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|8-KFeb 3, 4:05 PM ET

APPLIED ENERGETICS, INC. 8-K

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Applied Energetics Appoints Warren Spector as Chief Financial Officer

What Happened
Applied Energetics, Inc. (AERG) announced the appointment of Warren Spector as Chief Financial Officer, effective January 28, 2026, and entered into an Executive Employment Agreement with him. Mr. Spector, age 67, has served as the company’s Vice President of Finance since June 23, 2025, and brings decades of senior finance and operating experience, including prior CFO roles at Crossroads Live and Raycom Media.

Key Details

  • Employment agreement effective January 28, 2026: three-year initial term, renewable for one-year periods thereafter.
  • Cash compensation: $300,000 annual base salary, payable monthly; eligible for a discretionary annual bonus (to be determined within 60 days after year end).
  • Equity: incentive stock options to purchase up to 575,000 shares at $1.78 per share under the 2018 Incentive Stock Plan; 75,000 shares vest immediately, remaining 500,000 vest in four equal annual installments beginning on the first anniversary. Mr. Spector forfeited prior options issued to him as VP Finance.
  • Termination: agreement allows termination for “Cause,” by Mr. Spector for “Good Reason,” or by either party without Cause/Good Reason with 90 days’ notice. If terminated by the company without Cause or by Mr. Spector for Good Reason, he is entitled to unpaid base pay, 90 days’ severance, and pro rata unpaid bonus/expenses.
  • Role scope: will oversee finance, accounting, treasury, reporting, SOX readiness, audit/internal controls, and capital markets strategy as the company positions for scaled commercialization and potential uplisting.

Why It Matters
This is a material executive change: appointing an experienced CFO with formal employment terms signals the company is strengthening financial leadership and governance ahead of commercialization and possible uplisting to a national exchange. Investors should note the compensation structure (cash salary plus significant stock-option incentive) and the SOX/readiness responsibilities, which may affect the company’s reporting discipline, audit readiness, and ability to attract institutional capital.