Form 4: Crexendo COO's Routine Stock Transactions

Crexendo's Chief Operating Officer, Douglas Walter Gaylor, reported routine acquisitions of common stock through RSU vesting and subsequent tax-related dispositions.

Summary

• Douglas Walter Gaylor, Chief Operating Officer of Crexendo, Inc. (CXDO), reported transactions on December 25, 2025.
• Acquired 278 shares of common stock through the vesting of Restricted Stock Units (RSUs) at a price of $0.
• Disposed of 76 shares of common stock to cover associated payroll taxes, based on a closing stock price of $6.60 per share.
• Acquired an additional 278 shares of common stock through the vesting of Restricted Stock Units (RSUs) at a price of $0.
• Disposed of 77 shares of common stock to cover associated payroll taxes, based on a closing stock price of $6.60 per share.
• The transactions resulted in a net beneficial ownership of 250,599 shares of common stock following the reported activities.
• Remaining derivative securities include 7,223 and 9,167 Restricted Stock Units (RSUs) directly owned.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions related to executive compensation (RSU vesting and tax withholding). These are expected events and do not indicate any significant positive or negative operational or financial developments for the company.

Positives

• The vesting of Restricted Stock Units (RSUs) for the Chief Operating Officer demonstrates ongoing executive compensation and aligns management's interests with shareholder value through equity ownership.
• The acquisition of common stock at a $0 price through RSU vesting represents a non-cash compensation benefit to the executive.

Negatives

• The disposition of 153 shares (76 + 77) of common stock for tax withholding, while a standard practice, slightly reduces the executive's direct shareholding.

Future Outlook

The remaining Restricted Stock Units (RSUs) are scheduled to vest in equal monthly installments over 36 months, with vesting periods commencing on March 25, 2025, and October 25, 2025, contingent on continuous employment. This indicates future share deliveries to the executive.

Industry Context

The reported transactions are standard executive compensation practices involving the vesting of Restricted Stock Units (RSUs) and subsequent tax withholding. This is a common method used across various industries to incentivize and retain key management personnel by aligning their long-term interests with company performance.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a widely adopted practice across publicly traded companies, including those in the technology and communications sectors where Crexendo operates.
• The mechanism of withholding shares to cover tax obligations upon RSU vesting is a standard industry practice, similar to how companies like Microsoft (MSFT) or Cisco (CSCO) manage equity compensation for their executives, ensuring tax compliance without requiring the executive to make an out-of-pocket payment for taxes.

Stakeholder Impact

• Shareholders: The transactions represent a minor dilution effect from the issuance of shares upon RSU vesting, which is a standard component of executive compensation. The tax withholding reduces the number of shares entering the market from the executive's holdings.
• Employees (specifically the COO): The vesting of RSUs provides the Chief Operating Officer with additional equity in the company, enhancing long-term incentive and alignment.

Next Steps

• Continued vesting of the remaining 7,223 and 9,167 Restricted Stock Units (RSUs) in equal monthly installments over 36 months, subject to continuous employment.

Key Dates

Keywords

Crexendo, CXDO, Form 4, Insider Transaction, Restricted Stock Units, RSU Vesting, Executive Compensation, Stock Ownership, Beneficial Ownership