Krempa David 4

What Happened
David Krempa, Chief Business Officer of Eton Pharmaceuticals (ETON), exercised stock options totaling 87,794 shares (exercise costs ≈ $204,053) between May 22 and May 27, 2026, and sold 100,000 shares in open-market transactions for a combined proceeds of about $3.23 million. The filing shows corresponding derivative dispositions at $0 for the exercised option instruments (i.e., options were converted to shares). These trades are routine insider option exercises with subsequent sales (commonly a cashless or sell-to-cover pattern).

Key Details

• Transaction dates: May 22, May 26 and May 27, 2026.
• Options exercised (acquired): 87,794 shares at exercise prices of $1.37–$3.58, total exercise cost ≈ $204,053.
  • 30,591 @ $3.58 (May 22) — $109,516
  • 25,000 @ $1.38 (May 26) — $34,500
  • 12,524 @ $1.37 (May 26) — $17,158
  • 12,476 @ $1.37 (May 27) — $17,092
  • 7,203 @ $3.58 (May 27) — $25,787
• Open-market sales (disposed): 100,000 shares for total proceeds ≈ $3,229,923, sold across multiple trades at varying prices (weighted averages shown on the filing).
  • 32,963 @ $33.22 = $1,095,057
  • 9,315 @ $33.88 = $315,594
  • 519 @ $35.00 = $18,165
  • 37,524 @ $31.49 = $1,181,732
  • 19,679 @ $31.47 = $619,375
• Footnotes indicate multiple-trade ranges and that option grants vested over time (grants from 3/12/2020 vested monthly; grants from 2017/2018 had annual vesting schedules).
• Filing timeliness: The Form 4 was filed 2026-05-27; trades dated May 22 were reported several days later (appears late for those trades). The filing notes the reporting person authorized another to file on their behalf.

Context

• For retail investors: exercising options + immediate sales typically reflect an executive converting vested option holdings into cash; it is not an explicit bullish endorsement of the stock. Purchases carry more direct signaling than routine option exercises followed by sales.
• Derivative explanation: The filing shows options/derivatives being exercised (M code). The $0 “dispositions” reflect the cancellation/conversion of the derivative instruments when underlying shares were issued.
• Ownership after the transactions was not specified in the provided excerpt; check the full Form 4 for updated beneficial ownership if needed.

If you want, I can fetch the full Form 4 text for precise post-transaction ownership or check whether the May 22 trades were formally marked late by the filer.