[Form 4] Duolingo, Inc. Insider Trading Activity
Rhea-AI Filing Summary
Duolingo, Inc. director and Chief Technology Officer Severin Hacker reported equity award activity involving performance-based restricted stock units and Class B common stock. He exercised 60,000 Performance-Based Restricted Stock Units, receiving 60,000 shares of Class B common stock at a stated price of $0.00 per share.
To cover tax obligations associated with this vesting, 30,594 shares of Class B common stock were disposed of through a tax-withholding transaction at $112.57 per share, rather than an open-market sale. Following these transactions, he held 177,193 shares of Class B common stock directly and 2,836,917 shares indirectly through the SBH Trust dated March 10, 2020, of which he is trustee. His remaining Performance-Based Restricted Stock Units totaled 270,000 after the exercise.
Positive
- None.
Negative
- None.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Performance-Based Restricted Stock Units | 60,000 | $0.00 | -- |
| Exercise | Class B Common Stock | 60,000 | $0.00 | -- |
| Tax Withholding | Class B Common Stock | 30,594 | $112.57 | $3.44M |
| holding | Class B Common Stock | -- | -- | -- |
Footnotes (1)
- Each Performance-Based Restricted Stock Unit ("PSU") represents a contingent right to receive one share of the Issuer's Class B Common Stock upon vesting. The PSUs vest upon the satisfaction of both a service-based condition and a performance-based condition. The service-based condition is satisfied as to 25% of the PSUs on each anniversary of the completion of the Issuer's initial public offering of Class A common stock based on the Reporting Person's continuous service as CTO to the Issuer through the applicable vesting dates, subject to acceleration upon a cessation of service as CTO as a result of death or permanent disability. The performance-based condition will be satisfied upon the Issuer's Class A common stock achieving certain stock price hurdles over a period of ten years. Vested PSUs will be settled by the issuance of the underlying Class B Common Stock on the first anniversary of vesting, subject to acceleration upon a termination of employment or a change in control of the Issuer. Each share of Class B Common Stock is convertible at any time at the option of the Reporting Person into one share of Class A Common Stock and has no expiration date. Each share of Class B Common Stock will convert automatically into one share of Class A Common Stock in connection with: (i) any transfer, whether or not for value, except for certain permitted transfers further described in the Issuer's amended and restated certificate of incorporation, (ii) such time as the aggregate number of shares of Class B Common Stock outstanding ceases to represent 5% of the aggregate number of shares of Common Stock outstanding, and (iii) the death of the Reporting Person. Shares held by SBH Trust dated March 10, 2020, of which Reporting Person is Trustee.
