# EDGAR Filing Document

**Accession Number:** 0000944480
**File Stem:** 0001567619-23-000290
**Filing Date:** 2023-1
**Character Count:** 9572
**Document Hash:** d83ede7f6aad966d55d661ecdb573ff5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001567619-23-000290.hdr.sgml**: 20230104

**ACCESSION NUMBER**: 0001567619-23-000290

**CONFORMED SUBMISSION TYPE**: 4

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230104

**DATE AS OF CHANGE**: 20230104

**REPORTING-OWNER**: 

**OWNER DATA:**
- **COMPANY CONFORMED NAME:** Loudermilk Kyle Justin
- **CENTRAL INDEX KEY:** 0001649892

**FILING VALUES:**
- **FORM TYPE:** 4
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14785
- **FILM NUMBER:** 23508084

**MAIL ADDRESS:**
- **STREET 1:** 3525 WOODBINE STREET
- **CITY:** CHEVY CHASE
- **STATE:** MD
- **ZIP:** 20815
**ISSUER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GSE SYSTEMS INC
- **CENTRAL INDEX KEY:** 0000944480
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 521868008
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**BUSINESS ADDRESS:**
- **STREET 1:** 6940 COLUMBIA GATEWAY DRIVE, SUITE 470
- **CITY:** COLUMBIA
- **STATE:** MD
- **ZIP:** 21046-3308
- **BUSINESS PHONE:** 4109707874

**MAIL ADDRESS:**
- **STREET 1:** 6940 COLUMBIA GATEWAY DRIVE, SUITE 470
- **CITY:** COLUMBIA
- **STATE:** MD
- **ZIP:** 21046-3308

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 4

### STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

[ ] Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

---

| | | |
|:---|:---|:---|
| **1. Name and Address of Reporting Person**<sup>*</sup><br>Loudermilk Kyle Justin<br><sub>(Last) (First) (Middle)</sub><br>6940 COLUMBIA GATEWAY DRIVE<br>SUITE 470<br><sub>(Street)</sub><br>COLUMBIA, MD 21046<br><sub>(City) (State) (Zip)</sub> | **3. Date of Earliest Transaction (Month/Day/Year)**<br>2022-12-31 | **5. Relationship of Reporting Person(s) to Issuer**<br>(Check all applicable)<br>[X] Director [ ] 10% Owner<br>[X] Officer (give title below) [ ] Other (specify below)<br>_Chief Executive Officer & Pres_ |
| **2. Issuer Name and Ticker or Trading Symbol**<br>GSE SYSTEMS INC [ GVP ] | **4. If Amendment, Date of Original Filed (Month/Day/Year)**<br>  | **6. Individual or Joint/Group Filing (Check Applicable Line)**<br>[X] Form filed by One Reporting Person<br>[ ] Form filed by More than One Reporting Person |

---

## Table I - Non-Derivative Securities

---

|  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1. Title of Security | 2. Transaction Date | 2A. Deemed Execution Date | 3. Transaction Code (V) | 3. Transaction Code (V) | 4. Securities Acquired (A) or Disposed of (D) | 4. Securities Acquired (A) or Disposed of (D) | 4. Securities Acquired (A) or Disposed of (D) | 5. Amount of Securities Beneficially Owned | 6. Ownership Form | 7. Nature of Indirect Beneficial Ownership |
| 1. Title of Security | 2. Transaction Date | 2A. Deemed Execution Date | Code | V | Amount | (A) or (D) | Price | 5. Amount of Securities Beneficially Owned | 6. Ownership Form | 7. Nature of Indirect Beneficial Ownership |
| Common Stock | 2022-09-30 |  | M |  | 25000 | A | <sup>(1)</sup> | 1047271 | D |  |
| Common Stock | 2022-12-31 |  | F |  | 21619<sup>(2)</sup> | D | $0.72 | 1025652 | D |  |
| Common Stock | 2022-12-31 |  | M |  | 25000 | A | <sup>(1)</sup> | 1050652 | D |  |
| Common Stock | 2022-12-31 |  | F |  | 12200<sup>(3)</sup> | D | $0.72 | 1038452 | D |  |

---

## Table II - Derivative Securities

---

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1. Title of Derivative Security | 2. Conversion or Exercise Price | 3. Transaction Date | 3A. Deemed Execution Date | 4. Transaction Code (V) | 4. Transaction Code (V) | 5. Number of Derivative Securities Acquired (A) or Disposed of (D) | 5. Number of Derivative Securities Acquired (A) or Disposed of (D) | 6. Date Exercisable and Expiration Date | 6. Date Exercisable and Expiration Date | 7. Title and Amount of Underlying Securities | 7. Title and Amount of Underlying Securities | 8. Price of Derivative Security | 9. Number of Derivative Securities Beneficially Owned | 10. Ownership Form | 11. Nature of Indirect Beneficial Ownership |
| 1. Title of Derivative Security | 2. Conversion or Exercise Price | 3. Transaction Date | 3A. Deemed Execution Date | Code | V | (A) | (D) | Date Exercisable | Expiration Date | Title | Amount or Number of Shares | 8. Price of Derivative Security | 9. Number of Derivative Securities Beneficially Owned | 10. Ownership Form | 11. Nature of Indirect Beneficial Ownership |
| Performance Rights | <sup>(1)(4)</sup> | 2022-09-30 |  | M |  | 25000 |  | <sup>(1)</sup> | 2026-01-01 | Common Stock | 25000 | <sup>(1)</sup> | 500000 | D |  |
| Performance Rights | <sup>(1)(5)</sup> | 2022-09-30 |  | M |  | 12500 |  | <sup>(1)</sup> | 2026-01-01 | Common Stock | 12500 | <sup>(1)</sup> | 487500 | D |  |
| Performance Rights | <sup>(1)(3)</sup> | 2022-12-31 |  | M |  | 25000 |  | <sup>(1)</sup> | 2026-01-01 | Common Stock | 25000 | <sup>(1)</sup> | 462500 | D |  |
| Performance Rights | <sup>(1)(6)</sup> | 2022-12-31 |  | M |  | 12500 |  | <sup>(1)</sup> | 2026-01-01 | Common Stock | 12500 | <sup>(1)</sup> | 450000 | D |  |

---

### Footnotes:

(1) Each performance right (PR) is a contingent right to receive one share of Issuer Common Stock. PRs vest upon satisfaction of a Service Condition (SC) and a Stock Price Performance Condition (SPPC). The SC is satisfied for sixteen dates (3/31/2022, 6/30/2022, 9/30/2022, 12/31/2022, 3/31/2023, 6/30/2023, 9/30/2023, 12/31/2023, 3/31/2024, 6/30/2024, 9/30/2024, 12/31/2024, 3/31/2025, 6/30/2025, 9/30/2025, and 12/31/2025) if the Issuer has continuously employed the reporting person through that SC date, and 25,000 PRs then will be eligible to vest if the SPPC also has been met. The SPPC requires the Volume Weighted Average Price of the Issuer's Common Stock as quoted on NASDAQ to be at least $1.94 measured over a 20 consecutive trading day period. If the SPPC has not yet been met, then PRs eligible to vest due to satisfaction of a SC shall aggregate and vest upon later satisfaction of the SPPC. Once the SPPC is met, PRs that remain unvested shall vest upon satisfaction of each future SC.

(2) Shares withheld by the Issuer for payment of applicable taxes owed due to the vesting of 44,300 restricted share units pursuant to two restricted share unit agreements between the Reporting Person and the Issuer.

(3) On June 14, 2022, the Compensation Committee of the Board of Directors of the Issuer certified that the SPPC applicable to these PRs had been satisfied. Accordingly, on December 31, 2022, the SC was satisfied with respect to 12/31/2022, resulting in the vesting of 25,000 PRs and the issuance of 25,000 shares of Common Stock, of which 12,200 shares of Common Stock were withheld by the Issuer for payment of applicable taxes owed due to the vesting of the 25,000 PRs as provided by a restricted share unit agreement between the Reporting Person and the Issuer.

(4) On June 14, 2022, the Compensation Committee of the Board of Directors of the Issuer certified that the SPPC applicable to these PRs had been satisfied. Accordingly, on September 30, 2022, the SC was satisfied with respect to 9/30/2022, resulting in the vesting of 25,000 PRs and the issuance of 25,000 shares of Common Stock.

(5) On June 14, 2022, the Compensation Committee of the Board of Directors of the Issuer certified that the SPPC applicable to these PRs had been satisfied. Accordingly, on September 30, 2022, the SC was satisfied with respect to 9/30/2022, resulting in the vesting of 12,500 PRs. Pursuant to the restricted share unit agreement between the Reporting Person and the Issuer, a cash payment was made to the Reporting Person in an amount equal to 12,500 multiplied by the fair market value per share of Issuer Common Stock as of September 30, 2022.

(6) On June 14, 2022, the Compensation Committee of the Board of Directors of the Issuer certified that the SPPC applicable to these PRs had been satisfied. Accordingly, on December 31, 2022, the SC was satisfied with respect to 12/31/2022, resulting in the vesting of 12,500 PRs. Pursuant to the restricted share unit agreement between the Reporting Person and the Issuer, a cash payment was made to the Reporting Person in an amount equal to 12,500 multiplied by the fair market value per share of Issuer Common Stock as of December 31, 2022.

**Signature:** /s/ Kyle Justin Loudermilk  
**Date:** 2022-01-04

### Remarks:

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

**Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.**