Form 4: Nexalin Director Ben Hu Granted Stock Options

Nexalin Technology Director Ben Hu received a grant of 100,000 stock options at an exercise price of $0.83, exercisable from December 19, 2025.

Summary

• Benjamin Hu, a Director of Nexalin Technology, Inc. (NXL), was granted 100,000 stock options.
• The transaction date for this grant was December 19, 2025.
• The stock options have an exercise price of $0.83 per share.
• These options become exercisable on December 19, 2025, and will expire on December 19, 2030.
• The grant was made under the company's 2023 Equity Incentive Plan.
• The grant is subject to shareholder approval to increase the Plan limit under NASDAQ Rules.

Sentiment

Score: 6

Explanation: Slightly positive, as it aligns director interests with shareholders, but tempered by the condition of shareholder approval for the plan limit increase.

Positives

• The grant of stock options aligns the financial interests of Director Benjamin Hu with those of the shareholders, incentivizing long-term company performance.
• Equity incentive plans are a common mechanism to attract and retain qualified directors and executives.

Negatives

• The grant requires shareholder approval to increase the 2023 Equity Incentive Plan limit, introducing a condition that must be met for the grant to be fully effective.
• The issuance of additional shares upon exercise of these options could lead to potential dilution for existing shareholders.

Risks

• The stock option grant is contingent on shareholder approval to increase the limit of the 2023 Equity Incentive Plan under NASDAQ Rules, posing a risk that the grant may not be fully ratified.
• Future fluctuations in Nexalin Technology's stock price could impact the value and exercisability of these options.

Future Outlook

The future effectiveness of this specific stock option grant is dependent on obtaining shareholder approval to increase the limit of the 2023 Equity Incentive Plan, as required by NASDAQ Rules.

Management Comments

• The filing includes the signature of Benjamin Hu, indicating his acceptance of the stock option grant terms.

Industry Context

Equity incentive grants, such as stock options, are a common and widely accepted practice in the technology and healthcare sectors to compensate directors and executives, aligning their long-term interests with the company's performance and shareholder value creation.

Comparison to Industry Standards

• Equity incentive grants to directors are a standard practice across industries, aligning management interests with shareholder value.
• The specific terms, such as the exercise price of $0.83 and the 5-year expiration, would typically be evaluated against peer company compensation structures and the company's performance metrics, though such detailed comparisons are not provided in this filing.

Corporate Governance

Related Party Transactions

• The grant of stock options to Director Benjamin Hu constitutes a related party transaction, which is a standard form of director compensation.

Stakeholder Impact

• Shareholders: Potential for future dilution if options are exercised, but also benefit from aligned director incentives.
• Director (Benjamin Hu): Receives equity-based compensation, linking personal wealth to company performance.

Next Steps

• The company will need to seek shareholder approval to increase the limit of the 2023 Equity Incentive Plan under NASDAQ Rules for the grant to be fully effective.

Key Dates

Keywords

Nexalin Technology, NXL, Stock Options, Director Compensation, Equity Incentive Plan, Insider Transaction, SEC Form 4, Corporate Governance