Vivos Therapeutics, Inc., a company specializing in medical devices for dental and orthodontic use, announced on Thursday a series of corporate developments, including the introduction of a new equity incentive plan and the amendment of executive employment agreements.
On Monday, Vivos Therapeutics' Board of Directors, advised by the Compensation Committee, approved the 2024 Omnibus Equity Incentive Plan, pending stockholder consent. This plan is set to replace the existing 2019 Stock Option and Stock Issuance Plan.
The new plan, designed to motivate and retain employees, will offer various stock-based awards, including options and restricted stock units. If stockholders greenlight the plan at the 2024 Annual Meeting, it will provide for 1,600,000 shares of common stock for future awards.
Concurrently, the Board authorized contingent stock option grants to certain executives and employees. These grants are contingent upon stockholder approval of the new plan. R. Kirk Huntsman (NYSE:HUN), Chairman and CEO, and Bradford Amman, CFO, are among the recipients, with 315,421 and 149,533 incentive stock options, respectively. The options, priced at $2.62 per share, will vest over three years, provided the new plan is approved.
Moreover, the company disclosed amended and restated employment agreements for Huntsman and Amman, effective January 1, 2025. The agreements include increased base salaries, enhanced incentive bonuses, and potential severance benefits under certain termination conditions. Notably, the agreements incorporate provisions for accelerated vesting of equity awards in the event of a change in control.
The full details of the 2024 Omnibus Plan and the Amended Employment Agreements will be included in Vivos Therapeutics' forthcoming quarterly report. The company's actions reflect its strategy to align the interests of its leadership with those of its shareholders and to ensure the retention and motivation of key personnel. This information is based on the latest SEC filing by Vivos Therapeutics.
In other recent news, Vivos Therapeutics has been experiencing a notable financial uplift, with a 19% increase in total revenue for the second quarter of 2024.
This revenue surge is attributed to heightened sales, diminished discounts for Vivos appliances and guides, and increased revenue from Vivos Integrated Provider (VIP) enrollment and oral appliance arches. Ascendiant Capital, maintaining a Buy rating on Vivos Therapeutics, recently adjusted the shares target to $6.60 from $6.40, based on a Net Present Value analysis, suggesting a substantial 180% upside.
The company also reported significant reductions in both operating loss and net loss, indicating an improved financial position. Moreover, Ascendiant Capital's analysis indicates that the company's revenues are picking up pace, which could act as a near-term catalyst for the stock's performance. This perspective is based on the company's financial analysis and market prospects.
Recent developments also include a strategic marketing and distribution alliance in Colorado, aimed at enhancing product accessibility and reducing dependence on VIP enrollments for revenue. The company also closed a $7.5 million equity growth investment to strengthen its cash position.
InvestingPro Insights
In the context of Vivos Therapeutics' recent corporate developments, real-time data from InvestingPro provides a nuanced view of the company's financial health and market performance. Vivos Therapeutics holds a market capitalization of approximately $9.69 million, which is reflective of its size and scope within the medical device sector. Despite a challenging period, with revenue contracting by 9.24% in the last twelve months as of Q2 2024, the company has demonstrated a quarterly revenue growth of 19.41%, indicating potential for recovery and growth in the near term.
The InvestingPro Tips highlight that while Vivos Therapeutics is trading at a low revenue valuation multiple, suggesting it may be undervalued relative to its sales, the company is also experiencing a rapid cash burn. This could raise concerns about its financial sustainability, especially considering that analysts are not expecting profitability within the year. However, the company's stock has shown significant returns, with a 43.4% increase over the last month, which could make it an attractive option for investors looking for short-term gains.
For those interested in further insights and metrics, InvestingPro offers additional tips that can provide a more comprehensive understanding of Vivos Therapeutics' financial position and market outlook. There are currently 10 more InvestingPro Tips available for Vivos Therapeutics, which can be accessed to help investors make more informed decisions.
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