Kevin Schmid
About Kevin Schmid
Kevin Schmid is Chief Operating Officer of Modular Medical (since July 21, 2022) with 19+ years in medical device senior management and high-volume global manufacturing. He holds a BSME from Clarkson University and an MBA from Sacred Heart University . Age: 66 (FY2025 10-K), tenure at MODD since July 2022 . MODD is pre-revenue with persistent net losses; TSR has been volatile, and compensation “CAP” is primarily equity-driven rather than tied to financial metrics like TSR or EBITDA .
Company Performance During Tenure
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Net Loss ($USD Millions) | $(13.9) | $(17.5) | $(18.8) |
| TSR – $100 Investment Value | $18.73 | $(9.09) | — |
MODD states substantial doubt about going concern; capital needs remain elevated (offerings in Nov-2024 and Mar-2025) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Insulet Corporation | VP Manufacturing/Operations & Drug Delivery Systems | 2003–2015 | Scaled high-volume operations in insulin delivery; operational leadership |
| Stevanato Group | VP Drug Delivery Systems | 2016–2017 | Advanced drug delivery solutions; pharma packaging/drug delivery exposure |
| Common Sensing, Inc. | CEO & Director | 2018–Jun 2021 | Led dose-monitoring technology; wearable injector ecosystem |
| MODD (consultant) | Consultant | Mar 2022–Jul 2022 | Pre-COO advisory before appointment |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Eitan Medical | Board Member | 2018–2022 | Connected infusion/wearable drug delivery solutions |
Fixed Compensation
| Component | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | $176,121 | $250,000 | $300,000 |
| Target Bonus (%) | Up to 50% of base | Up to 50% of base | Up to 50% of base |
| Actual Cash Bonus ($) | Not disclosed | Not disclosed | Not disclosed |
- Compensation Committee used SDHRC benchmarking and raised Schmid’s annual salary from $250,000 to $300,000 effective April 1, 2024 .
- Offer Letter: Annual base salary $250,000 and discretionary target bonus up to 50% of base .
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| FDA 510(k) submission milestone (Two-Part FDA program) | Not disclosed | Submit 510(k) | Submission achieved Jan 19, 2024 | 37,538 options at $1.11 vested | Immediate on submission (vested 1/19/2024) |
| FDA clearance milestone (Two-Part FDA program) | Not disclosed | Clearance by deadline | Not achieved by Aug 1, 2024 (programmatic tranche terminated) | Not applicable | Tranche terminated under program terms |
MODD’s Two-Part FDA Submission and Clearance Milestone Bonus Program governed these awards; submission tranche vested, clearance tranche (company-wide program) did not vest by deadline and was terminated per proxy footnotes/exhibit references .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial shares owned | 0 (direct/indirect) as of record date |
| Options/warrants exercisable within 60 days | 276,121 shares |
| Ownership % of shares outstanding | <1% of 40,665,220 shares |
| Stock ownership guidelines | Not disclosed |
| Hedging/pledging | Officers/directors prohibited from short sales; pledging not disclosed |
Outstanding & Historical Equity Awards (as of Mar 31, 2024)
| Grant Date | Shares | Status (Exercisable/Unexercisable) | Strike ($) | Expiration | Vesting Schedule | Notes |
|---|---|---|---|---|---|---|
| 7/21/2022 | 175,000 | 97,222 / 77,778 | 4.24 | 7/21/2032 | 1/3 at 1-year; monthly thereafter | Initial COO grant |
| 4/3/2023 | 100,000 | — / 100,000 | 1.50 | 4/3/2033 | 33,333 at 1-year; monthly thereafter | Ongoing vesting |
| 10/2/2023 | 37,538 | 37,538 / — | 1.11 | 10/2/2033 | Vested on 510(k) submission (1/19/2024) | Submission milestone |
| 10/2/2023 | 18,769 | — / 18,769 | 1.11 | 10/2/2033 | Not disclosed (clearance-linked program) | Company program clearance tranche terminated Aug 2024; exec-specific termination not explicitly stated |
Employment Terms
- Offer Letter terms: Severance of six months’ base salary and six months COBRA premium reimbursement upon termination by MODD without Cause or by Schmid other than for Good Reason (definitions per offer letter; COBRA reimbursement ends upon coverage from new employer) .
- Change-of-control economics: Not disclosed for Schmid (DiPerna has separate terms; not applicable here) .
- Clawback: Company has a Compensation Recovery Policy (Exhibit 97.1) .
- Non-compete / non-solicit / garden leave: Not disclosed.
Compensation Structure Analysis
- Shift to higher fixed cash: Base salary increased to $300,000 in FY2025 vs $250,000 FY2024 and $176,121 FY2023; option grant values declined from $701,945 (FY2023) to $160,510 (FY2024) to $100,967 (FY2025), suggesting lower equity intensity post-2023 while still relying on equity awards .
- Performance linkage: Awards tied to regulatory milestones (510(k) submission and clearance), aligning with execution on the MODD1 pump rather than financial KPIs (TSR not used for payout) .
- Guaranteed vs at-risk pay: Bonus remains discretionary and performance-based up to 50% of base; no disclosed cash bonuses paid, indicating at-risk equity over guaranteed cash beyond salary .
Vesting Schedules and Insider Selling Pressure
- Continuous monthly vesting from large option grants (175,000 and 100,000) creates a steady stream of potentially saleable shares upon vesting, which can contribute to supply even absent active selling; exercisability within 60 days totaled 276,121 shares at the record date .
- Clearance-linked tranche in the company program terminated in Aug-2024, reducing potential vesting supply from that tranche .
Performance & Track Record
- Regulatory execution: Achieved 510(k) submission milestone triggering option vesting (Jan 19, 2024) .
- Company outcomes: Pre-revenue status persists; net losses widened in FY2025 vs FY2024, reflecting continued R&D and commercialization investment .
- TSR: Volatile; pay-versus-performance indicates CAP not directly correlated with TSR, and MODD emphasizes non-financial performance measures for exec alignment .
Investment Implications
- Alignment: Equity awards tied to regulatory milestones align COO incentives with core value inflection (FDA progress), but absence of financial KPIs (revenue/EBITDA) means pay-for-performance is operational rather than financial; ownership <1% limits “skin-in-the-game” magnitude .
- Retention: Severance is modest (six months), and ongoing monthly vesting provides retention, but if value realization is delayed, retention risk could rise; salary benchmarking in 2024 supports competitiveness .
- Trading signals: Continued monthly vesting and sizable exercisable options imply potential supply; terminated clearance tranche reduces some overhang; monitor Form 4s for actual sales and exercises when available .
- Company risk overlay: Going concern disclosures and capital dependency dominate equity risk; regulatory and commercialization timelines remain key levers for value creation and for Schmid’s milestone-tied comp .