Form 4: Innovative Solutions & Support Director Sells Over 217,000 Shares Under Pre-Arranged Plan

Christopher Harborne, a Director and 10% owner of Innovative Solutions & Support Inc., reported the sale of 217,508 shares of common stock in late June 2025, executed under a Rule 10b5-1 trading plan.

Summary

• Christopher Harborne, a Director and 10% owner of Innovative Solutions & Support Inc. (ISSC), reported sales of common stock.
• On June 27, 2025, 40,919 shares were sold at $13.50 per share.
• Also on June 27, 2025, an additional 31,580 shares were sold at $13.9075 per share.
• On June 30, 2025, 145,009 shares were sold at $13.6882 per share.
• The total number of shares sold across these transactions is 217,508.
• Following these sales, Harborne's indirect beneficial ownership stands at 1,583,411 shares.
• These transactions were conducted pursuant to a Rule 10b5-1(c) trading plan.
• All shares are indirectly held by Klear Kite LLC, a Delaware limited liability company, with Christopher Harborne as its sole member.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to significant insider selling by a Director and 10% owner. While the 10b5-1 plan provides some mitigation, the volume of sales could still be perceived as a lack of confidence or a move to diversify, potentially putting downward pressure on the stock.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, which indicates the transactions were pre-scheduled and not based on new, non-public information.

Negatives

• A Director and 10% owner selling a significant number of shares (217,508) could be perceived negatively by the market, potentially signaling a lack of confidence or a need for liquidity.
• The sales reduced Christopher Harborne's indirect beneficial ownership from an initial implied amount (before the first reported sale) to 1,583,411 shares.

Risks

• Potential negative market perception due to insider selling, which could put downward pressure on the stock price.

Future Outlook

N/A

Industry Context

This Form 4 filing reports an insider transaction for Innovative Solutions & Support Inc., a company operating in the aerospace and defense industry, providing advanced flight information and control systems. Insider sales, even under a 10b5-1 plan, are closely watched by investors as they can sometimes reflect an insider's view on future company prospects or personal liquidity needs, which is a common consideration across all industries.

Related Party Transactions

• The shares are indirectly held by Klear Kite LLC, a Delaware limited liability company, whose sole member is Christopher Harborne. This indicates a transaction involving an entity controlled by the reporting person.

Stakeholder Impact

• Shareholders: May interpret the insider sales as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.

Key Dates

Recommendation

Keywords

Innovative Solutions & Support, ISSC, SEC Form 4, Insider Trading, Stock Sale, Christopher Harborne, Klear Kite LLC, 10b5-1 Plan, Director Sale, 10% Owner