Form 4: SmartRent General Counsel Converts Restricted Stock Units and Sells Shares for Tax Obligations

SmartRent, Inc.'s General Counsel, Kristen Morse Lee, converted 417 Restricted Stock Units into Class A Common Stock and sold a portion to cover tax liabilities, increasing her direct beneficial ownership.

Summary

• Kristen Morse Lee, General Counsel of SmartRent, Inc. (SMRT), engaged in transactions involving the company's Class A Common Stock on June 18, 2025.
• She acquired 417 shares of Class A Common Stock through the exercise/conversion of Restricted Stock Units (RSUs).
• Following this acquisition, her direct beneficial ownership of Class A Common Stock increased to 68,579 shares.
• Concurrently, she disposed of 175 shares of Class A Common Stock at a price of $0.9012 per share, primarily to satisfy tax withholding obligations related to the RSU vesting.
• After the disposition, her direct beneficial ownership of Class A Common Stock stood at 68,404 shares.
• The Restricted Stock Units represent a contingent right to receive one share of Class A Common Stock.
• The RSUs vested according to a schedule where one-fourth vested on January 18, 2023, with the remainder vesting in 1/48 equal monthly installments thereafter, subject to continued employment.
• Following these transactions, Kristen Morse Lee beneficially owns 2,917 derivative securities (Restricted Stock Units).

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The transactions are routine for RSU vesting and tax-related sales, which are expected. The net increase in direct ownership, despite the tax sale, is a minor positive.

Positives

• The conversion of Restricted Stock Units into common stock indicates the vesting of previously granted equity awards, which is a routine and expected event for employees.
• The net effect of the transactions is an increase in the reporting person's direct beneficial ownership of Class A Common Stock, demonstrating continued equity stake in the company.

Negatives

• A portion of the acquired shares (175 shares) was sold to cover tax liabilities, which is a common practice but results in a reduction of the total shares held.

Future Outlook

The document indicates that the remaining 2,917 Restricted Stock Units will continue to vest in 1/48 equal monthly installments from the Vesting Start Date (January 18, 2023), subject to continued employment.

Industry Context

This Form 4 filing is a routine disclosure of insider stock transactions, specifically related to equity compensation vesting. It does not provide broader industry context or trends.

Stakeholder Impact

• Shareholders: The transactions represent a routine change in insider ownership, with a slight net increase in direct shares held by a key executive, which is generally neutral to slightly positive as it aligns executive interests with shareholders.
• Employees: The RSU vesting schedule is a standard form of equity compensation, which can be a positive for employee retention and motivation.

Next Steps

• Continued vesting of the remaining 2,917 Restricted Stock Units in monthly installments, subject to Kristen Morse Lee's continued employment.

Key Dates

Keywords

SmartRent, SMRT, Insider Trading, Form 4, Restricted Stock Units, RSU Conversion, Stock Ownership, General Counsel, Equity Compensation