Eton Pharmaceuticals (NASDAQ: ETON) CBO converts 10,000 RSUs into common shares
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Eton Pharmaceuticals, Inc. Chief Business Officer David Krempa exercised 10,000 Restricted Stock Units, converting them into an equal number of shares of common stock. These RSUs were part of a 40,000-unit grant awarded on July 12, 2022 that vests in four equal annual installments beginning July 12, 2023. Following this vesting-related exercise, Krempa holds 37,025 common shares directly.
Positive
- None.
Negative
- None.
Insider Trade Summary
10,000 shares exercised/converted
Mixed
2 txns
Insider
Krempa David
Role
Chief Business Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 10,000 | $0.00 | -- |
| Exercise | Common Stock | 10,000 | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 0 shares (Direct);
Common Stock — 37,025 shares (Direct)
Footnotes (1)
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Key Figures
RSUs Exercised: 10,000 units
Common Shares After Transaction: 37,025 shares
Original RSU Grant: 40,000 units
+2 more
5 metrics
RSUs Exercised
10,000 units
Restricted Stock Units converted into 10,000 shares of common stock on July 12, 2026
Common Shares After Transaction
37,025 shares
Direct common stock holdings of David Krempa following the RSU exercise
Original RSU Grant
40,000 units
Restricted stock units granted on July 12, 2022, vesting in four equal annual installments
Vesting Schedule
4 equal annual installments
Installments beginning July 12, 2023 for the 40,000-unit RSU grant
RSU Exercise Price
$0.0000 per share
Conversion or exercise price for the 10,000 Restricted Stock Units
Key Terms
Restricted Stock Units, derivative security, vested, exercise or conversion
4 terms
Restricted Stock Units financial
"the reporting person was granted 40,000 restricted stock units which vested in four equal"
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.
derivative security financial
"transaction code description: Exercise or conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
vested financial
"40,000 restricted stock units which vested in four equal annual installments"
exercise or conversion financial
"transaction action: derivative exercise/conversion"
FAQ
What insider transaction did ETON Chief Business Officer David Krempa report?
David Krempa reported exercising 10,000 Restricted Stock Units, converting them into 10,000 shares of common stock. The transaction reflects a derivative exercise, not an open-market purchase or sale.
What was the origin of the 10,000 ETON RSUs exercised by David Krempa?
The 10,000 RSUs exercised were part of a 40,000 restricted stock unit grant awarded on July 12, 2022. The grant vests in four equal annual installments beginning July 12, 2023.
Was David Krempa’s ETON transaction an open-market buy or sell?
No. The filing classifies the transaction as an exercise or conversion of a derivative security (code M). It represents RSUs vesting into common shares, not an open-market purchase or sale.
What transaction code is used in David Krempa’s ETON Form 4 and what does it mean?
The Form 4 uses transaction code M, described as “Exercise or conversion of derivative security”. This indicates a derivative, such as RSUs, was converted into common stock, rather than traded on the open market.
What was the exercise price for the ETON RSUs converted by David Krempa?
The 10,000 Restricted Stock Units carried an exercise or conversion price of $0.0000 per share. This reflects typical treatment of RSUs, which convert into common stock without additional cash payment at vesting.