Item 4 — Purpose of Transaction
Item 4 is hereby amended and supplemented by the addition of the following: On March 13, 2025, Edward Smolyansky sent the letter attached hereto as Exhibit 99.1, which is incorporated herein by reference, to Lifeway Foods, Inc. (the "Company"), notifying the Company of his intent to nominate seven directors for election at the Company's 2025 annual meeting of shareholders (the "Annual Meeting") in accordance with Company's Second Amended and Restated By-Laws, and serving as a notice in accordance with Rule 14a-19(a)(1) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). On March 17, 2025, Mr. Smolyansky also made available a letter to Company shareholders on his website, www.freeLifeway.com, which letter is attached hereto as Exhibit 99.2 and is incorporated herein by reference. Mr. Smolyansky may also wish to exercise his right to inspect certain books and records of the Company pursuant to Section 7.75 of the Illinois Business Corporation Act in order to identify and communicate with other stockholders in connection with any solicitation of proxies in support of the nominees and to obtain additional information about the Company, and he may demand that the Company make such books and records available. In connection with Mr. Smolyansky's plans to prepare and distribute a proxy statement for the Annual Meeting, he intends to sell up to 20,000 shares of Common Stock following the filing of this Amendment in accordance with Rule 144 under the Securities Act of 1933, as amended.