Han Peng 4

What Happened
Han Peng, Chief Operating Officer of Digital Ally (KUST), was granted options to acquire 22,500 shares of common stock on January 22, 2026. The options were granted at no cash cost; the exercise price is $2.04 per share (the Nasdaq closing price on the grant date), which implies a total exercise cost of $45,900 if all options are exercised. The options vest 100% on January 22, 2027, contingent on Han Peng remaining an officer on that date.

Key Details

• Transaction type/date: Award of options (reported as A) on 2026-01-22.
• Grant size and pricing: 22,500 option shares; exercise price $2.04/share; acquisition price reported as $0.00.
• Vesting: 100% vests on 2027-01-22, contingent on continued service as an officer.
• Plan: Granted under the company's 2022 Stock Option and Restricted Stock Plan.
• Shares owned after transaction: Not specified in the filing.
• Filing timeliness: Form 4 filed 2026-01-26 (within the SEC two-business-day reporting window for a 1/22 transaction).
• Other note: Filing footnote reflects reverse stock splits in May 2025 and January 2026.

Context
These are stock option awards (a form of compensation), not an immediate purchase or sale of shares. Because the options vest in one year and carry an exercise price equal to the market close on the grant date, there is no intrinsic value at grant — value depends on future stock performance. Options that are unvested and subject to service conditions are common for executives and do not by themselves indicate buying or selling intent.