Form 4: Crexendo CEO Jeffrey Korn Sells 40,000 Shares

Crexendo CEO Jeffrey Korn executed a planned sale of 40,000 shares of common stock between May 4 and May 6, 2026, under a Rule 10b5-1 trading plan.

Summary

• Jeffrey Korn, Chief Executive Officer of Crexendo, Inc., sold a total of 40,000 shares of common stock over a three-day period.
• The transactions included the conversion of 278 Restricted Stock Units (RSUs) into common stock on May 4, 2026.
• A total of 68 shares were withheld by the company to cover payroll tax liabilities at a price of $8.17 per share.
• The 40,000 shares were sold in three tranches: 20,000 shares at a weighted average of $8.1565, 10,000 shares at $8.50, and 10,000 shares at $9.00.
• Following these transactions, Jeffrey Korn directly owns 208,615 shares of common stock and holds 9,167 unvested RSUs.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. While the CEO is selling shares, the transactions were pre-planned long in advance and the executive retains a substantial majority of his holdings.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which helps mitigate concerns regarding trading on non-public information.
• The CEO maintains a significant direct ownership stake of 208,615 shares even after the divestment.
• The stock sales occurred at progressively higher prices, reaching $9.00 per share on the final day of the reported transactions.

Negatives

• The sale of 40,000 shares represents a reduction in the CEO's direct equity exposure to the company.
• Large insider sales can sometimes create temporary downward pressure on the stock price or be perceived negatively by retail investors.

Risks

• Market perception of executive divestment may lead to increased volatility in the share price.
• The reliance on monthly vesting of RSUs means the executive's future equity position is contingent on continued employment and company performance.

Future Outlook

The reporting person's remaining RSUs will continue to vest in equal monthly installments, ensuring ongoing alignment with shareholder interests through continuous employment.

Management Comments

• The sale was made pursuant to a plan intended to comply with Rule 10b5-1(c), previously entered into on December 9, 2024, at which time Mr. Korn was not aware of material nonpublic information.

Industry Context

StockSavvy.ai notes that planned insider sales under Rule 10b5-1 are standard practice for executives in the technology and telecommunications sectors to achieve personal liquidity and diversification without triggering insider trading concerns.

Comparison to Industry Standards

• The use of a 10b5-1 plan established over 15 months prior to the sale exceeds the typical cooling-off period requirements, aligning with best practices in corporate governance.
• The CEO's retained ownership of over 200,000 shares is consistent with industry standards for executive 'skin in the game' for a company of Crexendo's market capitalization.

Corporate Governance

Related Party Transactions

• The company withheld 68 shares from the reporting person to satisfy tax obligations arising from RSU vesting.

Stakeholder Impact

• Shareholders may view the $9.00 exit price for a portion of the shares as a signal of management's view on short-term valuation peaks.
• The transparency of the 10b5-1 plan provides clarity to the market regarding executive liquidity needs.

Next Steps

• Continued monthly vesting of the remaining 9,167 RSUs.
• Potential for further sales if the 10b5-1 plan contains additional scheduled transaction dates.

Key Dates

Recommendation

The insider selling is routine and planned, suggesting no immediate change in company fundamentals. Investors should maintain their current positions while monitoring broader company performance.

Keywords

Crexendo, CXDO, Insider Selling, Jeffrey Korn, CEO, Rule 10b5-1, Restricted Stock Units, Common Stock, SEC Form 4