Sphere 3D Corp. amends CFO’s employment agreement

Published 28/04/2025, 22:04
Sphere 3D Corp. amends CFO’s employment agreement

Sphere 3D Corp. (NASDAQ:ANY), a company specializing in finance services with a market capitalization of $14.35 million, announced on Monday that it has entered into an amended and restated employment agreement with its Chief Financial Officer, Kurt Kalbfleisch. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.57, indicating solid short-term financial stability. The agreement, effective as of April 22, 2025, revises Kalbfleisch’s terms of employment and compensation.

Kalbfleisch, who also holds the position of Interim Chief Executive Officer, will continue to receive an annual base salary of $336,000. The new agreement stipulates that he may be eligible for an annual discretionary bonus of up to 75% of his base salary, as well as additional restricted stock units based on performance and financial targets set by the Board or the CEO. This compensation package comes as InvestingPro analysis shows the company trading at a modest Price/Book ratio of 0.36, with 17 additional financial insights available to subscribers.

The agreement further provides for health insurance benefits and participation in executive management employee benefit plans. In the event of termination without cause or for good reason, Kalbfleisch is entitled to 18 months of base salary, 50% of his target bonus for 18 months, and 12 months of health and life insurance benefits, with the possibility of extension based on years of service.

Additionally, in case of a termination following a Change of Control as defined in the agreement, Kalbfleisch is required to assist with transitioning his duties for three months if requested by the company.

As part of the new agreement, Kalbfleisch received 1,000,000 restricted stock units valued at $493,000, based on the share price on the grant date. A quarter of these units will vest on June 1, 2025, with the remainder vesting in equal quarterly installments until June 1, 2027. The stock has shown significant volatility, with a notable 24.82% gain over the past week, though it remains below its 52-week high of $1.90. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value assessment.

This information is based on a press release statement and the full text of the amended employment agreement, which was filed with the SEC.

In other recent news, Sphere 3D Corp. reported a reduced net loss for the fiscal year ending December 31, 2024, with a net loss of $9.5 million compared to the previous year’s $23.4 million. The company’s revenue decreased to $16.6 million from $21.9 million in 2023, attributed to phasing out older equipment and selling its Service and Product segment. Sphere 3D has also launched a new Bitcoin mining facility in Iowa, transitioning to a fully owned infrastructure to improve operational efficiency. The company settled litigation with Gryphon Digital Mining without any payments, allowing it to focus on strategic growth. Sphere 3D received a non-compliance notice from Nasdaq for not meeting the minimum bid price requirement, with a 180-day period to rectify the issue. H.C. Wainwright maintained its Buy rating on Sphere 3D, setting a price target of $3.00, citing the company’s vertical integration strategy and cost advantages. The acting CEO, Kurt Kalbfleisch, is expected to enforce strict cost containment measures, reinforcing confidence in the company’s management. Sphere 3D’s recent developments reflect its efforts to enhance shareholder value while adhering to environmental, social, and governance standards.

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