Form 4: Beyond Air Director Yoori Lee Exercises and Reprices Stock Options

Director Yoori Lee of Beyond Air, Inc. has exercised and repriced multiple stock options, all effective November 22, 2024, reducing the exercise price to $0.54 per share.

Summary

• On November 22, 2024, Beyond Air's Board of Directors approved a repricing of stock options held by director Yoori Lee.
• The exercise price of multiple 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 various option grants with original exercise prices ranging from $1.53 to $6.87.
• The total number of options repriced was 280,000.
• The repriced options were granted under the company's 2013 Equity Incentive Plan and vest according to the original vesting schedule.

Sentiment

Score: 5

Explanation: The document is neutral, detailing a standard stock option repricing. It doesn't indicate significant positive or negative sentiment, but the repricing could be seen as a slight negative.

Positives

• The repricing of stock options at the closing price of $0.54 per share may incentivize the director to work towards increasing the company's value.
• The repricing maintains the original vesting schedule, ensuring continued alignment with the company's long-term goals.

Negatives

• The repricing of stock options at a lower price could be seen as a negative signal by some investors, as it reduces the potential value of the options if the stock price does not increase significantly.
• The repricing may dilute the value of existing shares if the options are exercised.

Risks

• The repricing of options could be perceived negatively by the market if it is seen as a sign of lack of confidence in the company's future stock performance.
• There is a risk that the director may not be incentivized to increase the share price if the new exercise price is already close to the current market price.

Management Comments

• The Board of Directors approved the option repricing on November 22, 2024.

Industry Context

Stock option repricing is a common practice, especially in situations where a company's stock price has declined, to maintain the incentive value of the options for employees and directors.

Comparison to Industry Standards

• Repricing of stock options is a common practice in the biotech industry, especially for companies with volatile stock prices.
• Many companies use stock options as a key component of executive compensation, and repricing is a tool to ensure these options remain valuable.
• The repricing of options to the closing price of the stock is a standard practice to ensure the options are 'in the money' and provide an incentive.

Stakeholder Impact

• Shareholders may view the repricing as a potential dilution of their shares.
• The repricing is intended to incentivize the director, which could ultimately benefit shareholders if the company performs well.

Key Dates

Keywords

stock options, repricing, director, Yoori Lee, Beyond Air, equity incentive plan, exercise price, vesting