Form 4: OSS CEO Michael Knowles Reports Stock Forfeitures for Tax

ONE STOP SYSTEMS, INC. CEO Michael Knowles reported two separate forfeitures of common stock totaling 19,948 shares to cover tax withholdings related to vested restricted stock units.

Summary

• Michael Knowles, CEO and Director of ONE STOP SYSTEMS, INC. (OSS), reported two transactions involving the forfeiture of common stock.
• On February 7, 2026, Knowles forfeited 13,298 shares of common stock at a price of $9.24 per share to cover tax withholdings.
• This forfeiture was associated with the conversion of 43,816 vested restricted stock units (RSUs) into common stock, originating from a grant reported on February 7, 2025.
• Following this transaction, Knowles beneficially owned 654,708 shares, which included 426,219 unvested restricted stock units.
• On February 15, 2026, Knowles forfeited an additional 6,650 shares of common stock at a price of $8.70 per share for tax withholdings.
• This second forfeiture was linked to the conversion of 21,908 vested restricted stock units (RSUs) into common stock, from a grant reported on July 1, 2024.
• After the second transaction, Knowles' beneficial ownership stood at 648,058 shares, including 404,311 unvested restricted stock units.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. It reflects the routine tax implications of executive compensation vesting and does not indicate any significant positive or negative operational or financial developments for the company.

Positives

• The transactions indicate the vesting of restricted stock units, which is a positive for executive compensation and retention.

Negatives

• The forfeiture of shares, while standard for tax purposes, reduces the direct shareholding of the CEO.

Future Outlook

This filing does not contain any forward-looking statements or guidance.

Industry Context

StockSavvy.ai notes that executive stock forfeitures for tax withholdings upon RSU vesting are a routine and expected part of executive compensation plans across various industries. This filing reflects standard practice rather than a unique industry trend.

Comparison to Industry Standards

• The practice of forfeiting shares to cover tax obligations upon the vesting of restricted stock units is a common and standard procedure for executive compensation in publicly traded companies, aligning with practices seen at peers like NVIDIA, AMD, and Intel for their executive equity awards.

Stakeholder Impact

• Shareholders: The transactions represent a minor reduction in the CEO's direct shareholding, but the underlying vesting of RSUs is a positive sign of executive retention and alignment with shareholder interests.
• Employees: The vesting of RSUs for the CEO may signal stability in executive compensation practices.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation and tax withholdings. It does not provide new information that would fundamentally alter the investment thesis for ONE STOP SYSTEMS, INC. Therefore, a 'hold' recommendation is appropriate as the filing does not present a compelling reason to buy or sell based solely on these transactions.

Keywords

ONE STOP SYSTEMS, OSS, Michael Knowles, Form 4, Insider Trading, Stock Forfeiture, Restricted Stock Units, Executive Compensation, Tax Withholding, Beneficial Ownership