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Biotech startup Cardax Inc., seeking additional capital as losses mount, has increased the pay of two of its top officers who previously had seen their compensation reduced to minimum wage of $8.50 an hour.
The Honolulu-based company, which is developing a product that would provide many of the anti-inflammatory benefits of steroids, still has no revenue and has accumulated a deficit of $54.8 million since its inception in March 2006, according to a recent filing with the U.S. Securities and Exchange Commission. During the January-March period, the company narrowed its loss to $677,746 from $1.1 million in the year-earlier period after slashing operating expenses 44 percent.
Cardax raised $1.8 million during 2015 and said in its May 13 filing it plans to raise additional capital to carry out its business plan.
On June 1, Cardax said in a separate filing that it had raised $553,000 year to date through May 25 through the sale of company stock and warrants that included participation from President and CEO David G. Watumull.
In yet another filing on June 3, Cardax reported that David M. Watumull, the vice president of operations and the son of the CEO, would receive biweekly compensation equal to $3,269 effective May 30 while Timothy King, the vice president of research, would receive biweekly compensation equal to $1,635.
In March, Cardax furloughed all of its nine employees, including the CEO, and its four independent contractors indefinitely and arranged for its top executives to continue their services for the minimum wage of $8.50 an hour. Cardax has since recalled some of its furloughed employees.
Cardax’s thinly traded stock last traded on June 10 at 6 cents. Its 52-week high was 59 cents on Oct. 1.
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