Form 4: Crexendo CTO Increases Stake Through RSU Vesting

Crexendo's Chief Technology Officer, David Tzat-kin Wang, reported an increase in direct beneficial ownership of common stock following the vesting of Restricted Stock Units.

Summary

• David Tzat-kin Wang, Crexendo's Chief Technology Officer, reported changes in his beneficial ownership of common stock.
• On September 4, 2025, 2,083 Restricted Stock Units (RSUs) vested, resulting in the acquisition of 2,083 shares of common stock.
• Concurrently, 1,058 shares were withheld by the company for payroll taxes at a price of $6.49 per share.
• On September 5, 2025, an additional 2,917 RSUs vested, leading to the acquisition of 2,917 shares of common stock.
• For the September 5, 2025 vesting, 1,482 shares were withheld for payroll taxes at a price of $6.59 per share.
• These transactions are part of a standard RSU vesting process and do not represent a sale by the reporting person.
• Following these transactions, David Tzat-kin Wang directly beneficially owns 451,665 shares of Crexendo common stock.

Sentiment

Score: 6

Explanation: The filing reports routine RSU vesting and tax withholding for an executive, which is a neutral to slightly positive event as it indicates ongoing executive compensation and retention. It does not contain any significant positive or negative news beyond this.

Positives

• Chief Technology Officer David Tzat-kin Wang increased his direct beneficial ownership of Crexendo common stock by a net of 2,460 shares (2,083 + 2,917 1,058 1,482) through RSU vesting.
• The vesting of Restricted Stock Units represents a component of executive compensation, aligning management's interests with shareholders.

Future Outlook

Restricted Stock Units granted to David Tzat-kin Wang are scheduled to vest in equal quarterly installments over 12 quarters, with vesting periods commencing on June 4, 2025, and June 5, 2024, contingent on continuous employment.

Industry Context

This filing reflects routine executive compensation practices, where Restricted Stock Units vest over time, aligning executive incentives with long-term company performance. Such compensation structures are common across the technology and telecommunications sectors, including companies comparable to Crexendo, Inc.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a standard practice in the technology industry, similar to companies like RingCentral, 8x8, or Vonage, which also utilize equity awards to attract and retain talent.
• The withholding of shares for tax obligations upon RSU vesting is a common and compliant method for managing tax liabilities associated with equity compensation, consistent with practices observed at most publicly traded companies.

Stakeholder Impact

• Shareholders: Minor, routine dilution from the issuance of shares upon RSU vesting, offset by the retention and incentivization of key management.
• Employees (specifically David Tzat-kin Wang): Positive impact through the realization of equity compensation, increasing personal wealth and aligning interests with company performance.

Next Steps

• Continued vesting of remaining Restricted Stock Units according to the established quarterly schedules, contingent on continuous employment.

Key Dates

Keywords

Crexendo, CXDO, Form 4, Insider Trading, Restricted Stock Units, RSU Vesting, Executive Compensation, David Tzat-kin Wang, Chief Technology Officer