In a recent annual meeting held on August 15, 2024, Neuraxis, Inc., a Delaware-incorporated electromedical and electrotherapeutic apparatus company, presented several key proposals to its stockholders for voting. The meeting, which took place at the company's headquarters in Carmel, Indiana, saw the participation of approximately 65.61% of the outstanding votes, ensuring a quorum for the proceedings.
The agenda included the election of directors, with all five nominees securing their positions for a one-year term. The appointed directors are Brian Carrico, Dr. Christopher R Brown, Bradley Mitch Watkins, Beth Keyser, and Kristen Ferge, with the majority of votes cast in favor of their election.
Moreover, the stockholders ratified the appointment of Rosenberg Rich Baker Berman, P.A. as Neuraxis's independent registered public accounting firm for the fiscal year ending December 31, 2024. The approval was nearly unanimous, with just a few votes against and abstentions.
The company also sought approval to amend the Neuraxis, Inc. 2022 Omnibus Securities and Incentive Plan, which was met with stockholder approval. The specifics of the amendment are detailed in the attached Exhibit 10.1 of the SEC filing.
Another significant proposal that received approval was the amendment of the Company’s Certificate of Incorporation to authorize "blank check" preferred stock. The amendment, as described in Exhibit 3.1, was passed with the majority of votes in favor.
The issuance of 20% or more of the company's outstanding Common Stock upon the conversion of Series B Convertible Preferred Stock or certain convertible promissory notes was also approved. This move is detailed in Exhibit 3.2, which outlines the Certificate of Designation of Series B Convertible Preferred.
In a non-binding advisory vote, stockholders approved the compensation of the company's named executive officers as disclosed in the proxy statement. The proposal to select the frequency of holding the stockholder advisory vote on the company's executive compensation once every three years was favored over annual or biennial votes.
Lastly, the proposal for the adjournment of the Annual Meeting, if necessary, was approved with a significant majority.
This report is based on a press release statement and provides a summary of the key outcomes from Neuraxis, Inc.'s recent annual meeting as disclosed in their SEC filing.
In other recent news, Neuraxis, Inc. has issued stock awards to its three non-employee directors as part of its compensation program, according to a recent filing with the Securities and Exchange Commission.
These shares, issued as unrestricted stock awards, are the first to be distributed under the company's 2022 Omnibus Securities and Incentive Plan following Neuraxis's initial public offering in August 2023. Each director's compensation, valued at $12,500 per quarter for a total of $50,000 annually, is determined by the closing price of Neuraxis stock.
This move is part of a broader strategy to incentivize and compensate the board for their contributions to the company. The unrestricted stock award agreements, executed recently, outline the terms of the stock grants. This initiative aligns with Neuraxis's commitment to align the interests of its directors with those of the shareholders and to attract and retain experienced professionals on its board.
In these recent developments, the company's financial and corporate governance details are available in the SEC filing, which provides transparency about the compensatory arrangements for its non-employee directors.
InvestingPro Insights
As Neuraxis, Inc. navigates through its corporate strategies and stockholder decisions, it's important to consider the company's financial health and market performance. According to InvestingPro data, Neuraxis currently holds a market capitalization of approximately $21.76 million. Despite challenges, the company boasts an impressive gross profit margin of 87.29% over the last twelve months as of Q2 2024. However, it's worth noting that the company's revenue has seen a decline of 15.5% during the same period.
InvestingPro Tips highlight that while analysts expect sales growth in the current year, they do not anticipate Neuraxis will become profitable within this timeframe. Moreover, the company's short-term obligations exceeding its liquid assets and a rapid cash burn rate are concerns that investors may want to monitor closely. For those looking for dividend income, it's important to note that Neuraxis does not pay dividends to shareholders.
For a deeper dive into Neuraxis's financials and to access a comprehensive list of InvestingPro Tips, visit https://www.investing.com/pro/NRXS. There are 6 additional InvestingPro Tips available, providing valuable insights for potential and current investors.
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