Form 4: Beyond Air CFO Exercises and Reprices Stock Options

Beyond Air's Chief Financial Officer, Douglas Quinton Larson, exercised and repriced a number of stock options on November 22, 2024.

Summary

• On November 22, 2024, Beyond Air's Board of Directors approved a repricing of stock options held by Chief Financial Officer Douglas Quinton Larson.
• The exercise price of several stock option grants was reduced to $0.54 per share, which was the closing price of the company's common stock on that date.
• The repricing affected multiple tranches of options, with the original exercise prices ranging from $1.53 to $10.68 per share.
• The total number of options repriced was 815,000, all of which were held by Mr. Larson.
• The repriced options remain subject to the original vesting schedule and Mr. Larson's continued service with the company.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment. While the repricing of options could be seen as a positive for employee retention, it also suggests the original option prices were not achievable, which could be viewed negatively by some investors.

Positives

• The repricing of stock options may provide an incentive for the CFO to remain with the company.
• The repricing aligns the exercise price with the current market value of the stock.

Negatives

• The repricing of stock options could be seen as a negative signal by some investors, as it may indicate that the original option prices were not achievable.
• The repricing dilutes the value of existing shares.

Risks

• The repricing of options could potentially lead to further dilution of shareholder value if the options are exercised.
• The company's stock price may be volatile, and the repriced options may not be as valuable if the stock price declines.

Industry Context

Stock option repricing is a common practice in the corporate world, often used to retain key employees and align their interests with those of shareholders, especially when a company's stock price has declined.

Comparison to Industry Standards

• Stock option repricing is a relatively common practice, particularly in the biotech and pharmaceutical industries where stock prices can be volatile.
• Many companies use equity incentive plans to attract and retain key talent, and repricing is one tool to ensure these incentives remain effective.
• Companies like Novavax and Moderna have also used stock options as part of their compensation packages, although the specific terms and conditions vary.

Stakeholder Impact

• Shareholders may experience dilution if the repriced options are exercised.
• Employees, particularly the CFO, may be incentivized by the repriced options.

Key Dates

Keywords

stock options, repricing, executive compensation, CFO, Douglas Quinton Larson, Beyond Air, XAIR, equity incentive plan