Form 4: Crexendo Director Exercises Options, Receives New Grant

Crexendo Director Todd Goergen exercised 10,000 stock options and was granted 10,000 new stock options.

Summary

• Director Todd Goergen exercised 10,000 non-qualified stock options on September 12, 2025, with an exercise price of $2.25 per share.
• This was a "net exercise" where 3,324 shares were withheld by Crexendo, Inc. to cover the exercise price, based on a closing stock price of $6.77 on September 12, 2025.
• Goergen received a net of 6,676 shares of common stock from this transaction.
• Following these transactions, Goergen beneficially owned 235,352 shares of common stock.
• On March 4, 2026, Goergen was granted 10,000 new stock options with an exercise price of $6.47 per share.
• These new stock options will vest in 36 equal monthly installments starting April 4, 2026, and expire on March 4, 2036.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as a director increasing their direct share ownership and receiving new long-term incentives generally indicates confidence in the company's future prospects.

Positives

• Director Todd Goergen increased his direct beneficial ownership of common stock by a net of 6,676 shares through option exercise.
• The grant of 10,000 new stock options aligns the director's incentives with long-term company performance.

Negatives

• The "net exercise" involved the withholding of 3,324 shares, which, while not a sale, reduces the immediate increase in direct share ownership.

Risks

• NA

Future Outlook

The grant of new stock options with a 3-year vesting schedule indicates a long-term incentive for the director, suggesting an expectation of continued service and alignment with future company performance.

Management Comments

• NA

Industry Context

StockSavvy.ai notes that insider transactions, particularly option exercises and new grants, are common practices for compensating and incentivizing directors and executives in publicly traded companies. These actions reflect standard corporate governance and compensation structures aimed at aligning management interests with shareholder value over the long term.

Comparison to Industry Standards

• The "net exercise" method is a common practice in the industry for option exercises, allowing insiders to cover the exercise cost and taxes without needing to sell additional shares on the open market.
• Granting new stock options with multi-year vesting schedules is a standard compensation practice across various industries, including technology and communications, to retain key personnel and motivate them towards achieving long-term strategic goals.
• The exercise price of $6.47 for the new options, compared to the $6.77 closing price on the previous transaction date, suggests the options were granted at or near the market price, which is typical for incentive stock options.

Management Changes

Corporate Governance

Legal Proceedings

• NA

Related Party Transactions

• NA

Stakeholder Impact

• Shareholders: The director's increased ownership and long-term incentives align their interests with shareholders, potentially fostering long-term value creation.
• Employees: The compensation structure for directors can set a precedent or reflect the broader compensation philosophy within the company.

Next Steps

• The newly granted stock options will vest in 36 equal monthly installments beginning April 4, 2026.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions, specifically a director exercising stock options and receiving a new grant. While the director's increased ownership and new long-term incentives are generally positive, these are standard compensation activities and do not provide new fundamental information to warrant a change from a "hold" position. The transactions reflect ongoing compensation practices rather than a significant new investment thesis.

Keywords

Crexendo, CXDO, Todd Goergen, Director, Stock Options, Insider Trading, Beneficial Ownership, SEC Form 4, Equity Compensation