Form 4: Crexendo Director Exercises Options, Boosts Stake

Steven G Mihaylo, a Director and 10% owner of Crexendo, Inc., exercised stock options resulting in a net acquisition of 9,200 common shares.

Summary

• Steven G Mihaylo, a Director and 10% owner of Crexendo, Inc. (CXDO), engaged in a stock option exercise transaction.
• On January 14, 2026, Mihaylo exercised ISO stock options to acquire 13,408 shares of common stock at an exercise price of $2.25 per share.
• Concurrently, 4,208 shares were withheld by the company to cover the exercise price, based on a closing stock price of $7.17 on January 14, 2025. This indicates a discrepancy between the reported transaction date and the date of the stock price used for the withholding calculation.
• This 'net exercise' resulted in Mihaylo receiving a net of 9,200 shares of common stock (13,408 acquired 4,208 withheld).
• Following these transactions, Mihaylo's direct beneficial ownership of Crexendo common stock stands at 11,306,765 shares.
• The transaction does not represent a sale by the reporting person.

Sentiment

Score: 7

Explanation: The transaction reflects an insider increasing their direct ownership, which is generally viewed positively as it indicates confidence in the company's future prospects. The options were significantly in-the-money, suggesting a favorable outcome for the insider.

Positives

• A Director and 10% owner, Steven G Mihaylo, increased his direct beneficial ownership in Crexendo, Inc. by a net of 9,200 shares, signaling continued insider confidence.
• The exercise of options at $2.25 per share, while the withholding price was $7.17, indicates a significant in-the-money position for the options, reflecting value creation for the option holder.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Management Comments

• The explanation states that the transaction 'does not represent a sale by the reporting person,' clarifying the nature of the net exercise.

Industry Context

This insider transaction, a net exercise of stock options, is a routine event for executives and directors of publicly traded companies. It typically reflects an insider's decision to convert vested options into shares, often increasing their direct equity stake. It does not inherently provide broader industry trend insights but signals continued insider confidence in the company.

Comparison to Industry Standards

• The net exercise of stock options is a standard practice for executive compensation and equity management across industries.
• The specific terms (exercise price, withholding price) are company-specific but the mechanism is common.
• No specific comparable companies or projects are mentioned in this transactional filing.

Stakeholder Impact

• Shareholders: The increase in insider ownership by a Director and 10% owner may be perceived as a positive signal of management's confidence in the company's value.

Next Steps

• No specific future actions or milestones are mentioned in this Form 4 filing.

Key Dates

Recommendation

This Form 4 filing reports a routine insider transaction where a director and 10% owner exercised stock options, resulting in a net increase in their beneficial ownership. While insider buying can be a positive signal, this specific transaction is an option exercise, which is often part of a compensation plan and not necessarily a discretionary open-market purchase. It indicates continued confidence but does not provide new fundamental information to warrant a change from a 'hold' position based solely on this filing.

Keywords

Crexendo, CXDO, Steven G Mihaylo, Insider Trading, Stock Options, Beneficial Ownership, Form 4, Director, 10% Owner, Equity Transaction