HACKETT DAVID 4

What Happened

• Director David Hackett exercised 187,500 stock options on 2026-01-23 (transaction code M). The reported exercise cost was $0.50 per share, totaling $93,750.
• The filing also reports a disposition of 187,500 shares on the same date at $0.05 per share for proceeds of $9,375, and a separate tax-withholding disposition of 20,833 shares at $0.05 per share (value $1,042; transaction code F). The filing shows these as an exercise plus related dispositions/withholding.

Key Details

• Transaction date: 2026-01-23. Exercise (M): 187,500 shares @ $0.50 = $93,750. Disposition (M): 187,500 shares @ $0.05 = $9,375. Tax withholding (F): 20,833 shares @ $0.05 = $1,042.
• Shares owned after the transactions: not disclosed in the provided filing excerpt.
• Footnote: 33.33% of the granted options vested on the first anniversary of the grant; the remaining 66.66% vest in equal monthly installments over the next 24 months (F1).
• Footnote: 20,833 common shares were withheld to satisfy tax obligations on the exercise and are not reflected in Table I (F2).
• Filing timeliness: Reported period of report is 2026-01-23 and the Form 4 was filed 2026-03-26 (late filing). Late filings can reduce the timeliness of public disclosure and may carry regulatory implications.

Context

• This sequence (exercise + immediate disposition and tax withholding) is consistent with a cashless or partial cashless exercise of options: the insider exercised options and shares were simultaneously disposed/withheld to cover proceeds/exercise/taxes. Transaction codes: M = option exercise/conversion, F = payment of exercise price or tax liability.
• The filing is factual disclosure of the mechanics of the option exercise and related share movements; it should not be read as an explicit bullish or bearish signal by itself.