Form 4: Once Upon a Farm Officer Receives Post-IPO Equity Awards

Once Upon a Farm's Chief Accounting Officer, Chris Folena, received new equity grants and settled stock appreciation rights following the company's initial public offering.

Summary

• Chris Folena, Chief Accounting Officer of Once Upon a Farm, PBC (OFRM), reported changes in beneficial ownership of company securities.
• Folena was granted 6,077 restricted stock units (RSUs) on February 9, 2026, in connection with the company's initial public offering (IPO).
• These RSUs will vest 25% on the first anniversary of the IPO closing and the remaining 75% annually thereafter in three equal installments, subject to continued service.
• Folena also disposed of 37,400 stock appreciation rights (SARs) on February 9, 2026, which fully vested and were settled in cash upon the IPO closing.
• The SARs had an exercise price of $19.58 per share.
• Additionally, Folena was granted 8,601 employee stock options on February 5, 2026, with an exercise price of $18.00 per share.
• These stock options will vest 25% on the first anniversary of the IPO pricing date and the remaining 75% annually thereafter in three equal installments, subject to continued service, and expire on February 5, 2036.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive and expected development. It reflects routine post-IPO executive compensation, which aligns management incentives with shareholder value creation, without indicating any unexpected operational or financial issues.

Positives

• The grant of restricted stock units and employee stock options aligns the Chief Accounting Officer's long-term interests with those of shareholders, incentivizing sustained company performance.
• The cash settlement of stock appreciation rights provides a direct financial benefit to the officer, reflecting value created by the IPO.

Negatives

• The cash settlement of stock appreciation rights represents a cash outflow for the company, though it is an expected cost associated with the IPO and executive compensation structure.

Risks

• The vesting of RSUs and stock options is contingent upon the reporting person's continued service with the Issuer, posing a personal risk to the officer if employment ceases.

Future Outlook

The future outlook includes the vesting of 6,077 restricted stock units, with 25% vesting on the first anniversary of the IPO closing and the remainder annually over three years. Additionally, 8,601 employee stock options will vest 25% on the first anniversary of the IPO pricing date and the remainder annually over three years, all contingent on continued service.

Industry Context

StockSavvy.ai notes that the grant of equity awards and settlement of pre-IPO compensation instruments to key executives following an initial public offering is a standard practice in the industry. This strategy is commonly employed to retain talent, incentivize long-term performance, and align management's financial interests with those of public shareholders.

Comparison to Industry Standards

• The structure of equity grants, including RSUs and stock options with multi-year vesting schedules, is consistent with typical post-IPO executive compensation packages seen across various industries, particularly in growth-oriented companies.
• The settlement of SARs upon IPO is a common mechanism to monetize pre-IPO equity incentives for executives, similar to practices observed in companies like Beyond Meat (BYND) or Oatly Group (OTLY) following their public debuts, where pre-IPO equity instruments were converted or settled.

Related Party Transactions

• The grant of 6,077 restricted stock units and 8,601 employee stock options to Chris Folena, the Chief Accounting Officer, constitutes a related-party transaction as it involves compensation from the company to a key executive.
• The cash settlement of 37,400 stock appreciation rights held by Chris Folena is also a related-party transaction.

Stakeholder Impact

• Shareholders: The equity grants incentivize the Chief Accounting Officer to contribute to the company's long-term success, aligning their interests with shareholder value creation.
• Employees (specifically Chris Folena): Receives significant equity compensation and a cash payout, enhancing personal wealth and providing strong incentives for continued performance and retention.

Next Steps

• Chris Folena's continued service with Once Upon a Farm, PBC, is required for the vesting of the granted restricted stock units and employee stock options.
• The RSUs will begin vesting on the first anniversary of the IPO closing date.
• The employee stock options will begin vesting on the first anniversary of the IPO pricing date.

Key Dates

Keywords

Once Upon a Farm, OFRM, SEC Form 4, insider transaction, equity compensation, restricted stock units, stock options, stock appreciation rights, IPO, Chief Accounting Officer