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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 14A

 

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

Filed by the Registrant ☒

 

Filed by a Party other than the Registrant ☐

 

Check the appropriate box:

 

Preliminary Proxy Statement

 

 

 

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

 

 

 

Definitive Proxy Statement

 

 

 

 

Definitive Additional Materials

 

 

 

 

Soliciting Material Pursuant to §240.14a-12

 

 

 


 

ShotSpotter, Inc.

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

 

 

 

No fee required.

 

 

 

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

 

 

 

 

1)

 

Title of each class of securities to which transaction applies:

 

 

 

2)

 

Aggregate number of securities to which transaction applies:

 

 

 

3)

 

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

 

 

 

4)

 

Proposed maximum aggregate value of transaction:

 

 

 

5)

 

Total fee paid:

 

 

 

 

Fee paid previously with preliminary materials.

 

 

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

 

 

 

1)

 

Amount Previously Paid:

 

 

 

2)

 

Form, Schedule or Registration Statement No.:

 

 

 

3)

 

Filing Party:

 

 

 

4)

 

Date Filed:

 

 

 

 


 

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May 2, 2022

Dear Stockholder:

You are cordially invited to attend the 2022 Annual Meeting of Stockholders of ShotSpotter, Inc. The meeting will be held virtually, via a live audio webcast at www.meetnow.global/MTMX5GU on Wednesday, June 22, 2022 at 9:00 a.m., Pacific Time (the “Annual Meeting”). The attached Notice of Annual Meeting of Stockholders and Proxy Statement describe the formal business to be transacted at the meeting.

We believe that a virtual meeting provides expanded stockholder access and participation and improved communications, while affording stockholders the same rights as if the meeting were held in person, including the ability to vote shares electronically and ask questions during the meeting in accordance with our rules of conduct for the meeting. Further, we believe the virtual meeting format is critical in light of the ongoing COVID-19 pandemic, as the safety of our employees, communities and stockholders is our first priority. We encourage you to attend online and participate. We recommend that you log in a few minutes before 9:00 a.m., Pacific Time, on June 22, 2022 to ensure you are logged in when the Annual Meeting starts.

You may vote your shares by proxy or in person at the Annual Meeting. The Annual Meeting is being held so that stockholders may consider the election of two Class II directors, the ratification of the appointment of Baker Tilly US, LLP as ShotSpotter, Inc.’s independent registered public accounting firm for the year ending December 31, 2022, and any other business properly brought before the meeting. Please see the enclosed Notice of Annual Meeting and Proxy Statement for information on how to vote your shares.

The Board of Directors unanimously recommends a vote “FOR” each of the Company’s nominees for Class II director and “FOR” the ratification of the Company’s independent registered public accounting firm.

On behalf of the Board of Directors and the officers and employees of ShotSpotter, I would like to take this opportunity to thank you for your continued support. We look forward to your attendance at the Annual Meeting.

 

 

Sincerely,

 

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 Ralph A. Clark

President and Chief Executive Officer

 

 

 

 

ShotSpotter, Inc.

39300 Civic Center Dr., Suite 300

Fremont, CA 94538

 

+1 888 274 6877 toll free

www.shotspotter.com

 

 


 

 

 

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ShotSpotter, Inc.

39300 Civic Center Dr., Suite 300

Fremont, CA 94538

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

You are cordially invited to attend the 2022 Annual Meeting of Stockholders (the “Annual Meeting”) of ShotSpotter, Inc. (the “Company”). The meeting will be held virtually via a live audio webcast at www.meetnow.global/MTMX5GU, on Wednesday, June 22, 2022 at 9:00 a.m., Pacific Time. We believe that a virtual meeting provides expanded stockholder access and participation and improved communications, while affording stockholders the same rights as if the meeting were held in person, including the ability to vote shares electronically and ask questions during the meeting in accordance with our rules of conduct for the meeting. Further, we believe the virtual meeting format is critical in light of the ongoing COVID-19 pandemic, as the safety of our employees, communities and stockholders is our first priority. We encourage you to attend online and participate. Stockholders attending the virtual meeting will be afforded the same rights and opportunities to participate as they would at an in-person meeting.

The Annual Meeting will be held for the following purposes:

 

 

1.

To elect two nominees for Class II director named in the accompanying Proxy Statement, each to hold office until the 2025 Annual Meeting of Stockholders or until the director's successor is duly elected and qualified or until the director’s earlier death, resignation or removal.

 

 

2.

To ratify the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2022.

These proposals are more fully described in the Proxy Statement following this Notice. You will also be asked to transact such other business, if any, as may properly come before the Annual Meeting or adjournment of postponement thereof.

The Board of Directors recommends that you vote (i) FOR the election of all nominees to serve as Class II directors of the Company, and (ii) FOR the ratification of the appointment of Baker Tilly US, LLP as our independent registered public accounting firm for the year ending December 31, 2022.

In accordance with rules established by the Securities and Exchange Commission, we are providing you access to our proxy materials over the Internet. Accordingly, we plan to mail a Notice of Internet Availability of Proxy Materials (the “Notice”) to our stockholders on or about May 2, 2022. The Notice will describe how to access and review our proxy materials, including our proxy statement and Annual Report on Form 10-K for the year ended December 31, 2021. The Notice will also describe how you may submit your proxy on the Internet or by telephone. If you received a Notice by mail and would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting such materials included in the Notice. We encourage stockholders to take advantage of the availability of the proxy materials by the Internet to help reduce the environmental impact and cost of the Annual Meeting.

The Board of Directors has fixed the close of business on April 25, 2022 as the record date for the determination of the stockholders entitled to notice of, and to vote at, the Annual Meeting. Accordingly, only stockholders of record at the close of business on that date will be entitled to vote at the Annual Meeting. A list of stockholders entitled to vote will be available for inspection during normal business hours for 10 days before the Annual Meeting at our address above. To the extent office access is impracticable due to the COVID-19 pandemic, a complete list of such stockholders will be available for examination by any stockholder for a period of 10 days before the Annual Meeting for any purpose germane to the Annual Meeting by contacting stockholders@shotspotter.com. A list of stockholders will be available for examination during the Annual Meeting at www.meetnow.global/MTMX5GU.

 

 

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All stockholders are cordially invited to attend the Annual Meeting. Whether or not you plan to attend the Annual Meeting, please vote as soon as possible.

 


 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting to Be Held on June 22, 2022 at 9:00 a.m. Pacific Time via a live audio webcast at www.meetnow.global/MTMX5GU.

The Proxy Statement and Annual Report on Form 10-K for the year ended December 31, 2021

are available at www.edocumentview.com/SSTI.

 

 

By order of the Board of Directors,

 

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Alan R. Stewart

Secretary

 

May 2, 2022

 

 


 

 

 

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YOUR VOTE IS IMPORTANT

You are cordially invited to attend the Annual Meeting, which will be held via a live audio webcast. Whether or not you expect to attend the Annual Meeting, please cast your vote as promptly as possible in order to ensure your representation at the meeting. If you are a stockholder of record, please vote by the internet or by telephone, or, if you elect to receive a paper proxy card by mail, by completing, dating, signing and returning the proxy mailed to you. Submitting your vote via the internet or by telephone or proxy card will not affect your right to vote in person if you decide to attend the Annual Meeting. If your shares are held in street name (held for your account by a broker, bank, or other nominee), you will receive instructions from your nominee explaining how to vote your shares, and you will have the option to cast your vote by telephone or over the internet if your voting instructions from your nominee include instructions for doing so. Even if you have voted by proxy, you may still vote online at the virtual meeting. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the Annual Meeting, you must obtain a proxy issued in your name from that record holder.

 

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Page

QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS

1

PROPOSAL 1 ELECTION OF DIRECTORS

8

INFORMATION REGARDING THE BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

12

PROPOSAL 2 RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

19

REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

21

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

22

DELINQUENT SECTION 16(A) REPORTS

25

EXECUTIVE OFFICERS

26

EXECUTIVE AND DIRECTOR COMPENSATION

28

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

34

HOUSEHOLDING OF PROXY MATERIALS

36

WHERE YOU CAN FIND MORE INFORMATION

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OTHER MATTERS

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SHOTSPOTTER, INC.

PROXY STATEMENT

FOR THE 2022 ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD ON

WEDNESDAY, JUNE 22, 2022 AT 9:00 A.M. PACIFIC TIME

QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS

Why did I receive a notice regarding the availability of proxy materials on the Internet?

Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), we have elected to provide access to our proxy materials over the Internet. Accordingly, we will send you a Notice of Internet Availability of Proxy Materials (the “Notice”) because the Board of Directors (the “Board of Directors” or the “Board”) of ShotSpotter, Inc. (referred to as the “Company,” “ShotSpotter” or in the first person) is soliciting your proxy to vote at the 2022 Annual Meeting of Stockholders (the “Annual Meeting”), including any adjournments or postponements of such meeting. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials over the Internet or to request a printed copy may be found in the Notice. Please note that while our proxy materials are available at the website referenced in the Notice, and our Notice, Proxy Statement and Annual Report on Form 10-K are available on our website, no other information contained on either website is incorporated by reference in or considered to be a part of this document.

We intend to mail the Notice on or about May 2, 2022 to all stockholders of record entitled to vote at the Annual Meeting.

Will I receive any other proxy materials by mail?

We may send you a proxy card, along with a second Notice, after ten calendar days have passed since our first mailing of the Notice. You may also request that we mail you a full set of the proxy materials. Instructions on how to request a printed copy may be found in the Notice.

What is the date, time and place of the Annual Meeting?

The Annual Meeting will be held virtually via a live audio webcast at www.meetnow.global/MTMX5GU on Wednesday, June 22, 2022 beginning at 9.00 a.m. Pacific Time. Any stockholder can listen to and participate in the Annual Meeting via the live audio webcast, and we believe that a virtual meeting provides expanded stockholder access and participation and improved communications, while affording stockholders the same rights as if the meeting were held in person, including the ability to vote shares electronically and submit questions and comments during the meeting in accordance with the rules of conduct for the meeting. Further, we believe the virtual meeting format is critical in light of the ongoing COVID-19 pandemic, as the safety of our employees, communities and stockholders is our first priority. We encourage you to attend online and participate.

How do I attend and ask questions during the Annual Meeting?

We will be hosting the Annual Meeting via live audio webcast only. The meeting will start at 9:00 a.m. Pacific Time on Wednesday, June 22, 2022. Stockholders attending the Annual Meeting will be afforded the same rights and opportunities to participate as they would at an in-person meeting.

You can attend the meeting by accessing www.meetnow.global/MTMX5GU, and entering the 15-digit control number included on your Notice or your proxy card if you received one by mail. If you are a registered shareholder (i.e., you hold your shares through our transfer agent, Computershare Limited ("Computershare"), you do not need to register to attend the Annual Meeting virtually on the Internet. Please follow the instructions on the Notice or proxy card that you received.

Beneficial owners who do not have a control number may gain access to the meeting by registering in advance. To register to attend the Annual Meeting online by webcast you must submit proof of your proxy power

 

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(legal proxy) reflecting your ShotSpotter’s holdings along with your name and email address to Computershare. Requests for registration must be labeled as “Legal Proxy” and be received no later than 5:00 p.m., Eastern Time, on June 12, 2022. You will receive a confirmation of your registration by email after we receive your registration materials. Requests for registration should be directed to us at the following: by email—forward the email from your broker, or attach an image of your legal proxy, to legalproxy@computershare.com or by mail to Computershare, ShotSpotter Legal Proxy, P.O. Box 43001, Providence, RI 02940-3001.

We recommend that you log in a few minutes before 9:00 a.m. Pacific Time to ensure you are logged in when the Annual Meeting begins.

If you would like to submit a question during the Annual Meeting after you are logged in, questions can be submitted by accessing the meeting center at www.meetnow.global/MTMX5GU. To help ensure that we have a productive and efficient meeting, and in fairness to all stockholders in attendance, you will also find posted our rules of conduct for the Annual Meeting when you log in prior to its start. These rules of conduct will include the following guidelines:

 

 

 

You may submit questions and comments only electronically via chat function through the meeting portal www.meetnow.global/MTMX5GU during the Annual Meeting.

 

 

 

Only stockholders of record as of the record date for the Annual Meeting and their proxy holders may submit questions or comments.

 

 

 

Please direct all questions to Ralph Clark, our Chief Executive Officer.

 

 

 

Please include your name and affiliation, if any, when submitting a question or comment.

 

 

 

Limit your remarks to one brief question or comment that is relevant to the Annual Meeting and/or our business.

 

 

 

Questions may be grouped by topic by our management.

 

 

 

Questions may be ruled out of order if they are, among other things, irrelevant to our business, related to pending or threatened litigation, disorderly, repetitious of statements already made, or in furtherance of the speaker’s own personal, political or business interests.

 

 

 

Be respectful of your fellow stockholders and Annual Meeting participants.

 

 

 

No audio or video recordings of the Annual Meeting are permitted.

If you attend the virtual meeting as described above, you will be deemed to be attending in person, as provided by Delaware law. Information on how to vote at the Annual Meeting is discussed below.

What if I have technical difficulties or trouble accessing the virtual Annual Meeting?

If you have any technical difficulties or any questions regarding the virtual meeting website, we are ready to assist you. Please email https://support.vevent.com. If there are any technical issues in convening or hosting the meeting, we will promptly post information to our investor relations website, http://ir.shotspotter.com, including information on when the meeting will be reconvened.

Who is entitled to vote at the Annual Meeting?

Only stockholders of record at the close of business on April 25, 2022, the record date for the Annual Meeting, are entitled to receive notice of and to participate in the Annual Meeting. If you were a stockholder of record on that date, you will be entitled to vote all of the shares you held on that date at the Annual Meeting. As

 

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of the record date, there were 12,141,632 shares of common stock outstanding, all of which are entitled to be voted at the Annual Meeting.

What am I voting on?

At the Annual Meeting, stockholders will act upon the matters outlined in the Notice of Annual Meeting of Stockholders. There are two matters scheduled for a vote:

 

 

 

Election of the two Class II directors named herein, each to hold office until the 2025 annual meeting of stockholders or until the director’s successor is duly elected and qualified or until the director’s earlier death, resignation or removal (Proposal 1); and

 

 

 

Ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2022 (Proposal 2).

You may either vote “FOR” each of the nominees for election to the Board or you may “WITHHOLD” your vote for any nominee you specify. You may either vote “FOR” or “AGAINST” or abstain from voting for the ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm.

What if another matter is properly brought before the Annual Meeting?

The Board knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the Annual Meeting, it is the intention of the persons named in the proxy card to vote on those matters in accordance with their best judgment.

How do I vote?

Stockholder of Record: Shares Registered in Your Name

If on April 25, 2022, your shares were registered directly in your name with ShotSpotter’s transfer agent, Computershare, then you are a stockholder of record. As a stockholder of record, you may vote online at the virtual Annual Meeting or vote by proxy. Whether or not you plan to attend the Annual Meeting, we urge you to cast your vote as soon as possible to ensure your vote is counted.

 

 

 

To vote by proxy by internet. You may access the website of the Company’s tabulator, Computershare. Please follow the steps outlined on the Notice or your proxy card. Your shares will be voted in accordance with your instructions.

 

 

 

To vote by proxy by telephone. To vote over the telephone, dial toll-free 1-800-652-VOTE (8683) using a touch-tone phone and follow the recorded instructions. You will be asked to provide the company number and control number from the Notice.

 

 

 

To vote by proxy by mail. To vote using a proxy card that you request as provided in the Notice, simply complete, sign and date the proxy card and return it promptly in the envelope provided. If you return your signed proxy card to us before the Annual Meeting, we will vote your shares as you direct.

 

 

 

To vote in person. If you attend the Annual Meeting, you may vote online by visiting www.meetnow.global/MTMX5GU. Please have your 15-digit control number to join the Annual Meeting. We recommend logging in a few minutes before 9:00 a.m. California time on June 22, 2022 to ensure you are logged in when the Annual Meeting starts.

Beneficial Owner: Shares Registered in the Name of a Broker or Bank

If on April 25, 2022, your shares were held, not in your name, but rather in an account at a brokerage firm, bank or other similar organization, then you are the beneficial owner of shares held in “street name” and these

 

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proxy materials are being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct your broker, bank or other agent regarding how to vote the shares in your account and you should have received instructions from that organization as to how to do so, including by internet, telephone or mail. You are also invited to attend the virtual Annual Meeting. However, because you are not the stockholder of record, you may not vote your shares online at the meeting unless you request and obtain a valid proxy from your broker, bank or other agent.

How many votes do I have?

Holders of common stock are entitled to one vote per share on each matter that is submitted to stockholders for approval.

If I am a stockholder of record and I do not vote, or if I otherwise cast my vote without giving specific voting instructions, what happens?

If you are a stockholder of record and do not vote by proxy or online at the Annual Meeting, your shares will not be voted.

If you vote by proxy without marking voting selections, your shares will be voted, as applicable, “FOR” the election of all nominees for Class II director and “FOR” the ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2022.

If any other matter is properly presented at the Annual Meeting, your proxyholder (one of the individuals named on your proxy card) will vote your shares using his or her best judgment.

If I am a beneficial owner of shares held in street name and I do not provide my broker or bank with voting instructions, what happens?

If you are a beneficial owner of shares held in street name and you do not instruct your broker, bank or other agent how to vote your shares, your broker, bank or other agent may still be able to vote your shares in its discretion depending on whether the particular proposal is considered to be a routine matter under applicable rules. Brokers and nominees can use their discretion to vote “uninstructed” shares with respect to matters that are considered to be “routine” under applicable rules but not with respect to “non-routine” matters. Under applicable rules and interpretations, “non-routine” matters are matters that may substantially affect the rights or privileges of stockholders, such as elections of directors (even if not contested), mergers, stockholder proposals, executive compensation (including any advisory stockholder votes on executive compensation and on the frequency of stockholder votes on executive compensation), and certain corporate governance proposals, even if management-supported. Proposal 1 is considered to be a “non-routine” matter, but Proposal 2 is considered to be a “routine” matter. Accordingly, your broker or nominee may not vote your shares on Proposal 1 without your instructions, but may vote your shares on Proposal 2 even in the absence of your instruction. If you are a beneficial owner of shares held in street name, in order to ensure your shares are voted in the way you would prefer, you must provide voting instructions to your broker, bank or other agent by the deadline provided in the materials you receive from your broker, bank or other agent.

How are votes counted?

Votes will be counted by the inspector of election appointed for the meeting, who will separately count, for the Proposal 1 to elect directors, votes “FOR,” “WITHHOLD” and broker non-votes; and, with respect to Proposal 2, votes “FOR” and “AGAINST” and abstentions. For Proposal 1, broker non-votes have no effect and will not be counted towards the vote total. For Proposal 2, abstentions will be counted towards the vote total for of Proposal 2, and will have the same effect as “AGAINST” votes.

 

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What are “broker non-votes”?

As discussed above, when a beneficial owner of shares held in street name does not give voting instructions to his or her broker, bank or other securities intermediary holding his or her shares as to how to vote on matters deemed to be “non-routine”, the broker, bank or other such agent cannot vote the shares. These un-voted shares are counted as “broker non-votes.” Because brokers are permitted to vote on “routine” matters without instructions from the beneficial owner, broker non-votes do not occur with respect to such matters. Proposal 1 (election of directors) is considered a “non-routine” matter, but Proposal 2 (to ratify the selection of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for year ending December 31, 2022) is a “routine” matter. Accordingly, if you do not instruct the broker how to vote your shares, your broker will only be able to vote your shares with respect to Proposal 2 and will not be able to vote your shares with respect to Proposal 1. Accordingly, we expect broker non-votes to exist in connection with Proposal 1.

As a reminder, if you a beneficial owner of shares held in street name, in order to ensure your shares are voted in the way you would prefer, you must provide voting instructions to your broker, bank or other agent by the deadline provided in the materials you receive from your broker, bank or other agent.

What constitutes a quorum?

A quorum of stockholders is necessary to hold a valid meeting. The presence at the Annual Meeting, in person or by proxy, of the holders of common stock representing a majority of the voting power of the outstanding shares of stock entitled to vote on the record date will constitute a quorum, permitting the meeting to conduct its business. As of the record date, there were 12,141,632 shares of common stock outstanding, all of which are entitled to be voted at the Annual Meeting. As described above, stockholders attending the virtual meeting will be deemed to be attending in person, as provided by Delaware law, and their shares will be counted towards the quorum requirement. If there is no quorum, the holders of a majority of the shares so represented may adjourn the Annual Meeting without further notice.

What vote is required to approve each item?

For Proposal 1, the election of directors, the two nominees receiving the most “FOR” votes from the holders of shares present in person or represented by proxy and entitled to vote on the election of directors will be elected. Only votes “FOR” will affect the outcome. Broker non-votes will not be counted towards the vote total for this proposal.

For Proposal 2, the ratification of the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for year ending December 31, 2022, must receive “FOR” votes from the holders of a majority of shares present in person or represented by proxy and entitled to vote on the matter. If you “Abstain” from voting, it will have the same effect as an “AGAINST” vote. Because Proposal 2 is a “routine” matter, we do not expect any broker non-votes in connection with this proposal.

The inspector of election for the Annual Meeting shall determine the number of shares of common stock represented at the meeting, the existence of a quorum and the validity and effect of proxies, and shall count and tabulate ballots and votes and determine the results thereof. Proxies received but marked as abstentions and broker non-votes will be included in the calculation of the number of shares considered to be present at the meeting for purposes of determining a quorum.

How can I find out the results of the voting at the Annual Meeting?

Preliminary voting results may be announced at the Annual Meeting. In addition, final voting results will be published in a current report on Form 8-K that we expect to file within four business days after the Annual Meeting. If final voting results are not available to us in time to file a Form 8-K within four business days after

 

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the Annual Meeting, we intend to file a Form 8-K to publish preliminary results and, within four business days after the final results are known to us, file an additional Form 8-K to publish the final results.

Can I change my vote after submitting my proxy?

Stockholder of Record: Shares Registered in Your Name

Yes. You can revoke your proxy at any time before the final vote at the Annual Meeting. If you are the record holder of your shares, you may revoke your proxy in any one of the following ways:

 

 

 

You may submit another properly completed proxy with a later date, by internet, telephone or mail. Your most current proxy is the one that is counted.

 

 

 

You may send a timely written notice that you are revoking your proxy to ShotSpotter’s Corporate Secretary at 39300 Civic Center Dr., Suite 300, Fremont, CA 94538.

 

 

 

You may attend the virtual Annual Meeting and vote online. Simply attending the Annual Meeting will not, by itself, revoke your proxy.

Beneficial Owner: Shares Registered in the Name of Broker or Bank

If your shares are held by your broker, bank or other agent, you should follow the instructions provided by your broker, bank or other agent.

Who is paying for this proxy solicitation?

We will pay for the entire cost of soliciting proxies. In addition to these proxy materials, our directors and employees may also solicit proxies in person, by telephone, or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.

What does it mean if I receive more than one Notice?

If you receive more than one Notice, your shares may be registered in more than one name or in different accounts. Please follow the voting instructions on the Notices to ensure that all of your shares are voted.

What proxy materials are available on the internet?

A letter from our Chief Executive Officer to our stockholders, the Proxy Statement, and the Annual Report on Form 10-K for the year ended December 31, 2021 are available at www.edocumentview.com/SSTI.

When are stockholder proposals and director nominations due for next year’s annual meeting?

To be considered for inclusion in next year’s proxy materials, your proposal must be submitted in writing by January 2, 2023to our Corporate Secretary, ShotSpotter, Inc., 39300 Civic Center Dr., Suite 300, Fremont, California 94538 and you must comply with all applicable requirements of Rule 14a-8 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). While our board will consider stockholder proposals, we reserve the right to omit from the proxy statement proposals that we are not required to include under the Exchange Act, including Rule 14a-8.

Pursuant to our amended and restated bylaws, if you wish to bring a proposal before the stockholders or nominate a director at the 2023 annual meeting of stockholders, but you are not requesting that your proposal or nomination be included in next year’s proxy materials, you must notify our Corporate Secretary, in writing, not later than the close of business on March 24, 2023 nor earlier than the close of business on February 22, 2023.

 

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However, if our 2023 annual meeting of stockholders is not held between May 23, 2023 and July 22, 2023, to be timely, notice by the stockholder must be received no earlier than the close of business on the 120th day prior to the 2023 annual meeting of stockholders and not later than the close of business on the later of the 90th day prior to the 2023 annual meeting of stockholders or the 10th day following the day on which public announcement of the date of the 2023 annual meeting of stockholders is first made. You are also advised to review our amended and restated bylaws, which contain additional requirements about advance notice of stockholder proposals and director nominations.

In addition to satisfying the foregoing requirements under our amended and restated bylaws, to comply with the universal proxy rules (once effective), stockholders who intend to solicit proxies in support of director nominees other than our Board’s nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act no later than April 23, 2023.

 

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PROPOSAL 1

ELECTION OF DIRECTORS

In accordance with our amended and restated certificate of incorporation, our Board is divided into three classes with staggered three-year terms. Each director serves until the expiration of the term for which such director was elected or appointed, or until such director’s earlier death, resignation or removal. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following election. Vacancies on the Board may be filled only by persons elected by a majority of the remaining directors. A director elected by the Board to fill a vacancy in a class, including vacancies created by an increase in the number of directors, shall serve for the remainder of the full term of that class and until the director’s successor is duly elected and qualified.

Our directors are currently divided among the three classes as follows:

 

 

 

Class I, which consists of William J. Bratton, Randall Hawks, Jr. and Deborah Elam, whose terms will expire at the 2024 annual meeting of stockholders;

 

 

 

Class II, which consists of Pascal Levensohn, Roberta Jacobson and Thomas T. Groos, whose terms will expire at the 2022 annual meeting of stockholders; and

 

 

 

Class III, which consists of Ralph A. Clark, Marc Morial and Ruby Sharma, whose terms will expire at the 2023 annual meeting of stockholders;

Our Board currently consists of nine members, three of whom are in the class whose term of office expires at the upcoming Annual Meeting. As previously announced, Mr. Hawks and Mr. Groos will be retiring from the Board at the Annual Meeting, and accordingly Mr. Groos is not standing for reelection. Accordingly, the Board has taken action to decrease the number of authorized directors to seven, effective upon such retirement. We expect that any additional directorships resulting from any future increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one third of the directors. The division of our Board into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control.

Mr. Levensohn and Ambassador Jacobson have been nominated to serve as Class II directors. Mr. Levensohn was previously elected by the stockholders. Ambassador Jacobson was appointed to the Board upon the recommendation of the Board's Nominating and Corporate Governance Committee.

Our management has no reason to believe that any nominee will be unable to serve. If elected at the Annual Meeting, each of these nominees would serve until the 2025 annual meeting of stockholders and until her or his successor has been duly elected, or if sooner, until the director’s death, resignation or removal. It is the Company’s policy that directors and nominees for director are expected to attend each annual meeting. All the directors serving at such date attended the annual meeting held in 2021.

Vote Required

Directors are elected by a plurality of the votes of the holders of shares present at the meeting or represented by proxy and entitled to vote on the election of directors. Accordingly, the two nominees receiving the highest number of “FOR” votes will be elected. Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the election of the three nominees named above. If any nominee becomes unavailable for election as a result of an unexpected occurrence, shares that would have been voted for that nominee will instead be voted for the election of a substitute nominee proposed by us.

 

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The following table sets forth, for the Class II nominees (Mr. Levensohn and Ambassador Jacobson) and our other directors who will continue in office after the Annual Meeting, their ages and position/office held with us as of the date of this proxy statement:

 

Name

 

Age

 

Position/Office Held With ShotSpotter

Class I directors, whose terms will expire at the 2024 annual meeting of stockholders

William J. Bratton(3)

 

74

 

Director

Deborah Elam (2)(3)

 

60

 

Director

Class II directors, whose terms will expire at the Annual Meeting

Pascal Levensohn(1)

 

61

 

Director, Chair of the Board

Roberta Jacobson(2)(3)

 

62

 

Director

Class III directors, whose terms will expire at the 2023 annual meeting of stockholders

Ralph A. Clark

 

63

 

President and Chief Executive Officer

Marc Morial(1)(2)

 

64

 

Director

Ruby Sharma(1)

 

55

 

Director

 

(1)

Member of the Audit Committee of the Board (the “Audit Committee”)

(2)

Member of the Nominating and Corporate Governance Committee of the Board (the “Nominating and Corporate Governance Committee”)

(3)

Member of the Compensation Committee of the Board (the “Compensation Committee”)

Set forth below is biographical information for the nominees and each person whose term of office as a director will continue after the Annual Meeting. This includes information regarding each director’s experience, qualifications, attributes or skills that led our Board to recommend them for board service.

Nominees for Election until the 2025 Annual Meeting of Stockholders

Pascal Levensohn has served as a member of our Board since 2007 and currently serves as Chair of the Board. Mr. Levensohn is currently the Senior Managing Director of Dolby Family Ventures, a venture investing organization, and has served in this position since 2014. Since 1996, Mr. Levensohn has also served as the founder and Manager of Levensohn Venture Partners LLC, a venture capital firm, and as the Chief Executive Officer of Levensohn Global LLC, a consulting firm. He is the Senior Strategic Advisor for Silicon Castles GmbH, an investment firm. He is currently the director of several private companies. From April 2007 until April 2011, Mr. Levensohn served on the board of directors of the National Venture Capital Association. He is a member of the Council on Foreign Relations. Mr. Levensohn holds an A.B. in Government from Harvard University. Our Board believes that Mr. Levensohn’s experience investing in technology businesses and his service on numerous boards of directors qualify him to serve on our Board.

Ambassador Jacobson is a senior advisor at Albright Stonebridge Group, a global business strategy firm based in Washington, D.C., and recently served a 100-day term as the National Security Council’s coordinator for the southern border of the United States. From November 2020 to January 2021, Ambassador Jacobson served as a volunteer Agency Review Team member for the Biden Administration presidential transition team to directly support transition efforts related to the U.S. Department of State. From May 2016 to May 2018, Ambassador Jacobson served as U.S. ambassador to Mexico. From July 2011 to May 2016, Ambassador Jacobson served as the State Department’s acting assistant secretary and then assistant secretary for Western Hemisphere affairs. Ambassador Jacobson holds a B.A. from Brown University and a Master of Arts degree in Law and Diplomacy from Tufts University Fletcher School of Law and Diplomacy. Our Board believes that Ambassador Jacobson's experience in international business and diplomatic affairs qualifies her to serve on our Board.

 

 

 

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THE BOARD OF DIRECTORS RECOMMENDS

A VOTE IN FAVOR OF EACH NAMED NOMINEE.

Directors Continuing in Office until the 2024 Annual Meeting of Stockholders

William J. Bratton has served as a member of our Board since November 2017 and previously served as a member of our Board from April 2013 until December 2013. Since September 2016, Mr. Bratton has served as Senior Managing Director of Teneo Holdings, a global CEO advisory firm, and as Executive Chairman of its Teneo Risk division. From January 2014 until September 2016, Mr. Bratton served a second term as Commissioner of the New York City Police Department (“NYPD”), by appointment. From November 2012 to December 2013, Mr. Bratton served as Chief Executive Officer of the Bratton Group LLC, a New York City-based public safety and law enforcement consulting firm, which has consulted extensively in the United States and Latin America on policing, public safety and rule-of-law initiatives. From September 2010 to November 2012, Mr. Bratton served as Chairman of Kroll Advisory Solutions (“Kroll”), a global security solutions and specialized law enforcement company, the successor to Altegrity Risk International where he served as Chairman from November 2009 to November 2012. From October 2002 to October 2009. Mr. Bratton served as Chief of the Los Angeles Police Department (“LAPD”). From 1996 until his appointment as LAPD Chief, Mr. Bratton worked in the private sector, including as Senior Consultant to Kroll’s Public Services Safety Group and Crisis and Consulting Management Group. From 1994 to 1996, Mr. Bratton served his first term as Commissioner of the NYPD by appointment. Mr. Bratton has also served as head of a number of other police agencies including commissioner of the Boston Police Department, Chief of Police of the New York City Transit Police Department, Superintendent of the Massachusetts Metropolitan District Commission of Police and Chief of Police for the Massachusetts Bay Transportation Authority. Mr. Bratton is the Vice Chairman of the Homeland Security Advisory Council and serves as a director of Mission Ready Solutions, Inc., a provider of government contracting solutions. He holds a bachelor’s degree in law enforcement from Boston State College/University of Massachusetts, and is a graduate of the FBI National Executive Institute and the Senior Executive Fellows Program at Harvard’s John F. Kennedy School of Government. Our Board believes that Mr. Bratton’s significant experience in law enforcement both in the United States and abroad and his insight in criminal justice system operations qualify him to serve on our Board.

Deborah A. Elam is the President and CEO of Corporate Playbook Consulting, LLC, a company that provides leaders with strategic direction to elevate diversity, inclusion, philanthropy and culture in the workplace, which she founded in October 2016. From October 2013 to February 2017, Ms. Elam served as President of the GE Foundation and from September 2002 to February 2017, she served as Global Chief Diversity Officer at General Electric Company, where she worked for 30 years. Ms. Elam also created and hosts Dining with Deb, an innovative dining experience that brings together professional women across racial, religious and political lines to drive meaningful connections. Ms. Elam was appointed to and served on the Federal Communications Commission’s Advisory Committee on Diversity and Digital Empowerment. Ms. Elam also serves as an independent director at Daniel J. Edelman Holdings. Ms. Elam holds a B.A. in sociology from Louisiana State University and an M.P.A. from Southern University in Baton Rouge, Louisiana. Our Board believes that Ms. Elam’s experience in executive leadership and diversity matters qualify her to serve on our Board.

 

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Directors Continuing in Office until the 2023 Annual Meeting of Stockholders

Ralph A. Clark has served as our President and Chief Executive Officer and as a member of our Board since August 2010. From September 2005 until July 2010, Mr. Clark served as Chief Executive Officer of GuardianEdge Technologies, Inc., an endpoint data security firm. Prior to that, Mr. Clark served as Vice President, Finance of Adaptec, Inc. following Adaptec’s acquisition of Snap Appliances, Inc., where he had been Chief Financial Officer. Mr. Clark is a member of the Board of Directors of Trinet Group, Inc., a provider of comprehensive human resources for small and medium-size businesses. Mr. Clark is also a member of the Board of Directors of Glowforge, a private company manufacturer of 3D laser printers. Mr. Clark also has held various positions at start-up companies, served in executive sales and marketing roles at IBM and worked as an investment banker at Goldman Sachs and Merrill Lynch. Mr. Clark holds a B.S. in economics from the University of the Pacific and an M.B.A. from Harvard Business School. Our Board believes that Mr. Clark’s significant business experience from both inside and outside our industry and his role as our Chief Executive Officer qualify him to serve on our Board.

Marc Morial has served as a member of our Board since September 2015. Since 2003, Mr. Morial also has served as the President and Chief Executive Officer of the National Urban League, a civil rights organization dedicated to economic empowerment in order to elevate the standard of living in historically underserved urban communities. From 1994 to 2002, Mr. Morial served as the Mayor of New Orleans, Louisiana. Prior to serving as Mayor of New Orleans, Mr. Morial held other various positions in public office and nonprofit management. Mr. Morial has a B.A. in economics from the University of Pennsylvania and a J.D. from Georgetown University. Our Board believes that Mr. Morial’s experience in serving underserved urban communities, local governments and community organizations qualifies him to serve on our Board.

Ruby Sharma has served as a member of our Board since December 2021. Since September 2018, she has served as Managing Partner of RNB Strategic Advisors, a strategic advisory firm. From 2004 to December 2017, Ms. Sharma served as Senior Partner and from 2002 to 2004 as Senior Manager at Ernst & Young LLP. From 1999 to 2002, Ms. Sharma served as Senior Manager at Arthur Andersen LLP. From 1996 to 1998, Ms. Sharma served as Senior Manager at Grant Thornton GmbH. Ms. Sharma holds a B.A. in Economics from Delhi University. Ms. Sharma is a Fellow Chartered Accountant of the Institute of Chartered Accountants in England and Wales and completed an Executive Program at Northwestern University Kellogg School of Management. Our Board believes that Ms. Sharma’s significant experience in accounting and auditing matters qualifies her to serve on our Board.


 

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INFORMATION REGARDING THE BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

Director Independence

Our common stock is listed on the Nasdaq Capital Market (“Nasdaq”). Under Nasdaq listing requirements and rules, a majority of the members of a listed company’s board of directors must qualify as “independent”, as affirmatively determined by the company’s board of directors. The Board consults with the Company’s counsel to ensure that the Board’s determinations are consistent with relevant securities and other laws and regulations regarding the definition of “independent,” including those set forth in Nasdaq listing standards.

Consistent with these considerations, after review of all relevant identified transactions or relationships between each director, or any of his family members, and the Company, its senior management and its independent auditors, the Board has affirmatively determined that each of the Companys directors, other than Mr. Clark, is independent within the meaning of the applicable Nasdaq listing standards. In making this determination, our Board considered the current and prior relationships that each non-employee director has with our Company and all other facts and circumstances our Board deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director and the transactions involving them described in “Certain Relationships and Related Party Transactions.”

Board Leadership

Our Chair of the Board is currently Pascal Levensohn, an independent director. Currently, our Board believes that it is in the best interests of the Company and our stockholders to have the roles of Chair of the Board and Chief Executive Officer held by different persons. Our Nominating and Corporate Governance Committee periodically considers the leadership structure of our Board, including the separation of the Chair and Chief Executive Officer roles, and makes such recommendations to our Board as our Nominating and Corporate Governance Committee deems appropriate. Our corporate governance guidelines provide that, when the positions of Chair and Chief Executive Officer are held by the same person, the independent directors may designate a “lead independent director.”

Role of the Board in Risk Oversight

Our Chair of the Board is currently Pascal Levensohn, an independent director. The Company believes that separation of the positions of Board Chair and Chief Executive Officer reinforces the independence of the Board in its oversight of the business and affairs of the Company. In addition, the Company believes that having an independent Board Chair creates an environment that is more conducive to objective evaluation and oversight of management’s performance, increasing management accountability and improving the ability of the Board to monitor whether management’s actions are in the best interests of the Company and its stockholders. As a result, the Company believes that having an independent Board Chair can enhance the effectiveness of the Board as a whole. Our Nominating and Corporate Governance Committee periodically considers the leadership structure of our Board, including the separation of the Chair and Chief Executive Officer roles, and makes such recommendations to our Board as our Nominating and Corporate Governance Committee deems appropriate. Our corporate governance guidelines provide that, when the positions of Chair and Chief Executive Officer are held by the same person, the independent directors may designate a “lead independent director.”

Meetings of the Board of Directors and its Committees

The Board met ten times during 2021. The Audit Committee met five times during 2021. The Compensation Committee met two times during 2021. The

 

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Nominating and Corporate Governance Committee met twice during 2021. Each director attended 75% or more of the aggregate number of meetings of the Board, and each of the committees on which he or she served, held during the portion of the last fiscal year for which he or she was a director or committee member.

As required under the Nasdaq listing standards, the Company’s independent directors met four times in regularly scheduled executive sessions at which only independent directors were present.

Communications with our Board of Directors

The Board has adopted a formal process by which stockholders may communicate with the Board or any of its directors. Stockholders or interested parties who wish to communicate with our Board or with an individual director may do so by mail to our Board or the individual director at 39300 Civic Center Dr., Suite 300, Fremont CA, 94538, Attn: Corporate Secretary. The communication may indicate that it contains a stockholder or interested party communication. In accordance with our stockholder communications policy, all such communication will be reviewed by the Company’s Corporate Secretary, and, if appropriate, will be forwarded to the Board or such director.

Board Composition and Refreshment

All Board members are highly engaged and actively involved in overseeing our strategy. We are thoughtful in our approach to Board refreshment and we engage in Board succession planning. As a result of our approach, our director nominees represent diverse perspectives and experiences and bring core strategic, operating, financial and governance skills and experience to our Board.

As stated in our Corporate Governance Guidelines, the Board values diversity and recognizes the importance of having unique and complementary backgrounds and perspectives in the board room. The Board endeavors to bring together diverse skills, professional experience, perspectives, age, race, ethnicity, gender, and cultural backgrounds that reflect our customer base and the citizens served by our customers, and to guide us in a way that reflects the best interests of all of our stockholders.

The following table sets forth Board level diversity statistics based on self-identification of members of our Board as of May 2, 2022.

 

Board Diversity Matrix (As of May 2, 2022)*

Total Number of Directors

 

9

 

 

 

 

 

 

 

 

 

 

 

Female

 

Male

 

Non-Binary

 

Did Not Disclose Gender

 

 

 

 

 

 

 

 

 

 

Part I: Gender Identity

 

 

 

 

 

 

 

 

 

Directors

 

 

3

 

6

 

-

 

-

Part II: Demographic Background

 

 

 

 

 

 

 

 

 

African American or Black

 

 

1

 

2

 

-

 

-

Alaskan Native or Native American

 

 

-

 

-

 

-

 

-

Asian

 

 

1

 

-

 

-

 

-

Hispanic or Latinx

 

 

-

 

-

 

-

 

-

Native Hawaiian or Pacific Islander

 

 

-

 

-

 

-

 

-

White

 

 

1

 

4

 

-

 

-

Two or More Races or Ethnicities

 

 

-

 

-

 

-

 

-

LGBTQ+

 

 

-

 

-

 

-

 

-

Did Not Disclose Demographic Background

 

 

-

 

-

 

-

 

-

 

*This matrix represents our current Board consisting of nine members. As previously announced, Mr. Hawks and Mr. Groos will be retiring from the Board at the Annual Meeting. Accordingly, the Board has taken action to decrease the number of authorized directors to seven, effective upon such retirement.

 

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Director Skills and Experience

The following table sets forth statistics as to the skills and experiences of our seven continuing Board members across selected categories we believe are valuable to the oversight of our business. The right column represents the number of directors that hold such skills or experience.

 

 

Board Skills and Experience

Total Number of Directors

 

7

 

Experience

 

Skilled

 

Board Experience

 

7

 

Financial Experience

 

3

 

Strategic Planning/Growth

 

4

 

Law Enforcement

 

1

 

Civil/Municipal Government

 

1

 

Mergers and Acquisitions

 

3

 

Technology Experience

 

2

 

 

 

 

 

Board Committees

Our Board has established an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. The following table provides membership information for the year ended December 31, 2021 for each of the Board committees:

 

Name

Audit

 

 

 

Compensation

 

 

 

Nominating and Corporate Governance

 

 

William J. Bratton



 



 

X

 

 





 



Thomas T. Groos

X

 







 



 

X

 

 

Randall Hawks, Jr.

X

 

*

 

 

 

 





 



Roberta Jacobson (appointed in July 2021)

 

 

 

 

X

 

 

 

X

 

 

Pascal Levensohn



 



 

X

 

*





 



Marc Morial

X

 

 





 



 

X

 

*

Ruby Sharma (appointed in December 2021)

X

 

 

 

 

 

 

 

 

 

 

Deborah A. Elam

 

 

 

 

X

 

 

 

X

 

 

Total meetings in fiscal 2021

 

5

 

 

 

 

2

 

 

 

 

2

 

 

 

*

Committee Chair

In March 2022, in connection with Mr. Hawks' and Mr. Groos' retirement, the Board appointed members of each of the standing committees as described below.

Audit Committee

The Audit Committee of the Board was established by the Board in accordance with Section 3(a)(58)(A) of the Exchange Act to oversee the Company’s corporate accounting and financing reporting processes and audits of its financial statements. Our Audit Committee consists of three directors, Ms. Sharma, Mr. Levensohn and Mr. Morial, with Ms. Sharma serving as the chair.

The principal duties and responsibilities of our Audit Committee include, among other things:

 

 

 

selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;

 

 

 

helping to ensure the independence and performance of the independent registered public accounting firm;

 

 


 

 

 

discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent accountants, our interim and year-end operating results;

 

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developing procedures for employees to submit concerns anonymously about questionable accounting or audit matters;

 

 

 

reviewing our policies on risk assessment and risk management;

 

 

 

reviewing related party transactions;

 

 

 

obtaining and reviewing a report by the independent registered public accounting firm at least annually, that describes our internal quality-control procedures, any material issues with such procedures, and any steps taken to deal with such issues when required by applicable law; and

 

 

 

approving (or, as permitted, pre-approving) all audit and all permissible non-audit services, other than de minimis non-audit services, to be performed by the independent registered public accounting firm.

The Board adopted a written Audit Committee charter that satisfies applicable Nasdaq listing standards and is available to stockholders on the Company’s website at ir.shotspotter.com.

Audit Committee members must satisfy the independence requirements set forth in Nasdaq Rule 5605(c)(2) and Rule 10A-3 under the Exchange Act (“Rule 10A-3”). To be considered to be independent for purposes of Rule 10A-3, a member of an Audit Committee of a listed company may not, other than in his capacity as a member of our Audit Committee, our Board, or any other committee of our Board: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

Our Board also determined that each current and former member of the Audit Committee satisfies the independence standards for the Audit Committee established by Nasdaq listing standards and Rule 10A-3 and that each of Mr. Hawks and Ms. Sharma, the former and current Audit Committee chair, respectively, is an “audit committee financial expert” as defined by Item 407(d) of Regulation S-K under the Securities Act of 1933 (the “Securities Act”).

Compensation Committee

Our Compensation Committee consists of three directors, Ms. Elam, Mr. Bratton and Ambassador Jacobson, with Ms. Elam serving as the chair. The principal duties and responsibilities of our Compensation Committee include, among other things:

 

 

 

reviewing and approving, or recommending that our Board approve, the compensation of our executive officers;

 

 

 

reviewing and recommending to our Board the compensation of our directors;

 

 

 

reviewing and approving, or recommending that our Board approve, the terms of compensatory arrangements with our executive officers;

 

 

 

administering our stock and equity incentive plans;

 

 

 

reviewing and approving, or recommending that our Board approve, incentive compensation and equity plans; and

 

 

 

reviewing and establishing general policies relating to compensation and benefits of our employees and reviewing our overall compensation philosophy.

The Board adopted a written Compensation Committee charter that satisfies applicable Nasdaq listing standards and is available to stockholders on the Company’s website at ir.shotspotter.com.

The Board has determined that each current and former member of the Compensation Committee satisfies the independence requirements for the Compensation Committee set forth in Nasdaq Rule 5605(d)(2) and Rule

 

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10C-1 promulgated under the Exchange Act, and are “non-employee directors” as defined in Rule 16b-3 promulgated under the Exchange Act.

Compensation Committee Processes and Procedures

The Compensation Committee retained independent compensation consultants at Aon Rewards (“Aon”) to conduct market research and analysis to assist the Compensation Committee in developing appropriate compensation and incentives for our executive officers and non-employee directors for 2021, to advise the Compensation Committee and to provide ongoing recommendations regarding material executive officer and non-employee director compensation decisions, and to review compensation proposals from management. Aon reports directly to the Compensation Committee and does not provide any non-compensation-related services to the Company. Prior to engaging Aon, our Compensation Committee considered the independence factors set forth in Nasdaq listing standards.

Our executive officers submit proposals to our Board and Compensation Committee regarding our executive and non-employee director compensation. Our Chief Executive Officer provides feedback and recommendations to our Compensation Committee with respect to executive compensation, other than his own compensation, including with regard to senior executive performance, responsibility and experience levels. The Compensation Committee often takes into consideration both our Chief Executive Officer’s input and the input of other senior executives in setting compensation levels.

Compensation Committee Interlocks and Insider Participation

During 2021, our Compensation Committee consisted of Mr. Bratton, Ms. Elam and Ms. Jacobson. None of the members of the Compensation Committee is currently or has been at any time one of our executive officers or employees. None of our executive officers currently serves, or has served during the last year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as a member of our Board or Compensation Committee.

Nominating and Corporate Governance Committee

Our Nominating and Corporate Governance Committee consists of three directors, Mr. Morial, Ms. Elam and Ambassador Jacobson, with Mr. Morial serving as the chair. The Nominating and Corporate Governance Committee’s responsibilities include, among other things:

 

 

 

identifying, evaluating and selecting, or recommending that our Board approve, nominees for election to our Board and its committees;

 

 

 

evaluating the performance of our Board and of individual directors;

 

 

 

considering and making recommendations to our Board regarding the composition of our Board and its committees;

 

 

 

reviewing developments in corporate governance practices;

 

 

 

evaluating the adequacy of our corporate governance practices and reporting;

 

 

 

developing and making recommendations to our Board regarding corporate governance guidelines and matters; and

 

 

 

overseeing an annual evaluation of the Board’s performance.

The Board adopted a written Nominating and Corporate Governance Committee charter that satisfies applicable Nasdaq listing standards and is available to stockholders on the Company’s website at ir.shotspotter.com.

 

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The Board has determined that each current and former member of the Nominating and Corporate Governance Committee is independent (as independence is currently defined in Rule 5605(a)(2) of the Nasdaq listing standards).

Nominations to the Board of Directors

With the goal of developing a diverse, experienced and highly qualified Board, the Nominating and Corporate Governance Committee is responsible for developing and recommending to our Board the desired qualifications, expertise and characteristics of members of our Board, including qualifications that the committee believes must be met by a committee-recommended nominee for membership on our Board and specific qualities or skills that the committee believes are necessary for one or more of the members of our Board to possess.

The Nominating and Corporate Governance Committee believes that candidates for director should have certain minimum qualifications, including being able to read and understand basic financial statements, being over 21 years of age and having the highest personal integrity and ethics. The Nominating and Corporate Governance Committee also intends to consider such factors as possessing relevant expertise upon which to be able to offer advice and guidance to management, having sufficient time to devote to the affairs of the Company, demonstrated excellence in his or her field, having the ability to exercise sound business judgment and having the commitment to rigorously represent the long-term interests of the Company’s stockholders. However, the Nominating and Corporate Governance Committee will periodically review and assess these qualifications from time to time through the development and evaluation of the Company’s corporate governance guidelines. Any changes to the Company’s corporate governance guidelines proposed by the Nominating and Corporate Governance Committee are submitted to the Board for approval. Candidates for director nominees are reviewed in the context of the current composition of the Board, the operating requirements of the Company and the long-term interests of stockholders. In conducting this assessment, the Nominating and Corporate Governance Committee will consider diversity (including diversity of gender, race, ethnicity, age, sexual orientation and gender identity), skills, and such other factors as it deems appropriate, given the current needs of the Board and the Company, to maintain a balance of knowledge, experience and capability.

In the case of incumbent directors whose terms of office are set to expire, the Nominating and Corporate Governance Committee reviews these directors’ overall service to the Company during their terms, including the number of meetings attended, level of participation, quality of performance and any other relationships and transactions that might impair the directors’ independence. The Nominating and Corporate Governance Committee also takes into account the results of the Board’s self-evaluation, conducted annually on a group and individual basis. In the case of new director candidates, the Nominating and Corporate Governance Committee also determines whether the nominee is independent for Nasdaq purposes, which determination is based upon applicable Nasdaq listing standards, applicable SEC rules and regulations and the advice of counsel, if necessary. The Nominating and Corporate Governance Committee then uses its network of contacts to compile a list of potential candidates, but may also engage, if it deems appropriate, a professional search firm. The Nominating and Corporate Governance Committee conducts any appropriate and necessary inquiries into the backgrounds and qualifications of possible candidates after considering the function and needs of the Board. The Nominating and Corporate Governance Committee meets to discuss and consider the candidates’ qualifications and then selects a nominee for recommendation to the Board by majority vote.

The Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders. The Nominating and Corporate Governance Committee does not intend to alter the manner in which it evaluates candidates, including the minimum criteria set forth above, based on whether or not the candidate was recommended by a stockholder. Stockholders who wish to recommend individuals for consideration by the Nominating and Corporate Governance Committee to become nominees for election to the Board may do so by delivering a written recommendation to 39300 Civic Center Dr., Suite 300, Fremont, California 94538 at least 120 days prior to the anniversary date of the preceding year’s annual meeting. Submissions must include (1) the name, age, business address and residence address of such nominee; (2) the

 

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principal occupation or employment of such nominee; (3) the class and number of shares of each class of capital stock of the corporation which are owned of record and beneficially by such nominee; (4) the date or dates on which such shares were acquired and the investment intent of such acquisition; (5) a statement whether such nominee, if elected, intends to tender, promptly following such person’s failure to receive the required vote for election or re-election at the next meeting at which such person would face election or re-election, an irrevocable resignation effective upon acceptance of such resignation by the Board; and (6) such other information concerning such nominee as would be required to be disclosed in a proxy statement soliciting proxies for the election of such nominee as a director in an election contest (even if an election contest is not involved), or that is otherwise required to be disclosed pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder (including such person’s written consent to being named as a nominee and to serving as a director if elected).

Code of Business Conduct and Ethics

We have adopted a code of business conduct and ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. Our code of business conduct and ethics is available on our website at ir.shotspotter.com. We intend to disclose any amendments to the code, or any waivers of its requirements, on our website to the extent required by the applicable rules and exchange requirements. The inclusion of our website address in this document does not include or incorporate by reference into this document the information on or accessible through our website.

Corporate Governance Guidelines

Our Board has documented our governance practices by adopting Corporate Governance Guidelines to assure that the Board will have the necessary authority and will have the necessary authority and practices in place to review and evaluate our business operations as needed and to make decisions that are independent of the Company’s management. The guidelines are also intended to align the interests of directors and management with those of our stockholders. The Corporate Governance Guidelines set forth the practices the Board intends to follow with respect to board composition and selection including diversity, board meetings, and involvement of senior management, performance evaluation of the Chief Executive Officer and succession planning, and board committees and compensation. The Corporate Governance Guidelines may be viewed on our website at ir.shotspotter.com. The inclusion of our website address in this document does not include or incorporate by reference into this document the information on or accessible through our website.

 

Prohibition on Hedging, Short Sales and Pledging

We have adopted an insider trading policy applicable to all of our employees and members of our Board. This policy prohibits hedging and monetization transactions, including through the use of financial instruments such as prepaid variable forwards, equity swaps, collars and exchange funds. In addition, this policy prohibits trading in derivative securities related to our common stock, which include publicly traded call and put options, engaging in short selling of our common stock, purchasing our common stock on margin and holding it in a margin account and pledging our shares as collateral for a loan.

 

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PROPOSAL 2

RATIFICATION OF APPOINTMENT OF INDEPENDENT

REGISTERED PUBLIC ACCOUNTING FIRM

Our Audit Committee has appointed Baker Tilly US, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2022 and has further directed that the Board submit this appointment for ratification by the stockholders at the Annual Meeting.

Baker Tilly US, LLP audited our financial statements for the years ended December 31, 2015 through 2021. Representatives of Baker Tilly US, LLP are expected to participate during the Annual Meeting, where they will be available to respond to appropriate questions and, if they desire, to make a statement.

Our Board is submitting this selection as a matter of good corporate governance and because we value our stockholders’ views on our independent registered public accounting firm. Neither our bylaws nor other governing documents or law require stockholder ratification of the selection of our independent registered public accounting firm. If the stockholders fail to ratify this selection, our Audit Committee will reconsider whether or not to retain that firm. Even if the selection is ratified, our Audit Committee may direct the appointment of different independent auditors at any time during the year if they determine that such a change would be in the best interests of ShotSpotter and its stockholders.

Vote Required

An affirmative vote from holders of a majority in voting power of the shares present at the meeting or represented by proxy and entitled to vote on the proposal will be required to ratify the selection of Baker Tilly US, LLP.

Principal Accountant Fees and Services

The following table provides the aggregate fees for services provided by Baker Tilly US, LLP for the fiscal years ended December 31, 2021 and 2020.

 

 

 

Fiscal Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

Audit Fees(1)

$

 

267,795

 

 

$

 

341,316

 

 

Audit-related Fees(2)

 

 

 

 

 

8,000

 

 

Tax Fees

 

 

 

 

 

 

All Other Fees(3)

 

 

 

 

 

120,000

 

 



 

 

 

 

 

 

 

 

Total Fees

$

 

267,795

 

 

$

 

469,316

 

 

 

 

(1)

Consists of fees billed for professional services rendered in connection with the audit of our consolidated financial statements, including audited financial statements presented in our Annual Report on Form 10-K, review of the interim consolidated financial statements included in our quarterly reports and services normally provided in connection with regulatory filings.

(2)

Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s consolidated financial statements and are not reported under “Audit Fees.”

(3)

Consists of fees billed for professional services rendered in connection with the audit of LEEDS financial statements.

 

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Pre-Approval Procedures

Consistent with the requirements of the SEC and the Public Company Accounting Oversight Board, regarding auditor independence, the Audit Committee has responsibility for appointing, setting compensation, retaining and overseeing the work of our independent registered public accounting firm. In recognition of this responsibility, the Audit Committee pre-approves all audit and non-audit services rendered by our independent registered public accounting firm, Baker Tilly US, LLP. Such pre-approval may be given as part of the Audit Committee’s approval of the scope of the engagement of the independent auditor or on an individual, explicit, case-by-case basis before the independent auditor is engaged to provide each service.

All of the services provided by Baker Tilly US, LLP for our fiscal years ended December 31, 2021 and 2020 described above were pre-approved by the Audit Committee. Our Audit Committee has determined that the rendering of services other than audit services by Baker Tilly US, LLP is compatible with maintaining the principal accountant’s independence.

THE BOARD OF DIRECTORS RECOMMENDS

A VOTE IN FAVOR OF PROPOSAL 2.

 

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REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

The Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2021 with the management of ShotSpotter, Inc. The Audit Committee has also reviewed and discussed such financial statements with Baker Tilly US, LLP, the Company’s independent registered public accounting firm, with and without management present. The Audit Committee has discussed with its independent registered public accounting firm the matters required to be discussed by Auditing Standard No. 1301, “Communications with Audit Committees”, issued by the Public Company Accounting Oversight Board (the “PCAOB”). The Audit Committee has also received the written disclosures and the letter from its independent registered public accounting firm required by applicable requirements of the PCAOB regarding the independent accountants’ communications with the Audit Committee concerning independence, and has discussed with the independent registered public accounting firm the accounting firm’s independence. Based on the foregoing, the Audit Committee has recommended to our Board that the audited financial statements be included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The Audit Committee

Ruby Sharma (Chair)

Pascal Levensohn

Marc Morial

 

 

The material in this report is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of ShotSpotter, Inc under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

 

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth the beneficial ownership of our common stock as of April 25, 2022, for:

 

 

 

each person, or group of affiliated persons, who is known by us to beneficially own more than 5% of our common stock;

 

 

 

each of our named executive officers (as such term is defined in “Executive and Director Compensation—Summary Compensation Table” below);

 

 

 

each of our directors; and

 

 

 

all of our executive officers and directors as a group.

The percentage ownership information shown in the table is based upon 12,141,632 shares of common stock outstanding as of April 25, 2022.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities. In addition, the rules include shares of common stock that may be issuable upon settlement of outstanding restricted stock units (“RSUs”) on or before June 24, 2022 or that may be issuable pursuant to the exercise of stock options or warrants that are either immediately exercisable or exercisable on or before June 24, 2022, which is 60 days after April 25, 2022. These shares are deemed to be outstanding and beneficially owned by the person holding those options or warrants for the purpose of computing the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Unless otherwise indicated, the persons or entities identified in this table have sole voting and investment power with respect to all shares shown as beneficially owned by them, subject to applicable community property laws.

Except as otherwise noted below, the address for persons listed in the table is c/o ShotSpotter, Inc., 39300 Civic Center Dr., Suite 300, Fremont California 94538.

 

 

Beneficial Ownership

 

Name of Beneficial Owner

 

Shares

 

 

Percentage of
Total

 

5% or greater stockholders:

 

 

 

 

 

 

Entities affiliated with Lauder Partners LLC(1)

 

 

2,255,406

 

 

 

18.6

%

Gilder, Gagnon, Howe & Co. LLC(2)

 

 

1,420,623

 

 

 

11.7

%

Federated Hermes, Inc.(3)

 

 

1,120,000

 

 

 

9.2

%

Nine Ten Capital Management LLC (4)

 

 

826,472

 

 

 

6.8

%

Granahan Investment Management LLC (5)

 

 

640,816

 

 

 

5.3

%

 

 

 

 

 

 

 

Named executive officers and directors

 

 

 

 

 

 

William J. Bratton(6)

 

 

16,922

 

 

*

 

Deborah Elam(7)

 

 

2,523

 

 

*

 

Thomas T. Groos(8)

 

 

356,689

 

 

 

2.9

%

Randall Hawks, Jr.(9)

 

 

26,738

 

 

*

 

Roberta Jacobson(10)

 

 

1,946

 

 

*

 

Pascal Levensohn(11)

 

 

15,959

 

 

*

 

Marc Morial(12)

 

 

29,299

 

 

*

 

Ruby Sharma(13)

 

 

1,533

 

 

*

 

Ralph A. Clark(14)

 

 

513,064

 

 

*

 

Alan R. Stewart(15)

 

 

109,991

 

 

 

4.2

%

Gary T. Bunyard(16)

 

 

48,785

 

 

*

 

All current executive officers and directors as a group (14 persons)(17)

 

 

1,333,866

 

 

 

11.0

%

 

 

 

 

 

 

 

 

*

Represents beneficial ownership of less than 1% of the total outstanding common.

 

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(1

)

Based on a Schedule 13G filed with the SEC on February 14, 2022, reporting beneficial ownership as of December 31, 2021. Consists of: (i) 1,019,529 shares of common stock held by The Gary M. Lauder Revocable Trust; (ii) 1,136,725 shares of common stock held by Lauder Partners LLC; (iii) 91,000 shares of common stock held by Gary M. Lauder 2015 Trust; and (iv) 8,152 shares of common stock held directly by Mr. Lauder. Mr. Lauder is a Trustee of The Gary M. Lauder Revocable Trust and Gary M. Lauder 2015 Trust, and the General Partner of Lauder Partners LLC. The address for The Gary M. Lauder Revocable Trust and Lauder Partners LLC is 40th Floor, 767 Fifth Ave., New York, NY 10153.

 

(2

)

Based on a Schedule 13G filed with the SEC on February 14, 2022, reporting beneficial ownership as of December 31, 2021. Consists of 1,420,623 shares held in customer accounts over which partners and/or employees of the Gilder, Gagnon, Howe and Co. LLC have discretionary authority to dispose of or direct the disposition of the shares. The address for Gilder, Gagnon, Howe and Co. LLC is 475 10th Avenue, New York, NY 10018.

 

(3

)

Based on a Schedule 13G filed with the SEC on February 14, 2022, reporting beneficial ownership as of December 31, 2021. Federated Hermes, Inc. (the “Federated Parent”) is the parent holding company of Federated Equity Management Company of Pennsylvania, Federated Investment Counseling and Federated MDTA LLC (the “Federated Investment Advisers”), which act as investment advisers to registered investment companies and separate accounts that collectively own 1,120,000 shares of common stock. The Federated Investment Advisers are wholly owned subsidiaries of FII Holdings, Inc., which is a wholly owned subsidiary of the Federated Parent. All of the Federated Parent’s outstanding voting stock is held in the Voting Shares Irrevocable Trust for which Thomas R. Donahue, Rhodora J. Donahue and J. Christopher Donahue act as trustees. The address of Federated Hermes, Inc. is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

 

(4

)

Based on a Schedule 13G/A filed with the SEC on February 9, 2022, reporting beneficial ownership as of December 31, 2021. Consists of 826,472 shares held in customer accounts over which partners and/or employees of the Nine Ten Capital Management LLC have discretionary authority to dispose of or direct the disposition of the shares. The address for Nine Ten Capital Management LLC is 1603 Orrington Avenue, Suite 1650, Evanston, IL 60201.

 

(5

)

Based on a Schedule 13G filed with the SEC on February 14, 2022 reporting beneficial ownership as of December 31, 2021. Consists of 640,816 shares held in customer accounts over which partners and/or employees of the Granahan Investment Management LLC have discretionary authority to dispose of or direct the disposition of the shares. The address for Granahan Investment Management LLC is 404 Wyman Street, Suite 460, Waltham, MA 02451.

 

(6

)

Consists of: (i) 14,399 shares of common stock held directly by Mr. Bratton; and (ii) 2,523 shares of common stock issuable pursuant to RSUs vesting within 60 days of April 25, 2022.

 

(7

)

Consists of: 2,523 shares of common stock issuable pursuant to RSUs vesting within 60 days of April 25, 2022.

 

(8

)

Consists of (i): 294,135 shares of common stock held by RT Groos, LLC (ii) 40,496 shares of common stock held by the Thomas T. Groos Revocable Trust (iii) 19,535 shares of common stock held directly by Mr. Groos; and (iv) 2,523 shares of common stock expected to be issued to Mr. Groos upon settlement of RSUs within 60 days of April 25, 2022. Thomas T. Groos holds voting and dispositive power for the shares held by RT Groos LLC, and the Thomas T. Groos Revocable Trust and disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein. The address for RT Groos LLC, and the Thomas T. Groos Revocable Trust is 37 Ottawa Ave, NW, suite 200, Grand Rapids, MI 49503.

 

(9

)

Consists of (i): 24,215 shares of common stock held directly by Mr. Hawks, Jr.; and (ii) 2,523 shares of common stock issuable pursuant to RSUs expected to settle within 60 days of April 25, 2022.

 

(10

)

Consists of: 1,946 shares of common stock issuable pursuant to RSUs vesting within 60 days of April 25, 2022.

 

 

 

 

 

 

 

 

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(11

)

Consists of: (i) 12,426 shares of common stock held directly by Mr. Levensohn; and (ii) 3,533 shares of common stock expected to issue upon settlement of RSUs within 60 days of April 25, 2022.

 

(12

)

Consists of: (i) 15,011 shares of common stock held directly by Mr. Morial; (ii) 11,765 shares of common stock issuable under outstanding stock options exercisable within 60 days of April 25, 2022; and (iii) 2,523 shares of common stock issuable pursuant to RSUs expected to settle within 60 days of April 25, 2022.

 

(13

)

Consists of: 1,533 shares of common stock issuable pursuant to RSUs vesting within 60 days of April 25, 2022.

 

(14

)

Consists of: (i) 446,546 shares of common stock held directly by Mr. Clark; (ii) 61,319 shares of common stock issuable under outstanding stock options exercisable within 60 days of April 25, 2022; and (iii) 5,199 shares of common stock expected to settle pursuant to RSUs within 60 days of April 25, 2022.

 

(15

)

Consists of: (i) 90,053 shares of common stock held directly by Mr. Stewart; (ii) 17,155 shares of common stock issuable under outstanding stock options exercisable within 60 days of April 25, 2022; and (iii) 2,783 shares of common stock expected to settle pursuant to RSUs within 60 days of April 25, 2022.

 

(16

)

Consists of: (i) 7,963 shares of common stock held directly by Mr. Bunyard; (ii) 39,394 shares of common stock issuable under outstanding stock options exercisable within 60 days of April 25, 2022 and (ii) 1,428 shares of common stock issuable pursuant to RSUs expected to settle within 60 days of April 25, 2022.

 

(17

)

Consists of: (i) 1,051,852 shares of common stock, including 37,893 shares of common stock expected to issue upon settlement of RSUs within 60 days of April 25, 2022 and (ii) 266,455 shares of common stock issuable under outstanding stock options exercisable within 60 days of April 25, 2022 held by our current executive officers and directors.

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DELINQUENT SECTION 16(A) REPORTS

Section 16(a) of the Exchange Act requires our directors and executive officers, and persons who own more than 10% of a registered class of the Company’s equity securities, to file with the SEC reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company.

To our knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, during the fiscal year ended December 31, 2021, all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with, except that one report was filed late for each of Deborah Elam, William Bratton, Thomas Groos, Randall Hawks, Jr., Pascal Levensohn, Marc Morial and Roberta Jacobson, with each such late-filed report covering one transaction.

 

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EXECUTIVE OFFICERS

The following table sets forth information concerning our executive officers. Our executive officers and their respective ages and positions as of April 25, 2022, are as follows:

 

 

Name

 

Age

 

Positions

Ralph A. Clark

 

63

 

President, Chief Executive Officer and Director

Alan R. Stewart

 

58

 

Chief Financial Officer

Paul S. Ames

 

63

 

Senior Vice President, Products and Technology

Gary T. Bunyard

 

62

 

Senior Vice President, Sales and Security

Nasim Golzadeh

 

47

 

Senior Vice President, Customer Support and Professional Services

R. Samuel Klepper

 

56

 

Senior Vice President, Marketing and Product Strategy

Executive Officers

Ralph A. Clark. Biographical information for Mr. Clark is included above with the director biographies under the caption “Directors Continuing in Office until the 2023 Annual Meeting of Stockholders”.

Alan R. Stewart has served as our Chief Financial Officer since February 2017. From May 2015 to February 2017, Mr. Stewart was a Managing Director of RA Capital Advisors, LLC, a private investment bank specializing in mergers and acquisitions, private financings and restructurings. From 2004 to 2014, he served as Chief Financial Officer and then Chief Development Officer of Epsilon Systems Solutions, Inc. Since 2008, Mr. Stewart has served as President and CEO of FIT Advisors, LLC, a boutique consulting firm that has offered temporary CFO services and served clients from start-up ventures to large private companies. Currently, Mr. Stewart only provides board services through FIT Advisors, LLC. Prior to his business career, Mr. Stewart served over ten years as a submarine nuclear engineer in the United States Navy. He received his B.S. in Oceanography, with distinction, from the U.S. Naval Academy and his M.B.A. from Harvard Business School.

Paul S. Ames has served as our Senior Vice President, Products and Technology since November 2014. In December 2012, Mr. Ames founded Deckchair Software LLC, a mobile application development company, where he remains named as Chief Executive Officer, however, he is not currently active in that role. From September 2006 until May 2011, Mr. Ames worked with Premier Retail Networks, a digital media company, first as Vice President, Quality Assurance and then as Vice President of Product Development. Prior to that, Mr. Ames served in a variety of engineering and technology roles for companies in a broad range of industries including communications, finance, professional information and media. Mr. Ames holds a Diploma in Electronic Sound from University College, Cardiff (now Cardiff University) and a Higher National Diploma in Computer Science from the Polytechnic of Wales (now the University of Glamorgan).

Gary T. Bunyard has served as our Senior Vice President, Sales and Security since January 2017. From January 2012 to May 2015, Mr. Bunyard served as Vice President of Sales for TriTech Software Systems. Prior to that, Mr. Bunyard held positions as Vice President of Sales and Marketing for Tiburon Corporation and for VisionAIR, Inc., both public safety software companies. Mr. Bunyard also held the position as President and Chief Operating Officer and subsequently President and Chief Executive Officer for Tiburon Corporation after holding several sales executive and sales management positions at IBM. Mr. Bunyard holds a B.B.A. in International Business and a B.A. in Psychology from the University of Texas at Austin.

 

 

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Nasim Golzadeh has served as our Senior Vice President, Customer Support and Professional Services since March 2019. From July 2005 until January 2019, Ms. Golzadeh held positions of increasing responsibility at CentralSquare Technologies (formerly TriTech Software Systems), a public safety software company. At CentralSquare Technologies, Ms. Golzadeh led consistent professional services revenue growth, drove operational excellence, continuous process improvement and high customer satisfaction. From August 2014 to January 2019, Ms. Golzadeh served as Vice President of Operations and Professional Services, from April 2013 to August 2014 as the Senior Director of Operations, and prior to that the Director of Program Management Office. Earlier in her career Ms. Golzadeh held several management and engineering positions at various educational, banking, and manufacturing organizations. Ms. Golzadeh holds a B.S. in Electrical Engineering from University of Tehran, Iran and M.B.A. and an M.S. in Software Engineering from National University.

R. Sam Klepper has served as our Senior Vice President, Marketing and Product Strategy since March 2018. From May 2016 to March 2018, Mr. Klepper served as Vice President Sales, Marketing and Customer Success at EnerAllies Inc., a SaaS-centric IoT energy management platform. From May 2014 to April 2016, Mr. Klepper was President of Klepper Strategy Consulting where he advised energy and IoT companies. From May 2013 to April 2014 Mr. Klepper served as President and Chief Executive Officer of Lavante Inc., a leader in SaaS supplier management solutions. Prior to that, Mr. Klepper served as Chief Marketing Officer of Redwood Systems Inc., a lighting controls and IoT provider (acquired by CommScope). Mr. Klepper served as General Manager, Chief Marketing Officer and interim Chief Executive Officer for eMeter Inc., a leading provider of smart grid solution to utilities (acquired by Siemens, Inc.). Earlier in his career, Mr. Klepper held various marketing and general management positions with Microsoft for 11 years and Intuit for 5 years. Mr. Klepper holds a B.A in History and Science magna cum laude from Harvard University and an M.B.A. from Harvard Business School.

 

 

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EXECUTIVE AND DIRECTOR COMPENSATION

Summary Compensation Table

The following table sets forth information regarding the compensation awarded to or earned by the executive officers listed below during the year ended December 31, 2021. As an emerging growth company and a smaller reporting company, we comply with the reduced executive compensation disclosure rules applicable to “smaller reporting companies,” as such term is defined in the rules promulgated under the Securities Act, which require compensation disclosure for only our principal executive officer and the two most highly compensated executive officers other than our principal executive officer. Throughout this document, these three officers are referred to as our “named executive officers.”

 

Name and Principal Position

 

Year

 

Salary ($)

 

 

Bonus ($)(1)

 

 

Stock Awards ($)(2)

 

 

Option Awards ($)(3)

 

 

Non-Equity Incentive Plan Compensation ($)

 

All Other Compensation ($)

 

 

Total ($)

 

 

Ralph A. Clark

 

2021

 

 

450,000

 

 

 

344,000

 

 

 

674,965

 

 

 

675,307

 

 

 

 

 

 

2,144,272

 

 

President and Chief Executive Officer

 

2020

 

 

450,000

 

 

 

340,000

 

 

 

624,980

 

 

 

634,622

 

 

 

300

 

 

 

2,049,902

 

 

Alan R. Stewart

 

2021

 

 

350,000

 

 

 

164,000

 

 

 

412,468

 

 

 

137,543

 

 

 

 

 

 

1,064,011

 

 

Chief Financial Officer

 

2020

 

 

301,000

 

 

 

160,000

 

 

 

268,744

 

 

 

272,874

 

 

 

200

 

 

 

1,002,299

 

 

Gary T. Bunyard

 

2021

 

 

225,000

 

 

 

50,000

 

 

 

224,976

 

 

 

75,030

 

 

 

 

324,000

 

 

 

899,006

 

 

Senior Vice President, Sales and Security

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

The amounts reported in the “Bonus” column represent discretionary bonuses for performance in 2020 and 2021 paid in 2021 and 2022, respectively.

 

(2

)

Amounts reported in this column do not reflect the amounts actually received by our named executive officers. Instead, these amounts reflect the aggregate grant date fair value of restricted stock units with either time-based or performance-based vesting conditions.

 

(3

)

Amounts reported in this column do not reflect the amounts actually received by our named executive officers. Instead, these amounts reflect the aggregate grant date fair value of each stock option granted to the named executive officers during the fiscal years ended December 31, 2021 and 2020, respectively, as computed in accordance with the Financial Accounting Standards Board Accounting Standards Codification 718 (“ASC 718”). Assumptions used in the calculation of these amounts are included in Note 16 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. As required by SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. Our named executive officers will only realize compensation to the extent the trading price of our common stock is greater than the exercise price of such stock options.

 

(4

)

Mr. Bunyard was not a named officer in prior years.

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Outstanding Equity Awards as of December 31, 2021

The following table provides information regarding outstanding equity awards held by our named executive officers as of December 31, 2021.

 

 

 

 

 

Option Awards

 

Stock Awards

 

 

 



Name

 

Grant Date

 

Number of Securities Underlying Unexercised Options (#) Exercisable

 

 

Number of Securities Underlying Unexercised Options (#) Unexercisable

 

 

 

Option Exercise Price ($)

 

 

Option Expiration Date

 

Number of Shares or Units of Stock that Have Not Vested (#)

 

 

 

 

Market Value of Shares or Units of Stock that Have Not Vested ($)

 

 

 

 

Ralph A. Clark

 

2/5/2018





 





 



 



 





 

 

5,282

 

 

(5

)

 

 

155,925

 

 

(9

)





 

3/7/2019





 





 



 



 





 

 

2,781

 

 

(6

)

 

 

82,095

 

 

(9

)





 

3/6/2020

 

 

13,936

 

 

 

17,919

 

(1)(4)

 

34.07

 

 

3/5/2030





 

 

 

 

 

 

 

 





 

3/6/2020





 





 



 



 





 

 

10,319

 

 

(7

)

 

 

304,617

 

 

(9

)



 

 

3/9/2021

 

 

5,675

 

 

 

24,594

 

(1)(4)

 

37.26

 

 

3/9/2031

 

 

 

 

 

 

 

 

 

 

 

 

 

3/9/2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,719

 

 

(8

)

 

 

434,505

 

 

(9

)

 

Alan R. Stewart

 

3/13/2017

 

 

4,305

 

 

 

(2)(4)

 

3.06

 

 

3/13/2027





 

 

 

 

 

 

 

 





 

3/27/2017

 

 

563

 

 

 

(1)(4)

 

 

3.06

 

 

3/27/2027





 

 

 

 

 

 

 

 





 

2/5/2018





 





 



 



 





 

 

3,961

 

 

(5

)

 

 

116,929

 

 

(9

)





 

3/7/2019





 





 



 



 





 

 

2,086

 

 

(6

)

 

 

61,579

 

 

(9

)





 

3/6/2020

 

 

5,992

 

 

 

7,705

 

(1)(4)

 

34.07

 

 

3/5/2030





 

 

 

 

 

 

 

 





 

3/6/2020





 





 



 



 





 

 

4,437

 

 

(7

)

 

 

130,980