its entirety, together with other information in this prospectus, and the information and documents incorporated by reference in this prospectus, any prospectus supplement and any free writing prospectus that we have authorized for use in connection with this offering before you make a decision to invest in our securities. If any of these events actually occur, our business, operating results, prospects or financial condition could be materially and adversely affected. This could cause the trading price of our common stock to decline and you may lose all or part of your investment.
 
The exercise of the Series C Preferred Warrants may cause dilution. The sale of the Shares acquired by the Selling Stockholders, or the perception that such sales may occur, could cause the price of our Common Stock to fall.
 
In August, September and October 2018, we entered into the Series C Preferred Stock Purchase Agreement with 54 accredited investors pursuant to which we sold 697,363 Series C Preferred Shares initially convertible into 1,394,726 shares of our Common Stock and agreed to issue Series C Preferred Warrants to purchase up to 1,394,726 shares of our Common Stock upon conversion of the Series C Preferred Shares prior to the two-year anniversary of their issuance. We also agreed to issue to the placement agents in the Offering Series C Preferred Warrants to purchase such number of shares of our Common Stock as is equal to ten percent of the number of shares of our Common Stock underlying the Series C Preferred Warrants issued to the investors in the Offering introduced by the placement agents, if and when the warrants are issued to the investors. To date, we have issued 1,394,726 shares of Common Stock upon conversion of all 697,363 Series C Preferred Shares and Series C Preferred Warrants to purchase 1,648,695 shares of Common Stock.
 
The issuance of additional shares of our Common Stock pursuant to the terms of the Series C Preferred Warrants may cause additional dilution. Depending on the liquidity at the time, sales of the shares may cause the trading price of our Common Stock to fall.
 
The Selling Stockholders may pay less than the then-prevailing market price for our Common Stock.
 
The Series C Preferred Warrants were issued for no additional consideration and have an exercise price of $4.75 per share. If the price of the Common Stock is more than the exercise price of the Series C Preferred Warrants or the conversion price of the Series C Preferred Shares, the Selling Stockholders have a financial incentive to sell the Shares immediately upon receiving the Shares to realize the profit equal to the difference between the discounted price and the market price. If the Selling Stockholders sell the Shares, the price of our Common Stock could decrease.
 
The exercise of the Series C Preferred Warrants would reduce the relative voting power of holders of our Common Stock, would dilute the ownership of such holders and may adversely affect the market price of our Common Stock.
  
The Series C Preferred Warrants have no voting rights. Exercise of the Series C Preferred Warrants would dilute the ownership interest of existing holders of our Common Stock, and any exercise of the Series C Preferred Warrants could adversely affect prevailing market prices of our Common Stock. Sales by such holders of a substantial number of shares of our Common Stock in the public market, or the perception that such sales might occur, could have a material adverse effect on the price of our Common Stock.
 
 
 
- 5 -
 
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
This prospectus and the documents incorporated by reference herein contain forward-looking statements that are based on current management expectations. Statements other than statements of historical fact included in this prospectus, including statements about us and the future growth and anticipated operating results and cash expenditures, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this prospectus the words “anticipate,” “objective,” “may,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan” or the negative of these and similar expressions identify forward-looking statements. These statements reflect our current views with respect to uncertain future events and are based on imprecise estimates and assumptions and subject to risk and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. While we believe our plans, intentions and expectations reflected in those forward-looking statements are reasonable, these plans, intentions or expectations may not be achieved. Our actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained in, or incorporated by reference into, this prospectus for a variety of reasons.
 
We urge investors to review carefully risks contained in the section of this prospectus entitled “Risk Factors” above as well as other risks and factors identified from time to time in our SEC filings in evaluating the forward-looking statements contained in this prospectus. We caution investors not to place significant reliance on forward-looking statements contained in this document; such statements need to be evaluated in light of all the information contained herein.
 
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the risk factors and other cautionary statements set forth, or incorporated by reference, in this prospectus. Other than as required by applicable securities laws, we are under no obligation, and we do not intend, to update any forward-looking statement, whether as result of new information, future events or otherwise.
 
 
- 6 -
 
 
USE OF PROCEEDS
 
This prospectus relates to Shares that may be offered and sold from time to time by the Selling Stockholders. We will not receive any proceeds upon the sale of Shares by the Selling Stockholders in this offering. However, upon exercise of the Series C Preferred Warrants issued to the Selling Stockholders for cash, we will receive cash proceeds. See “Plan of Distribution” elsewhere in this prospectus for more information.
 
DIVIDEND POLICY
 
We have never paid cash dividends on our Common Stock. Moreover, we do not anticipate paying periodic cash dividends on our Common Stock for the foreseeable future. We intend to use all available cash and liquid assets in the operation and growth of our business. Any future determination about the payment of dividends will be made at the discretion of our board of directors and will depend upon our earnings, if any, capital requirements, operating and financial conditions and on such other factors as our board of directors deems relevant. The holders of the Series A Preferred Stock are entitled to receive a cumulative dividend at a rate of 8% per annum, payable annually either in cash or shares of our Common Stock at our election. The holders of the Series B Preferred Stock are entitled to receive a cumulative dividend at a rate of 5% per annum payable in cash quarterly in arrears on or about the last day of March, June, September and December of each year as of June 30, 2018. The holders of the Series C Preferred Shares were paid dividends at a rate of 6% per annum which was paid to the shareholders of record on September 30, 2018; however as of the date hereof there are no shares of Series C Preferred Stock outstanding. No further dividends will be paid due to the conversion of all the holders of Series C Preferred Stock.
 
 
- 7 -
 
 
THE PREFERRED STOCK TRANSACTION
 
In August, September and October 2018, we entered into the Series C Preferred Stock Purchase Agreement with 54 accredited investors pursuant to which we sold 697,363 Series C Preferred Shares, initially convertible into 1,394,726 shares of our Common Stock, at an offering price of $9.50 per preferred share. The gross proceeds to us were $6,625,000. We paid $344,873 in commissions or offering expenses to the placement agents in the Offering.
 
Pursuant to the Series C Preferred Stock Purchase Agreements, we agreed to issue two-year warrants (the “Series C Preferred Warrants”) to purchase up to 1,394,726 shares of our Common Stock (the “Shares”) at an exercise price of $4.75 issuable upon exercise to each holder of Series C Preferred Shares that voluntarily converts their Series C Preferred Shares to shares of our Common Stock prior to the two-year anniversary of its issuance. To date, all holders of the Series C Preferred Stock converted their Series C Preferred Share to Common Stock, The Series C Preferred Warrants contain certain anti-dilution provisions that apply in connection with any stock split, stock dividend, stock combination, and our recapitalization. We also agreed to issue to the placement agents in the Offering Series C Preferred Warrants to purchase such number of shares of our Common Stock as is equal to ten percent of the number of shares of our Common Stock underlying the Series C Preferred Warrants issued to the investors in the Offering introduced by the placement agents, if and when the warrants are issued to the investors. To date, we have issued 1,394,726 shares of Common Stock upon conversion of 697,363 Series C Preferred Shares and Series C Preferred Warrants to purchase 1,648,695 shares of Common Stock, which includes Series C Preferred Warrants to purchase 253,969 shares of our Common Stock that we issued to the placement agents in the Offering.
 
Pursuant to the terms of a Registration Rights Agreement that we entered into with the holders of the Shares, we agreed to file a registration statement with the SEC to register the Series C Common Shares and the Shares. The registration statement registering the Series C Common Shares was declared effective on December 10, 2018.
 
We have designated 700,000 shares of preferred stock as Series C Preferred Stock, as of December 20, 2018, none of which remain outstanding. We paid dividends on the Series C Preferred Stock from the date of original issue at a rate of 6.0% per annum payable quarterly to the holders of record on September 30, 2018. No further dividends will be paid due to the conversion of all the holders of Series C Preferred Stock. The Series C Preferred Stock ranks senior to our outstanding Series A Convertible Preferred Stock and our Common Stock with respect to dividend rights and rights upon liquidation, dissolution or winding up, and pari passu with our outstanding Series B Convertible Preferred Stock. Each share of Series C Preferred Stock is initially convertible at any time, in whole or in part, at the option of the holders, at an initial conversion price of $4.75 per share, into two (2) shares of our Common Stock and automatically converts initially into two (2) shares of our Common Stock in the event the average of the daily volume-weighted average price of our Common Stock for the 30 days preceding the two-year anniversary date of issuance is $6.00 or higher. In addition, each share of Series C Preferred Stock is redeemable at a price equal to its original purchase price plus all accrued but unpaid dividends in the event the average of the daily volume weighted average price of our Common Stock for the 30 days preceding the two-year anniversary date of issuance is less than $6.00. The Series C Preferred Stock has no voting rights.
 
 
- 8 -
 
 
SELLING STOCKHOLDERS
 
This prospectus covers the possible resale by the Selling Stockholders identified below, or its transferee(s), of a total of 1,648,695 Shares to be issued pursuant to the exercise of the Series C Preferred Warrants. We are filing the registration statement of which this prospectus forms a part, in part, pursuant to the provisions of the Registration Rights Agreements, which we entered into with each Selling Stockholder concurrently with our execution of the Series C Preferred Stock Purchase Agreements, pursuant to which we agreed to provide certain registration rights with respect to sales by the Selling Stockholders that were investors in the Offering of the Shares that will be issued to the Selling Stockholders under the Series C Preferred Stock Purchase Agreements.
 
The table is based on information supplied to us by the Selling Stockholders. The Selling Stockholders may, from time to time, offer and sell pursuant to this prospectus any or all of the Shares that we have will sell to the Selling Stockholders under the Series C Preferred Stock Purchase Agreements. The Shares that may be sold by each Selling Stockholder are shown in the table below under the heading “Total Shares Offered By Selling Stockholder in the Offering Covered by this Prospectus”.  The Selling Stockholders may sell some, all or none of its Shares.  We do not know how long the Selling Stockholders will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholders regarding the sale of any of the Shares. The Selling Stockholders, or their partners, pledgees, donees, transferees or other successors that receive the Shares and their corresponding registration in accordance with the registration rights agreement to which the Selling Stockholder is party (each also a Selling Stockholder for purposes of this prospectus), may sell up to all of the Shares shown in the table below under the heading “Total Shares Offered By Selling Stockholder in the Offering Covered by this Prospectus” pursuant to this Prospectus in one or more transactions from time to time as described below under “Plan of Distribution.” However, the Selling Stockholders are not obligated to sell any of the Shares offered by this prospectus.
 
The Selling Stockholders have indicated to us that neither they nor any of their affiliates has held any position or office or had any other material relationship with us in the past three years except as described below.
 
The table below under the heading “Beneficial Ownership Before the Sale of all Shares Covered by this Prospectus” sets forth the number of shares of the Common Stock owned by the Selling Stockholders as of December 19, 2018.
 
Percentages of beneficial ownership are based upon 25,697,690 shares of common stock outstanding as of December 19, 2018. Beneficial ownership is determined under Section 13(d) of the Exchange Act and generally includes voting or investment power with respect to securities and including any securities that grant the Selling Stockholders the right to acquire common stock within 60 days of December 19, 2018. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the Shares, subject to community property laws where applicable.
  
Selling Stockholder
 
 
Beneficial Ownership Before the Sale of all Shares Covered by this Prospectus
 
 
 
Percentage of Beneficial Ownership Before the Sale of all Shares Covered by this Prospectus
 
 
 
Total Shares Offered By Selling Stockholder in the Offering Covered by this Prospectus
 
 
 
Beneficial Ownership After the Sale of all Shares Covered by this Prospectus
 
 
 
Percentage of Beneficial Ownership After the Sale of all Shares Covered by this Prospectus
 
Robert J. Mitchell
  46,127 
  (1)
  * 
  21,052 
  25,075 
  * 
Robert Mitchell
  154,944 
  (2)
  * 
  21,052 
  133,892 
  * 
Aveline C. Perkins
  45,892 
  (3)
  * 
  21,052 
  24,840 
  * 
Angel V. Lebowitz
  42,104 
  (4)
  * 
  21,052 
  21,052 
  * 
Jonathan E. Mitchell
  42,875 
  (5)
  * 
  21,052 
  21,823 
  * 
Lita A. Mitchell
  74,750 
  (6)
  * 
  21,052 
  53,698 
  * 
Robert Pulizzotto
  81,056 
  (7)
  * 
  10,528 
  70,528 
  * 
Scott Robert Fisher 
  112,488 
  (8)
  * 
  21,052 
  91,436 
  * 
John P. Pinto 
  410,524 
  (9)
  1.6%
  105,262 
  305,262 
  1.2%
Greg and Mary Nagel
  561,840 
  (10)
  2.2%
  68,420 
  493,420 
  1.9%
Joe and Sarah Dinkins
  31,077 
  (11)
  * 
  10,528 
  20,549 
  * 
Leslie Samuel Feinberg
  140,000 
  (12)
  * 
  70,000 
  70,000 
  * 
Thomas and Kathy Bibb
  184,645 
  (13)
  * 
  63,156 
  121,489 
  * 
Thomas D. Mulkey
  21,052 
  (14)
  * 
  10,526 
  10,526 
  * 
Matthew Joyce
  40,000 
  (15)
  * 
  20,000 
  20,000 
  * 
Andrew and Katie Nagel
  29,389 
  (16)
  * 
  10,528 
  18,861 
  * 
Warberg WFVI L.P.
  50,000 
  (17)
  * 
  25,000 
  25,000 
  * 
 
 
- 9 -
 
 
 
 
Antonio Huerta 
  210,524
 
  (18)
  * 
  105,262
 
  105,262
 
  *
 
JSJ Investments
  6,300 
  (19)
  * 
  3,150 
  3,150 
  * 
Virginia and Robert Maynard
  42,104 
  (20)
  * 
  21,052 
  21,052 
  * 
Hema and Vimal Shah
  12,000 
  (21)
  * 
  6,000 
  6,000 
  * 
Lorraine Catalano
  73,858 
  (22)
  * 
  21,054 
  52,804 
  * 
Devin, Diane & Theodore A Vlahakos
  63,156 
  (23)
  * 
  31,578 
  31,578 
  * 
Intracoastal Capital, LLC
  126,316 
  (24)
  * 
  63,158 
  63,158 
  * 
Verition Multi-Strategy Master Fund Ltd.
  526,316 
  (25)
  2.0%
  263,158 
  263,158 
  1.0%
Robert M. Nieder
  12,000 
  (26)
  * 
  6,000 
  6,000 
  * 
Tom and Sandra Harvey
  84,212 
  (27)
  * 
  42,106 
  42,106 
  * 
Michael Schachter
  42,944 
  (28)
  * 
  21,472 
  21,472 
  * 
Frank E. Griffith Jr.
  44,000 
  (29)
  * 
  22,000 
  22,000 
  * 
Anjan and Mona Shah
  12,000 
  (30)
  * 
  6,000 
  6,000 
  * 
Reno and Jeanne Buttigieg
  32,470 
  (31)
  * 
  10,600 
  21,870 
  * 
Raymond and Dianne Bennett
  381,316 
  (32)
  1.5%
  63,158 
  318,158 
  1.2%
Michael Petrucelli
  30,000 
  (33)
  * 
  15,000 
  15,000 
  * 
Michael and Stacey Byrnes
  21,052 
  (34)
  * 
  10,526 
  10,526 
  * 
Todd and Sharon Sabo
  22,200 
  (35)
  * 
  10,600 
  11,600 
  * 
Charles Palombini
  84,000 
  (36)
  * 
  32,000 
  52,000 
  * 
Daniel J. Mangless
  126,000 
  (37)
  * 
  63,000 
  63,000 
  * 
The Carter Family Irrevocable Trust
  21,052 
  (38)
  * 
  10,526 
  10,526 
  * 
Wendy Marie Kinney
  30,976 
  (39)
  * 
  15,488 
  15,488 
  * 
Nehale Pe Dehla, LLC
  21,052 
  (40)
  * 
  10,526 
  10,526 
  * 
Corinthian Partners, LLC
  218,524 
  (41)
  * 
  218,524 
  - 
  - 
Axiom Capital Management, Inc.
  35,445 
  (42)
  * 
  35,445 
  - 
  - 
 
*less than 1%
 
(1)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 4,023 shares of Common Stock
(2)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 112,840 shares of Common Stock
(3)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 3,788 shares of Common Stock
(4)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(5)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 771 shares of Common Stock
(6)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 32,646 shares of Common Stock
(7)
Includes (i) 10,528 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 10,528 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 60,000 shares of Common Stock
(8)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 70,384 shares of Common Stock
(9)
Includes (i) 105,262 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 105,262 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 200,000 shares of Common Stock
(10)
Includes (i) 68,420 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 68,420 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 425,000 shares of Common Stock
(11)
Includes (i) 10,528 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 10,528 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 10,021 shares of Common Stock
(12)
Includes (i) 70,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 70,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(13)
Includes (i) 63,156 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 63,156 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 58,333 shares of Common Stock
(14)
Includes (i) 10,526 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 10,526 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(15)
Includes (i) 20,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 20,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(16)
Includes (i) 10,528 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 10,528 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 8,333 shares of Common Stock
(17)
Includes (i) 25,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 25,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(18)
Includes (i) 105,262 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 105,262 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
   
 
 
- 10 -
 
 
(19)
Includes (i) 3,150 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 3,150 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(20)
Includes (i) 21,052 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 21,052 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(21)
Includes (i) 6,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 6,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(22)
Includes (i) 21,054 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 21,054 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 31,750 shares of Common Stock held by Lorraine Catalano.
(23)
Includes (i) 31,578 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 31,578 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(24)
Includes (i) 63,158 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 63,158 shares of Common Stock issuable upon exercise a Series C Preferred Warrant. Mitchell P. Kopin (“Mr. Kopin”) and Daniel B. Asher (“Mr. Asher”), each of whom are managers of Intracoastal Capital LLC (“Intracoastal”), have shared voting control and investment discretion over the securities reported herein that are held by Intracoastal. As a result, each of Mr. Kopin and Mr. Asher may be deemed to have beneficial ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the securities reported herein that are held by Intracoastal.
(25)
Includes (i) 263,158 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 263,158 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(26)
Includes (i) 6,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 6,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(27)
Includes (i) 42,106 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 42,106 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(28)
Includes (i) 21,472 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 21,472 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(29)
Includes (i) 22,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 22,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(30)
Includes (i) 6,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 6,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(31)
Includes (i) 10,600 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 10,600 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 11,270 shares of Common Stock held by Reno and Jeanne Buttigieg.
(32)
Includes (i) 63,158 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 63,158 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 255,000 shares of Common Stock held by Raymond and Dianne Bennett.
(33)
Includes (i) 15,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 15,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(34)
Includes (i) 10,526 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and 10,526 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(35)
Includes (i) 10,600 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 10,600 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and 1,000 shares of Common(ii) Stock held by Todd and Sharon Sabo.
(36)
Includes (i) 32,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; (ii) 32,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant; and (iii) 20,000 shares of Common Stock held by Charles Palombini.
(37)
Includes (i) 63,000 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 63,000 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(38)
Includes (i) 10,526 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 10,526 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(39)
Includes (i) 15,488 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii) 15,488 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(40)
Includes (i) 10,526 shares of Common Stock issued upon conversion of the Series C Preferred Stock; and (ii)10,526 shares of Common Stock issuable upon exercise a Series C Preferred Warrant.
(41)
Includes 218,524 shares of Common Stock issuable upon exercise a Series C Preferred Warrant that was issued to Corinthian Partners, LLC, as placement agent in the Offering. Corinthian Partners, LLC is a registered broker dealer. Mitchell Manoff, the Chief Executive Officer of Corinthian Partners, LLC has voting and disposition over the Series C Preferred Warrant.
(42)
Includes 35,445 shares of Common Stock issuable upon exercise a Series C Preferred Warrant that was issued to Axion Capital Management, Inc., as placement agent in the Offering. Axiom Capital Management, Inc. is a registered broker dealer. Liam Dalton, the Chief Executive Officer of Axiom Capital Management, Inc. has voting and disposition over the Series C Preferred Warrant.
 
 
 
- 11 -
 
 
PLAN OF DISTRIBUTION
 
We are registering the Shares to permit the resale of these Shares by the Selling Stockholders from time to time after the date of this prospectus. The Selling Stockholders may be deemed to be “underwriters,” within the meaning of the Securities Act.
 
The Selling Stockholders, or their pledges, donees, transferees, or any of its successors in interest selling shares received from the Selling Stockholders as a gift, partnership distribution or other non-sale related transfer after the date of this prospectus, may sell all or a portion of the Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the shares of Common Stock are sold through underwriters or broker-dealers, the Selling Stockholder will be responsible for underwriting discounts or commissions or agent's commissions. The Shares may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. The Selling Stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. These sales may be affected in transactions, which may involve crosses or block transactions:
 
 
on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
 
in the over-the-counter market;
 
in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
 
through the writing of options, whether such options are listed on an options exchange or otherwise;
 
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
 
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
 
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
 
an exchange distribution in accordance with the rules of the applicable exchange;
 
privately negotiated transactions;
 
short sales;
 
through the distribution of the Common Stock by any Selling Stockholders to their partners, members or stockholders;
 
through one or more underwritten offerings on a firm commitment or best efforts basis;
 
sales pursuant to Rule 144;
 
broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;
 
a combination of any such methods of sale; and
 
any other method permitted pursuant to applicable law.
 
The Selling Stockholders may also transfer the Shares by gift. The Selling Stockholders may engage brokers and dealers, and any brokers or dealers may arrange for other brokers or dealers to participate in effecting sales of the Shares. These brokers, dealers or underwriters may act as principals, or as an agent of a Selling Stockholders. Broker-dealers may agree with the Selling Stockholders to sell a specified number of the Shares at a stipulated price per security. If the broker-dealer is unable to sell the Shares acting as agent for the Selling Stockholders, it may purchase as principal any unsold Shares at the stipulated price. Broker-dealers who acquire Shares as principals may thereafter resell the Shares from time to time in transactions in any stock exchange or automated interdealer quotation system on which the Shares are then listed, at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions. Broker-dealers may use block transactions and sales to and through broker-dealers, including transactions of the nature described above.
 
The Selling Stockholders may also sell the Shares in accordance with Rule 144 under the Securities Act, rather than pursuant to this prospectus, regardless of whether the Shares are covered by this prospectus.
 
If the Selling Stockholders effects such transactions by selling Shares to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Stockholders or commissions from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the Shares or otherwise, the Selling Stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Shares in the course of hedging in positions they assume. The Selling Stockholders may also sell Shares short and deliver Shares covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The Selling Stockholders may also loan or pledge Shares to broker-dealers that in turn may sell such shares.
  
The Selling Stockholders may pledge or grant a security interest in some or all of the Shares  owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Shares  from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending, if necessary, the list of Selling Stockholders to include the pledgee, transferee or other successors in interest as Selling Stockholders under this prospectus. The Selling Stockholders also may transfer and donate the Shares in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
 
 
- 12 -
 
 
In addition, the Selling Stockholders may, from time to time, sell the Shares short, and, in those instances, this prospectus may be delivered in connection with the short sales and the Shares offered under this prospectus may be used to cover short sales.
 
The Selling Stockholders and any broker-dealer participating in the distribution of the Shares may be deemed to be “underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the Shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Shares being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the Selling Stockholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers. The Selling Stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the Shares against certain liabilities, including liabilities arising under the Securities Act.
 
Under the securities laws of some states, the Shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the Shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.
 
There can be no assurance that the Selling Stockholder will sell any or all of the Shares registered pursuant to the registration statement, of which this prospectus forms a part.
 
The Selling Stockholders and any other person participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the Selling Stockholders and any other participating person. Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of Common Stock by the Selling Stockholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Shares to engage in market-making activities with respect to the shares of Common Stock. All of the foregoing may affect the marketability of the Shares and the ability of any person or entity to engage in market-making activities with respect to the Shares may also restrict the ability of any person engaged in the distribution of the Shares to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability of the Shares and the ability of any person or entity to engage in market-making activities with respect to the Shares.
 
The estimated offering expenses consist of: an SEC registration fee of $1,339, transfer agent and registrar fees of $5,000, accounting fees of $10,000, legal fees of $25,000 and miscellaneous expenses of $3,661.
 
Once sold under the registration statement, of which this prospectus forms a part, the Shares will be freely tradable in the hands of persons other than our affiliates.
 
 
- 13 -
 
 
DESCRIPTION OF CAPITAL STOCK
 
Authorized Capital
 
Our authorized capital consists of 50 million shares of Common Stock, par value $0.001 per share, and 5 million shares of preferred stock, par value $0.001 per share. As of December 19, 2018, 25,697,690 shares of Common Stock were issued and outstanding and 290,581 shares of preferred stock were issued and outstanding, of which 161,135 are shares of Series A Convertible Preferred Stock (“Series A Preferred”), 129,446 are shares of Series B Convertible Preferred Stock (“Series B Preferred”). No shares of Series C Convertible Preferred Stock remain outstanding (“Series C Preferred”).
 
Common Stock
 
We may issue shares of our Common Stock from time to time. Holders of shares of Common Stock have the right to cast one vote for each share of Common Stock in their name on our books, whether represented in person or by proxy, on all matters submitted to a vote of holders of Common Stock, including election of directors. There is no right to cumulative voting in election of directors. Except where a greater requirement is provided by statute, by our certificate of incorporation, or by our bylaws, the presence, in person or by proxy duly authorized, of the one or more holders of a majority of the outstanding shares of our Common Stock constitutes a quorum for the transaction of business. The vote by the holders of a majority of outstanding shares is required to effect certain fundamental corporate changes such as liquidation, merger, or amendment of our certificate of incorporation. Upon our liquidation, dissolution or winding up, holders of our Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock.
 
There are no restrictions in our certificate of incorporation or bylaws that prevent us from declaring dividends. We have not declared any dividends on our Common Stock, and we do not plan to declare any dividends on our Common Stock in the foreseeable future.
 
Holders of shares of our Common Stock are not entitled to preemptive or subscription or conversion rights, and no redemption or sinking fund provisions are applicable to our Common Stock. All outstanding shares of Common Stock are, and the shares of Common Stock sold in the offering when issued will be fully paid and non-assessable.
 
Preferred Stock
 
Our Board of Directors has the authority, without action by our stockholders, to designate and issue up to 5 million shares of preferred stock in one or more series or classes and to designate the rights, preferences and privileges of each series or class, which may be greater than the rights of our Common Stock. Of the 5 million shares of preferred stock, 161,135 shares have been designated as Series A Convertible Preferred Stock (“Series A Preferred”), 1,052,631 shares have been designated as Series B Convertible Preferred Stock (“Series B Preferred”) and 700,000 shares have been designated as Series C Convertible Preferred Stock (“Series C Preferred”). It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of our Common Stock until our Board of Directors determines the specific rights of the holders of the preferred stock. However, the effects might include:
 
restricting dividends on our Common Stock;
diluting the voting power of our Common Stock;
impairing liquidation rights of our Common Stock; or
delaying or preventing a change in control of us without further action by our stockholders.
 
The Board of Directors’ authority to issue preferred stock without stockholder approval could make it more difficult for a third-party to acquire control of our company and could discourage such attempt. We have no present plans to issue any shares of preferred stock.
 
Series A Preferred Stock
 
As of December 19, 2018, we have 161,135 shares of Series A Preferred issued and outstanding. The holders of the Series A Preferred Stock are entitled to receive a cumulative dividend at a rate of 8.0% per year, payable annually either in cash or shares of our Common Stock at our election.  Each share of Series A Preferred is initially convertible into one-tenth of a share of Common Stock, subject to adjustment. The holders of Series A Preferred are entitled to receive payments upon our liquidation, dissolution or winding up before any amount is paid to the holders of Common Stock. The holders of Series A Preferred have no voting rights, except as required by law.  
  
Series B Preferred Stock
 
As of December 19, 2018, we had 129,446 shares of Series B Preferred issued and outstanding. The holders of the Series B Preferred are entitled to receive a cumulative dividend at a rate of 5% per annum payable in cash quarterly in arrears on or about the last day of March, June, September and December of each year beginning June 30, 2018. Each share of Series B Preferred is initially convertible, at the option of the holders, at an initial conversion price of $4.75 per share, into two shares of our Common Stock and automatically converts into two shares of our Common Stock on its two-year anniversary of issuance. The holders of Series B Preferred are entitled to receive dividends and payments upon liquidation, dissolution or winding up before any amount is paid to holders of the Series A Preferred and of our Common Stock. The holders of Series B Preferred have no voting rights, except as required by law.
 
 
- 14 -
 
 
Series C Preferred Stock
 
As of December 19, 2018, we had no shares of Series C Preferred issued and outstanding since all of the shares of Series C Preferred converted to shares of our Common Stock. The holders of the Series C Preferred were entitled to receive a cumulative dividend at a rate of 6% per annum payable in cash quarterly in arrears on or about the last day of March, June, September and December of each year beginning September 30, 2018. Each share of Series C Preferred was initially convertible, at the option of the holders, at an initial conversion price of $4.75 per share, into two shares of our Common Stock and automatically converts into two shares of our Common Stock on its two-year anniversary of issuance. The holders of Series C Preferred were entitled to receive dividends and payments upon liquidation, dissolution or winding up before any amount is paid to holders of the Series A Preferred and of our Common Stock and pari passu with the holders of Series B Preferred. In addition, each share of Series C Preferred Stock was redeemable at a price equal to its original purchase price plus all accrued but unpaid dividends in the event the average of the daily volume weighted average price of our Common Stock for the 30 days preceding the two-year anniversary date of issuance is less than $6.00. The Series C Preferred Stock had no voting rights, except as required by law.
 
Outstanding Warrants
 
As of December 19, 2018, we had issued and outstanding warrants to purchase 6,121,706 shares of Common Stock at prices ranging from $2.00 to $10.00. All warrants are currently exercisable and expire at various dates through February 2023.
 
Included in the warrants are (i) Series C Preferred Warrants to purchase 1,648,695 Shares; (ii) PIPE Warrants to purchase 630,526 Warrant Shares; (iii) warrants to purchase 1,146,995 shares of our Common Stock that were issued in our 2017 Private Placement and have an exercise price of $5.56 per share of Common Stock and expire three years after issuance; (iv) warrants to purchase 247,916 shares of our Common Stock that were issued in our 2015 Private Placement and have an exercise price of $9.00 per share of Common Stock and expire five years after issuance; (v) warrants to purchase 44,107 shares of our Common Stock that were issued in our 2014 Private Placement and have an exercise price of $7.00 per share of Common Stock and expire five years after issuance; (vi) warrants to purchase 946,166 shares of our Common Stock that were issued in our 2014 Private Placement and have an exercise price of $4.60 per share of Common Stock and expire five years after issuance; (vii) warrants to purchase 44,624 shares of our Common Stock issuable upon exercise and have an exercise price of $10.00 per share and expire in December 2018; (viii) warrants to purchase 75,000 shares of our Common Stock issuable upon exercise and have an exercise price of $2.00 per share and expire in May 2020; (ix) warrants to purchase 6,098 shares of our Common Stock that were issued to the underwriter’s in our 2018 Series B preferred stock offering and have an exercise price of $5.70 per share and expire in February 2023; (x) warrants to purchase 631,579 shares of our Common Stock at an exercise price of $4.75 per share issued in connection with our debt exchange that was effected in December 2018 and expire four years after issuance; (xi) warrants to purchase 80,000 shares of our Common Stock at an exercise price of $5.35 per share issued to our placement agent in connection with our debt exchange that was effected in December 2018 and expire four years after issuance; (xii) warrants to purchase 70,000 shares of our Common Stock at an exercise price of $4.75 per share issued to our placement agent in connection with the debt exchange that was effected in December 2018 and expire four years after issuance; (xiii) warrants to purchase 250,000 shares of our Common Stock at an exercise price of $6.82 per share issued in connection with CLR’s credit agreement that was entered into in December 2018 and expire four years after issuance; (xiv) warrants to purchase 250,000 shares of our Common Stock at an exercise price of $7.82 per share issued in connection with CLR’s credit agreement that was entered into in December 2018 and expire four years after issuance; and (xv) warrants to purchase 50,000 shares of our Common Stock at an exercise price of $6.33 per share issued to our placement agent in connection with credit agreement that was entered into in December 2018 and expire four years after issuance.
 
The Series C Preferred Warrants contain cashless exercise provisions in the event a registration statement registering the Common Stock underlying the Warrants is not effective at the time of exercise and customary anti-dilution protection and registration rights.
  
Outstanding Options
 
As of December 19, 2018, we had issued and outstanding options to purchase 2,394,429 shares of Common Stock with a weighted average exercise price of $4.45. There are currently 1,090,241 options available for exercise at various dates through 2028.
 
Restricted Stock Units
 
As of December 19, 2018, we had issued and outstanding restricted stock units of 487,500 shares of Common Stock that are issuable upon being vested which were issued under our 2012 Equity Incentive Plan.
 
Convertible Notes
 
In August 2014, we completed the 2014 Private Placement and issued notes (the “2014 Notes”) in the aggregate principal amount of $4,750,000 together with warrants to purchase 929,346 shares of Common Stock at an exercise price of $4.60 per share. The 2014 Notes are currently convertible into 678,568 shares of our Common Stock at a conversion price of $7.00 per share. The 2014 Notes bear interest at a rate of 8% per annum. We have the right to prepay the 2014 Notes at any time after the one-year anniversary date of the issuance of the 2014 Notes at a rate equal to 110% of the then outstanding principal balance and accrued interest. The 2014 Notes rank senior to all of our debt other than certain senior debt. CLR, our wholly-owned subsidiary, has provided collateral to secure the repayment of the Notes and has pledged its assets (which lien is junior to CLR’s equipment leases but senior to all of its other obligations), all subject to the terms and conditions of a security agreement among us, CLR and the investors. Stephan Wallach, our Chief Executive Officer, has also personally guaranteed the repayment of the 2014 Notes, subject to the terms of a Guaranty executed by him with the investors. In addition, Mr. Wallach has agreed not to sell, transfer or pledge 1.5 million shares of the Common Stock that he owns so long as his personal guaranty is in effect. As of the date hereof, notes in the principal amount of $750,000 remain outstanding.
  
 
- 15 -
 
 
Notes Payable
 
On December 13, 2018, our wholly owned subsidiary, CLR, entered into a Credit Agreement with Carl Grover (the “Credit Agreement”) pursuant to which CLR borrowed $5,000,000 from Mr. Grover and in exchange issued to him a $5,000,000 credit note (“Credit Note”) secured by its green coffee inventory under a Security Agreement, dated December 13, 2018 (the “Security Agreement”), with Mr. Grover and CLR’s subsidiary, Siles Family Plantation Group S.A. (“Siles”), as guarantor, and Siles executed a separate Guaranty Agreement (“Guaranty”). In addition, Stephan Wallach and Michelle Wallach, pledged 1,500,000 shares of our Common Stock held by them to secure the Credit Note under a Security Agreement, dated December 13, 2018 with Mr. Grover. In connection with the Credit Agreement, we issued to Mr. Grover a four-year warrant to purchase 250,000 shares of our Common Stock, exercisable at $6.82 per share, and four-year warrant to purchase 250,000 shares of our Common Stock, exercisable at $7.82 per share, pursuant to a Warrant Purchase Agreement, dated December 13, 2018, with Mr. Grover. We also entered into an Advisory Agreement with Ascendant Alternative Strategies, LLC (“Ascendant”) in connection with the Credit Agreement, pursuant to which it agreed to pay to Ascendant a 3% fee on the transaction with Mr. Grover and issued to Ascendant a four-year warrant to purchase 50,000 shares of our Common Stock, exercisable at the closing price of the Common Stock on December 13, 2018.
 
Registration Rights
 
In connection with our 2017 Private Placement, we also entered into the “Registration Rights Agreement” with the investors in the 2017 Private Placement. The Registration Rights Agreement requires that we file a registration statement (the “Initial Registration Statement”) with the SEC within 90 days of the final closing date of the 2017 Private Placement for the resale by the investors of all of the shares Common Stock underlying the senior convertible notes and warrants and all shares of Common Stock issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect thereto (the “Registrable Securities”) and that the Initial Registration Statement be declared effective by the SEC within 180 days of the final closing date of the 2017 Private Placement or if the registration statement is reviewed by the SEC 210 days after the final closing date or the 2017 Private Placement. Upon the occurrence of certain events (each an “Event”), we will be required to pay to the investors liquidated damages of 1.0% of their respective aggregate purchase price upon the date of the Event and then monthly thereafter until the Event is cured. In no event may the aggregate amount of liquidated damages payable to each of the investors exceed in the aggregate 10% of the aggregate purchase price paid by such investor for the Registrable Securities. The registration statement was declared effective by the SEC on September 27, 2017.
  
In connection with the Preferred Stock Transaction, we also entered into the “Registration Rights Agreement” with the investors in the Preferred Stock Transaction. The Registration Rights Agreement requires that we file a registration statement (the “Registration Statement”) with the SEC within 120 days of the closing date of the Preferred Stock Transaction for the resale by the investors of all of the Shares underlying the Series C Preferred Stock and any potential Series C Preferred Warrants and all shares of Common Stock issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect thereto. The registration statement registering the Shares underlying the Series C Preferred Stock was declared effective on December 10, 2018.
 
In connection with the purchase transaction, we also entered into the “Registration Rights Agreement” with the investors in our PIPE Transaction that we entered into in August, September and October 2018. The Registration Rights Agreement requires that we file a registration statement (the “Registration Statement”) with the SEC within 45-days of the closing of the Purchase Transaction for the resale by the investors of all of the shares held by them or to be held by them and all shares of Common Stock issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect thereto and that the Registration Statement be declared effective by the SEC within 75-days of the closing of the Purchase Agreement. Upon the occurrence of certain events (each an “Event”), we will be required to pay to the investors liquidated damages of 1% of their aggregate purchase price of their Shares increasing to 5% if the Shares are not registered within 150 days of the closing date. The registration statement registering the Shares that have been issued in the PIPE transaction and the shares underlying the warrants issued in the PIPE Transaction. was declared effective on December 10, 2018.
 
Potential Anti-Takeover Effects
 
Certain provisions set forth in our Certificate of Incorporation, as amended, in our bylaws and in Delaware law, which are summarized below, may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders.
 
Our Certificate of Incorporation contains a provision that permits us to issue, without any further vote or action by the stockholders, up to five million shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting powers, if any, of the shares of the series, and the preferences and relative, participating, optional and other special rights, if any, and any qualifications, limitations or restrictions, of the shares of such series.
 
In particular our bylaws and Delaware General Corporate Law, as applicable, among other things:
 
●  
Provide the board of directors with the ability to alter the bylaws without stockholder approval; and
 
●  
Provide that vacancies on the board of directors may be filled by a majority of directors in the office, although less than a quorum.
 
 
 
- 16 -
 
 
While the foregoing provision of our certificate of incorporation, and provisions of Delaware law may have an anti-takeover effect, these provisions are intended to enhance the likelihood of continuity and stability in the composition of the Board of Directors and in the policies formulated by the Board of Directors and to discourage certain types of transactions that may involve an actual or threatened change of control. In that regard, these provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations in the market price of our Common Stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in our management.
  
Delaware Takeover Statute
 
In general, Section 203 of the Delaware General Corporation Law prohibits a Delaware corporation that is a public company from engaging in any “business combination” (as defined below) with any “interested stockholder” (defined generally as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with such entity or person) for a period of three years following the date that such stockholder became an interested stockholder, unless: (1) prior to such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (2) on consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (x) by persons who are directors and also officers and (y) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or (3) on or subsequent to such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.
 
Section 203 of the Delaware General Corporation Law defines “business combination” to include: (1) any merger or consolidation involving the corporation and the interested stockholder; (2) any sale, transfer, pledge or other disposition of ten percent or more of the assets of the corporation involving the interested stockholder; (3) subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; (4) any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or (5) the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
  
Listing of Common Stock
 
Our Common Stock is currently listed on the NASDAQ Capital Market under the trading symbol “YGYI.”
 
LEGAL MATTERS
 
The validity of the securities offered hereby will be passed upon for us by Gracin & Marlow, LLP, New York, New York. Additional legal matters may be passed upon for us or any underwriters, dealers or agents, by counsel that we will name in the applicable prospectus supplement.
 
EXPERTS
 
The financial statements of Youngevity International, Inc. as of December 31, 2017 and 2016 and for each of the two years in the period ended December 31, 2017 incorporated by reference in this prospectus have been so incorporated in reliance on the reports of Mayer Hoffman McCann P.C., an independent registered accounting firm, given on authority of said firm as experts in auditing and accounting.
 
WHERE YOU CAN FIND MORE INFORMATION
 
We file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any document we file at the SEC’s public reference room located at 100 F Street N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room. Our public filings are also available to the public at the SEC’s web site at http://www.sec.gov.
 
This prospectus is part of a registration statement on Form S-3 that we have filed with the SEC under the Securities Act. This prospectus does not contain all of the information in the registration statement. We have omitted certain parts of the registration statement, as permitted by the rules and regulations of the SEC. You may inspect and copy the registration statement, including exhibits, at the SEC’s public reference room or Internet site.
 
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
 
The SEC allows us to “incorporate by reference” the information we file with it which means that we can disclose important information to you by referring you to those documents instead of having to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed below and any future filings made with the SEC (other than any portions of any such documents that are not deemed “filed” under the Exchange Act in accordance with the Exchange Act and applicable SEC rules) under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act including those made after (i) the date of the initial filing of the registration statement of which this prospectus is a part and prior to the termination of this offering and (ii) the date of this prospectus and before the completion of the offerings of the shares of our Common Stock included in this prospectus:
 
 
 
- 17 -
 
 
Our annual report on Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC on March 30, 2017 (File No. 001-38116);
 
Our quarterly report on Form 10-Q for the quarter ended March 31, 2018 filed with the SEC on May 14, 2018 (File No. 001-38116) and our quarterly report on Form 10-Q for the quarter ended June 30, 2018 filed with the SEC on August 14, 2018 (File No. 001-38116), and our quarterly report on Form 10-Q for the quarter ended September 30, 2018 filed with the SEC on November 14, 2018 (File No. 001-38116);
 
Our current reports on Form 8-K filed with the SEC on January 23, 2018, February 14, 2018, March 8, 2018, March 16, 2018, April 2, 2018, June 26, 2018, July 17, 2018, July 25, 2018, July 31, 2018, August 21, 2018, September 7, 2018, September 13, 2018, September 21, 2018, September 21, 2018, October 4, 2018, October 5, 2018 October 29, 2018 and October 31, 2018, November 29, 2018, December 6, 2018 and December 19, 2018 (File No. 001-38116);
 
Our definitive proxy statement on Schedule 14A filed with the SEC on June 8, 2018 (File No. 001-38116);
 
Our definitive information statement on Schedule 14C filed with the SEC on November 14, 2018 (File No. 001-38116); 
 
The description of our Common Stock set forth in our registration statement on Form 8-A12B, filed with the SEC on June 15, 2017 (File No. 001-38116); and
 
The description of our preferred stock set forth in our registration statement on Form 8-A12G, filed with the SEC on February 12, 2018 (File No. 000-54900).
 
You may obtain, free of charge, a copy of any of these documents (other than exhibits to these documents unless the exhibits are specifically incorporated by reference into these documents or referred to in this prospectus) by writing or calling us at the following address and telephone number: Youngevity International, Inc., 2400 Boswell Road, Chula Vista, California 91914, (619) 934-3980.
 
 
- 18 -
 
 
DISCLOSURE OF THE SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
  
Our directors and officers are indemnified as provided by the Delaware General Corporation Law, our certificate of incorporation, as amended, and our bylaws. Section 145 of the Delaware General Corporation Law provides that a director or officer is not individually liable to the corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his capacity as a director or officer unless it is proven that: (1) his act or failure to act constituted a breach of his fiduciary duties as a director or officer; and (2) his breach of those duties involved intentional misconduct, fraud or a knowing violation of law. Our certificate of incorporation provides for indemnification of our directors and officers to the fullest extent permitted by Section 145 of the Delaware General Corporation Law.
 
This provision is intended to afford directors and officer’s protection against and to limit their potential liability for monetary damages resulting from suits alleging a breach of the duty of care by a director or officer. As a consequence of this provision, stockholders of our company will be unable to recover monetary damages against directors or officers for action taken by them that may constitute negligence or gross negligence in performance of their duties unless such conduct falls within one of the foregoing exceptions. The provision, however, does not alter the applicable standards governing a director’s or officer’s fiduciary duty and does not eliminate or limit the right of our company or any stockholder to obtain an injunction or any other type of non-monetary relief in the event of a breach of fiduciary duty.
 
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC this type of indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
 
 
- 19 -
 
 
 
 
PART II — INFORMATION NOT REQUIRED IN PROSPECTUS
 
Item 14. Other Expenses of Issuance and Distribution
 
The following table sets forth all expenses, other than the underwriting discounts and commissions, payable by the registrant in connection with the sale of the Common Stock being registered. All the amounts shown are estimates except the SEC registration fee and the FINRA filing fee.
 
SEC registration fee
 $1,339
Transfer agent and registrar fees
 $5,000 
Accounting fees and expenses
 $10,000 
Legal fees and expenses
 $25,000 
Miscellaneous
 $3,661  
Total
 $45,000 
 ________________
 
 
Item 15. Indemnification of Directors and Officers
 
Section 145 of the Delaware General Corporation Law authorizes a court to award, or a corporation’s board of directors to grant, indemnity to directors and officers in terms sufficiently broad to permit such indemnification under certain circumstances for liabilities, including reimbursement for expenses incurred, arising under the Securities Act.
 
Our amended and restated certificate of incorporation provides for indemnification of our directors and executive officers to the maximum extent permitted by the Delaware General Corporation Law, and our amended and restated bylaws provide for indemnification of our directors and executive officers to the maximum extent permitted by the Delaware General Corporation Law.
 
In any selling agency or similar agreement we enter into in connection with the sale of the securities being registered hereby, the selling agent will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us, within the meaning of the Securities Act, against certain liabilities.
 
In any underwriting agreement we enter into in connection with the sale of Common Stock being registered hereby, the underwriters will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us, within the meaning of the Securities Act, against certain liabilities.
 
In any at the market offering sales agreement, controlled equity offering sales agreement, or similar agreement that we enter into in connection with the sale of Common Stock being registered hereby, the sales agent or sales agents will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us, within the meaning of the Securities Act, against certain liabilities.
 
 
 
- 20 -
 
 
Item 16. Exhibits and Financial Statement Schedules
 
(a) Exhibits
 
Exhibit No.
 
Title of Document    
 
Certificate of Incorporation Dated July 15, 2011 (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, filed with the Securities and Exchange Commission on February 12, 2013)    
 
Bylaws (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, filed with the Securities and Exchange Commission on February 12, 2013)    
 
Certificate of Amendment to the Certificate of Incorporation dated June 5, 2017 (Incorporated by reference to the Company’s Form 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on June 7, 2017)    
Certificate of Designations for Series B Convertible Preferred Stock (Incorporated by reference to the Company’s Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on March 8, 2018)  
Certificate of Correction to Certificate of Designation of Powers, Preferences and Rights of Series B Convertible Preferred Stock (Incorporated by reference to the Company’s Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on March 16, 2018)  
Certificate of Designations of Powers, Preferences and Rights of Series C Convertible Preferred Stock (Incorporated by reference to the Company’s Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on August 21, 2018)  
3.7  
Certificate of Amendment to Designations of Powers, Preferences and Rights of Series C Convertible Preferred Stock (Incorporated by reference to the Company’s Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on October 4, 2018)   
Specimen Common Stock certificate (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, filed with the Securities and Exchange Commission on February 12, 2013)  
Warrant for Common Stock issued to David Briskie (Incorporated by reference to the Company’s Form 1012G, File No. 000-54900, filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to Stephan Wallach (Incorporated by reference to the Company’s Form 1012G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to Michelle Wallach (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to David Briskie (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to William Andreoli (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to Richard Renton (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Stock Option issued to John Rochon (Incorporated by reference to the Company’s Form 10-12G, File No. 000-54900, Filed with the Securities and Exchange Commission on February 12, 2013)  
Form of Purchase Note Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on August 5, 2014)  
Form of Secured Convertible Notes (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on August 5, 2014)  
Form of Series A Warrants (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on August 5, 2014)  
Form of Registration Rights Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on August 5, 2014)  
Form of Note Purchase Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on January 7, 2015)  
 
Form of Secured Note (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on January 7, 2015)    
 
Form of Purchase Note Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on October 16, 2015)    
 
Form of Secured Note (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on October 16, 2015)    
 
Form of Warrant (Incorporated by reference to the Company’s 8-K, File No. 000-54900, filed with the Securities and Exchange Commission on October 16, 2015)    
 
Form of Notice of Award of Restricted Stock Units (Incorporated by reference to the Company’s Form S-8 Registration Statement, File No. 333-219027 filed with the Securities and Exchange Commission on June 29, 2017)    
 
Form of Restricted Stock Unit Award Agreement (Incorporated by reference to the Company’s Form S-8 Registration Statement, File No. 333-219027 filed with the Securities and Exchange Commission on June 29, 2017)    
 
Form of Note Purchase Agreement (Incorporated by reference to the Company’s Current Report on Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on August 3, 2017)    
 
Form of Convertible Note (Incorporated by reference to the Company’s Current Report on Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on August 3, 2017)    
 
Form of Series D Warrant (Incorporated by reference to the Company’s Current Report on Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on August 3, 2017)    
 
Form of Selling Agent’s Warrant (Incorporated by reference to the Company’s Amendment No. 2 to Form S-1, File No. 333-221847, filed with the Securities and Exchange Commission on February 7, 2018)
 
Form of First Amendment to Series D Warrant Agreement (Incorporated by reference to the Company’s Current Report on Form 8-K, File No. 001-38116, filed with the Securities and Exchange Commission on January 23, 2018)
 
Form of Warrant (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on August 21, 2018)
 
Placement Agent Agreement between Corinthian Partners, LLC and Company (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on August 21, 2018)
 
Form Securities Purchase Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on August 21, 2018)
 
Form of Registration Rights Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on August 21, 2018) 
 
Form of Warrant (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on September 7, 2018) 
 
Form Securities Purchase Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on September 7, 2018) 
 
Form of Registration Rights Agreement (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on September 7, 2018)
 
Warrant dated December 13, 2018 issued to Carl Grover (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
 
Warrant dated December 13, 2018 issued to Carl Grover (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
 
Warrant dated December 13, 2018 issued to Ascendant Alternative Strategies, LLC (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
5.1 #
 
Opinion of Gracin & Marlow, LLP
 
Credit Agreement dated December 13, 2018 by and among CLR Roasters, LLC, Siles Family Plantation Group, S.A. and Carl Grover (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
 
Guaranty dated December 13, 2018 executed by Siles Family Plantation Group, S.A. (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
 
Security Agreement dated December 13,2 018 by and among Stephan Wallach, micelle Wallach and Carl Grover (Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018) 
 
Warrant Purchase Agreement dated December 13, 2018 between Youngevity International, Inc. and Carl Grover Incorporated by reference to the Company’s 8-K, File No. 000-38116, filed with the Securities and Exchange Commission on December 19, 2018)
 
Subsidiaries of Youngevity International, Inc. (Incorporated by reference to the Company’s Form 10-K, File No. 000-54900, filed with the Securities and Exchange Commission on March 30, 2018)
23.1 #
 
Consent of Independent Registered Public Accounting Firm
23.2 #
 
Consent of Gracin & Marlow, LLP (included in Exhibit 5.1)
24.1#
 
Power of Attorney (included on signature page hereto)
______________________
# Filed herewith
* To the extent applicable, to be filed by an amendment or as an exhibit to a document filed under the Securities Exchange Act of 1934, as amended, and incorporated by reference herein.
 
 
 
- 21 -
 
 
Item 17. Undertakings
 
 
(a) The undersigned registrant hereby undertakes:
 
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
 
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
 
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
 
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; provided , however , that paragraphs (a)(1)(i), (a)(1)(ii), and (a)(1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is a part of the registration statement.
  
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
 
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
 
(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
 
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided , however , that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
 
(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
 
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
 
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
 
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
 
(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
 
 
- 22 -
 
 
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
 
(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
  
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
 
(d) The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act (the “Act”) in accordance with the rules and regulations prescribed by the SEC under section 305(b)(2) of the Act.
 
(6) If this registration statement is permitted by Rule 430A, that:
 
(i) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
 
(ii) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
 
- 23 -
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Chula Vista, State of California, December 21, 2018.
 
 
 
YOUNGEVITY INTERNATIONAL, INC.
 
 
 
 
 
 
By:
/s/ Stephan Wallach
 
 
 
Chief Executive Officer and Director
 
 
 
(Principal Executive Officer)
 
 
 
By:
/s/ David Briskie
 
 
 
President, Chief Financial Officer and Director
(Principal Financial and Accounting Officer)
 
 
 
POWER OF ATTORNEY
 
We, the undersigned hereby severally constitute and appoint each of Stephan Wallach and David Briskie our true and lawful attorney and agent, with full power to each to sign for us, and in our names in the capacities indicated below, any and all amendments to this registration statement, any subsequent registration statements pursuant to Rule 462 of the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof. This power of attorney may be executed in counterparts.
 
Pursuant to the requirements of the Securities Act 1933, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 
/s/ Stephan Wallach
 
Chief Executive Officer
 
 
Stephan Wallach
 
  and Director
 
December 21, 2018
 
 
(Principal Executive Officer)
 
 
 
 
 
 
 
/s/ David Briskie
 
President, Chief Financial Officer and Director
 
 
David Briskie
 
 (Principal Financial and Accounting Officer)
 
December 21, 2018
 
 
 
 
 
/s/ Michelle Wallach
 
Director
 
December 21, 2018
Michelle Wallach
 
 
 
 
 
 
 
 
 
/s/ Richard Renton
 
Director
 
December 21, 2018
Richard Renton
 
 
 
 
 
 
 
 
 
/s/ William Thompson
 
Director
 
December 21, 2018
William Thompson
 
 
 
 
 
 
 
 
 
/s/ Kevin Allodi
 
Director
 
December 21, 2018
Kevin Allodi
 
 
 
 
 
 
 
 
 
/s/ Paul Sallwasser
 
Director
 
December 21, 2018
Paul Sallwasser
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- 24 -