Form 4: Lantronix CFO Brent Stringham Reports Routine RSU Vesting and Tax Withholding

Lantronix, Inc.'s Chief Financial Officer, Brent Michael Stringham, reported the vesting of Restricted Stock Units (RSUs) and subsequent share withholding for tax purposes on June 1, 2025, as part of his compensation plan.

Summary

• Lantronix, Inc. (LTRX) Chief Financial Officer, Brent Michael Stringham, reported multiple transactions related to Restricted Stock Units (RSUs) on June 1, 2025.
• A total of 312 shares of common stock were acquired upon the vesting of RSUs granted on September 13, 2021.
• An additional 375 shares of common stock were acquired from RSUs granted on January 2, 2022.
• Further, 667 shares of common stock were acquired from RSUs granted on September 1, 2022.
• Another 550 shares of common stock were acquired from RSUs granted on October 3, 2023.
• Following these acquisitions, Mr. Stringham's direct beneficial ownership of common stock increased to 76,716 shares.
• Concurrently, 781 shares of Lantronix, Inc. common stock were disposed of at a price of $2.19 per share to cover required tax withholding obligations related to the RSU vesting.
• After the tax withholding, Mr. Stringham's direct beneficial ownership of common stock stands at 75,935 shares.
• The remaining unvested shares from the September 13, 2021, and September 1, 2022, RSU grants are scheduled to vest ratably in equal quarterly installments through September 1, 2025.
• The remaining unvested shares from the January 2, 2022, RSU grant are scheduled to vest ratably in equal quarterly installments through December 1, 2025.
• The remaining unvested shares from the October 3, 2023, RSU grant are scheduled to vest ratably in equal quarterly installments through September 1, 2026.

Sentiment

Score: 6

Explanation: The document reports routine, pre-scheduled RSU vesting and tax withholding, which is a neutral to slightly positive event as it represents ongoing executive compensation and alignment of interests, without indicating any unexpected operational or financial performance.

Positives

• The vesting of Restricted Stock Units (RSUs) indicates the ongoing execution of the company's executive compensation and retention strategy.
• The acquisition of shares through RSU vesting increases the CFO's direct ownership stake in the company, aligning his interests with shareholders.

Negatives

• A portion of the vested shares (781 shares) was withheld to cover tax obligations, which reduces the net shares received by the CFO.

Risks

• The value of the vested RSUs and the remaining unvested shares is subject to the future market price of Lantronix common stock, exposing the recipient to market volatility.

Future Outlook

The document indicates that remaining unvested Restricted Stock Units (RSUs) from various grants will continue to vest ratably in equal quarterly installments through September 1, 2025, December 1, 2025, and September 1, 2026, depending on the grant date.

Industry Context

This Form 4 filing details routine insider compensation events (RSU vesting) and does not provide broader industry context or trends. Such transactions are standard practice for executive compensation in publicly traded companies across various industries.

Stakeholder Impact

• Shareholders: The vesting and subsequent tax withholding are routine compensation events and do not directly impact the company's operational performance or financial health. They represent a minor dilution from new share issuance but are part of established compensation plans.
• Employees: The RSU vesting demonstrates the company's commitment to its executive compensation structure, which can positively influence employee morale and retention, particularly for those with similar equity compensation plans.

Next Steps

• Continued ratable quarterly vesting of remaining unvested RSUs through September 1, 2025, for grants from September 13, 2021, and September 1, 2022.
• Continued ratable quarterly vesting of remaining unvested RSUs through December 1, 2025, for grants from January 2, 2022.
• Continued ratable quarterly vesting of remaining unvested RSUs through September 1, 2026, for grants from October 3, 2023.

Key Dates

Keywords

Lantronix, LTRX, SEC Form 4, Insider Transaction, Restricted Stock Units, RSU Vesting, Chief Financial Officer, Brent Stringham, Stock Ownership, Executive Compensation