Form 4: Actelis CTO Elad Domanovitz Granted 30,000 RSUs

Actelis Networks Inc. Chief Technology Officer Elad Domanovitz was granted 30,000 Restricted Stock Units, vesting over three years.

Summary

• Elad Domanovitz, Chief Technology Officer of ACTELIS NETWORKS INC (ASNS), was granted 30,000 Restricted Stock Units (RSUs).
• The transaction date for this grant is September 21, 2025.
• The RSUs will vest annually in three equal tranches, with the first tranche vesting on September 21, 2026, the second on September 21, 2027, and the final tranche on September 21, 2028.
• Vesting is contingent upon Mr. Domanovitz's continued service to the Issuer through each vesting date.
• In the event of termination, unvested RSUs will vest pro-rata based on the upcoming annual anniversary amount to the date of termination.
• Following this transaction, Mr. Domanovitz beneficially owns 30,000 derivative securities (RSUs) directly.

Sentiment

Score: 7

Explanation: The grant of Restricted Stock Units to a key executive is generally a positive sign for executive retention and aligns management's interests with shareholder value over the long term. It does not, however, reflect immediate financial performance.

Positives

• The grant of Restricted Stock Units aligns the Chief Technology Officer's long-term interests with those of shareholders, incentivizing sustained performance.
• This equity compensation serves as a retention mechanism for a key executive, promoting stability in leadership.

Negatives

• The RSUs do not have immediate cash value and are subject to a multi-year vesting schedule, meaning the executive must remain with the company to realize the full benefit.
• The value of the RSUs upon vesting is dependent on the future market price of Actelis Networks common stock, introducing market risk.

Risks

• The reporting person risks forfeiture of unvested RSUs if their service to the Issuer terminates before the scheduled vesting dates, unless specific termination clauses apply.
• The ultimate value realized from the RSUs is subject to the volatility and performance of Actelis Networks' common stock, which could be lower than anticipated at the time of grant.

Future Outlook

The grant of RSUs to the Chief Technology Officer indicates a commitment to retaining key talent and aligning executive incentives with long-term shareholder value. The future vesting of these units will result in the issuance of common stock, potentially leading to minor dilution over the vesting period.

Industry Context

The grant of Restricted Stock Units is a common form of equity compensation for executives in publicly traded technology companies. This practice is widely adopted across the industry to attract, retain, and motivate key personnel by linking their compensation directly to the company's stock performance and long-term success.

Comparison to Industry Standards

• The structure of this RSU grant, with annual vesting over three years, is a standard practice for executive equity compensation across the technology sector, comparable to grants observed at companies like Cisco, Juniper Networks, or other mid-cap networking technology firms.
• The use of RSUs, which convert to common stock upon vesting, is a prevalent method to align executive interests with shareholder value, similar to compensation packages offered by industry peers to their senior leadership.

Corporate Governance

Related Party Transactions

• The grant of 30,000 Restricted Stock Units to Elad Domanovitz, the Chief Technology Officer, constitutes a related party transaction as it involves an officer of the company receiving equity compensation.

Stakeholder Impact

• Shareholders: Potential for long-term value creation through aligned executive incentives, but also minor future dilution upon RSU vesting.
• Employees (CTO): Receives significant equity compensation, enhancing personal wealth potential tied to company performance and providing a strong incentive for continued service.

Next Steps

• The RSUs will vest in three equal tranches on September 21, 2026, September 21, 2027, and September 21, 2028, subject to the CTO's continued service.

Key Dates

Keywords

Actelis Networks, ASNS, Elad Domanovitz, CTO, Restricted Stock Units, RSU, equity compensation, insider transaction, Form 4, executive compensation