Applied Energetics (AERG) CEO sells 10,000 shares, retains large option stake
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
APPLIED ENERGETICS, INC. President & CEO Christopher Wayne Donaghey reported an open-market sale of 10,000 shares of common stock at $1.50 per share on May 11, 2026. After this sale, he directly holds 123,592 common shares.
In addition to common stock, he holds equity awards tied to company performance and service. These include 100,000 restricted stock units that vest in equal annual instalments of 100,000 shares commencing on July 12, 2023, and stock options covering several million underlying shares with exercise prices ranging from $0.35 to $2.36 per share and expirations extending to 2032.
Certain incentive stock options vest upon achieving specified gross revenue milestones of $10 million, $25 million, and $50 million, while others vest in scheduled annual instalments under the 2018 Incentive Stock Plan.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Net Seller: 10,000 shares ($15,000)
Net Sell
6 txns
Insider
Donaghey Christopher Wayne
Role
President & CEO
Sold
10,000 shs ($15K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock, par value $0.001 per share | 10,000 | $1.50 | $15K |
| holding | Incentive Stock Options | -- | -- | -- |
| holding | Non-Statutory Stock Options | -- | -- | -- |
| holding | Non-Statutory Stock Options | -- | -- | -- |
| holding | Incentive Stock Options | -- | -- | -- |
| holding | Restricted Stock Units | -- | -- | -- |
Holdings After Transaction:
Common Stock, par value $0.001 per share — 123,592 shares (Direct, null);
Incentive Stock Options — 1,000,000 shares (Direct, null);
Non-Statutory Stock Options — 150,000 shares (Direct, null);
Restricted Stock Units — 100,000 shares (Direct, null)
Footnotes (1)
- The options vest upon the achievement of specified revenue milestones as follows: with respect to 170,000 Shares, upon achievement of gross revenues of $10 million; with respect to an additional 330,000 Shares, upon achievement of gross revenues of $25 million; and with respect to the remaining 500,000 Shares, upon achievement of gross revenues of $50 million. They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan and expire ten years from the date of grant. These options vested in instalments of 37,500 shares on each of 9/29/2019, 4/29/2020, 9/29/2020 and 4/29/2021. They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan. These options vested on May 12, 2022. They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan. These options vest over four years, in equal annual instalments of 250,000 shares, commencing on July 12, 2023, having currently vested as to 750,000 shares. They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan. These RSUs vest in equal annual instalments of 100,000 shares, commencing on July 12, 2023 and have no expiration date or exercise price.
Key Figures
Shares sold: 10,000 shares
Sale price: $1.50 per share
Common shares held after: 123,592 shares
+5 more
8 metrics
Shares sold
10,000 shares
Open-market sale of common stock on May 11, 2026 at $1.50
Sale price
$1.50 per share
Price for 10,000 common shares sold May 11, 2026
Common shares held after
123,592 shares
Direct common stock ownership after reported sale
RSU underlying shares
100,000 shares
Restricted Stock Units vesting annually starting July 12, 2023
Options at $2.36
1,000,000 underlying shares
Incentive stock options expiring July 13, 2032
Options at $0.61
200,000 underlying shares
Non-statutory stock options expiring May 12, 2031
Options at $0.35
150,000 underlying shares
Non-statutory stock options expiring April 29, 2029
Revenue milestones
$10M, $25M, $50M gross revenues
Triggers for vesting tranches of 1,000,000 incentive stock options
Key Terms
Restricted Stock Units, Incentive Stock Options, Non-Statutory Stock Options, 2018 Incentive Stock Plan, +1 more
5 terms
Restricted Stock Units financial
"These RSUs vest in equal annual instalments of 100,000 shares, commencing on July 12, 2023"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Incentive Stock Options financial
"They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan"
Incentive stock options are a type of employee stock option that gives eligible workers the right to buy company shares at a fixed price later on, often below future market value. They matter to investors because they align employee incentives with company performance, can dilute existing ownership when exercised, and create potential tax advantages for option holders if certain holding-time rules are met — think of them as a coupon to buy stock at today’s price with extra tax rules attached.
Non-Statutory Stock Options financial
"These options vested in instalments of 37,500 shares on each of 9/29/2019, 4/29/2020, 9/29/2020 and 4/29/2021"
Non-statutory stock options are a type of reward that companies give to employees, allowing them to buy company shares at a set price within a certain period. Unlike formal or government-approved plans, these options are more flexible but may have different tax implications. For investors, they can influence a company's stock price and financial health, making them an important factor to consider.
2018 Incentive Stock Plan financial
"They were issued in exchange for services pursuant to an Incentive Stock Option Agreement under the 2018 Incentive Stock Plan"
gross revenues financial
"upon achievement of gross revenues of $10 million; ... $25 million; ... $50 million"
FAQ
What insider transaction did AERG’s CEO report on this Form 4?
APPLIED ENERGETICS CEO Christopher Wayne Donaghey reported selling 10,000 common shares at $1.50 per share on May 11, 2026. The filing shows this as an open-market or private transaction sale and updates his remaining direct common stock holdings.
What restricted stock units (RSUs) does the AERG CEO hold?
Christopher Wayne Donaghey holds RSUs linked to 100,000 underlying common shares. According to the disclosure, these RSUs vest in equal annual instalments of 100,000 shares commencing on July 12, 2023 and carry no exercise price or expiration date.
What stock options are outstanding for the APPLIED ENERGETICS CEO?
The CEO holds multiple option grants, including incentive and non-statutory stock options over 1,000,000 shares at $2.36, 200,000 shares at $0.61, and 150,000 shares at $0.35. These options expire between April 29, 2029 and July 13, 2032, depending on the grant.
How are some of the AERG CEO’s options tied to revenue milestones?
One incentive stock option grant vests upon revenue milestones: 170,000 shares at $10 million gross revenues, 330,000 additional shares at $25 million, and 500,000 shares at $50 million. These options were issued for services under the 2018 Incentive Stock Plan.
How do service-based vesting schedules affect the CEO’s AERG equity awards?
Several option grants vest in scheduled instalments over time, such as 37,500-share tranches between 2019 and 2021 and 250,000-share annual tranches starting July 12, 2023. These service-based vesting schedules reward ongoing employment and were granted under the 2018 Incentive Stock Plan.