axgn-20221231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________

Form 10-K/A

Amendment No. 1

___________________________________________________________________________

(Mark One)


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to______________

Commission File Number: 001-36046

AXOGEN, INC.

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of

incorporation or organization)

13631 Progress Blvd., Suite 400 Alachua, FL

(Address of principal executive offices)

41-1301878

(I.R.S. Employer

Identification No.)

32615

(Zip Code)

Registrant’s telephone number, including area code: (386) 462-6800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common Stock, $0.01 par value

AXGN

The Nasdaq Stock Market

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Non-accelerated filer ☐

Accelerated filer x

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


		Page









PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	5









PART III

Item 10.	Directors, Executive Officers and Corporate Governance	7
Item 11.	Executive Compensation	12
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	37
Item 13.	Certain Relationships and Related Transactions, and Director Independence	38
Item 14.	Principal Accountant Fees and Services	39

PART IV

Item 15.	Exhibits and Financial Statement Schedules	40


	Signatures	41



Karen Zaderej			Chief Executive Officer and President
Peter Mariani			Executive Vice President and Chief Financial Officer
Michael Donovan			Vice President of Operations
Bradley Ottinger			General Counsel and Chief Compliance Officer
Angelo Scopelianos Ph.D.			Chief Research and Development Officer
Eric Sandberg (1)			Former Chief Commercial Officer



Base Salary			Base salaries are set to be competitive within our industry and are important in attracting and retaining talented executives. Base salaries are fixed pay set with consideration for responsibilities, market data and individual contribution.
Annual Cash Incentives			The annual cash incentive award plan is intended to motivate and reward our executives for the achievement of certain strategic goals of the Company. In 2022, our annual incentives were based on key corporate objectives, including revenue and certain other operational goals.
Long-Term Equity Incentives			Long-term equity awards incentivize executives to deliver long-term shareholder value, while also providing a retention vehicle for our top executive talent. Equity awards are typically delivered as: a.PSUs b.RSUs c.Stock options



What We Do
✔ Pay-for-performance philosophy and culture			✔ Engage an independent compensation consultant
✔ Provide an appropriate mix of performance-based and time-vesting awards to executives			✔ Appropriate stock ownership requirements for all executives and non-executive directors
✔ Strong emphasis on performance-based incentive awards			✔ Perform an annual risk assessment of our compensation program
✔ Responsible use of shares under our long-term incentive program			✔ Annual say on pay vote
What We Don’t Do
X Hedging or pledging of Company securities			X Excessive perquisites
X Excise tax gross-ups			X Backdating or repricing of stock option awards
X No single trigger change of control cash payments			X No guaranteed minimum bonuses or uncapped incentives under our annual cash incentive plan
X No non-qualified defined contribution or other deferred compensation plan			X No changes to PSU targets subsequent to grant date
X Have not changed annual incentive bonus plan targets, other than 2020 COVID-related changes.


Alphatec	Flexion Therapeutics	SI-Bone
AtriCure	Glaukos	STAAR Surgical
Bioventus	Intersect ENT	Tactile Systems Technology
Cardiovascular Systems	iRhythm Technologies	Treace Medical Concepts
CryoLife	Luminex	Vericel
Cutera	SeaSpine	Zynex



Executive	2021 Base Salary ($)	2022 Base Salary ($)	% Change
Karen Zaderej	651,200	673,992	3.5	%
Peter Mariani	443,080	457,259	3.2	%
Michael Donovan	336,735	349,194	3.7	%
Bradley Ottinger	376,000	389,534	3.6	%
Angelo Scopelianos Ph.D.	395,000	406,850	3.0	%
Eric Sandberg (1)	364,000	367,640	1.0	%


Metrics	Minimum threshold	Minimum % of Target Bonus	Target threshold	Target % of Bonus	Maximum threshold	Maximum % of Target Bonus	Performance Achieved	Earned % of Target Bonus
Revenues (1)	$140M; 14% growth	35%	$150M; 22% growth	70%	$167M 35% growth	140%	$138.6M; 12.4% growth	—%
Certain Clinical Data Milestone Target Achievement	(2)	7.5%	(2)	15%	(2)	30%	(2)	14%
A Specific New Product Innovation Milestone Achievement	(3)	5%	(3)	10%	(3)	20%	(3)	—%
Product and Quality Systems Management Goal Achievement	(4)	2.5%	(4)	5%	(4)	10%	(4)	10%
Total		50%		100%		200%		24.0%


Executive	Salary ($)	Target Bonus %	Target Bonus 2022 ($)	2022 Actual Bonus Paid ($)
Karen Zaderej	673,992	100%	673,992	161,998
Peter Mariani	457,259	55%	251,492	60,438
Michael Donovan	349,194	50%	174,597	42,022
Bradley Ottinger	389,534	50%	194,767	46,792
Angelo Scopelianos, Ph.D.	406,850	50%	203,425	48,878
Eric Sandberg (1)	367,640	50%	183,820	—


Executive	PSUs (#)	RSUs (#)	Stock Options (#)
Karen Zaderej	89,467	169,694	317,185
Peter Mariani	60,000	76,780	103,079
Michael Donovan	25,000	42,563	39,700
Bradley Ottinger	25,000	44,973	41,948
Angelo Scopelianos Ph.D.	25,000	37,250	34,745
Eric Sandberg (1)	40,000	62,910	60,576
(1) Upon Mr. Sandberg's separation from the Company in July 2022, these awards were forfeited.


Position			Requirement
Chief Executive Officer			3x base salary
Executive Officers other than CEO			1x base salary
All other Section 16(b) Reporting Officers			1x base salary


Grant Date Fair Value of PSU
	Target Value ($)	Maximum Value ($)
Karen Zaderej	733,629	1,100,444
Peter Mariani	492,000	738,000
Michael Donovan	205,000	307,500
Bradley Ottinger	205,000	307,500
Angelo Scopelianos, Ph.D.	205,000	307,500
Eric Sandberg	328,000	820,000


	Option Awards				Stock Awards
Name	Number of Securities Underlying Unexercised Options (#) Exercisable(1)	Number of securities Underlying Unexercised Options (#) Unexercisable (1)	Option Exercise Price ($)	Option Expiration Date		Number of Shares or Units of Stock That Have Not Vested (#)(2)	Market Value of Shares of Units of Stock That Have Not Vested ($)(3)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(2)	Equity Incentive Plan Awards: Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(3)
Karen Zaderej
12/29/2016	157,125	—	8.95	12/29/2026		—	—	—	—
12/18/2017	75,000	—	27.00	12/28/2027		—	—	—	—
12/27/2018	59,700	—	19.17	12/27/2028		—	—	—	—
3/16/2020	50,125	30,075	8.61	3/16/2030		25,950	258,981	—	—
7/17/2020	—	—	—	—		—	—	20,033	199,929
3/16/2021	—	76,600	20.91	3/16/2031		50,000	499,000	110,500	1,102,790
3/16/2022(4)	—	317,185	10.25	3/16/2032		169,694	1,693,546	89,467	892,881
Peter Mariani
3/1/2016 (5)	125,636	—	5.04	3/01/2023		—	—	—	—
12/29/2016	110,000	—	8.95	12/29/2026		—	—	—	—
12/18/2017	45,000	—	27.00	12/18/2027		—	—	—	—
12/27/2018	41,800	—	19.17	12/27/2028		—	—	—	—
03/16/2020	26,875	16,125	8.61	3/16/2030		11,000	109,780	—	—
07/17/2020	—	—	—	—		—	—	3,366	33,593
03/16/2021	—	61,000	20.91	3/16/2031		30,500	304,390	30,500	304,390
3/16/2022(4)	—	103,079	10.25	3/16/2032



Name and Principal Position	Year	Salary($)(1)	Bonus ($)	Stock Awards($)(2)	Option Awards($)(3)	Non-Equity Incentive Plan Compensation ($)(4)	All Other Compensation ($)(5)	Total ($)
Karen Zaderej (6)	2022	673,992	—	2,125,120	1,420,989	161,998	16,193	4,398,292
President, CEO	2021	651,200	—	3,356,055	847,962	499,347	6,011	5,360,575
	2020	560,835	—	2,161,653	351,276	966,971	10,747	4,051,482
Peter Mariani (6)	2022	457,259	—	1,121,596	461,794	60,438	14,801	2,115,888
Executive Vice President , CFO	2021	438,257	—	1,275,510	675,270	186,850	71,296	2,647,183
	2020	361,800	—	502,623	188,623	434,032	—	1,487,078
Michael Donovan (7)	2022	349,194	—	510,450	159,132	42,022	14,802	1,075,600
Vice President of Operations	2021	—	—	—	—	—	—	—
	2020	—	—	—	—	—	—	—
Bradley Ottinger	2022	389,534	—	573,779	192,122	46,792	13,592	1,215,819
General Counsel and Chief Compliance Officer	2021	375,998	—	654,274	260,145	144,164	88,509	1,523,090
	2020	332,550	25,000	442,260	318,920	150,244	35,852	1,304,826
Angelo Scopelianos, Ph.D	2022	406,850	—	554,017	181,826	48,878	85,184	1,267,797
Chief Research and	2021	394,659	—	591,753	376,380	151,422	67,913	1,582,127
Development Officer	2020	332,550	—	398,265	105,120	286,685	76,259	1,198,879
Eric Sandberg (6)(8)	2022	214,928	—	843,862	271,380	—	581,901	1,912,071
Former Chief Commercial	2021	364,000	—	740,214	260,145	153,400	11,600	1,529,359
Officer	2020	315,000	—	482,273	105,120	298,000	92,964	1,293,357


Name	401(k) Company Match ($)	Life Insurance Premiums ($)	Relocation and Related Tax Assistance ($)	Severance ($) (8)	Total ($)
Karen. Zaderej	12,200	3,993	—	—	16,193
Peter Mariani	12,200	2,601	—	—	14,801
Michael Donovan	12,200	2,602	—	—	14,802
Bradley Ottinger	12,200	1,392	—	—	13,592
Angelo Scopelianos, Ph.D.	12,200	7,984	65,000	—	85,184
Eric Sandberg	8,484	1,452	—	571,965	581,901


Name	Grant Date	Estimated Future Payouts Under Non-Equity Incentive Plan Awards			Estimated Future Payouts Under Equity Incentive Plan Awards			All Other Stock Awards: Number of Shares of Stock or Units	Exercise or Base Price of Option Awards ($/Sh)	Grant Date Fair Value of Stock and Option Awards ($)(1)
		Threshold ($)	Target ($)	Maximum ($)	Threshold (#)	Target (#)	Maximum (#)
Karen Zaderej
PSU	3/16/2022	—	—	—	—	89,467	134,200	—	8.20	733,629

RSU	3/16/2022	—	—	—	—	—	—	169,694	8.20	1,391,491
Options (2)	3/16/2022	—	—	—	—	—	—	317,185	10.25	1,420,989
Non Equity Incentive Plan Award		—	673,992	1,347,984	—	—	—	—	—	—
Peter Mariani
PSU	3/16/2022	—	—	—	—	60,000	90,000	—	8.20	492,000

RSU	3/16/2022	—	—	—	—	—	—	76,780	8.20	629,596
Options (2)	3/16/2022	—	—	—	—	—	—	103,079	10.25	461,794
Non Equity Incentive Plan Award		—	251,492	502,984	—	—	—	—	—	—
Michael Donovan
PSU	3/16/2022	—	—	—	—	25,000	37,500	—	8.20	205,000

RSU	3/16/2022	—	—	—	—	—	—	37,250	8.20	305,450
Options	3/16/2022	—	—	—	—	—	—	34,745	8.20	159,132
Non Equity Incentive Plan Award		—	174,597	349,194	—	—	—	—	—	—
Bradley Ottinger
PSU	3/16/2022	—	—	—	—	25,000	37,500	—	8.20	205,000
RSU	3/21/2022	—	—	—	—	—	—	44,973	8.20	368,779
Options	3/21/2022	—	—	—	—	—	—	41,948	8.20	192,122
Non Equity Incentive Plan Award		—	194,767	389,534	—	—	—	—	—	—
Angelo Scopelianos, Ph.D.
PSU	3/16/2022	—	—	—	—	25,000	37,500	—	8.20	205,000

RSU	3/16/2022	—	—	—	—	—	—	42,563	8.20	349,017
Options	3/16/2022	—	—	—	—	—	—	39,700	8.20	181,826
Non Equity Incentive Plan Award		—	203,425	406,850	—	—	—	—	—	—
Eric Sandberg
PSU	3/16/2022	—	—	—	—	40,000	60,000	—	8.20	328,000
RSU	3/16/2022	—	—	—	—	—	—	62,910	8.20	515,862
Options (2)	3/16/2022	—	—	—	—	—	—	60,576	8.20	496,723
Non Equity Incentive Plan Award		—	183,820	367,640	—	—	—	—	—	—

SEC Form 10-K/A filed by Axogen Inc. (Amendment)