CHICAGO, IL – Tempus AI, Inc. (NASDAQ:TEM), a company specializing in computer programming and data processing, announced on Thursday that its Chief Executive Officer, Eric Lefkofsky, has elected to defer the settlement of approximately 4.47 million restricted stock units (RSUs). The decision was made by the Compensation Committee of the Board of Directors on Wednesday.
The RSUs in question were vested as part of the company's initial public offering or are scheduled to vest during the IPO lock-up period, which is set to expire on December 10, 2024. The settlement of these shares has now been postponed to a period starting January 15, 2025, and ending no later than March 15, 2025.
During this Deferred Settlement Period, it is anticipated that Tempus AI will undertake mandatory sell-to-cover transactions to fulfill tax withholding and remittance obligations associated with the RSU settlements. The company estimates that approximately 1.92 million shares of Class A common stock will be sold, assuming a 42% tax rate, to cover these obligations.
This move comes as Tempus AI continues to navigate the post-IPO landscape, adhering to regulatory requirements and managing compensation structures for its executives. The company, incorporated in Delaware and headquartered in Chicago, has been recognized for its contributions to the tech industry, particularly in the realm of artificial intelligence.
The information provided in this article is based on a press release statement and reflects the latest developments concerning Tempus AI's financial and executive compensation strategies as filed with the Securities and Exchange Commission.
In other recent news, Tempus AI has made a substantial investment of $36 million in Personalis (NASDAQ:PSNL), Inc., acquiring shares and exercising warrants to secure additional stock. This move is part of Tempus AI's strategic business decisions within the technology sector.
In addition to this, Tempus AI and Personalis have amended their existing Commercialization Agreement, extending the notice period for termination for convenience to 30 months and enhancing commitments related to maintaining laboratory capacity for new patients under certain conditions.
On the analyst front, Tempus AI has been the focus of several financial firms. Piper Sandler initiated coverage with a Neutral rating, emphasizing the need for Tempus AI to increase its revenue in the AI segment for future rating adjustments.
BofA Securities, on the other hand, initiated coverage with a Buy rating, recognizing Tempus AI's integration of artificial intelligence with healthcare and diagnostics and its substantial market opportunity. Loop Capital also assigned a Buy rating to the company, forecasting a 37% growth to $982 million in 2025.
These are some of the recent developments surrounding Tempus AI. The company's Tempus ECG-AF device, using artificial intelligence to identify patients at higher risk of atrial fibrillation/flutter, also received FDA clearance, marking a significant advancement in the field of cardiovascular machine learning-based notification software.
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