aibioBioRestorative's R&D vice president resigns and claims severance
Tickers BRTX
The company's board does not accept that the resignation was for good reason. The notice seeks about $1.29 million in cash severance under a disputed agreement.
Key facts
- Company
- BioRestorative Therapies, Inc. (NASDAQ: BRTX)
- News type
- Company Updates
- Primary source
- BioRestorative Therapies, Inc. 8-K (2026-09-11)
BioRestorative Therapies, Inc. (Nasdaq: BRTX) said that Mr. Silva, its Vice President of Research and Development, resigned effective immediately after giving notice on September 4, 2026. His notice claims severance under an employment agreement that the company's board does not accept. The company disclosed the matter in an 8-K dated September 11, 2026, signed by Mika Grasso, the company's Interim Chief Executive Officer.
The resignation notice
The notice said the resignation was for Good Reason, as defined in an Executive Employment Agreement dated as of June 10, 2026, which it said was purportedly amended in July 2026. The notice relied on a Change in Control that it said occurred under clause (ii) of the definition. That clause refers to changes in the composition of the company's Board of Directors made in June 2026 in connection with a Revolving Loan Agreement between the company and Bowery Group LLC, dated June 10, 2026, as amended. Mr. Silva has demanded payment of the severance and other amounts he says are payable.
If the resignation were ultimately determined to be for Good Reason, and the agreement were held valid and binding on the company, Mr. Silva would assert a right to cash severance of approximately $1.29 million. He would also assert acceleration of outstanding equity awards and continuation of certain benefits.
The board's position
The board acknowledged the resignation for corporate-records and disclosure purposes, effective as of the date in the notice. It has not accepted, and does not concede, the validity or effect of the employment agreement. It also does not accept the notice's characterizations, including the claim that a Change in Control occurred and the claim that the resignation was for Good Reason. The company says it has reserved all of its rights, claims and defenses on these points.
As previously disclosed, the board has authorized an investigation by special counsel acting under its direction. That review covers the negotiation, approval, execution and amendment of the employment agreement. It also covers the employment agreements the company says were purportedly entered into with its former Chief Executive Officer and former Chief Financial Officer. Until that investigation is complete and the board takes further action, the board has decided that no payments or benefits will be made under the agreement. The one exception is accrued and unpaid base salary through the date his service ceased, along with other amounts required by applicable wage-payment law.
The company and its programs
BioRestorative develops therapeutic products using cell and tissue protocols, primarily involving adult stem cells. Its Disc/Spine Program centers on BRTX-100, which is in a Phase 2 trial for chronic lower back pain from degenerative disc disease. The FDA has also cleared an IND for BRTX-100 in chronic cervical discogenic pain, and granted Fast Track designation in February 2025 for chronic lumbar disc disease.
The ThermoStem Program is pre-clinical.
Financial position
The company's financial data shows research and development expense of $10.1 million for the year ended December 31, 2025, up from $6.7 million for 2024. The net loss was $14.2 million for 2025 and $9.0 million for 2024. Cash used in operations was $10.8 million in 2025 and $8.2 million in 2024. At March 31, 2026, cash and cash equivalents were $3.1 million and short-term investments were $479,351. In February 2026, the company received gross proceeds of $5,000,000 from a public offering.
What comes next
The filing does not give a date for resolving the dispute. Payments under the agreement remain on hold while the board's investigation is pending. The company's stated goal is to submit a Phase 3 IND during 2026. It began Phase 3 enabling activities after a December 2025 meeting with the FDA, which the company described as producing a positive official summary. That is the company's characterization, and the Phase 3 IND has not been submitted. Cash and cash equivalents of $3.1 million at March 31, 2026 compare with $10.8 million of cash used in operations in 2025, so the program and a severance dispute of about $1.29 million both sit on a thin balance sheet.