Quarles Gregory James 4

What Happened

• Gregory J. Quarles (CEO Emeritus and director) exercised options to acquire 6,600 shares of Applied Energetics common stock at $0.35 per share (total cash outlay $2,310) on January 21, 2026, and those 6,600 shares were sold in an open-market transaction the same day for total net proceeds of approximately $12,342 (weighted average sale price about $1.8753–$1.88 per share).
• The Form 4 also reports the related derivative conversion/disposition tied to the option exercise.

Key Details

• Transaction dates: January 21, 2026 (exercise and sale). Form filed January 23, 2026 (filed timely).
• Exercise price and cost: $0.35 per share; total $2,310.
• Sale proceeds: ~6,600 shares sold at a weighted average price in the $1.8753–$1.88 range; total ~$12,342 (footnote clarifies weighted-average range and offers to provide full trade details to the SEC on request).
• Option background: the option exercised was issued in exchange for services rendered as an officer and director (footnote).
• Restricted stock units mentioned in the filing remain unvested (none vested) (footnote).
• Shares owned after the transaction: not specified in the summary data provided in this notice.

Context

• This was an exercise of options followed by an immediate open‑market sale (effectively a cashless exercise: exercised at $0.35 then sold at ~$1.88). Such transactions are commonly routine monetizations of vested option value rather than a pure buy or sell signal about company prospects.
• Transaction codes: M = option exercise/conversion; S = sale. The filing contains relevant footnotes explaining the sale pricing and origin of the option.