Form 4: Lendway Director Swenson Boosts Stake

Lendway Director Nicholas Swenson reported an acquisition of 1,008 Common Stock Equivalents and detailed his direct and indirect beneficial ownership of 214,456 common shares in a recent SEC Form 4 filing.

Summary

• Nicholas John Swenson, a Director and 10% Owner of Lendway, Inc. (LDWY), reported changes in his beneficial ownership.
• Acquired 1,008 Common Stock Equivalents on September 30, 2025, at a price of $5.4523 per equivalent.
• These Common Stock Equivalents are part of the Lendway, Inc. Deferred Compensation Plan for Directors and will be settled in common stock upon separation from service or in cash upon a change in control.
• Following the reported transaction, Swenson beneficially owns 11,597 derivative securities (Common Stock Equivalents).
• Swenson directly owns 3,300 shares of Common Stock.
• Swenson indirectly owns 139,444 shares of Common Stock through AO Partners I, L.P., 60,284 shares through Groveland Capital LLC, and 11,428 shares through Glenhurst Co.
• The total non-derivative Common Stock beneficially owned by Swenson, directly and indirectly, is 214,456 shares.
• Swenson is the Managing Member of Groveland Capital LLC and AO Partners, LLC (General Partner of AO Partners I, L.P.), and the sole owner of Glenhurst Co., giving him power to direct the voting and disposition of shares held by these entities.
• Swenson is part of a Section 13(d) group, including Air T, Inc., which collectively owns more than 10% of Lendway's outstanding common stock, though he disclaims beneficial ownership of shares held by other group members except for his pecuniary interest.

Sentiment

Score: 7

Explanation: The acquisition of Common Stock Equivalents as part of a deferred compensation plan, coupled with significant existing direct and indirect holdings, indicates continued insider alignment and confidence in the company's long-term prospects. This is generally viewed positively by investors.

Positives

• Increased insider ownership through the acquisition of Common Stock Equivalents, aligning management interests with shareholders.
• The deferred compensation plan structure encourages long-term commitment from directors.

Risks

• The existence of a Section 13(d) group, which collectively owns over 10% of the Issuer's outstanding shares, could imply coordinated control that may not always align with the interests of all minority shareholders.

Future Outlook

The Common Stock Equivalents acquired will be settled in Lendway, Inc. common stock upon a separation from service with the Company or in cash upon an earlier change in control of the Company.

Management Comments

• Mr. Swenson is the Managing Member of Groveland Capital LLC and may direct Groveland Capital as to the vote and disposition of the shares of Common Stock it holds.
• Mr. Swenson is the Managing Member of AO Partners, LLC, the General Partner of AO Partners I, L.P., and has the power to direct the affairs of AO Partners Fund, including the voting and disposition of shares of Common Stock held in the name of AO Partners Fund.
• Mr. Swenson is the sole owner of Glenhurst Co., and he has the power to direct the affairs of Glenhurst, including the voting and disposition of shares of Common Stock held in the name of Glenhurst.

Industry Context

This filing is specific to an individual's beneficial ownership and deferred compensation within Lendway, Inc. and does not provide broader industry trends or competitive analysis.

Related Party Transactions

• Nicholas Swenson's indirect beneficial ownership through entities he controls (AO Partners I, L.P., Groveland Capital LLC, and Glenhurst Co.) constitutes related party dealings, as he directs the voting and disposition of shares held by these entities.

Stakeholder Impact

• Shareholders: Increased insider ownership and alignment of interests, which can be a positive signal for investor confidence.
• Employees: No direct impact mentioned, but deferred compensation plans can contribute to management stability.

Next Steps

• Settlement of Common Stock Equivalents upon Nicholas Swenson's separation from service with Lendway, Inc.
• Potential cash settlement of Common Stock Equivalents upon an earlier change in control of Lendway, Inc.

Key Dates

Recommendation

The filing indicates an increase in insider beneficial ownership through a deferred compensation plan, which strengthens alignment between management and shareholders. While not a direct market purchase, this continued accumulation of equity by a director and 10% owner signals ongoing confidence in the company. This information supports a 'hold' recommendation, as it reinforces the existing investment thesis without necessarily prompting an immediate 'buy' action based solely on this compensation-related transaction.

Keywords

Lendway Inc., LDWY, Nicholas Swenson, Insider Trading, Form 4, Beneficial Ownership, Common Stock Equivalents, Deferred Compensation, Director Holdings, 10% Owner