Eos Energy stock falls after Fuzzy Panda issues short report
Pasithea Therapeutics Corp. (NASDAQ:KTTA), a micro-cap biotech company with a market capitalization of $5.35 million, announced Monday that its Board of Directors approved changes to compensation arrangements for executive officers and directors, effective as of October 24. The company’s stock has faced significant headwinds, declining over 80% in the past year, according to InvestingPro data.
According to a statement based on a recent SEC filing, the Board increased the base salary of Chief Executive Officer Dr. Tiago Reis Marques to $533,000 and decreased his target bonus percentage to 55% of annual base salary. The base salary of Chief Financial Officer Daniel Schneiderman was raised to $391,000, with an increase in his target bonus to 40% of annual base salary. These changes are retroactive to January 1, 2025. While the company maintains strong liquidity with a current ratio of 4.97, InvestingPro analysis indicates the company is not currently profitable, with negative EBITDA of $13.09 million in the last twelve months.
The Board also approved new stock option awards under the company’s 2023 Stock Incentive Plan. Dr. Marques received options to purchase 493,341 shares of common stock, and Mr. Schneiderman received options for 317,266 shares. Additional employees were granted options for a total of 352,266 shares. Each option carries an exercise price of $0.715 per share, the closing price on the Nasdaq Capital Market on October 24. The options vest as to 33% after one year from the grant date, with the remainder vesting in equal quarterly installments over the next two years, subject to continued service. All options fully vest upon a change in control, as defined in the plan.
For non-employee directors, annual stock option awards for fiscal year 2025 were granted to Prof. Lawrence Steinman, Dr. Emer Leahy, Simon Dumesnil, and Alfred Novak, each for 42,913 shares at the same exercise price. These options vest in full after one year of continued service or fully vest upon a change in control.
Director cash compensation was also adjusted. The annual retainer for the Chair of the Audit Committee increased by $5,000 to $15,000, effective January 1, 2025. The annual cash compensation for the Chair of the Board was reduced from $100,000 to $35,000, effective October 1, 2025.
Additionally, the consulting agreement with Prof. Steinman was amended to reduce quarterly payments from $25,000 to $1.00, effective October 1, 2025. In recognition, Prof. Steinman was granted a one-time option to purchase 200,000 shares at $0.715 per share, vesting fully after one year or upon a change in control.
All equity awards remain subject to the terms of the company’s incentive plan and applicable agreements.
In other recent news, Pasithea Therapeutics Corp. has announced progress in its Phase 1/1b clinical trial for PAS-004, targeting neurofibromatosis type 1 (NF1). The company reported the successful completion of enrollment and initial dosing for the first cohort of the trial, which involved three adult patients. Following a safety review of data from these patients, the external Safety Review Committee has recommended advancing to the second dose cohort. This decision comes after no dose-limiting toxicities were observed in the initial cohort. The trial is focused on evaluating PAS-004, a next-generation macrocyclic MEK inhibitor, in patients with symptomatic and inoperable, incompletely resected, or recurrent plexiform neurofibromas. These developments mark significant progress in the clinical evaluation of PAS-004 for NF1.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.