Form 4: Crexendo COO Douglas Gaylor Reports Routine Stock Vesting and Tax Withholding

Crexendo, Inc.'s Chief Operating Officer, Douglas Walter Gaylor, reported the vesting of 5,000 Restricted Stock Units and the subsequent withholding of 1,368 shares for tax purposes.

Summary

• Douglas Walter Gaylor, Chief Operating Officer of Crexendo, Inc. (CXDO), reported transactions on June 4, 2025.
• 5,000 shares of Common Stock were acquired by Mr. Gaylor due to the vesting of Restricted Stock Units (RSUs).
• The Company withheld 1,368 shares of Common Stock to cover associated payroll taxes, based on a closing stock price of $5.55 per share on June 4, 2025.
• This withholding transaction does not represent a sale by the reporting person.
• Following these transactions, Mr. Gaylor beneficially owns 234,242 shares of Common Stock directly.
• An additional 55,000 Restricted Stock Units remain unvested, which will vest in equal quarterly installments over 12 quarters starting June 4, 2025, contingent on continuous employment.

Sentiment

Score: 5

Explanation: The sentiment is neutral as this is a routine, non-discretionary insider transaction related to executive compensation (RSU vesting and tax withholding), which is a standard part of compensation plans and does not indicate a change in company fundamentals or outlook.

Positives

• The vesting of 5,000 Restricted Stock Units indicates continued compensation and alignment of executive interests with shareholder value.
• The ongoing vesting schedule for 55,000 additional RSUs provides a long-term incentive for the Chief Operating Officer.

Negatives

• 1,368 shares were withheld by the company for tax purposes, reducing the net shares received by the executive from the vesting event.

Future Outlook

The remaining 55,000 Restricted Stock Units held by Mr. Gaylor are scheduled to vest in equal quarterly installments over 12 quarters, commencing on June 4, 2025, subject to his continuous employment.

Management Comments

• The filing indicates that the company withheld 1,368 shares of common stock for payment of associated payroll taxes, using the closing stock price on June 4, 2025, of $5.55, and explicitly states this transaction does not represent a sale by the reporting person.

Industry Context

This Form 4 filing is a routine disclosure of an insider's equity transactions, specifically related to executive compensation through Restricted Stock Unit vesting. It does not provide broader industry context or competitive analysis.

Stakeholder Impact

• Shareholders: The report indicates a routine increase in shares outstanding due to RSU vesting, partially offset by tax withholding. This is a standard component of executive compensation and generally has a minimal direct impact on existing shareholders.
• Employees: The vesting of RSUs for the COO demonstrates the company's commitment to performance-based compensation, which can be a positive signal for other employees.

Next Steps

• Continued vesting of the remaining 55,000 Restricted Stock Units in equal quarterly installments over the next 12 quarters, subject to continuous employment.

Key Dates

Keywords

Crexendo, CXDO, SEC Form 4, Insider Transaction, Restricted Stock Units, RSU Vesting, Executive Compensation, Stock Ownership, Douglas Walter Gaylor