Form 4: SkyWater Technology Director Andrew LaFrence Acquires Over 11,000 Shares Through RSU Grant

SkyWater Technology, Inc. Director Andrew D.C. LaFrence acquired 11,428 shares of common stock at a price of $8.75 per share through a restricted stock unit grant on May 21, 2025.

Summary

• Andrew D.C. LaFrence, a Director of SkyWater Technology, Inc. (SKYT), acquired 11,428 shares of common stock.
• The transaction occurred on May 21, 2025, and was an acquisition (Code 'A').
• The shares were acquired at a price of $8.75 per share.
• This acquisition represents a grant of restricted stock units (RSUs).
• The RSUs are scheduled to vest on the date immediately preceding the next annual meeting of the Issuer's stockholders.
• Vesting is contingent upon Mr. LaFrence's continued service on the specified vesting date.
• Following this transaction, Mr. LaFrence beneficially owns 11,428 shares directly.

Sentiment

Score: 7

Explanation: The acquisition of shares by a director, even through an RSU grant, generally indicates confidence in the company's future prospects and aligns management's interests with shareholders, which is a positive signal.

Positives

• The acquisition of shares by a director, Andrew D.C. LaFrence, through an RSU grant can be interpreted as a positive signal of management's alignment with shareholder interests and confidence in the company's future performance.

Risks

• The vesting of the restricted stock units (RSUs) is contingent on the reporting person's continued service on the vesting date, meaning the shares are not immediately owned and could be forfeited if service ceases before vesting.

Future Outlook

The restricted stock units are set to vest on the date immediately preceding the next annual meeting of SkyWater Technology's stockholders, contingent on the director's continued service.

Industry Context

This Form 4 filing details a standard equity compensation event for a director, common across publicly traded companies. Restricted Stock Units (RSUs) are a widely used form of non-cash compensation designed to align the interests of directors and executives with those of shareholders by tying compensation to future company performance and continued service.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) to directors is a common practice in corporate governance and executive compensation across various industries, including technology and semiconductor manufacturing.
• The structure, where vesting is contingent on continued service until a future date (e.g., the next annual meeting), is a standard mechanism to encourage long-term commitment and performance from board members.
• While the specific value of the grant ($8.75 per share for 11,428 shares) is specific to SkyWater Technology's stock price at the time, the method of compensation aligns with practices seen in comparable companies like ON Semiconductor, GlobalFoundries, or other specialized foundries, which often use equity awards to compensate their non-employee directors.

Corporate Governance

Related Party Transactions

• The grant of restricted stock units to Andrew D.C. LaFrence, a director of SkyWater Technology, Inc., constitutes a related party transaction as it involves the company and a member of its board of directors.

Stakeholder Impact

• Shareholders: May view the director's acquisition of shares as a positive indicator of confidence in the company's future, potentially leading to increased investor confidence.
• Employees: No direct impact mentioned, but general positive sentiment from director share acquisition could indirectly boost morale.
• Management: The RSU grant serves as a form of compensation and incentive for the director to remain engaged and contribute to the company's success.

Next Steps

• The restricted stock units will vest on the date immediately preceding the next annual meeting of SkyWater Technology's stockholders, provided the director continues his service.

Key Dates

Keywords

SkyWater Technology, SKYT, Form 4, Insider Trading, Restricted Stock Units, RSU, Stock Grant, Director Compensation, Equity Compensation, Andrew LaFrence