Form 4: Health In Tech CEO Granted 34,000 Restricted Shares

Health In Tech, Inc. CEO Tim Donald Johnson was granted 34,000 restricted shares of Class A Common Stock, vesting upon the successful launch of two key company programs.

Summary

• CEO Tim Donald Johnson acquired 34,000 shares of Class A Common Stock on August 15, 2025.
• These shares were granted as restricted stock under the Health in Tech Equity Incentive Plan at a price of $0.
• Vesting for 50% of the shares will occur in equal monthly installments over a twelve (12) month period, commencing upon the successful launch and full operation of the first specified company program.
• The remaining 50% will vest similarly over a twelve (12) month period, commencing upon the successful launch and full operation of the second specified company program.
• Following this transaction, Tim Donald Johnson beneficially owns 22,469,741 shares of Class A Common Stock directly.
• This beneficial ownership includes 62,193 restricted shares and 22,407,548 shares of Class A Common Stock.
• The reported beneficial ownership excludes 9,000,000 shares of Class B Common Stock and 734,707 options to purchase shares of Class A Common Stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged trading plan.

Sentiment

Score: 7

Explanation: The grant of performance-based restricted stock to the CEO is a positive signal for aligning management incentives with company growth and successful program launches, indicating confidence in future milestones. It's a routine compensation event, not a major market mover, hence a moderate positive score.

Positives

• The grant of restricted stock to the CEO aligns management's incentives with long-term company performance, particularly tied to the successful launch of key programs.
• The transaction was pre-planned under a Rule 10b5-1(c) plan, indicating a structured and compliant approach to equity compensation.

Negatives

• No immediate cash value from the grant as the price was $0, and shares are restricted.
• Vesting is contingent on future program launches, introducing an element of uncertainty regarding the timing of full ownership.

Risks

• Vesting of the restricted stock is contingent on the successful launch and full operation of two specified programs, meaning if these programs are delayed or unsuccessful, the vesting schedule could be impacted.
• The value of the granted shares is subject to the future market performance of Health In Tech, Inc.'s Class A Common Stock.

Future Outlook

The vesting schedule for the granted restricted stock is directly tied to the successful launch and operational status of two specified company programs, indicating a future focus on product development and market deployment.

Industry Context

This filing reflects a standard practice in the technology and healthcare sectors (Health In Tech) where executive compensation often includes equity grants tied to performance milestones, such as product launches, to incentivize long-term value creation.

Comparison to Industry Standards

• The grant of restricted stock with performance-based vesting (tied to program launches) is a common compensation strategy in growth-oriented tech and biotech companies, similar to practices at companies like Moderna (MRNA) or Palantir (PLTR) where executive incentives are often linked to R&D milestones or product adoption.
• The $0 grant price for restricted stock is typical for equity incentive plans, reflecting compensation rather than a direct purchase.
• The use of a Rule 10b5-1(c) plan for the transaction is a standard corporate governance practice for insiders to manage stock transactions in compliance with insider trading regulations, seen across all major publicly traded companies.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential positive impact as CEO's incentives are aligned with successful program launches, which could drive future stock value.
• Employees: May signal company's commitment to future product development and growth, potentially boosting morale.

Next Steps

• Successful launch and full operation of the first specified company program, which will trigger the vesting of 50% of the granted restricted shares.
• Successful launch and full operation of the second specified company program, which will trigger the vesting of the remaining 50% of the granted restricted shares.

Key Dates

Recommendation

This Form 4 reports a routine grant of restricted stock to the CEO as part of an equity incentive plan, with vesting tied to future program launches. While it aligns management incentives with long-term growth, it does not provide new fundamental information about the company's financial performance or strategic direction that would warrant a change in investment thesis. Investors should continue to hold based on broader company fundamentals and market conditions.

Keywords

Health In Tech, HIT, SEC Form 4, Beneficial Ownership, Restricted Stock, Equity Incentive Plan, CEO Compensation, Insider Trading, Stock Grant, Tim Johnson