Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 76

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 76
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 an increase in accounting software costs of $27 associated with service contract fees for our new accounting system, an increase in consulting fees of $21, and an increase in other general and administrative expenses of $29.

Research and Development

Research and development expenses primarily consist of salaries, benefits, bonuses, share-based compensation, and outsourcing engineering services related to the development of our software solutions. The following table reflects our research and development expense for the year end March 31, 2024, compared to the year ended March 31, 2023:

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Research and development $1,391  $980  $411   42%

The increase in research and development expenses is primarily related to an increase in salaries, benefits, bonuses, and share-based compensation of $357 due to the allocation of resources from the Cloud Telecommunications Services segment as we finalize the migration of our customers to the VIP platform and from an increase in headcount, and an increase in outsourced engineering services expenses of $61, offset by a decrease in other research and development expenses of $7.

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Other Income/(Expense)

Other income/(expense) primarily relates to net foreign exchange gains or losses and other income and expenses. The following table reflects our other income/(expense) for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Other income/(expense), net $(16) $(17) $1   6%

The change in other income/(expense) is primarily related to a decrease in other income of $25 and an increase in foreign exchange gains/(losses) of $24.

Liquidity and Capital Resources

Liquidity is a measure of our ability to access sufficient cash flows to meet the short-term and long-term cash requirements of our business operations. We finance our operations primarily through services, software solutions, and product sales to our customers. As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents of $21,207 and $18,193, respectively. Changes in cash and cash equivalents are dependent upon changes in, among other things, working capital items such as contract liabilities, contract costs