Cingulate Inc. (NASDAQ:CING), a micro-cap pharmaceutical company with a market value of $16.4 million specializing in the development of central nervous system (CNS) therapeutics, has announced changes to its executive compensation structure. The company's stock has seen a dramatic decline of over 90% in the past year, though it has shown signs of recovery with a 15% gain over the last six months.
The Compensation Committee of the Board of Directors approved an amendment to the employment agreement of Executive Vice President and Chief Medical (TASE:PMCN) Officer, Matthew N. Brams, on January 17, 2025.
According to the amendment, which took effect on January 1, 2025, Dr. Brams will receive an annual base salary of $165,000. The new arrangement discontinues his entitlement to quarterly equity grants; however, he remains eligible for annual equity grants, the specifics of which will be determined by the Compensation Committee.
This amendment aligns with Cingulate's ongoing efforts to streamline its compensation strategy while maintaining a competitive structure to attract and retain top talent in the pharmaceutical industry.
According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 7.35, though it faces challenges with rapid cash burn and negative EBITDA of -$15.6 million in the last twelve months. Cingulate Inc., headquartered in Kansas City, KS, operates under the organization name 03 Life Sciences.
The details of the amendment are outlined in a document filed with the Securities and Exchange Commission (SEC) and included as Exhibit 10.1 in the company's latest Form 8-K filing. The information reported is based on the press release statement provided by Cingulate Inc. The company, which is classified under the pharmaceutical preparations industry, trades its common stock and warrants on The Nasdaq Stock Market under the symbols CING and CINGW, respectively.
In other recent news, Cingulate, a pharmaceutical company, has been rated a Buy by Roth/MKM, which anticipates a potential of $1.6 billion in sales. The rating was based on a Discounted Cash Flow (DCF) analysis and promising Phase 3 data of Cingulate's CTx-1301, a treatment for Attention Deficit Hyperactivity Disorder (ADHD). The United States Target (NYSE:TGT) Addressable Market (TAM) for ADHD is estimated to be around 17 million individuals, providing a significant market for CTx-1301.
The company's current financial position, with a pro forma cash balance of approximately $15 million, is expected to sustain the company into the third quarter of 2025. The financial health of Cingulate is further underscored by a strong current ratio of 7.35 and more cash than debt on its balance sheet.
Furthermore, Cingulate has increased its At The Market (ATM) offering price from $15.2 million to $23.5 million, sold shares totaling approximately $11.3 million, and raised approximately $11.7 million in capital. These financial maneuvers are part of the company's ongoing efforts to support its operations and development projects.
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