4/A: Crexendo CEO Amends SEC Filing to Correct Restricted Stock Unit Conversion Details

Crexendo, Inc.'s CEO, Jeffrey G. Korn, filed an amended Form 4 to correct the reported number of Restricted Stock Units converted into common stock.

Summary

• Jeffrey G. Korn, Chief Executive Officer of Crexendo, Inc. (CXDO), filed an amended Form 4 (Form 4/A) to correct details of a previously reported transaction.
• The amendment clarifies that 5,000 Restricted Stock Units (RSUs) were converted into 5,000 shares of common stock on June 4, 2025.
• This correction specifically addresses an error in Table II of the original Form 4, changing the reported disposition of RSUs from an incorrect amount of 1,218 to the correct amount of 5,000.
• Following the conversion, 1,218 shares of common stock were withheld by the company for the payment of associated payroll taxes, based on a closing stock price of $5.55 on June 5, 2025.
• Each RSU represents the right to receive one share of CXDO common stock upon vesting, contingent on continued employment.
• The RSUs are scheduled to vest in equal quarterly installments over 12 quarters, commencing on June 4, 2025, subject to continuous employment.
• After these transactions, Mr. Korn directly beneficially owns 247,795 shares of common stock and 55,000 Restricted Stock Units.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive due to the transparency of correcting an error and the underlying positive event of RSU vesting for the CEO, which aligns management interests. The initial error is a minor negative, but the prompt correction mitigates its impact.

Positives

• The company and its CEO are demonstrating transparency and commitment to accurate public disclosures by promptly correcting reported transaction details.
• The vesting of 5,000 Restricted Stock Units indicates continued compensation and aligns management's interests with shareholder value.

Negatives

• The necessity for an amendment suggests an initial administrative error in the original filing, though promptly corrected.

Future Outlook

The document indicates that the remaining 55,000 Restricted Stock Units held by Jeffrey G. Korn will vest in equal quarterly installments over 12 quarters, starting from June 4, 2025, contingent on his continuous employment.

Management Comments

• "To correct the amount of Restricted Stock Units disposed of in Table II from 1,218 to the correct amount of 5,000 that was reported on form-4 filed on 6/5/2025."

Industry Context

This Form 4/A filing is a routine disclosure of insider transactions and does not provide information relevant to broader industry trends or competitive dynamics. It primarily concerns executive compensation and beneficial ownership.

Comparison to Industry Standards

• This document is a standard regulatory filing (Form 4/A) for reporting insider transactions and does not contain information that allows for a comparison of company performance or executive compensation practices against global industry benchmarks or specific comparable companies/projects. The vesting of RSUs and tax withholding are common practices in executive compensation.

Related Party Transactions

• The transaction involves the CEO and the company (Crexendo, Inc.) regarding RSU vesting and tax withholding, which are standard compensation-related related-party transactions. No unusual related-party dealings are disclosed beyond this.

Stakeholder Impact

• Shareholders: The correction ensures accurate public records of insider holdings. The vesting of RSUs aligns the CEO's interests with shareholder value.
• Employees: No direct impact on general employees is indicated.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated.

Next Steps

• The remaining 55,000 Restricted Stock Units held by Jeffrey G. Korn are scheduled to vest in equal quarterly installments over the next 12 quarters, starting June 4, 2025.

Key Dates

Recommendation

Keywords

Crexendo, CXDO, Form 4/A, SEC filing, insider transaction, Jeffrey G. Korn, CEO, Restricted Stock Units, RSU, common stock, share vesting, tax withholding, beneficial ownership