Intelligent Bio Solutions amends executive contracts and raises salaries

Published 03/07/2025, 21:38
Intelligent Bio Solutions amends executive contracts and raises salaries

Intelligent Bio Solutions Inc. (NASDAQ:INBS), a micro-cap company with a market capitalization of $12.65 million, announced amendments to the employment agreements of its President and Chief Executive Officer, Harry Simeondis, and Chief Financial Officer, Spiro Sakiris, effective Monday. According to InvestingPro data, the company faces significant operational challenges, with an EBITDA of -$9.4 million in the last twelve months. The changes were approved by the company’s Board of Directors following the recommendation of its Compensation Committee, according to a statement based on a recent SEC filing.

The amendments revise the post-employment non-compete obligations for both executives, introducing a tiered structure for the restricted period that ranges from 24 months to one month, depending on enforceability. This comes as InvestingPro analysis shows the company is quickly burning through cash, though it maintains more cash than debt on its balance sheet. The scope of non-compete restrictions has also been expanded to prohibit both direct and indirect involvement with competing entities during the restricted period and within the defined area.

Severance benefits have been enhanced. In the event of a termination without cause, the affected executive will receive a cash payment equal to 100% of the potential bonus, regardless of individual or company performance, payable in line with bonuses to similarly situated employees. Additionally, all outstanding equity awards, including unvested restricted stock, will fully vest immediately upon termination, subject to tax withholdings.

If termination without cause occurs in connection with or after a Change in Control, the executive will be entitled to a cash payment equal to two times the annual base salary and an additional payment equal to 100% of the potential bonus, both subject to tax withholdings. The definition of Change in Control includes the acquisition of more than 20% of the company’s voting stock, certain mergers or consolidations, the sale or disposition of substantially all assets, or changes in the majority of the Board, with exceptions for stock repurchases by the company.

The Board also approved salary increases for both executives. Mr. Simeondis’s annual base salary was raised from AUD$560,000 to AUD$580,000, and Mr. Sakiris’s from AUD$410,000 to AUD$430,000.

These details are based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, Intelligent Bio Solutions Inc. has been actively expanding its fingerprint-based drug screening technology in Scandinavia through a partnership with Spjotgard. This collaboration is facilitating the adoption of the company’s non-invasive drug screening system in countries like Sweden, Norway, and Denmark, with growing interest in Finland. The technology is designed for various sectors, including workplace safety and education, providing results in under ten minutes using fingerprint sweat samples. Meanwhile, in the United States, Intelligent Bio Solutions has deployed over 50 of its drug screening readers through a partnership with SMARTOX, conducting more than 7,000 tests. This deployment spans corrections, drug courts, rehabilitation centers, and other forensic environments. The company is also seeking FDA clearance for its opiate test system for codeine, which would enable expansion into broader U.S. markets, including workplace drug testing. The fingerprint-based system offers an alternative to traditional invasive testing methods and tests for drugs such as opiates, cocaine, methamphetamine, and cannabis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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