Apollo Endosurgery, Inc. (NASDAQ:APEN) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On April 15, 2020, the Compensation Committee of the Board of Directors of Apollo Endosurgery, Inc., or the Company, approved a comprehensive plan to continue to preserve the Company’s liquidity given the ongoing business disruptions resulting from the international efforts to contain the spread of COVID-19. As part of this plan, the base salaries of all employees whose annual base salary is at least $100,000 were capped at a pay rate equivalent to $100,000, including the Company’s Chief Executive Officer, Chief Financial Officer and other executive officers, effective April 16, 2020.

Item 7.01 Regulation FD Disclosure

Due to the continued business disruptions from the international efforts to contain the spread of COVID-19, the Compensation Committee of the Board of Directors approved a comprehensive plan to preserve the Company’s liquidity. Combined with the previously implemented cost reduction measures described in Item 9B of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed on March 26, 2020, the liquidity preservation plan is intended to offset the negative impacts of the ongoing COVID-19 pandemic on the Company’s cash flow and results of operations.

As part of this plan, the Company furloughed 57 U.S. employees and reduced the employment arrangements of an additional 34 employees outside the United States, effective April 20, 2020. The furloughed U.S. employees will continue to be participants in the Company’s benefits program and the Company will continue to pay the employer portion of their benefits and will advance the employee portions of their benefits until July 15, 2020. While the Company’s intention is for the furlough of employees to be temporary, the adopted furlough program does not have a specific end date and the Company will continue to evaluate business conditions to determine when to recall individual or groups of furloughed employees. In addition, as part of the plan, the Company reduced pay for all employees whose annual base salary is at least $100,000 to a pay rate equivalent to $100,000, effective April 16, 2020. The Company’s intention is for the reductions in salary to be temporary; however, the duration of the salary reductions is indefinite due to the uncertain duration of the current COVID-19 business disruption.

On April 3, 2020, the Company applied for a loan under the Small Business Administration’s Paycheck Protection Program, or PPP, established under the Coronavirus Aid, Relief, and Economic Security Act. The Company has not yet been approved for, or received any funds under, any loans under the PPP.

The disclosure set forth in Item 5.02 above is incorporated by reference into and furnished under this Item 7.01. The information furnished under this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

About Apollo Endosurgery, Inc. (NASDAQ:APEN)

Apollo Endosurgery, Inc., formerly Lpath, Inc., is a medical device company. The Company is focused on less invasive therapies for the treatment of obesity, as well as other gastrointestinal disorders. The Company’s device-based therapies are an alternative to invasive surgical procedures. The Company offers products in over 80 countries. The Company’s products include ORBERA, LAP-BAND and OverStitch. The Company’s product, ORBERA, is a gastric balloon. The ORBERA Intragastric Balloon System is a weight loss aid for adults suffering from obesity. The LAP-BAND System is a minimally invasive procedure that offers weight loss. The LAP-BAND System is indicated for weight reduction for patients with obesity. The OverStitch Endoscopic Suturing System enables advanced endoscopic surgery by allowing physicians to place full-thickness sutures through a flexible endoscope. OverStitch offers solutions for defects in both the upper and lower gastrointestinal tract.