SAN DIEGO, CA – Modular Medical, Inc. (NASDAQ:MODD) has recently reported changes in executive compensation and option grants, as detailed in a Form 8-K filed with the Securities and Exchange Commission on August 27, 2024. The company, which operates in the surgical and medical instruments sector, has undergone adjustments to its executive bonus program following the non-achievement of a significant regulatory milestone.
The company had established a Two-Part FDA Submission and Clearance Milestone Bonus Program aimed at incentivizing the successful completion and FDA clearance of its initial insulin pump product, MODD-1. However, with the failure to receive FDA clearance by the set deadline of August 1, 2024, the Milestone 2 options granted under this program were canceled on August 2, 2024.
In light of this, on August 22, 2024, the Board of Directors granted new stock options to certain executive officers. Paul DiPerna, Chairman, President, Chief Financial Officer, and Treasurer, received options to purchase 58,560 shares, and Kevin Schmid, Chief Operating Officer, was granted options for 24,400 shares.
These options, issued under the company's Amended 2017 Equity Incentive Plan, have an exercise price of $1.71 per share, the closing price of Modular Medical's common stock on the day of the grant.
The options are set to vest contingent upon receiving FDA clearance for MODD-1 by December 31, 2024. If clearance is not achieved by this date, the options will expire unvested on January 1, 2025.
Additionally, the Board approved new options for non-executive employees to purchase an aggregate of 256,338 shares, with similar vesting conditions based on the FDA clearance outcome.
The adjustments to the company's compensatory arrangements reflect its commitment to aligning executive and employee incentives with regulatory and business milestones. Modular Medical, originally known as Bear Lake Recreation Inc., is headquartered in San Diego, California, and is incorporated in Nevada. The information disclosed is based on the company's latest SEC filing.
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