Form 4: HeartSciences Inc. Executive Receives Restricted Stock Units

HeartSciences Inc. reports the grant of 25,000 restricted stock units to Chief Financial Officer Danielle Watson, contingent on a merger closing and continued employment.

Summary

• Danielle Watson, Chief Financial Officer of HeartSciences Inc., was granted 25,000 restricted stock units (RSUs) on July 7, 2026.
• These RSUs are part of the Issuer's 2023 Equity Incentive Plan.
• Vesting of the RSUs is contingent upon the closing of a merger between HeartSciences Inc., Cordis Acquisition, LLC, Fortitude Mining Holdings, Inc., and Fortitude Mining HoldCo, LLC, as per a Merger Agreement dated June 22, 2026.
• Upon the merger closing, 1/4th of the RSUs will vest after three months, with subsequent 1/4th vesting every three months thereafter, fully vesting one year after the closing date.
• Continued employment with HeartSciences Inc. or its subsidiaries from the merger closing date through each vesting date is required, subject to specific termination rights.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily reports on the grant of equity awards contingent on a future event (merger) rather than current financial performance.

Positives

• Grant of equity incentives to a key executive (CFO) signals confidence and alignment with company performance and strategic goals.
• The structure of the RSUs, tied to a merger, suggests progress towards a significant corporate event that could benefit shareholders.
• The vesting schedule, spread over a year post-merger, encourages executive retention and long-term commitment.

Negatives

• The vesting of these RSUs is entirely dependent on the successful completion of a merger, introducing significant execution risk.
• The continued employment requirement means that any departure before vesting, even for valid reasons, could result in forfeiture of these units.

Risks

• The primary risk is the failure of the proposed merger to close, which would prevent the RSUs from vesting.
• There is a risk that the reporting person may not remain employed by the company or its subsidiaries through the vesting periods.
• The merger agreement is dated June 22, 2026, and any delays or changes to this agreement could impact the vesting conditions.

Future Outlook

The future outlook for the vesting of these RSUs is directly tied to the successful completion of the merger agreement dated June 22, 2026, and the continued employment of Danielle Watson through the specified vesting periods.

Management Comments

• The RSUs are granted under the Issuer's 2023 Equity Incentive Plan, as amended, pursuant to the approval of the Issuer's board of directors.
• Vesting is subject to the occurrence of a closing of the merger and continued employment, with a phased vesting schedule over one year post-closing.

Industry Context

StockSavvy.ai notes that the granting of equity awards tied to merger completion is a common practice in the biotechnology and medical device sectors, aligning executive incentives with significant strategic transactions that often involve substantial shareholder value creation or restructuring.

Stakeholder Impact

• Shareholders: The grant of RSUs to the CFO, tied to a merger, suggests a strategic move that could lead to value creation if the merger is successful. The vesting structure aims to retain key leadership through this transition.
• Employees: The merger and subsequent vesting schedule may impact employee morale and retention, especially if the company undergoes significant changes post-merger.
• Management: The CFO's compensation is directly linked to the successful completion of the merger and her continued tenure, aligning her interests with those of the company and its shareholders.

Next Steps

• Monitor the progress and closing of the merger agreement dated June 22, 2026.
• Observe continued employment of Danielle Watson through the vesting periods.
• Track the vesting of RSUs upon satisfaction of the merger and employment conditions.

Key Dates

Keywords

HeartSciences Inc., HSCS, Form 4, Restricted Stock Units, RSUs, Merger, Danielle Watson, Chief Financial Officer, Equity Incentive Plan, Vesting Schedule, Beneficial Ownership