Form 4: EBR Systems Director, David Steinhaus, Granted Stock Options Subject to Shareholder Approval

David Steinhaus, a director of EBR Systems, Inc., was granted stock options to purchase 175,781 shares of common stock, subject to shareholder approval at the 2025 annual meeting.

Summary

• David Steinhaus, a director of EBR Systems, Inc., filed a Form 4 disclosing a transaction involving derivative securities.
• On May 21, 2025, Steinhaus was granted stock options to purchase 175,781 shares of EBR Systems common stock at an exercise price of $1.04 per share.
• The grant and exercise price are subject to approval by the company's stockholders at the 2025 annual meeting, in accordance with ASX listing rules.
• The options vest in 1/12 equal monthly installments starting from May 21, 2025, contingent upon continued service.
• Steinhaus indirectly holds these options through the David M. Steinhaus Revocable Trust dated January 20, 2004, as amended and restated.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, suggesting a stable and incentivized management structure. The sentiment is neutral to slightly positive.

Positives

• The grant of stock options aligns the director's interests with those of the shareholders.
• Vesting is tied to continued service, incentivizing the director to remain with the company.

Risks

• Shareholder approval is required for the grant to be finalized; failure to obtain approval would nullify the grant.
• The value of the options is dependent on the future stock price of EBR Systems.

Future Outlook

The grant of stock options is contingent on shareholder approval at the 2025 annual meeting.

Management Comments

• The exercise price was determined and approved by the Board of Directors on March 18, 2025, subject to approval by the Company's stockholders at the 2025 annual meeting of stockholders (including any adjournment or postponement thereof) in accordance with the Listing Rules of the Australian Securities Exchange (ASX).
• The Board of Directors approved the grant on March 18, 2025, subject to approval by the Company's stockholders at the 2025 annual meeting of stockholders (including any adjournment or postponement thereof) in accordance with the Listing Rules of the ASX.

Industry Context

Stock option grants are a common form of executive compensation, particularly in growth-oriented companies, to align management's interests with shareholder value creation.

Comparison to Industry Standards

• Stock option grants are a standard practice in the industry for compensating directors and executives.
• The vesting schedule of 1/12 monthly installments is a typical vesting arrangement.
• The specific terms of the grant (exercise price, number of shares) would need to be compared to similar companies in the medical device industry to assess its competitiveness.

Stakeholder Impact

• Shareholders: Potential dilution of ownership if options are exercised.
• Employees: May view the grant as a positive sign of company commitment to its leadership.
• Director: Incentivized to increase shareholder value through stock option grant.

Next Steps

• Shareholder approval of the stock option grant at the 2025 annual meeting.
• Continued employment or service of David Steinhaus for the options to vest.

Key Dates

Keywords

stock options, Form 4, EBR Systems, director, David Steinhaus, shareholder approval, ASX, vesting