Form 4: Applied Energetics CEO Sells 10,000 Shares
Insider Transaction Report
Christopher Donaghey, President & CEO of Applied Energetics, reported the sale of 10,000 shares of common stock in late December 2025 under a Rule 10b5-1 plan.
Summary
- Christopher Wayne Donaghey, President & CEO and a Director of APPLIED ENERGETICS, INC. (AERG), reported transactions involving the company's common stock.
- On December 26, 2025, Donaghey sold 2,300 shares of common stock at a weighted average price of $1.92 per share, with prices ranging from $1.87 to $1.94.
- On December 29, 2025, an additional 7,700 shares of common stock were sold at a weighted average price of $1.93 per share, with prices ranging from $1.92 to $1.95.
- These transactions were made pursuant to a Rule 10b5-1(c) contract, instruction, or written plan for the purchase or sale of equity securities.
- Following these sales, Donaghey beneficially owns 143,592 shares of common stock directly.
- Donaghey also holds various derivative securities, including 1,000,000 Incentive Stock Options with an exercise price of $0.78, vesting upon achievement of revenue milestones ($10M, $25M, $50M).
- Another 1,000,000 Incentive Stock Options are held with an exercise price of $2.36, vesting over four years, with 750,000 shares currently vested as of July 12, 2023, and expiring on July 13, 2032.
- Non-Statutory Stock Options include 150,000 shares at an exercise price of $0.35, which vested in installments between September 2019 and April 2021, expiring on April 29, 2029.
- An additional 200,000 Non-Statutory Stock Options are held at an exercise price of $0.61, which vested on May 12, 2022, and expire on May 12, 2031.
- Donaghey also holds 100,000 Restricted Stock Units (RSUs) that vest in equal annual installments commencing on July 12, 2023, with no expiration date or exercise price.
Sentiment
Score: 5
Explanation: The filing reports a routine insider stock sale executed under a pre-arranged 10b5-1 plan. While insider selling can sometimes be viewed negatively, the pre-planned nature often mitigates immediate concerns, making the sentiment neutral without additional context on the company's performance or the insider's overall holdings.
Negatives
- Insider selling, even if pre-scheduled under a 10b5-1 plan, can sometimes be perceived negatively by investors, potentially signaling a lack of confidence or a desire to diversify holdings.
Future Outlook
The filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.
Management Comments
- Christopher Donaghey, President & CEO, executed the reported sales of common stock pursuant to a pre-arranged Rule 10b5-1 trading plan.
Industry Context
This Form 4 filing reports an individual insider transaction and does not provide broader industry context or trends. Insider trading activity is a common data point for investors to consider within the broader market.
Related Party Transactions
- The sale of 10,000 shares of common stock by Christopher Donaghey, the President & CEO and a Director, constitutes a related party transaction.
Stakeholder Impact
- Shareholders may interpret the insider sale as a signal, potentially influencing their perception of the company's near-term prospects or the insider's confidence, although the 10b5-1 plan suggests a pre-scheduled, rather than reactive, decision.
Key Dates
| Date | Description |
|---|---|
| 09/29/2019 | First installment vesting date for 150,000 Non-Statutory Stock Options. |
| 04/29/2020 | Second installment vesting date for 150,000 Non-Statutory Stock Options. |
| 09/29/2020 | Third installment vesting date for 150,000 Non-Statutory Stock Options. |
| 04/29/2021 | Fourth installment vesting date for 150,000 Non-Statutory Stock Options. |
| 05/12/2022 | Vesting date for 200,000 Non-Statutory Stock Options. |
| 07/12/2023 | Commencement of annual vesting for 1,000,000 Incentive Stock Options ($2.36 exercise price) and 100,000 Restricted Stock Units. |
| 12/26/2025 | Transaction date for the sale of 2,300 shares of common stock by Christopher Donaghey. |
| 12/29/2025 | Transaction date for the sale of 7,700 shares of common stock by Christopher Donaghey. |
| 12/30/2025 | Signature date of the reporting person, Christopher Donaghey. |
| 04/29/2029 | Expiration date for 150,000 Non-Statutory Stock Options ($0.35 exercise price). |
| 05/12/2031 | Expiration date for 200,000 Non-Statutory Stock Options ($0.61 exercise price). |
| 07/13/2032 | Expiration date for 1,000,000 Incentive Stock Options ($2.36 exercise price). |
Recommendation
holdThis Form 4 filing details a pre-scheduled insider sale by the CEO, which is a common occurrence under Rule 10b5-1 plans. While insider selling can sometimes raise questions, the planned nature suggests it's not necessarily a reaction to new negative information. Without additional financial or operational updates from the company, this transaction alone does not provide sufficient grounds for a strong buy or sell recommendation. Investors should monitor future filings and company performance for a more comprehensive view.
Keywords
APPLIED ENERGETICS, AERG, Insider Trading, Form 4, Stock Sale, CEO, Christopher Donaghey, Equity Transaction, 10b5-1 Plan, Incentive Stock Options, Restricted Stock Units
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