Uroplasty CFO Retires After Internal Investigation
Minnetonka-based medical device manufacturer Uroplasty, Inc., announced Tuesday that it filed its annual financial report, which had been delayed since June amid an internal review of issues related to how it paid sales commissions.
Uroplasty—which manufactures and markets products for treating bladder dysfunction and pelvic disorders—said last month that it delayed the filing of its financial report, for the fiscal year that ended March 31.
The delay came after the company “uncovered issues in internal control related to the recognition of orders and the payment of sales commissions at the end of fiscal quarters” and determined that it should conduct a deeper investigation.
The company said Tuesday that although it did uncover “a material weakness in internal control,” the issue didn’t result in any changes being made to the financial results it outlined in a May press release.
The company also announced that Chief Financial Officer Mahedi Jiwani—who was put on leave during the internal review—has now retired. Uroplasty has not yet filled his position.
After Uroplasty announced the filing of its report, shares of the company’s stock were trading up 38.4 percent to $2.38 Tuesday afternoon. However, it’s still down about 45 percent from the beginning of the year.
Due to the delay of the filing, Uroplasty had risked being delisted from Nasdaq for not meeting the listing’s requirements. Now that it has filed, it’s once again compliant with all Nasdaq listing requirements, the company said.
In addition to filing its report, Uroplasty announced the appointment of Robert Kill—who became interim CEO in April after David Kaysen resigned—to president and CEO of the company.
“During the past three months, the board of directors retained an executive search firm and conducted a thorough search for the most qualified candidate to lead our company going forward,” Chairman James Stauner said in a statement. “We concluded that given [Rob’s] previous experience as CEO of a high-growth public health care company, his track record of generating value for shareholders, and his knowledge of Uroplasty, [he] was the most qualified candidate for the role.”
Before working at Uroplasty, Kill was president and CEO of Eden Prairie-based Virtual Radiologic Corporation, a provider of technology-enabled outsourced radiology solutions, from 2007 until 2012.
“Uroplasty has significant potential in the overactive bladder market for patients who want effective therapies without the risks of implant surgery or the side effects of drugs or Botox,” Kill said in a statement. “The more I have learned about the markets we are addressing and Uroplasty's pivotal role in those markets, the more enthusiastic I become about our prospects.”