Catheter Precision, Inc. (NYSE American:VTAK), a medical device company with a market capitalization of $4.5 million, announced the appointment of Philip Anderson as its new Chief Financial Officer, effective Monday.
The company, which maintains impressive gross profit margins of over 90%, has been facing financial headwinds with its stock down 86% over the past year.
The announcement, made public in a recent SEC Form 8-K filing, also details the departure of interim CFO Margrit Thomassen, who will continue with the company as Controller.
According to InvestingPro analysis, the company faces significant financial challenges, with short-term obligations exceeding liquid assets and a current ratio of 0.66. InvestingPro subscribers have access to 14 additional key insights about VTAK's financial health.
Anderson, who holds a Bachelor of Arts in Business Management and an MBA with a concentration in Finance, brings a wealth of experience to the role. He was previously CFO of Heritage Distilling Corporation and Crown Electrokinetics Corp., and served as CFO of Kubient, Inc., a digital advertising market fraud prevention solutions provider.
The board of directors confirmed Anderson's appointment on January 4, 2025, and he will assume his responsibilities as CFO today. Alongside his role as CFO, Anderson has also been designated as the Principal Financial (NASDAQ:PFG) Officer and Principal Accounting Officer for SEC reporting purposes.
In his new position, Anderson will receive an annual base salary of $200,000, a one-time non-plan stock option grant to purchase 500,000 shares of common stock, and eligibility for a discretionary annual bonus determined by the Compensation Committee.
The appointment comes as the company reports an EBITDA of -$8.69 million in the last twelve months. InvestingPro data shows the company operates with a moderate debt level, while analysts maintain a buy recommendation with a $2 price target.
The stock options will vest monthly over three years, with an exercise price of $0.53 per share and a term of 10 years. Additionally, Anderson will be eligible for other benefits and equity grants under the company's 2023 Equity Incentive Plan.
The company disclosed no familial relationships between Anderson and any of the company's directors or executive officers, nor any relationships that would require disclosure under SEC regulations.
This leadership change comes as Catheter Precision continues to navigate the medical device industry, with the company's stock traded on the NYSE American exchange under the ticker VTAK. The information for this article is based on a press release statement filed with the SEC.
In other recent news, Catheter Precision has been making significant financial changes. The medical device company has revised the terms of its outstanding short-term promissory notes, extending the maturity date from August 2024 to January 2026 and increasing the interest rate to 12% after August 2024.
Additionally, Catheter Precision has restructured its stock, converting its Series A Convertible Preferred Stock into common stock, resulting in the issuance of 25,000 shares of common stock.
In a further development, the company announced a reverse stock split of its common stock at a 1-for-10 ratio, reducing the number of outstanding shares to approximately 901,251. Catheter Precision also added two million shares to its 2023 Equity Incentive Plan, with the goal of incentivizing key personnel.
Among recent developments, the company has also entered into a waiver agreement with the Jenkins Family Charitable Institute, allowing the institute to exceed previously set ownership limits. This resulted in the institute acquiring an additional 235,000 shares of Catheter Precision common stock, resulting in a total beneficial ownership of 6.32%. This transaction involved a waiver of the beneficial ownership limitation clause that initially capped the institute's ownership at 9.99%.
Lastly, the appointment of WithumSmith+Brown, PC as the company’s independent registered public accounting firm was ratified, and directors James Caruso and Andrew Arno were re-elected for three-year terms. These developments reflect the active participation of the shareholders, with approximately 57.50% of the outstanding shares represented at the annual meeting.
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