Form 4: Applied Digital Director Richard Nottenburg Receives Stock Awards

Director Richard Nottenburg of Applied Digital Corp. received 28,606 restricted stock units and holds 362,923 shares of common stock.

Summary

• Richard Nottenburg, a director at Applied Digital Corp., received 28,606 restricted stock units (RSUs) on December 27, 2024.
• These RSUs were granted for board service and will convert to common stock on a one-for-one basis.
• The RSUs will vest in full on November 20, 2025, contingent on Mr. Nottenburg's continued service.
• Mr. Nottenburg also holds 300,000 shares of restricted stock granted on May 13, 2024, related to his role as Chairman of the board of directors of Applied Digital Cloud Corporation.
• These restricted shares vest in three tranches: 100,000 on May 13, 2025, 100,000 on May 13, 2026, and 100,000 on May 13, 2027, subject to his continued service as a director of both Applied Digital Corp. and Applied Digital Cloud Corporation.
• Following these transactions, Mr. Nottenburg beneficially owns a total of 362,923 shares of common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard practice of stock-based compensation for directors, which is generally viewed positively as it aligns interests. There are no negative implications or unusual circumstances.

Positives

• The grant of RSUs to Mr. Nottenburg aligns his interests with the company's performance.
• The vesting schedule of the restricted stock encourages long-term commitment from Mr. Nottenburg.

Risks

• The vesting of the RSUs and restricted stock is contingent on Mr. Nottenburg's continued service, which introduces a risk of forfeiture if he leaves the company before the vesting dates.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

This is a standard SEC Form 4 filing, which is common for publicly traded companies when there are changes in beneficial ownership by directors or officers. It is a routine disclosure and does not indicate any unusual activity.

Comparison to Industry Standards

• Stock grants to directors are a common practice in publicly traded companies to align their interests with shareholders.
• The vesting schedules for both the RSUs and restricted stock are typical for such grants, often spanning multiple years to encourage long-term commitment.
• Companies like AMD, Nvidia, and Intel also use similar stock-based compensation for their directors and executives.

Stakeholder Impact

• The stock grants to Mr. Nottenburg align his interests with those of shareholders.
• The vesting schedule encourages long-term commitment from a key member of the board.

Key Dates

Keywords

stock, restricted stock units, RSU, director, beneficial ownership, Applied Digital Corp, APLD, Richard Nottenburg, vesting