Funk Paul II 4

What Happened
Paul Funk II, a director of Red Cat Holdings, received 7,429 shares of RCAT common stock upon settlement of restricted stock units (RSUs) that vested on April 30, 2026. The Form 4 reports the derivative conversion/settlement (transaction code M); no purchase price or sale proceeds are reported (price = N/A). This was a receipt of shares from a scheduled RSU vesting, not an open‑market purchase or sale.

Key Details

• Transaction date: April 30, 2026 (reported on Form 4 filed May 4, 2026).
• Transaction type/code: Exercise/conversion of derivative (M) — one line shows the RSU/derivative being converted (disposed) and one shows the underlying shares acquired.
• Shares received: 7,429 common shares; price: N/A (settlement of award, no cash paid).
• Shares owned after transaction: not specified in this filing.
• Footnote: The RSUs were granted May 22, 2025 and vested April 30, 2026; this filing reflects settlement of those RSUs into shares (see footnote F1).
• Filing timeliness: Form 4 was filed May 4, 2026, which appears to meet the typical two-business-day reporting requirement.

Context
RSU vesting and settlement is a routine compensation event for directors and executives and does not by itself indicate a buy or sell decision. The filing shows conversion/settlement of a derivative award into shares rather than a market transaction; if the insider later sells shares, that would be reported separately.