Timothy Henrichs
About Timothy Henrichs
Timothy R. Henrichs, age 52, is Chief Financial Officer of NeurAxis, Inc. (NRXS) since February 5, 2024; he previously served on the board from August 9, 2023 to February 2, 2024 . He holds a bachelor’s in accounting from the University of Notre Dame and is a Certified Public Accountant (inactive in Illinois), with 20+ years of global finance leadership across healthcare, home improvement, retail, software, and education; prior roles include CFO of Renovo Home Partners (2022–2024), EVP/CFO of Follett Corporation (2008–2022), and Global Controller of GE Healthcare Clinical Systems (2005–2008) . Company performance during his tenure shows FY2024 preliminary revenue of ~$2.7M (+11% YoY) and 4Q24 revenue of ~$0.8M (+50% YoY) , while cumulative TSR from IPO to FY2024 declined (initial $100 → $37) and FY2024 net loss was $(8.24)M; the company notes it uses non-financial performance metrics in executive pay rather than TSR .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| NeurAxis, Inc. | Director | Aug 9, 2023 – Feb 2, 2024 | Board service prior to CFO appointment |
| NeurAxis, Inc. | Chief Financial Officer | Feb 5, 2024 – present | Principal financial officer; SOX certifications and controls responsibilities |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Renovo Home Partners | Chief Financial Officer | 2022–2024 | Corporate finance leadership |
| Follett Corporation | EVP & Chief Financial Officer | 2008–2022 | Enterprise CFO across retail/education segments |
| GE Healthcare Clinical Systems | Global Controller | 2005–2008 | Oversaw manufacture/distribution of devices for ultrasound, patient monitoring, anesthesiology |
| Federal Signal Corporation | Leadership positions | Not specified | Finance leadership roles |
| Ernst & Young LLP | Positions | Not specified | Public accounting foundation |
Fixed Compensation
| Metric | FY2024 Actual | Contract Terms (Effective Jan 1, 2025) |
|---|---|---|
| Base salary ($) | $274,077 | $330,000 annual base; ≥3% yearly increase |
| Benefits ($) | $15,561 (medical/dental/vision) | Health coverage continuation via COBRA if severed (18 months) |
Performance Compensation
| Incentive Component | Metric linkage | FY2024 actual | Target / structure | Vesting / payout |
|---|---|---|---|---|
| Annual bonus | Company annual incentive plan; specific metrics not disclosed | $112,239 (earned; paid in 2025) | Target % not disclosed | Cash; payout timing 2025 |
| Stock awards | Hiring grant | 100,000 common stock; grant-date fair value $227,000 | Grant under 2022 Plan; award type “common stock awards” | Vesting schedule not disclosed; plan permits change-in-control acceleration at administrator’s discretion |
Notes
- Company’s “Pay vs Performance” disclosure indicates executive pay is aligned via measures that “tend not to be financial performance measures, such as TSR,” providing context on bonus metric design .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | Less than 1%; table shows “—” shares and “*” less than 1% ownership/voting power |
| Options (exercisable / unexercisable) | None disclosed (Henrichs shows “—” across option table) |
| RSUs/PSUs | 100,000 common stock award as hiring grant; vesting terms not disclosed |
| Pledging / hedging | Prohibited for Covered Persons under Insider Trading Policy; also prohibits short sales, options, hedging, and margin/pledge arrangements |
| 10b5-1 plans | Company policy allows pre-approved plans with cooling-off periods and strict governance; no individual plan for Henrichs disclosed |
| Ownership guidelines | Not disclosed |
Employment Terms
| Term | Provision |
|---|---|
| Agreement date / term | Jan 1, 2025; five-year initial term |
| Base salary | $330,000, with ≥3% annual increase |
| Hiring equity grant | One-time grant of 100,000 common shares |
| Severance – without cause (initial term) | Greater of 1× base salary or 1× prior-year bonus; paid in equal monthly installments over one year |
| Severance – after initial term | “One and times” base salary or 1× prior-year bonus; paid over 12 months (language indicates a higher multiple, but text is as disclosed) |
| COBRA | Company pays monthly COBRA premiums for 18 months post-termination |
| Non-compete / non-solicit | Non-compete and non-solicit protections; 24 months post-separation; broad competitive scope |
| Clawback / forfeiture | 2022 Plan allows forfeiture if restrictive covenants are violated; administrator may impose forfeiture terms in award agreements |
| Change-in-control | 2022 Plan permits administrator to include acceleration of vesting upon change of control; no CFO-specific CIC multiple disclosed |
Company Performance Context (during Henrichs’ period)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Value of initial fixed $100 investment (TSR) | $42 | $37 |
| Net loss ($) | $(14,626,683) | $(8,241,501) |
Additional operating updates:
- Preliminary results: FY2024 revenue ~$2.7M (+11% YoY) and 4Q24 revenue ~$0.8M (+50% YoY); cash balance ~$3.7M at 12/31/24 .
Risk Indicators & Red Flags
- Pledging/hedging: Firm-wide prohibitions on pledging, short sales, options, and hedging for insiders reduce misalignment risks .
- Legal proceedings: No known officer/director legal proceedings disclosed over the past ten years .
- 10b5-1 plans: None disclosed for directors; company has strict plan protocols, preclearance, blackout windows, and event-specific quiet periods—mitigating trading risks .
Investment Implications
- Pay-for-performance alignment: Henrichs’ 2024 compensation mixed cash/equity (salary $274k, bonus $112k, stock $227k) while TSR declined; company indicates use of non-financial metrics (e.g., execution milestones) rather than TSR, suggesting focus on commercialization/reimbursement progress vs near-term market returns .
- Retention and selling pressure: A five-year term, severance protections, and prohibition on pledging/hedging reduce forced-selling risk; lack of option overhang for Henrichs limits incremental selling catalysts, though vesting details for the 100,000-share grant are undisclosed, which obscures timing of potential sellable shares .
- Change-of-control economics: Plan-level CIC acceleration may apply to equity awards at the administrator’s discretion; no executive-specific CIC multiple disclosed for Henrichs—suggesting limited shareholder dilution risk from parachute obligations, but acceleration could pull forward equity .
- Execution signal: FY2024 revenue growth (+11% YoY; +50% in 4Q24) alongside net loss reduction indicates operational progress during Henrichs’ tenure; bonus earned under 2024 AIP supports an internal milestone-driven framework even amid soft TSR, a common dynamic for small-cap medtech scaling reimbursement and launch pipelines .