Form 4: Crexendo CEO Reports RSU Vesting and Tax Withholding

Crexendo CEO Jeffrey G. Korn reported the vesting of restricted stock units and subsequent tax withholding, adjusting his direct beneficial ownership.

Summary

• Jeffrey G. Korn, Chief Executive Officer of Crexendo, Inc. (CXDO), reported transactions related to his beneficial ownership.
• On August 25, 2025, Mr. Korn acquired 278 shares of Crexendo common stock through the vesting of Restricted Stock Units (RSUs).
• Each RSU represents the right to receive one share of CXDO common stock upon vesting, contingent on continued employment.
• Concurrently, 68 shares of common stock were disposed of by the company for the payment of associated payroll taxes, based on a closing stock price of $6.06 on August 25, 2025.
• This disposition for tax purposes does not represent a sale by the reporting person.
• Following these transactions, Mr. Korn directly beneficially owns 242,206 shares of common stock.
• Additionally, Mr. Korn directly beneficially owns 8,334 derivative securities in the form of Restricted Stock Units.

Sentiment

Score: 6

Explanation: The filing reports a routine, pre-scheduled executive compensation event (RSU vesting) and associated tax withholding. While the net effect on direct shares is a slight increase from the vesting, the overall sentiment is neutral to slightly positive as it reflects ongoing executive alignment and compensation.

Positives

• The vesting of Restricted Stock Units (RSUs) for the CEO indicates continued employment and alignment of management's interests with shareholders.
• The acquisition of 278 shares through RSU vesting increases the CEO's direct equity stake in the company.

Negatives

• A reduction of 68 shares from the CEO's direct beneficial ownership occurred due to tax withholding, which is a standard practice for RSU vesting.

Future Outlook

The remaining 8,334 Restricted Stock Units held by the CEO are scheduled to vest in equal monthly installments over 36 months, starting from March 25, 2025, contingent upon continuous employment. Shares will be delivered upon vesting.

Industry Context

This filing is a routine insider transaction report (Form 4) detailing an executive's equity compensation. It does not provide information directly related to broader industry trends or competitive landscape, but rather reflects standard compensation practices within publicly traded companies.

Stakeholder Impact

• Shareholders: The vesting of RSUs is a form of equity compensation, which can lead to minor dilution over time but also aligns management's interests with shareholder value creation.
• Employees (specifically the CEO): The vesting represents a realization of compensation and continued equity ownership in the company.

Next Steps

• Continued vesting of the remaining 8,334 Restricted Stock Units in equal monthly installments over 36 months, subject to continuous employment.

Key Dates

Keywords

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