Eton Pharmaceuticals (NASDAQ: ETON) CBO sells 25K post-option exercise
Rhea-AI Filing Summary
Eton Pharmaceuticals, Inc. (ETON) reported insider equity activity by Chief Business Officer David Krempa. On 2026-08-24 he exercised an Employee Stock Option to acquire 25,000 shares of common stock at an exercise price of $7.31 per share, reducing that option position to 70,000 options remaining. The resulting 25,000 common shares were then sold in market transactions at a weighted average price of $65.07 per share, with individual sale prices ranging from $64.88 to $65.57. The option originally granted on 2019-02-20 vested in 48 equal monthly installments and expires on 2029-02-19. The filing indicates these transactions were not made pursuant to a Rule 10b5-1 trading plan.
Positive
- None.
Negative
- None.
Insider Trade Summary
Exercise and Sale: 25,000 shares ($1.44M approx. pre-tax spread)
Exercise and Sale
3 txns
Insider
Krempa David
Role
Chief Business Officer
Sold
25,000 shs ($1.63M)
Approx. gross sale proceeds
$1.63M
Approx. exercise cost
$183K
Approx. pre-tax spread
$1.44M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option F3 | 25,000 | $0.00 | $0.00 |
| Exercise | Common Stock | 25,000 | $7.31 | $183K |
| Sale | Common Stock F1, F2 | 25,000 | $65.07 | $1.63M |
Holdings After Transaction:
Employee Stock Option — 70,000 shares (Direct);
Common Stock — 37,025 shares (Direct)
Footnotes (3)
- F1. The Reporting Person will provide upon request by the Securities and Exchange Commission staff, the issuer, or a security holder of the issuer, full information regarding the number of shares purchased or sold at each separate price.
- F2. The shares were sold in multiple trades at prices ranging from $64.88 to $65.57. The price reported above reflects the weighted average sales price.
- F3. The shares subject to the option vested in 48 equal monthly installments from the date of grant (2-20-2019) until fully vested.
Key Figures
Options exercised: 25,000 shares
Exercise price: $7.31 per share
Shares sold: 25,000 shares
+4 more
7 metrics
Options exercised
25,000 shares
Employee Stock Option for ETON common stock exercised on 2026-08-24
Exercise price
$7.31 per share
Exercise price of Employee Stock Option granted 2019-02-20
Shares sold
25,000 shares
ETON common stock sold on 2026-08-24 following option exercise
Weighted average sales price
$65.07 per share
Weighted average price for multiple sale trades ranging from $64.88 to $65.57
Remaining options
70,000 options
Employee Stock Options beneficially owned after the derivative transaction
Option grant date
2019-02-20
Grant date of the exercised Employee Stock Option
Option expiration date
2029-02-19
Expiration date of the Employee Stock Option
Key Terms
Employee Stock Option, weighted average sales price, vested in 48 equal monthly installments, Rule 10b5-1 trading plan
4 terms
Employee Stock Option financial
"The reporting person exercised an Employee Stock Option covering 25,000 shares"
An employee stock option is a promise that lets a worker buy company shares later at a predetermined price, often after they stay for a certain period or meet performance goals — think of it like a coupon that locks in today's price for a future purchase. It matters to investors because options align employees’ incentives with company performance, can increase the number of shares outstanding (dilution) when exercised, and represent a compensation cost that affects reported profits and shareholder value.
weighted average sales price financial
"The shares were sold in multiple trades at prices...weighted average sales price"
vested in 48 equal monthly installments financial
"The shares subject to the option vested in 48 equal monthly installments"
Rule 10b5-1 trading plan regulatory
"The filing indicates these transactions were not made pursuant to a Rule 10b5-1 trading plan"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
FAQ
What insider transactions did ETON report for David Krempa on 2026-08-24?
On 2026-08-24, Chief Business Officer David Krempa exercised 25,000 stock options for ETON common shares at $7.31 per share and then sold 25,000 common shares in market transactions at a weighted average price of $65.07 per share.
What were the terms of the ETON stock options David Krempa exercised?
The exercised ETON Employee Stock Option covered 25,000 underlying shares at an exercise price of $7.31 per share, was granted on 2019-02-20, vested in 48 equal monthly installments from that date, and has an expiration date of 2029-02-19.
How many ETON options does David Krempa hold after these transactions?
After the reported option exercise on 2026-08-24, David Krempa holds 70,000 Employee Stock Options tied to ETON common stock, as stated by the total derivative securities beneficially owned following the transaction.
Were David Krempa’s ETON transactions under a Rule 10b5-1 trading plan?
No. The Form 4 indicates the Rule 10b5-1 checkbox is not marked, and there is no footnote stating that the 2026-08-24 transactions in ETON securities were executed pursuant to a Rule 10b5-1 trading plan.
What is the economic effect of David Krempa’s 2026-08-24 ETON transactions?
David Krempa exercised 25,000 stock options at $7.31 and sold 25,000 shares at a weighted average of $65.07, representing a net disposition of 25,000 ETON common shares on that date while retaining derivative exposure through remaining options.
AI-generated analysis. How Rhea-AI works. Not financial advice.
