Form 4: APPLIED ENERGETICS CEO Sells $22,275 in Company Stock Under Pre-Planned Trading Arrangement

Christopher Wayne Donaghey, President and CEO of Applied Energetics, Inc., sold 10,000 shares of common stock for a total of $22,275 in two transactions on July 7 and July 8, 2025, pursuant to a Rule 10b5-1 trading plan.

Summary

• Christopher Wayne Donaghey, President & CEO, Director, and 10% Owner of Applied Energetics, Inc. (AERG), reported sales of common stock.
• On July 7, 2025, Donaghey sold 7,500 shares of common stock at a weighted average price of $2.23 per share, with prices ranging from $2.20 to $2.28.
• On July 8, 2025, an additional 2,500 shares were sold at $2.22 per share.
• Following these transactions, Donaghey directly beneficially owns 131,027 shares of common stock.
• The sales were conducted under a Rule 10b5-1(c) pre-planned trading arrangement.
• Donaghey also holds various derivative securities, including 1,000,000 Incentive Stock Options at $0.78 (vesting on revenue milestones), 150,000 Non-Statutory Stock Options at $0.35 (fully vested), 200,000 Non-Statutory Stock Options at $0.61 (fully vested), 1,000,000 Incentive Stock Options at $2.36 (500,000 vested), and 200,000 Restricted Stock Units (100,000 vested).

Sentiment

Score: 5

Explanation: Neutral. The filing reports routine insider stock sales executed under a pre-planned 10b5-1 arrangement, which typically does not convey strong positive or negative sentiment about the company's immediate prospects. The sales are relatively small compared to the CEO's total holdings and options.

Positives

• Transactions were executed under a Rule 10b5-1 pre-planned trading arrangement, indicating the sales were scheduled in advance and not based on immediate material non-public information.

Negatives

• The President and CEO sold 10,000 shares of common stock, which could be interpreted by some investors as a lack of confidence, despite being part of a pre-planned trading arrangement.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The sale by a key executive, even if pre-planned, might be viewed with slight caution, but the small volume suggests minimal direct impact on share price or company strategy.

Next Steps

• The reporting person undertakes to provide to the SEC staff, upon request, full information regarding the number of shares and prices at which the transaction was effected.
• Ongoing vesting of Incentive Stock Options (1,000,000 shares at $2.36) in equal annual installments of 250,000 shares, commencing July 12, 2023.
• Ongoing vesting of Restricted Stock Units (200,000 shares) in equal annual installments of 100,000 shares, commencing July 12, 2023.
• Achievement of specified revenue milestones ($10 million, $25 million, $50 million) for the vesting of 1,000,000 Incentive Stock Options at $0.78.

Key Dates

Recommendation

Keywords

APPLIED ENERGETICS, AERG, SEC Form 4, Insider Trading, Stock Sale, Christopher Donaghey, CEO, Director, 10b5-1 Plan, Equity Securities, Beneficial Ownership, Stock Options, Restricted Stock Units