BURNS TIMOTHY 4

What Happened

• Timothy Burns, Chief Financial Officer of Ideal Power, converted/earned 20,000 performance‑based units into common shares in early June 2026 (6/1, 6/3, 6/5) at $0 exercise price and was issued those shares. To cover tax withholding, the company withheld a total of 16,047 shares (net proceeds ~ $104,106 across multiple withholdings). On June 22, 2026 he was also granted 20,000 restricted stock units (RSUs) under the company’s 2013 Equity Incentive Plan (vests in three equal annual installments beginning 6/22/2027).

Key Details

• Transaction dates & prices:
  • PSUs converted to shares: 6/1 (6,666 shares), 6/3 (6,667), 6/5 (6,667) — exercise/conversion price reported $0.00 (footnotes indicate PSUs were earned based on stock‑price metrics).
  • Tax withholding (shares withheld): 6/1 (2,624 @ $7.30 = $19,155), 6/3 (2,624 @ $7.46 = $19,575), 6/5 (2,624 @ $6.03 = $15,823), 6/12 (2,928 @ $6.10 = $17,861), 6/20 (5,247 @ $6.04 = $31,692). Total withheld: 16,047 shares for ~$104,106.
  • RSU grant: 6/22 — 20,000 RSUs granted at $0 (vest in three equal annual installments per footnote F5).
• Footnotes of note:
  • F1–F4: PSUs were earned on 6/1, 6/3, 6/5 based on pre‑established common stock price appreciation metrics.
  • F2: Withheld shares represent tax withholding; no open‑market sale by the insider.
  • F5/F6: RSU and PSU grant/vesting schedules described in footnotes.
• Shares owned after transaction: not disclosed in the provided excerpt of the filing.
• Filing timeliness: Form 4 was filed 7/02/2026 covering June transactions. Form 4s are normally required within two business days of a transaction; this filing date is later than that window for the June activity.

Context

• These transactions reflect performance‑based awards being earned/converted (not an open‑market purchase). The reported share withholding is a routine tax‑withholding procedure (issuer retains shares to satisfy withholding obligations), not an active sale by the insider on the open market.
• The 20,000 RSUs granted on 6/22 are subject to future vesting dates and therefore do not represent immediately tradable shares.