Tony Isaac
About Tony Isaac
Tony Isaac is President, Corporate Secretary, and a director of ALT5 Sigma Corporation, having served as President since May 2015, CEO from May 2016 to August 2024, and Corporate Secretary since 2021; he has been a director since May 2015 (age 70 as of Oct 21, 2024) . He holds a Commerce/Business Administration and Economics degree from Ottawa University (1981) and previously served as Financial Planning and Strategist/Economist at Live Ventures (Nasdaq: LIVE) and co-founded the Isaac Organization . Under his leadership, ALTS pivoted to fintech via the May 2024 acquisition of ALT5, delivering FY2024 revenue of $12.53m (50% gross margin) and fintech operating income of ~$0.9m, while the company still reported a consolidated net loss and a going concern warning (cash from operations positive) . “Pay vs Performance” disclosure shows cumulative TSR translating a $100 investment to $33.50 in 2022 and $40.88 in 2023, with net income swinging from $10,992k (2022) to a $7,812k loss (2023) as reported .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ALT5 Sigma Corporation | Chief Executive Officer | 2016–Aug 2024 | Led pivot to fintech and name change; oversaw acquisition of ALT5; signed SOX certifications during transition . |
| ALT5 Sigma Corporation | President; Corporate Secretary; Director | 2015–present | Long-tenured leadership and governance; corporate secretary duties since 2021 . |
| Live Ventures Incorporated (Nasdaq: LIVE) | Financial Planning and Strategist/Economist | 2012–present | Strategic finance role at diversified holding company . |
| Isaac Organization | Chairman & Co‑Founder | N/A | Private investment firm co‑founded; background in negotiations/complex transactions . |
External Roles
| Organization | Position | Years | Notes |
|---|---|---|---|
| Live Ventures Incorporated (Nasdaq: LIVE) | Director | 2011–present | Public company directorship . |
| Isaac Organization | Chairman & Co‑Founder | N/A | Private company leadership . |
Fixed Compensation
| Metric | FY 2022 | FY 2023 |
|---|---|---|
| Base Salary ($) | 550,324 | 617,709 |
| Target Bonus (%) | Not disclosed | Not disclosed |
| Actual Bonus Paid ($) | 75,000 | — |
Notes: Summary Compensation Table shows no option awards in 2022–2023 and a $200,000 stock award in 2023 (see Performance Compensation below) .
Performance Compensation
Stock Awards and Special Grants
| Grant/Type | Grant Date | Shares/Value | Vesting | Performance Link |
|---|---|---|---|---|
| Stock Award (SCT value) | 2023 | $200,000 | Not disclosed | Not specified . |
| Common Stock Grant to President | Aug 19, 2024 | 150,000 shares (subject to shareholder ratification) | Not disclosed | Award rationale tied to performance during transition to fintech and planned fintech/biotech separation . |
Option Awards (Outstanding)
| Holder | Exercisable | Unexercisable | Strike ($) | Expiration | Notes |
|---|---|---|---|---|---|
| Tony Isaac | 2,000 | — | 9.90 | 05/18/2025 | Options fully exercisable as of 12/30/2023 . |
Pay vs Performance (select disclosure)
| Year | Compensation Actually Paid to PEO ($) | Value of $100 Investment (TSR) ($) | Company Net Income ($000s) |
|---|---|---|---|
| 2022 | 625,324 | 33.50 | 10,992 |
| 2023 | 617,709 | 40.88 | (7,812) |
Equity Ownership & Alignment
| Date (Record/As‑of) | Common Shares | % of Outstanding | Derivatives/RSUs | Notes |
|---|---|---|---|---|
| Oct 21, 2024 | 246,000 | 1.8% (on 14,019,015 shares) | 2,000 options exercisable within 60 days | Footnote notes ~20,833 vested-but-unissued shares from a 50,000-share grant and 150,000 additional shares awarded but not issued as of record date . |
| Mar 25, 2025 | 246,000 | 1.5% (on 16,370,647 shares plus pending issuances) | 2,000 options exercisable; no RSUs disclosed for Isaac | — |
- Hedging/Pledging policies: Company prohibits hedging by directors and officers . In connection with the Aug 2025 private placement, officers and directors agreed to a lock-up that prohibits, among other actions, pledging or selling 50% of their shares for 90 days after the resale registration statement’s effective date, and the remaining 50% after the later of 90 days post-effective date or stockholder approvals, potentially limiting near-term insider sales/pledging .
- Ownership guidelines: Not disclosed.
Employment Terms
- Employment agreements/severance: No specific individual employment agreement, severance multiple, or non-compete details for Tony Isaac were disclosed in the 2024 proxy or 2024 10-K sections reviewed (not found) .
- Change-of-control (equity): Under the 2024 Equity Incentive Plan, awards fully vest on a change of control if not assumed/substituted; if assumed, unvested awards vest on a “double trigger” (termination other than cause within two years). Performance awards become earned at target upon change of control if not assumed; options/SARs receive special exercisability protections post-termination within two years of a change of control .
- Clawback: No explicit clawback policy disclosure identified in the reviewed sections (not found) .
Performance & Track Record
- Strategic pivot and results: ALTS acquired ALT5 in May 2024 and rebranded; FY2024 revenue was $12,532k (100% from fintech), gross margin 50.2%, with fintech segment operating income of ~$905k; consolidated net loss was $(6,245)k with a going concern emphasis in the auditor’s report; cash from operations was $1,777k .
- Governance events: On Oct 16, 2025, the Board suspended the then-CEO (Peter Tassiopoulos) with pay and appointed CFO Jonathan Hugh as Acting CEO, reflecting management turnover risk .
- TSR context: $100 investment equivalent was $33.50 (2022) and $40.88 (2023) in the company’s Pay vs Performance disclosure, indicating challenged shareholder returns over that period .
Company Financials (context for pay-for-performance)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenues ($000s) | — | 12,532 |
| Gross Profit ($000s) | (197) (discontinued ops context) | 6,294 |
| Net Income (Loss) – Continuing ($000s) | (17,095) | (6,245) |
| Cash from Operations ($000s) | 1,463 | 1,777 |
Compensation Committee & Governance
- Committee composition/independence: Compensation Committee comprised independent directors (e.g., Hajjar and Butler (Chair) in fiscal 2023); no compensation consultant used in 2023 .
- Equity plan: 2024 Equity Incentive Plan authorized 2.8 million shares with standard award types and director grant limits; includes change-of-control provisions summarized above .
Related Party Transactions (Governance red flags)
- Shared services and rent with Live Ventures (where Isaac and Butler sit on the board): shared services totaled ~$203k (2023) and ~$314k (2022); Connexx leased ~9,900 sq ft from Live Ventures, with rent and common area expenses of ~$103k (2023) and ~$215k (2022); note: lease ceased in Aug 2023 due to recycling wind-down .
- Sale of Recycling Subsidiaries to CFO’s entity (VM7): Board approved sale on Mar 9, 2023; company later impaired ~$5.3m carrying value as operations ceased; also ICG Note (affiliated with Jon Isaac, Tony’s son) resulted in a recorded liability of ~$706k as of Dec 30, 2023; ARCA Purchasing Agreement with Live Ventures showed ~$692k due as of Dec 30, 2023 .
Vesting Schedules and Insider Selling Pressure
- Options: Isaac’s 2,000-share option was already exercisable as of Dec 30, 2023, expiring 05/18/2025 .
- Equity lock-up: Officers and directors agreed to lock-up post-Aug 2025 private placement prohibiting sales/pledges for specified periods (50% for 90 days after the resale registration effective date; remaining 50% after additional 90 days/approvals), which moderates near-term selling pressure but could create overhang when restrictions lapse .
- Hedging: Prohibited for directors/officers, reducing misalignment risk from derivative hedges .
Equity Ownership Detail (Vested vs Unvested)
| Component | Amount |
|---|---|
| Shares beneficially owned (Oct 21, 2024) | 246,000 |
| Options – exercisable (as of 12/30/2023) | 2,000 at $9.90 (exp. 05/18/2025) |
| RSUs/unvested shares | Not disclosed for Isaac; footnote references vested-but-unissued ~20,833 shares from a 50,000-share grant and a separate 150,000-share President award pending issuance as of the 2024 record date . |
| Shares pledged | None disclosed; lock-up prohibits pledging for specified periods . |
Employment Terms (Severance/CIC)
- Change-of-control equity acceleration under the 2024 Plan: single-trigger vesting if awards not assumed; otherwise double-trigger vesting upon qualifying termination within two years; performance awards earned at target upon non-assumption .
- Cash severance multiples, non-compete, non-solicit, garden leave, post-termination consulting: not disclosed in the reviewed filings .
Investment Implications
- Alignment: Isaac’s direct ownership (1.5%–1.8% across the dates shown) and prohibition on hedging support alignment, though a significant portion of historical compensation included salary and special equity awards not explicitly formulaic to financial metrics .
- Retention/selling pressure: The Aug 2025 lock-up reduces near-term insider supply; watch for selling windows after staged lock-up expiries (90 days post-effective date and after subsequent approvals) as potential technical overhang .
- Pay-for-performance: 2023 included a $200k stock award and 2024 a 150,000-share grant to the President tied to strategic transition rather than explicit financial targets; TSR and net losses point to investor scrutiny risk on say-on-pay (no historical say‑on‑pay results disclosed in the reviewed sections) .
- Governance risk: Multiple related-party transactions (Live Ventures shared services/rent; ICG note; recycling sale to CFO’s VM7 with subsequent impairment) elevate governance risk and potential investor concern .
- Fundamental risk: FY2024 going concern emphasis, net loss, and reliance on financing underscore execution risk despite fintech revenue traction and positive operating cash flow; monitor margin sustainability and capital structure developments .
All facts and figures are sourced from the cited SEC filings and company documents.