Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 34

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
 Accrual for warranties  19 Warranty settlements  (16)Balance at September 30, 2025 $35  Product warranty expense is included in cost of product revenue expense and totaled $6 and $9 for the three months ended September 30, 2025 and 2024, respectively, and $19 and $24 for the nine months ended September 30, 2025 and 2024, respectively.

 22Table of Contents

10. Notes Payable Notes payable consists of short and long-term financing arrangements:    September 30,  December 31,   2025  2024 Related party note payable $194  $478 Other notes payable  42   114 Total notes payable $236  $592 Less: current notes payable  (236)  (478)Notes payable, net of current portion $-  $114  On February 27, 2024, we entered into a promissory note with CrossFirst Bank in the amount of $278. The promissory note has a term of three (3) years with monthly payments of Eight Thousand Five Hundred Forty-Three ($8,543), including interest of 6.58%, beginning on March 27, 2023. Additionally, the promissory note is subject to certain financial covenants.   On November 1, 2022, as part of the acquisition of Allegiant Networks, we entered into a promissory note with the seller in the amount of $1.1 million. The loan agreement has a term of three (3) years with quarterly payments of Ninety-Eight Thousand Three Hundred Eighty-One ($98,381), including interest at 4.00%, beginning on April 1, 2023. As of September 30, 2025 and December 31, 2024, the outstanding balance of the related party note payable was $194 and $478, respectively. During the three months ended September 30, 2025 and 2024, the Company paid principal of $96 and $92, respectively, and interest of $2 and $6, respectively. During the nine months ended September 30, 2025 and 2024, the Company paid principal of $284 and $272, respectively, and interest of $10 and $22, respectively. As of September 30,