Banks Robert R. Jr. 4

What Happened

• Robert R. Banks Jr., President and CEO of Nephros, exercised stock options (transaction code M) on 2026-03-23 to acquire 120,000 shares at an exercise price of $1.44 per share for a cash outlay of $172,800.
• The Form 4 also reports the corresponding conversion/termination of 120,000 derivative securities (reported as a disposition at $0.00), which typically reflects the option instrument being exchanged for the underlying shares.

Key Details

• Transaction date: 2026-03-23; filing date: 2026-03-25 (filed within the usual 2-business-day window).
• Acquired: 120,000 shares @ $1.44 = $172,800 (option exercise, code M).
• Disposed (derivative): 120,000 @ $0.00 = $0 (represents termination/conversion of the option instrument).
• Shares owned after the transaction: not specified in the provided filing excerpt.
• Footnotes from the filing:
  • F1: Options to purchase 89,291 shares vest on 5/5/24 and options to purchase 267,874 shares vest quarterly in 12 equal amounts commencing on 8/5/24.
  • F2: Options to purchase 2,601 shares vest on 5/14/25 and options to purchase the remaining 7,805 shares vest quarterly in 12 equal amounts commencing on 8/14/25.

Context

• This was an exercise of options (buying shares by paying the strike price), not an open-market purchase or sale. The paired "disposed" derivative entry usually reflects the option being converted into the underlying shares rather than a market sale.
• Option exercises are common and do not necessarily signal a change in market view; they often reflect vesting schedules or executives funding taxes/holding shares.