Form 4: AERG Director Sells Shares After Option Exercise

Applied Energetics Director Bradford T. Adamczyk reported the sale of 10,000 common shares following the exercise of stock options.

Summary

• Director Bradford T. Adamczyk reported transactions under a Rule 10b5-1 plan.
• On January 7, 2026, Mr. Adamczyk exercised 10,000 non-qualified stock options at an exercise price of $0.07 per share.
• Concurrently, he sold 10,000 shares of common stock at a weighted average price of $1.77 per share.
• Following these transactions, Mr. Adamczyk directly owns 681,482 shares of common stock and indirectly owns 1,563,599 shares through Moriah Stone Global L.P.
• He also directly holds 1,320,000 non-qualified stock options and indirectly holds 3,500,000 non-qualified stock options through Adamczyk Family 2021 LLC, none of which were exercised in this report.

Sentiment

Score: 5

Explanation: The director exercised options and immediately sold an equivalent number of shares. While a sale by an insider can be viewed negatively, the transaction was pre-planned under a Rule 10b5-1 plan, which mitigates concerns about opportunistic selling based on non-public information. The transaction size is also relatively small compared to total holdings.

Positives

• Exercise of options indicates a realization of value from previously granted compensation.
• Transactions were made pursuant to a Rule 10b5-1 plan, suggesting pre-planned activity rather than a reaction to new information.

Negatives

• A director selling shares, even if pre-planned, can sometimes be interpreted as a lack of confidence, though the amount is relatively small.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Mr. Adamczyk's indirect beneficial ownership of 1,563,599 common shares is held by Moriah Stone Global L.P., which he controls.
• Mr. Adamczyk's indirect beneficial ownership of 3,500,000 non-qualified stock options is held by Adamczyk Family 2021 LLC, which he controls.

Stakeholder Impact

• Minimal direct impact on shareholders due to the relatively small volume of shares traded (10,000 shares) compared to the company's overall market capitalization and outstanding shares.
• The transaction, being pre-planned under a Rule 10b5-1 plan, suggests no immediate change in the director's long-term view or company strategy that would significantly impact stakeholders.

Key Dates

Keywords

APPLIED ENERGETICS, AERG, Insider Trading, Form 4, Stock Options, Director Sale, Bradford Adamczyk, Equity Transaction, Rule 10b5-1