04/29/2024 | Press release | Distributed by Public on 04/29/2024 05:31
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Filed by the Registrant ☒
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Filed by a party other than the Registrant ☐
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☐
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Preliminary Proxy Statement
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☐
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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☒
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Definitive Proxy Statement
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☐
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Definitive Additional Materials
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☐
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Soliciting Material Under §240.14a-12
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☒
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No fee required.
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☐
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Fee paid previously with preliminary materials.
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☐
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
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1.
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To elect two directors to hold office until the 2027 annual meeting of stockholders or until their successors are elected and qualified;
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2.
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To ratify the selection, by the audit committee of the Company's board of directors, of MNP LLP, as the independent registered public accounting firm of the Company for the fiscal year ending December 31, 2024; and
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3.
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To transact such other business as may properly come before the Annual Meeting or any adjournment or postponement thereof.
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By Order of the Board of Directors
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Rajiv De Silva
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Chief Executive Officer
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Page
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PROXY STATEMENT FOR THE 2024 ANNUAL MEETING OF STOCKHOLDERS
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1
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INFORMATION ABOUT THE PROXY PROCESS AND VOTING
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1
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PROPOSAL NO. 1 ELECTION OF DIRECTORS
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6
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PROPOSAL NO. 2 RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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10
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REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
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11
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CORPORATE GOVERNANCE
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12
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Code of Business Conduct and Ethics
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12
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Corporate Governance Guidelines
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12
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Independence of the Board of Directors
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12
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Leadership Structure of the Board
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13
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Role of Board in Risk Oversight Process
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13
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Board Committees
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13
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Board Diversity
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16
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Attendance at Meetings of the Board of Directors, Board and Committee Member Attendance
and Annual Meeting
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16
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Stockholder Communications with the Board of Directors
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17
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Compensation Committee Interlocks and Insider Participation
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17
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TRANSACTIONS WITH RELATED PERSONS
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18
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DIRECTOR COMPENSATION
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21
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EXECUTIVE OFFICERS
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22
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EXECUTIVE COMPENSATION
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24
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
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34
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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37
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ADDITIONAL INFORMATION
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37
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Householding of Proxy Materials
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37
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Incorporation by Reference
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37
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Other Matters
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37
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•
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This Proxy Statement summarizes information about the proposals to be considered at the Annual Meeting and other information you may find useful in determining how to vote.
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•
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The Proxy Card is the means by which you actually authorize another person to vote your shares in accordance with your instructions.
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•
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Proposal 1 - the election of two Class I directors to hold office until our 2027 annual meeting of stockholders; and
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•
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Proposal 2 - the ratification of the selection, by the audit committee of our board of directors, of MNP LLP, as our independent registered public accounting firm for the fiscal year ending December 31, 2024.
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•
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For Proposal 1, you may either vote "For" all the nominees to the board of directors or you may "Withhold" your vote for any nominee you specify.
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•
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For Proposal 2, you may either vote "For" or "Against" or abstain from voting.
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To vote at the Annual Meeting, attend the Annual Meeting online and follow the instructions posted at www.virtualshareholdermeeting.com/VERO2024.
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•
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To vote using the Proxy Card, simply complete, sign and date the accompanying Proxy Card and return it promptly in the envelope provided. If you return your signed Proxy Card before the Annual Meeting, we will vote your shares in accordance with the Proxy Card.
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•
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To vote by proxy over the internet, follow the instructions provided on the Proxy Card.
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•
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To vote by telephone, you may vote by proxy by calling the toll-free number found on the Proxy Card.
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You may submit another properly completed proxy with a later date.
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•
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You may send a written notice that you are revoking your proxy to our General Counsel and Corporate Secretary at 235 Yorkland Blvd., Suite 900, Toronto, Ontario M2J 4Y8.
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•
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You may attend the Annual Meeting online and vote by following the instructions at www.proxyvote.com. Simply attending the Annual Meeting will not, by itself, revoke your proxy.
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Class I directors: Rajiv De Silva and Keith Sullivan, whose current terms expire at the Annual Meeting;
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•
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Class II directors: Louise Lacchin, Anthony Natale, M.D. and Stanley Tyler Hollmig, M.D., whose current terms will expire at the annual meeting of stockholders to be held in 2025; and
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•
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Class III directors: Scott Barry, Fritz LaPorte and Garheng Kong, M.D., whose current terms will expire at the annual meeting of stockholders to be held in 2026.
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Name
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Age
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Position/Office Held With the Company
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Director Since
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Class I Directors whose terms expire at the 2024 Annual Meeting of Stockholders
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Rajiv De Silva
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57
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Chief Executive Officer and Director
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2022
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Keith Sullivan(2)
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66
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Director
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2018
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Class II Directors whose terms expire at the 2025 Annual Meeting of Stockholders
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Louise Lacchin(1)(2)
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66
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Director
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2019
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Anthony Natale, M.D.(1)(3)
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50
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Director
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2019
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Stanley Tyler Hollmig, M.D.
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42
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Director
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2022
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Class III Directors whose terms expire at the 2026 Annual Meeting of Stockholders
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Scott Barry(3)
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51
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Chair and Director
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2019
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Fritz LaPorte(1)(2)
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54
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Director
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2019
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Garheng Kong, M.D.(3)
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48
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Director
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2019
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(1)
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Member of the audit committee.
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(2)
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Member of the compensation committee.
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(3)
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Member of the nominating and corporate governance committee.
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2023
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2022
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Audit Fees(1)
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$1,080,700
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$1,097,820
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Tax Fees(2)
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-
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-
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Audit-Related Fees(3)
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$294,881
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337,318
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All Other Fees
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-
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-
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Total Fees
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$1,375,581
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$1,435,138
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(1)
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Audit fees are fees billed related to the audit of our annual consolidated financial statements included in our annual report on Form 10-K.
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(2)
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Tax fees consist of fees billed for tax compliance, tax advice and tax planning services.
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(3)
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Audit-Related fees consist of fees billed for the review of our quarterly consolidated financial statements; comfort letters, consents and assistance with and review of documents filed with the SEC.
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Audit Committee
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Louise Lacchin
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Anthony Natale, M.D.
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Fritz LaPorte
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appoints our independent registered public accounting firm;
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evaluates the independent registered public accounting firm's qualifications, independence and performance;
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determines the engagement of the independent registered public accounting firm;
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reviews and approves the scope of the annual audit and the audit fee;
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discusses with management and the independent registered public accounting firm the results of the annual audit and the review of our quarterly consolidated financial statements;
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approves the retention of the independent registered public accounting firm to perform any proposed permissible non-audit services;
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monitors the rotation of partners of the independent registered public accounting firm on our engagement team in accordance with requirements established by the SEC;
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is responsible for reviewing our consolidated financial statements and our management's discussion and analysis of financial condition and results of operations to be included in our annual and quarterly reports to be filed with the SEC;
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reviews our critical accounting policies and estimates; and
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reviews the audit committee charter and the committee's performance at least annually.
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personal and professional integrity;
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ethics and values;
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•
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experience in corporate management, such as serving as an officer or former officer of a publicly held company;
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•
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experience in the industries in which we compete;
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•
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experience as a board member or executive officer of another publicly held company;
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•
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diversity of expertise and experience in substantive matters pertaining to our business relative to other board members;
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•
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conflicts of interest; and
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•
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practical and mature business judgment.
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Board Diversity Matrix (As of April 22, 2024)
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Board Size:
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Total Number of Directors
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8
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Female
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Male
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Non-Binary
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Did Not
Disclose
Gender
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Gender:
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Directors
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1
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6
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-
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1
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Number of Directors who identify in Any of the Categories Below:
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African American or Black
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-
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-
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-
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-
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Alaskan Native or Native American
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-
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-
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-
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-
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Asian
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-
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2
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-
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-
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Hispanic or Latinx
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-
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-
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-
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-
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Native Hawaiian or Pacific Islander
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-
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-
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-
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-
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White
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1
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3
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-
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-
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Two or More Races or Ethnicities
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-
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1
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-
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-
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LGBTQ+
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-
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Did Not Disclose Demographic Background
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1
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Name
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Common
Stock
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Senior
Preferred
Stock
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Aggregate
Purchase
Price
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EW Healthcare Partners, L.P. and related investment entities(1)
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-
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1,575,810
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$7,000,000
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(1)
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Mr. Barry, a member of the Company's board of directors, is affiliated with the EW Healthcare Partners, L.P. and related investment entities ("EW Entities").
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Name
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Common
Stock
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Voting
Preferred
Stock
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Aggregate
Purchase
Price
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HealthQuest Partners II, L.P.(1)
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-
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335,000
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$670,000
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EW Healthcare Partners, L.P. and related investment entities(2)
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-
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1,500,000
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$3,000,000
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Masters Capital Management, LLC and related investment entities(3)
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-
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1,000,000
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$2,000,000
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Masters Special Situations, LLC and related investment entities(4)
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-
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350,000
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$700,000
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Rajiv De Silva(5)
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83,334
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-
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$250,000
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Hemanth Varghese(6)
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16,667
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-
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$50,000
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Stanley Tyler Hollmig, M.D.(7)
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16,667
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-
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$50,000
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(1)
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Dr. Kong, a member of the Company's board of directors, is affiliated with HealthQuest Partners II, L.P. ("HealthQuest").
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(2)
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Mr. Barry, a member of the Company's board of directors, is affiliated with the EW Entities.
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(3)
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Masters Capital Management, LLC and its related entities are holders of more than 5% of our outstanding common stock ("MCM Entities").
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(4)
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Master Special Situations, LLC and its related entities are holders of more than 5% of our outstanding common stock ("MSS Entities").
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(5)
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Mr. De Silva is the Company's Chief Executive Officer and a member of the Company's board of directors.
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(6)
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Mr. Varghese is the Company's President & Chief Operating Officer.
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(7)
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Dr. Hollmig is a member of the Company's board of directors.
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Committee
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Chair
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Other
Member
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Audit committee
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$25,000
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$10,000
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Compensation committee
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$20,000
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$10,000
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Nominating and corporate governance committee
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$15,000
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$5,000
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Name
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| |
Fees Earned
or Paid in Cash
($)
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| |
Option Awards
($)(1)
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| |
Total
($)
|
Scott Barry
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80,000
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6,518
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86,518
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Garheng Kong
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60,000
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6,518
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66,518
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Louise Lacchin
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80,000
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6,518
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86,518
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Fritz LaPorte
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75,000
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| |
6,518
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81,518
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Tony Natale
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63,325
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| |
6,518
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69,843
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Keith Sullivan
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51,675
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6,518
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58,193
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Stanley Tyler Hollmig
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45,000
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6,518
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51,518
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(1)
|
Amounts shown represent the grant date fair value of stock awards and options granted as calculated in accordance with ASC Topic 718, Stock-based compensation. See Note 14 of the audited consolidated financial statements included in our Form 10-K Annual Report for the year ended December 31, 2023 for the assumptions used in calculating these amounts. As of December 31, 2023, these non-employee directors held options to purchase the aggregate number of shares of our common stock set forth in the table below.
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Name
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| |
Shares Subject to
Outstanding Options
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Scott Barry
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11,155
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Garheng Kong
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11,155
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Louise Lacchin
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12,117
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Fritz LaPorte
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14,360
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Tony Natale
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13,399
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Keith Sullivan
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10,123
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Stanley Tyler Hollmig
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6,667
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Name
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Age
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| |
Position(s)
|
Executive Officers
|
| | | | ||
Rajiv De Silva
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57
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| |
Chief Executive Officer and Director
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Domenic Della Penna
|
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62
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| |
Executive Vice President & Chief Financial Officer
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Hemanth Varghese
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48
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President & Chief Operating Officer
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Ross Portaro
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61
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Executive Vice President & General Manager, Global Sales & Marketing
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Anna Georgiadis
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53
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| |
Chief Human Resources Officer
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Michael Mandarello
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39
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| |
General Counsel and Corporate Secretary
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William McGrail
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63
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Executive Vice President, Technical Operations & Compliance
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Rajiv De Silva, Chief Executive Officer;
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•
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Hemanth Varghese, President and Chief Operating Officer; and
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•
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Ross Portaro, Executive Vice President & General Manager, Global Sales & Marketing.
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Name and Principal Position
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| |
Year
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| |
Salary
($)
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| |
Bonus
($)
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| |
Option
Awards
($)(1)
|
| |
Stock
Awards
($)(3)
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| |
Non-Equity
Incentive Plan
Compensation
($)
|
| |
All Other
Compensation
($)
|
| |
Total
($)
|
Rajiv De Silva
Chief Executive Officer
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| |
2023
|
| |
525,000
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| |
315,000
|
| |
-
|
| |
-
|
| |
-
|
| |
2,625
|
| |
842,625
|
|
2022
|
| |
131,250
|
| |
80,700
|
| |
684,090
|
| |
-
|
| |
-
|
| |
2,625
|
| |
898,655
|
||
Hemanth Varghese(2)
President and Chief Operating Officer
|
| |
2023
|
| |
374,418
|
| |
208,250
|
| |
-
|
| |
-
|
| |
-
|
| |
-
|
| |
582,668
|
|
2022
|
| |
76,174
|
| |
182,000
|
| |
142,560
|
| |
-
|
| |
-
|
| |
-
|
| |
400,734
|
||
Ross Portaro
Executive Vice President & General Manager, Global
Sales & Marketing
|
| |
2023
|
| |
300,000
|
| |
144,000
|
| |
17,382
|
| |
-
|
| |
140,622
|
| |
-
|
| |
602,004
|
|
2022
|
| |
300,000
|
| |
12,300
|
| |
55,887
|
| |
34,500
|
| |
227,600
|
| |
150
|
| |
630,438
|
(1)
|
Amounts shown represent the grant date fair value of options or stock awards granted as calculated in accordance with ASC Topic 718, Stock-based compensation. See Note 14 of the audited consolidated financial statements included in our Form 10-K Annual Report for the year ended December 31, 2023 for the assumptions used in calculating these amounts.
|
(2)
|
The amounts for Dr. Varghese's Salary, Bonus, and All Other Compensation are presented in US dollars. Bonus amounts are approved by the board of directors in US dollars and are presented as such. All Other Compensation amounts are paid in Canadian dollars and were translated to US dollars based upon the following average annual exchange rates per US dollar, as applicable and as published by www.ofx.com: 2023 - 1.3503 and 2022 - 1.3012.
|
(3)
|
The stock awards were comprised of RSUs, which were granted in 2022 for performance in 2021. The fair value of each RSU award granted was calculated by multiplying the closing trading price on the Nasdaq Global Markets Exchange on the day of grant of the RSU by the number of RSU awards granted.
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Name
|
| |
Vesting
Commencement
Date
|
| |
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
|
| |
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
|
| |
Option
Exercise
Price ($)
|
| |
Option
Expiration
Date
|
Rajiv De Silva
|
| |
10/02/2022(2)
|
| |
55,001
|
| |
165,000
|
| |
6.60
|
| |
10/02/2032
|
Hemanth Varghese
|
| |
10/17/2022(2)
|
| |
18,334
|
| |
55,000
|
| |
4.10
|
| |
10/17/2032
|
Ross Portaro
|
| |
05/25/2021
|
| |
4,306
|
| |
2,361
|
| |
30.15
|
| |
05/25/2031
|
| |
11/12/2021(1)
|
| |
6,668
|
| |
6,666
|
| |
26.10
|
| |
11/12/2031
|
|
| |
03/25/2022(1)
|
| |
2,194
|
| |
2,807
|
| |
20.70
|
| |
03/25/2032
|
|
| |
11/10/2022(1)
|
| |
1,669
|
| |
4,998
|
| |
3.18
|
| |
11/10/2032
|
|
| |
03/24/2023(1)
|
| |
2,503
|
| |
10,831
|
| |
2.82
|
| |
03/24/2033
|
(1)
|
The options subject to this award vest and become exercisable in equal quarterly installment on each quarterly anniversary of the grant date for four years, subject to the holder continuing to provide services to the Company through such vesting date.
|
(2)
|
These awards represent an inducement grant made outside of the 2019 Incentive Award Plan (the "2019 Plan") as incentive to Mr. De Silva and Dr. Varghese accepting employment with the Company.
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•
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total compensation, as calculated in the Summary Compensation Table, for our CEO and an average for our other NEOs;
|
•
|
compensation actually paid ("CAP") to the NEOs, an SEC prescribed calculation which adjusts total compensation for the items described below and which does not equate to realized compensation;
|
•
|
our cumulative total stockholder return ("TSR") since the last trading day before the earliest year presented; and
|
•
|
our net income.
|
Year
|
| |
Summary
Compensation
Table Total
for Domenic
Serafino
(Former
CEO)(1)
|
| |
Compensation
Actually Paid
to Domenic
Serafino
(Former
CEO)(2)
|
| |
Summary
Compensation
Table Total for
Rajiv De Silva
(Current CEO)
|
| |
Compensation
Actually Paid to
Rajiv De Silva
(Current CEO)
|
| |
Average
Summary
Compensation
Table Total for
Non-CEO
NEOs(3)
|
| |
Average
Compensation
Actually Paid
to Non-CEO
NEOs
|
| |
Value of
Initial Fixed
$100 Investment
Based on Total
Stockholder
Return(4)
|
| |
Net
Income
(Loss)
|
| | | | | | | | | | | | | | | |
Dollars in
thousands
|
||||||||
2023
|
| |
-
|
| |
-
|
| |
$842,625
|
| |
$491,718
|
| |
$592,336
|
| |
$511,688
|
| |
$4.50
|
| |
(37,050)
|
2022
|
| |
$765,187
|
| |
$513,274
|
| |
$898,655
|
| |
$710,885
|
| |
$586,398
|
| |
$384,940
|
| |
$18.50
|
| |
(43,584)
|
2021
|
| |
$1,154,408
|
| |
$1,124,042
|
| |
-
|
| |
-
|
| |
$677,315
|
| |
$658,663
|
| |
$98.27
|
| |
(22,141)
|
(1)
|
For details regarding Mr. Serafino's total compensation during 2022 and 2021, please refer to the Summary Compensation Table section and related disclosure contained in the Company's definitive proxy statement filed with the SEC on April 10, 2023.
|
(2)
|
For details regarding Mr. Serafino's total compensation during 2022 and 2021, please refer to the Pay Versus Performance section and related disclosure contained in the Company's definitive proxy statement filed with the SEC on April 10, 2023.
|
(3)
|
The fiscal year 2021 figure is an average of the summary compensation table totals for Domenic Della Penna, Executive Vice President & Chief Financial Officer and Soeren Maor Sinay, former Chief Operations Officer of the Company; the fiscal year 2022 figure is an average of the summary compensation table totals for Domenic Della Penna, Executive Vice President & Chief Financial Officer and Ross Portaro, Executive Vice President & General Manager, Global Sales & Marketing; the fiscal year 2023 figure is an average of the summary compensation table totals for Dr. Hemanth Varghese, President and Chief Operating Officer and Ross Portaro, Executive Vice President & General Manager, Global Sales & Marketing.
|
(4)
|
Our cumulative TSR is based on a fixed investment of one hundred dollars in our common stock measured from the market close on December 31, 2020 (the last trading day of 2020) through and including the end of the fiscal year for each year reported in the table, and reinvestment of all dividends during such period.
|
| | | |
Deductions
|
| |
Additions
|
| | |||
Year
|
| |
Summary
Compensation
Total
($)
|
| |
Amounts
Reported in the
Summary
Compensation
Table for Stock
Awards and Stock
Options Awards
($)
|
| |
Fair Value of
Stock Awards as
Determined in
Accordance with
the SEC's CAP
Methodology
($)
|
| |
Compensation
Actually
Paid
($)
|
Rajiv De Silva
|
| | | | | | | | ||||
2023
|
| |
842,625
|
| |
-
|
| |
-350,907(1)
|
| |
491,718
|
2022
|
| |
898,655
|
| |
684,090
|
| |
496,320(2)
|
| |
710,885
|
2021
|
| |
-
|
| |
-
|
| |
-
|
| |
-
|
TABLE OF CONTENTS
| | | |
Deductions
|
| |
Additions
|
| | |||
Year
|
| |
Summary
Compensation
Total
($)
|
| |
Amounts
Reported in the
Summary
Compensation
Table for Stock
Awards and Stock
Options Awards
($)
|
| |
Fair Value of
Stock Awards as
Determined in
Accordance with
the SEC's CAP
Methodology
($)
|
| |
Compensation
Actually
Paid
($)
|
Domenic Serafino
|
| | | | | | | | ||||
2023
|
| |
-
|
| |
-
|
| |
-
|
| |
-
|
2022
|
| |
765,187
|
| |
160,815
|
| |
-91,098(3)
|
| |
513,274
|
2021
|
| |
1,154,408
|
| |
206,560
|
| |
176,194(3)
|
| |
1,124,042
|
Average for Other NEOs
|
| | | | | | | | ||||
2023
|
| |
592,336
|
| |
8,691
|
| |
-71,957(4)
|
| |
511,688
|
2022
|
| |
586,398
|
| |
117,974
|
| |
-83,484(5)
|
| |
384,940
|
2021
|
| |
677,315
|
| |
154,920
|
| |
136,268(6)
|
| |
658,663
|
(1)
|
Mr. De Silva's 2023 add back adjustment is the sum of (i) the fair value of all unvested and outstanding awards granted in 2023 as of December 31, 2023 ($0), (ii) the change in fair value of all unvested and outstanding options issued prior to 2023 with the change measured from December 31, 2022 to December 31, 2023 (-$278,784), (iii) the fair value of awards granted and vested in 2023 ($0), and (iv) the change in fair value of awards vested in 2023 but issued in a prior year with the change measured from December 31, 2022 to the vesting date (-$72,123).
|
(2)
|
Mr. De Silva's 2022 add back adjustment is the sum of (i) the fair value of all unvested and outstanding awards granted in 2022 as of December 31, 2022 ($496,320), (ii) the change in fair value of all unvested and outstanding options issued prior to 2022 with the change measured from December 31, 2021 to December 31, 2022 ($0), (iii) the fair value of awards granted and vested in 2022 ($0), and (iv) the change in fair value of awards vested in 2022 but issued in a prior year with the change measured from December 31, 2021 to the vesting date ($0).
|
(3)
|
For details regarding Mr. Serafino's CAP calculations for 2022 and 2021, please refer to the Pay Versus Performance section and related disclosure contained in the Company's definitive proxy statement filed with the SEC on April 10, 2023.
|
(4)
|
The add back adjustment for the 2023 Other NEOs (Mr. Varghese and Mr. Portaro) is the sum of (i) the average fair value of all unvested and outstanding awards granted in 2023 to the 2023 Other NEOs as of December 31, 2023 ($3,067), (ii) the average change in fair value of all unvested and outstanding options issued to the 2023 Other NEOs prior to 2023 with the change measured from December 31, 2022 to December 31, 2023 (-$60,683), (iii) the average fair value of awards granted to the 2023 Other NEOs and vested in 2023 ($1,016), and (iv) the average change in fair value of awards vested in 2023 but issued in a prior year to the 2023 Other NEOs with the change measured from December 31, 2022 to the vesting date (-$15,357).
|
(5)
|
The add back adjustment for the 2022 Other NEOs (Mr. Della Penna and Mr. Portaro) is the sum of (i) the average fair value of all unvested and outstanding awards granted in 2022 to the 2022 Other NEOs as of December 31, 2022 ($47,776), (ii) the average change in fair value of all unvested and outstanding options issued to the 2022 Other NEOs prior to 2022 with the change measured from December 31, 2021 to December 31, 2022 (-$100,108), (iii) the average fair value of awards granted to the 2022 Other NEOs and vested in 2022 ($3,349), and (iv) the average change in fair value of awards vested in 2022 but issued in a prior year to the 2022 Other NEOs with the change measured from December 31, 2021 to the vesting date (-$34,501).
|
(6)
|
The add back adjustment for 2021 Other NEOs (Mr. Della Penna and Mr. Sinay) is the sum of (i) the average fair value of all unvested and outstanding awards granted in 2021 to the 2021 Other NEOs as of December 31, 2021 ($89,749), (ii) the average change in fair value of all unvested and outstanding options issued to the 2021 Other NEOs prior to 2021 with the change measured from December 31, 2020 to December 31, 2021 (-$880), (iii) the average fair value of awards granted to the 2021 Other NEOs and vested in 2021 ($32,089), and (iv) the average change in fair value of awards vested in 2021 but issued in a prior year to the 2021 Other NEOs with the change measured from December 31, 2020 to the vesting date ($15,310).
|
TABLE OF CONTENTS
(1)
|
Fiscal year 2022 represents an aggregate of CAP to Mr. Serafino and Mr. De Silva, inclusive of certain separation payments made to Mr. Serafino and certain inducements provided to Mr. De Silva as an incentive to accept employment with the Company.
|
(1)
|
Fiscal year 2022 represents an aggregate of CAP to Mr. Serafino and Mr. De Silva, inclusive of certain separation payments made to Mr. Serafino and certain inducements provided to Mr. De Silva as an incentive to accept employment with the Company.
|
TABLE OF CONTENTS
Plan Category
|
| |
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options, Warrants
and Rights
(a)
|
| |
Weighted-
Average
Exercise Price
of Outstanding
Options,
Warrants and
Rights
(b)
|
| |
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected in
the Column (a))
(c)
|
Equity Compensation Plans Approved by Stockholders(1)(2)(3)
|
| |
557,587
|
| |
$19.87
|
| |
71,412(4)
|
Equity Compensation Plans Not Approved by Stockholders
|
| |
424,247(5)
|
| |
$19.82
|
| |
28,168
|
Total
|
| |
981,834
|
| |
$19.85
|
| |
99,580
|
(1)
|
Consists of the 2019 Plan, the 2017 Employee Stock Purchase Plan (the "ESPP"), the 2015 Equity Incentive Plan and the 2005 Equity Incentive Plan, as amended.
|
(2)
|
The 2019 Plan contains an "evergreen" provision, pursuant to which the number of shares of common stock reserved for issuance pursuant to awards under such plan shall be increased on the first day of each year from 2020 and ending in 2029 equal to the lesser of (A) four percent (4%) of the shares of stock outstanding on the last day of the immediately preceding fiscal year and (B) such smaller number of shares of stock as determined by our board of directors.
|
(3)
|
The ESPP contains an "evergreen" provision, pursuant to which the number of shares of common stock reserved for issuance under such plan shall be increased on the first day of each year beginning in 2018 and ending in 2027 equal to the lesser of (A) one percent (1%) of the shares of stock outstanding on the last day of the immediately preceding fiscal year and (B) such smaller number of shares of stock as determined by our board of directors.
|
TABLE OF CONTENTS
(4)
|
All of which, subject to limitations for incentive stock options, may be granted as options, stock appreciation rights, restricted stock awards, RSU awards, performance stock awards, performance unit awards, other stock or cash-based awards or dividend equivalent awards.
|
(5)
|
Relates to the 2010 Plan, which was assumed by the Company at the time of the Merger. The 2010 Plan provides for the participation of persons employed by Venus Concept Ltd. or its affiliates, including directors or officers, and any consultant, adviser, service provider, controlling stockholder of Venus Concept Ltd. or its affiliates or a non-employee. The 2010 Plan allows for options to be granted, including Section 102 Options under the Israeli Income Tax Ordinance [New Version] 1961. Also includes an aggregate of 293,335 options issued to Mr. De Silva and Mr. Hemanth Varghese as inducement grants made outside of the 2019 Plan as an incentive to accept employment with the Company.
|
TABLE OF CONTENTS
•
|
each person, or group of affiliated persons, known by us to beneficially own more than 5% of our common stock;
|
•
|
each NEO;
|
•
|
each of our directors; and
|
•
|
all executive officers and directors as a group.
|
Name of Beneficial Owner
|
| |
Common
Stock
|
| |
Securities
Exercisable
Within
60 days
|
| |
Amount and
Nature of
Beneficial
Ownership
|
| |
Percent of
Class
|
5% or Greater Stockholder (other than directors and executive officers)
|
| | | | | | | | ||||
EW Healthcare Partners, L.P. and related investment entities(1)
|
| |
5,150,113
|
| |
-
|
| |
5,150,113
|
| |
49.44%
|
Madryn Asset Management and related investment entities(2)
|
| |
1,394,447
|
| |
-
|
| |
1,394,447
|
| |
18.26%
|
Saudi Economic and Development Securities Company and related investment entities(3)
|
| |
672,279
|
| |
-
|
| |
672,279
|
| |
10.17%
|
HealthQuest Partners II, L.P. and related investment entities(4)
|
| |
786,990
|
| |
-
|
| |
786,990
|
| |
11.77%
|
Masters Capital Management, LLC and related investment entities(5)
|
| |
1,000,038
|
| |
-
|
| |
1,000,038
|
| |
14.24%
|
Masters Special Situations, LLC and related investment entities(6)
|
| |
539,957
|
| |
-
|
| |
539,957
|
| |
8.20%
|
Named Executive Officers, Executive Officers and Directors:
|
| | | | | | | | ||||
Rajiv De Silva(7)
|
| |
165,837
|
| |
-
|
| |
165,837
|
| |
2.58%
|
Domenic Della Penna(8)
|
| |
49,683
|
| |
1,042
|
| |
50,725
|
| |
*
|
Ross Portaro(9)
|
| |
29,088
|
| |
1,530
|
| |
30,618
|
| |
*
|
Hemanth Varghese(10)
|
| |
44,169
|
| |
-
|
| |
44,169
|
| |
*
|
Anna Georgiadis(11)
|
| |
20,037
|
| |
522
|
| |
20,559
|
| |
*
|
Michael Mandarello(12)
|
| |
16,059
|
| |
668
|
| |
16,727
|
| |
*
|
William McGrail(13)
|
| |
7,189
|
| |
473
|
| |
7,662
|
| |
*
|
Scott Barry(1)(14)
|
| |
5,150,113
|
| |
-
|
| |
5,150,113
|
| |
49.44%
|
TABLE OF CONTENTS
Name of Beneficial Owner
|
| |
Common
Stock
|
| |
Securities
Exercisable
Within
60 days
|
| |
Amount and
Nature of
Beneficial
Ownership
|
| |
Percent of
Class
|
Garheng Kong(4)
|
| |
786,990
|
| |
-
|
| |
786,990
|
| |
11.77%
|
Louise Lacchin(15)
|
| |
7,119
|
| |
-
|
| |
7,119
|
| |
*
|
Fritz LaPorte(16)
|
| |
8,217
|
| |
105
|
| |
8,322
|
| |
*
|
Tony Natale(17)
|
| |
51,802
|
| |
105
|
| |
51,907
|
| |
*
|
Keith Sullivan(18)
|
| |
13,402
|
| |
-
|
| |
13,402
|
| |
*
|
Stanley Tyler Hollmig(19)
|
| |
21,419
|
| |
70
|
| |
21,489
|
| |
*
|
Directors and officers as a group (14 Individuals)
|
| |
6,371,124
|
| |
4,515
|
| |
6,375,639
|
| |
57.98%
|
*
|
Less than 1.0%.
|
(1)
|
Represents (i) 1,047,065 shares of common stock and 1,835,065 preferred shares (convertible to 2,009,599 shares of common stock) held by EW Healthcare Partners, L.P., or EWHP, (ii) 42,126 shares of common stock and 73,830 preferred shares (convertible to 80,854 shares of common stock) held by EW Healthcare Partners-A, L.P., or EWHP-A, (iii) 1,553.791 shares of common stock issuable upon conversion of convertible notes held by EWHP, (iv) 90,609 shares of common stock issuable upon conversion of convertible notes held by EWHP-A and (v) 6,157 stock options held by EWHP that were fully vested as of April 22, 2024, each of which have the sole voting and investment power with respect to their respective shares of common stock. The shares of common stock shown to be beneficially owned excludes (a) 2,991,464 EW shares of common stock issuable upon conversion of preferred stock held by EWHP, and (b) 120,352 shares of common stock issuable upon conversion of preferred stock held by EWHP-A, as such conversions cannot occur within 60 days after April 22, 2024 due to limitations on convertibility imposed by the rules and regulations of the Nasdaq Capital Market. Essex Fund IX GP, the general partner of EWHP and EWHP-A, may also be deemed to have sole voting and investment power with respect to such shares of common stock. Essex Fund IX GP disclaims beneficial ownership of such shares of common stock except to the extent of its pecuniary interest therein. Essex IX General Partner, the General Partner of Essex Fund IX GP, may also be deemed to have sole voting and investment power with respect to such shares of common stock. Essex IX General Partner disclaims beneficial ownership of such shares of common stock except to the extent of its pecuniary interest therein. Martin P. Sutter, Scott Barry, Ronald W. Eastman, an individual, Petri Vainio and Steve Wiggins are each a manager and collectively the managers of Essex IX General Partner. Each of the managers may be deemed to exercise shared voting and investment power with respect to such shares. Each manager disclaims beneficial ownership of such shares of common stock except to the extent of his pecuniary interest therein. Scott Barry is a member of the Company's board of directors. Also reflects 307,539 shares of common stock issuable upon the exercise of warrants held by EWHP, and 12,373 shares issuable upon the exercise of warrants held by EWHP-A. As of April 22, 2024, nil stock options will vest within 60 days of April 22, 2024. The principal address of EWHP, EWHP-A, Essex IX FUND GP, Essex IX General Partner and each of the Managers is 21 Waterway Avenue, Suite 225, The Woodlands, Texas 77380.
|
(2)
|
Represents (i) 41,455 shares of common stock held by Madryn Health Partners, LP, referred to herein as "MHP" (ii) 4,438 shares of common stock issuable upon the exercise of warrants held by MHP, (iii) 470,041 shares of common stock issuable upon the exercise of Series X preferred stock by MHP, (iv) 70,586 shares of common stock held by Madryn Health Partners (Cayman Master), LP, referred to herein as "MHP-C," (v) 7,558 shares of common stock issuable upon the exercise of warrants held by MHP-C, and (vi) 800,369 shares of common stock issuable upon the exercise of Series X preferred stock by MHP-C, The shares of common stock shown to be beneficially owned excludes (a) 508,109 shares of common stock issuable upon conversion of Series X preferred stock held by MHP, (b) 376,682 shares of common stock issuable upon conversion of convertible notes held by MHP, (c) 865,161 shares of common stock issuable upon conversion of Series X preferred stock held by MHP-C, and (d) 641,377 shares of common stock issuable upon conversion of convertible notes held by MHP-C, as such conversions cannot occur within 60 days after April 22, 2024 due to limitations on convertibility imposed by the rules and regulations of the Nasdaq Capital Market. Each of MHP and MHP-C have sole voting and investment power with respect to such respective shares of common stock. Madryn Health Advisors, LP, referred to herein as "MHA" the general partner of MHP and MHP-C, may also be deemed to have sole voting and investment power with respect to such shares of common stock. Madryn Asset Management, L.P., referred to herein as "MAM", the investment advisor of MHP and MHP-C, may also be deemed to have sole voting and investment power with respect to such shares of common stock. The principal address of MHP, MHP-C, MHA, MAM and each of the above-referenced individuals is c/o Madryn Asset Management, L.P., 330 Madison Avenue - Floor 33, New York, NY 10017.
|
(3)
|
Represents (i) 124,445 shares of common stock and warrants that may be exercised for 62,223 shares of common stock held by SC Venus Opportunities Limited, (ii) 124,445 shares of common stock and warrants that may be exercised for 62,223 shares of common stock held by SC Venus US Limited, (iii) 61,498 shares of common stock and warrants that may be exercised for 50,778 shares of common stock held by SEDCO Capital Cayman Limited, and (iv) 106,667 shares of common stock and warrants that may be exercised for 80,000 shares of common stock held by SEDCO Capital Global Funds-SC Private Equity Global Fund IV. Saudi Economic and Development Securities Company is the investment manager of SC Venus US Limited, SC Venus Opportunities Limited and SEDCO Capital Global Funds-SC Private Equity Global Fund IV and may be deemed to beneficially own securities held by SC Venus US Limited or SC Venus Opportunities Limited or SEDCO Capital Global Funds-SC Private Equity Global Fund IV. Saudi Economic and Development Securities Company is the parent of SEDCO Capital Cayman Limited and may be deemed to beneficially own securities held by SEDCO Capital Cayman Limited. The principal address of SEDCO Capital Cayman Limited is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The principal address of SC Venus US Limited and SC Venus Opportunities Limited is PO Box 709, Willow House, Cricket Square, Grand Cayman E9 KY1-1107. The principal address of SEDCO Capital Global Funds - SC Private Equity Global Fund IV is 5 Rue Jean Monnet, Luxembourg N4 L-2180.
|
(4)
|
Represents 453,043 shares of common stock and 335,000 preferred shares (convertible to 223,345 shares of common stock) held by HealthQuest. HealthQuest Venture Management II, L.L.C., or HealthQuest Management, is the general partner of HealthQuest and HealthQuest Management may be deemed to have voting and dispositive power over the shares held by HealthQuest. Garheng Kong is a member of the Company's board of directors. Dr. Kong is the managing member of HealthQuest Management and as such, may be deemed to exercise shared voting and investment power with respect to such shares. Dr. Kong is also the Managing Partner and controlling member of HealthQuest Capital Management Company, LLC, the general partner of HealthQuest Capital Management, L.P., or HQCM, and may
|
TABLE OF CONTENTS
(5)
|
Represents (i) 172,314 shares of common stock and 496,000 preferred shares (convertible to 330,684 shares of common stock) held by Marlin Fund, Limited Partnership ("Marlin Fund"), (ii) 128,254 shares of common stock and 394,000 preferred shares (convertible to 262,680 shares of common stock) held by Marlin Fund II, Limited Partnership ("Marlin II"), (iii) 11,467 shares of common stock and 36,000 preferred shares (convertible to 24,002 shares of common stock) held by Marlin Fund III, Limited Partnership ("Marlin III"), (iv) 19,814 shares of common stock and 74,000 preferred shares (convertible to 49,336 shares of common stock) held by Marlin Master Fund Offshore II, LP ("Marlin Offshore"), and (v) 1,487 shares of common stock held by Sciens Group Alternative Strategies PCC Limited - Blue Omega Cell ("Sciens Group"). Michael W. Masters, Managing Member of Masters Capital Management, LLC, the General Partner of Marlin Fund, Marlin II, Marlin III, Marlin Offshore and trading adviser to Sciens Group may be deemed to share voting, investment and dispositive power with respect to these securities. The managing member disclaims beneficial ownership of such shares of common stock except to the extent of his pecuniary interest therein. The principal address Marlin Fund, Marlin II, Marlin III, Marlin Offshore and Sciens Group is 3060 Peachtree Road, NW, Ste 1425, Atlanta, GA, 30305.
|
(6)
|
Represents 306,612 shares of common stock and 350,000 preferred shares (convertible to 233,345 shares of common stock) held by MSS VC SPV LP ("MSS VC"). Michael W. Masters, Managing Member of Masters Special Situations, LLC, the General Partner of MSS VC, may be deemed to share voting, investment and dispositive power with respect to these securities. The managing member disclaims beneficial ownership of such shares of common stock except to the extent of his pecuniary interest therein. The principal address of MSS VC is 3060 Peachtree Road, NW, Ste 1425, Atlanta, GA, 30305.
|
(7)
|
Represents 83,334 shares of common stock and 82,503 stock options which were fully vested and nil stock options which will vest within 60 days of April 22, 2024.
|
(8)
|
Represents 10,093 shares, and 38,701 stock options which were fully vested and 1,042 stock options which will vest within 60 days of April 22, 2024. It also includes 889 shares of common stock issuable upon the exercise of warrants which were exercisable beginning May 7, 2020.
|
(9)
|
Represents 8,932 shares, and 20,156 stock options which were fully vested and 1,530 stock options which will vest within 60 days of April 22, 2024.
|
(10)
|
Represents 16,667 shares of common stock and 27,502 stock options which were fully vested and nil stock options which will vest within 60 days of April 22, 2024.
|
(11)
|
Represents 1,712 shares of common stock, 18,325 stock options that were fully vested and 522 stock options that will vest within 60 days of April 22, 2024.
|
(12)
|
Represents 1,491 shares of common stock, 14,568 stock options that were fully vested and 668 stock options that will vest within 60 days of April 22, 2024.
|
(13)
|
Represents 519 shares of common stock, 6,670 stock options that were fully vested and 473 stock options that will vest within 60 days of April 22, 2024.
|
(14)
|
As of April 22, 2024, 6,157 stock options were fully vested and nil stock options will vest within 60 days of April 22, 2024. Also includes 49,912 shares of common stock issuable upon the exercise of warrants which were exercisable beginning on May 7, 2020, and 270,000 shares issuable upon the exercise of warrants which were exercisable beginning September 16, 2020.
|
(15)
|
As of April 22, 2024, 7,119 stock options were fully vested and nil additional stock options will vest within 60 days of April 22, 2024.
|
(16)
|
As of April 22, 2024, 8,217 stock options were fully vested and 105 additional stock options will vest within 60 days of April 22, 2024.
|
(17)
|
Represents 42,768 shares and 7,256 stock options which were fully vested as of April 22, 2024. 105 additional stock options will vest within 60 days of April 22, 2024. Also includes 1,778 shares of common stock issuable upon the exercise of warrants which were exercisable beginning on May 7, 2020. The shares held directly by Aperture Venture Partners II, L.P., or II, Aperture Venture Partners II-A, L.P., or II-A, Aperture Venture Partners II-B, L.P., or II-B and Aperture Venture Partners III, L.P., or Aperture III Fund, are indirectly held by their general partners, Aperture Ventures II Management, LLC, or Aperture Management I, and Aperture Ventures III Management, LLC, or Aperture Management III, and, collectively with Aperture Management II, the Aperture Management and each individual managing directors of Aperture Management, the Managers. The Managers of Aperture Management are Anthony Natale, Eric H. Sillman, Paul E. Tierney, Jr. and Thomas P. Cooper. Each Manager disclaims beneficial ownership of such shares of common stock except to the extent of his pecuniary interest therein. Dr. Natale is a member of the Company's board of directors and a Manager of Aperture Management. Aperture Management and each of the Managers share voting and dispositive power over the ordinary shares directly held by II, II-A, II-B and Aperture III Fund. Each Manager disclaims beneficial ownership of such shares of common stock except to the extent of his pecuniary interest therein. The address for Aperture Venture Partners II, II-A, II-B, Aperture III Fund, the Aperture Management, and each of the Manager is 645 Madison Ave., 20th Floor, NY, NY 10022.
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(18)
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Represents 8,277 shares and 5,125 stock options which were fully vested and nil additional stock options which will vest within 60 days of April 22, 2024.
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(19)
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Represents 19,334 shares and 2,085 stock options which were fully vested and 70 additional stock options which will vest within 60 days of April 22, 2024.
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TABLE OF CONTENTS
TABLE OF CONTENTS
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By Order of the Board of Directors
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Rajiv De Silva
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Chief Executive Officer
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TABLE OF CONTENTS
TABLE OF CONTENTS