Form 4: Crexendo CEO Korn Reports RSU Vesting and Tax Withholding

Crexendo CEO Jeffrey G. Korn reported the vesting of Restricted Stock Units and associated tax withholdings on September 4 and 5, 2025.

Summary

• Jeffrey G. Korn, Chief Executive Officer of Crexendo, Inc. (CXDO), reported transactions related to his beneficial ownership.
• On September 4, 2025, 5,000 Restricted Stock Units (RSUs) vested, resulting in the acquisition of 5,000 shares of common stock at a price of $0.
• Concurrently, 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 $6.49 on September 4, 2025.
• Following these transactions on September 4, 2025, Mr. Korn beneficially owned 245,988 shares of common stock.
• On September 5, 2025, an additional 5,000 RSUs vested, leading to the acquisition of another 5,000 shares of common stock at a price of $0.
• Similarly, 1,218 shares of common stock were withheld for payroll taxes, based on a closing stock price of $6.59 on September 5, 2025.
• After all reported transactions, Mr. Korn's direct beneficial ownership of common stock increased to 249,770 shares.
• The RSUs vesting on September 4, 2025, are part of a grant that vests in equal quarterly installments over 12 quarters, starting on June 4, 2025.
• The RSUs vesting on September 5, 2025, are part of a grant that vests in equal quarterly installments over 12 quarters, starting on June 5, 2024.
• Remaining unvested derivative securities (RSUs) beneficially owned after these transactions are 50,000 and 30,000 from the respective grants.

Sentiment

Score: 6

Explanation: The filing reports routine, pre-scheduled RSU vesting and tax withholding, which is a neutral to slightly positive event as it represents the realization of executive compensation and an increase in direct ownership, albeit with a portion withheld for taxes.

Positives

• The vesting of Restricted Stock Units represents a scheduled compensation event for the CEO, converting equity awards into common stock.
• The acquisition of 10,000 shares of common stock at a $0 exercise price increases the CEO's direct equity stake in Crexendo, Inc.

Negatives

• The withholding of 2,436 shares (1,218 shares on each date) for tax purposes reduces the net number of shares received by the CEO from the RSU vesting.

Future Outlook

The vesting schedules for the Restricted Stock Units indicate future share deliveries will occur in equal quarterly installments over 12 quarters, contingent on continued employment, with different grants commencing vesting on June 5, 2024, and June 4, 2025, respectively.

Industry Context

This filing reports routine insider transactions related to executive compensation, specifically the vesting of Restricted Stock Units. Such events are common across publicly traded companies as a form of long-term incentive for management, aligning their interests with shareholders.

Stakeholder Impact

• Shareholders: The vesting of RSUs leads to a slight increase in the outstanding share count over time, representing minor dilution, but also aligns management's interests with shareholder value.
• Employees (specifically the CEO): The vesting represents the realization of long-term incentive compensation, increasing the CEO's direct equity stake in the company.

Next Steps

• Continued vesting of the remaining 80,000 Restricted Stock Units in equal quarterly installments over their respective 12-quarter periods, subject to continuous employment.

Key Dates

Keywords

Crexendo, CXDO, Jeffrey G. Korn, CEO, Restricted Stock Units, RSU vesting, insider transaction, Form 4, beneficial ownership, equity compensation, tax withholding