Form 4: CareCloud Interim CFO Norman Roth Acquires and Disposes of Preferred Stock in Recent Transaction

CareCloud's Interim CFO and Controller, Norman Roth, engaged in transactions involving the company's Series B Cumulative Redeemable Perpetual Preferred Stock on December 16, 2024, including the conversion of restricted stock units and shares withheld for tax obligations.

Summary

• On December 16, 2024, Norman Roth, the Interim CFO and Controller of CareCloud, Inc., acquired 10,000 shares of Series B Cumulative Redeemable Perpetual Preferred Stock upon the vesting of restricted stock units.
• These shares were acquired under the company's Amended and Restated Equity Incentive Plan without any payment by Mr. Roth.
• Simultaneously, 3,500 shares of the same preferred stock were withheld by CareCloud to satisfy mandatory tax withholding requirements related to the vesting of the restricted stock units.
• This withholding was not an open market sale of securities.
• Following these transactions, Mr. Roth beneficially owns 6,500 shares of Series B Cumulative Redeemable Perpetual Preferred Stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative events. The sentiment is neutral to slightly positive due to the vesting of stock units.

Positives

• The vesting of restricted stock units indicates that Mr. Roth has met certain performance or time-based criteria set by the company.
• The acquisition of shares through the equity incentive plan aligns Mr. Roth's interests with those of the company and its shareholders.

Negatives

• The withholding of shares for tax obligations reduces the total number of shares beneficially owned by Mr. Roth.

Risks

• The document does not indicate any specific risks associated with these transactions.
• However, changes in ownership by key personnel can sometimes signal internal shifts or changes in strategy.

Industry Context

This transaction is a routine filing related to executive compensation and is common in publicly traded companies. It reflects the vesting of equity awards and the subsequent tax obligations.

Comparison to Industry Standards

• The use of restricted stock units as part of executive compensation is a standard practice in the technology and healthcare industries, similar to companies like Cerner and Allscripts.
• The tax withholding process is also a common practice to ensure compliance with tax regulations, similar to what is seen in other public companies.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect the standard vesting of executive compensation.
• The tax withholding ensures compliance with tax regulations.

Key Dates

Keywords

CareCloud, Norman Roth, Series B Preferred Stock, Restricted Stock Units, Equity Incentive Plan, Beneficial Ownership, SEC Form 4, Tax Withholding