Form 4: Lantronix Director's Equity Holdings Update

Lantronix Director Kevin Palatnik reported the vesting of restricted stock units and the acquisition of new units, adjusting his beneficial ownership.

Summary

• Kevin S. Palatnik, a Director of Lantronix Inc. (LTRX), reported changes in his beneficial ownership of common stock and restricted stock units (RSUs).
• On November 3, 2025, 9,800 shares of common stock were issued to Mr. Palatnik upon the vesting of previously granted RSUs.
• These RSUs were granted on November 5, 2024, and converted into common stock on a one-for-one basis at a price of $0 per share due to vesting.
• Following this vesting transaction, Mr. Palatnik's direct beneficial ownership of common stock increased to 39,599 shares.
• On November 4, 2025, Mr. Palatnik acquired 17,081 new restricted stock units (RSUs).
• These new RSUs also convert into common stock on a one-for-one basis at a price of $0 and are directly beneficially owned.
• The RSUs vest in two tranches: one half (1/2) six months following the Grant Date (November 5, 2024) and the remaining half on the first anniversary of the Grant Date, achieving full vesting after one year.

Sentiment

Score: 6

Explanation: The filing reflects routine insider compensation activity. The continued acquisition of equity (RSUs) by a director is generally a positive signal for alignment with shareholder interests, though it's a standard part of compensation rather than a discretionary purchase.

Positives

• The acquisition of 17,081 new Restricted Stock Units (RSUs) indicates continued equity alignment between the director and shareholder interests.
• The vesting of 9,800 RSUs into common stock increases the director's direct ownership, reinforcing commitment to the company's long-term performance.

Future Outlook

The newly acquired Restricted Stock Units (RSUs) are scheduled to vest in two tranches: one half six months after the November 5, 2024 Grant Date, and the remaining half on the first anniversary of the Grant Date, indicating full vesting after one year.

Industry Context

This filing represents a routine insider transaction related to executive compensation, common across publicly traded companies, and does not provide specific insights into broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: The director's increased equity ownership through RSU vesting and new grants aligns management's interests with those of shareholders, potentially fostering long-term value creation.
• Employees: This filing is specific to a director's compensation and does not directly impact the broader employee base, though it reflects standard executive compensation practices.

Next Steps

• The remaining half of the Restricted Stock Units granted on November 5, 2024, will vest on the first anniversary of the Grant Date (November 5, 2025).
• The newly acquired 17,081 RSUs will vest in two tranches: one half six months after their grant date and the other half on their first anniversary.

Key Dates

Keywords

Lantronix, LTRX, Form 4, Insider Transaction, Restricted Stock Units, RSU Vesting, Director Ownership, Equity Compensation