Form 4: Applied Energetics CSO Sells 10,000 Shares

Applied Energetics' Chief Science Officer, Stephen McCahon, reported the sale of 10,000 common shares under a Rule 10b5-1 plan.

Summary

• Stephen William McCahon, Chief Science Officer of Applied Energetics, Inc. (AERG), reported sales of common stock.
• The transactions were made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• On November 19, 2025, 1,100 shares of common stock, par value $0.001 per share, were sold at a price of $1.50 per share.
• On November 21, 2025, 8,900 shares of common stock, par value $0.001 per share, were sold at a price of $1.51 per share.
• Following these reported transactions, Stephen McCahon beneficially owns 12,792,861 shares of common stock directly.
• McCahon also holds 1,585,000 Common Stock Purchase Warrants with an exercise price of $0.06, which became exercisable on May 24, 2019, and expire on May 24, 2029.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of insider stock sales made under a Rule 10b5-1 plan, which are often pre-scheduled and do not necessarily indicate a change in management's outlook on the company.

Negatives

• Chief Science Officer Stephen McCahon sold a total of 10,000 shares of common stock.

Stakeholder Impact

• Shareholders may interpret insider selling differently; it could be seen as a routine liquidity event or, by some, as a potential negative signal, though the 10b5-1 plan suggests pre-planning.

Key Dates

Recommendation

The filing details routine insider stock sales executed under a Rule 10b5-1 plan. While insider selling can sometimes be viewed negatively, these pre-scheduled transactions do not inherently signal a change in the company's fundamentals or management's long-term view. A 'hold' recommendation is appropriate as this filing alone does not provide sufficient new information to warrant a change in investment thesis, requiring further analysis of company performance and market conditions.

Keywords

AERG, Applied Energetics, Form 4, insider trading, stock sale, Stephen McCahon, Chief Science Officer, 10b5-1 plan