Form 4: Applied Energetics Director Exercises Options and Sells Shares for Significant Gain

Applied Energetics Director and 10% Owner Bradford Thomas Adamczyk exercised 10,000 stock options at $0.07 and simultaneously sold the resulting shares at a weighted average price of $2.33, generating a substantial profit.

Summary

• Bradford Thomas Adamczyk, a Director and 10% Owner of Applied Energetics, Inc. (AERG), executed a transaction on July 15, 2025, under a Rule 10b5-1 plan.
• He 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 $2.33 per share, with individual trades ranging from $1.82 to $1.99.
• Following these transactions, Mr. Adamczyk directly holds 671,482 shares of common stock and 1,370,000 non-qualified stock options.
• He also indirectly beneficially owns 1,563,599 shares of common stock through Moriah Stone Global L.P. and 3,500,000 non-qualified stock options through Adamczyk Family 2021 LLC, both entities he controls.
• The options exercised were issued in exchange for services rendered as an officer and director of the company.

Sentiment

Score: 7

Explanation: The transaction reflects an insider capitalizing on a significant gain from stock options, which is positive for the individual. While an insider sale can sometimes be viewed negatively by the market, the pre-arranged 10b5-1 plan mitigates some of that concern, and the substantial profit indicates a favorable stock price for the insider.

Positives

• The reporting person realized a significant profit by exercising options at $0.07 and selling shares at a weighted average of $2.33, indicating a substantial gain per share.
• The transaction was executed under a Rule 10b5-1 plan, suggesting a pre-arranged, non-discretionary sale.

Negatives

• An insider sale, even under a 10b5-1 plan, can sometimes be perceived negatively by the market as it reduces the insider's direct equity stake.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The reporting person's indirect beneficial ownership of common stock through Moriah Stone Global L.P. and non-qualified stock options through Adamczyk Family 2021 LLC are disclosed, both entities controlled by Mr. Adamczyk.

Stakeholder Impact

• Shareholders may interpret the insider sale differently; some may view it as a negative signal, while others may see it as a routine transaction under a pre-arranged plan (10b5-1).
• The transaction directly impacts the reporting person's personal financial position.

Key Dates

Recommendation

Keywords

Applied Energetics, AERG, SEC Form 4, Insider Trading, Stock Options, Share Sale, Beneficial Ownership, Bradford Thomas Adamczyk, Director, 10b5-1 Plan