Form 4: Applied Energetics CEO Emeritus Sells Shares After Option Exercise

Applied Energetics' CEO Emeritus, Gregory Quarles, reported the sale of 10,000 shares of common stock following the exercise of stock options.

Summary

• Gregory James Quarles, CEO Emeritus and Director of Applied Energetics, Inc. (AERG), reported a transaction on July 21, 2025.
• Quarles exercised 10,000 non-qualified stock options at an exercise price of $0.35 per share.
• Immediately following the exercise, these 10,000 shares of common stock were sold at a weighted average price of $2.25 per share, with individual trades ranging from $2.21 to $2.26.
• After these transactions, Quarles' direct beneficial ownership of common stock is 0 shares.
• Quarles continues to hold 4,880,000 non-qualified stock options with an exercise price of $0.35, which became exercisable on November 18, 2019, and are set to expire on April 18, 2029.
• Additionally, Quarles holds 1,954,545 Restricted Stock Units (RSUs) that are currently unvested and have an expiration date of November 29, 2032.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction involving the exercise of options and subsequent sale of shares, which is a common event for executives managing their equity compensation. It does not inherently convey positive or negative sentiment about the company's operational or financial performance.

Positives

• The CEO Emeritus realized a significant profit by selling shares at a weighted average price of $2.25 after exercising options at $0.35 per share.

Negatives

• The CEO Emeritus reduced direct ownership of common stock to zero following the sale, which could be perceived as a lack of direct equity alignment, although substantial derivative holdings remain.

Risks

• No specific risks related to the company's operations or financial health are disclosed in this Form 4 filing, as it solely reports an insider's change in beneficial ownership.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This Form 4 filing details a routine insider transaction, common across all industries, where an executive exercises stock options and sells the resulting shares. It does not provide specific industry-related insights beyond the company's name, Applied Energetics, Inc.

Stakeholder Impact

• Shareholders: A minor reduction in direct insider ownership, which is a routine event for executives managing their equity compensation. The sale represents a profit for the executive.
• Employees, Customers, Suppliers, Creditors: No direct impact from this specific filing.

Key Dates

Keywords

Applied Energetics, AERG, Form 4, Insider Trading, Stock Options, Restricted Stock Units, Gregory Quarles, CEO Emeritus, Share Sale, Beneficial Ownership