Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 934

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 934
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31, 2024 and 2023, significant components of net deferred income tax assets and liabilities were as follows (in thousands):    December 31,   2024  2023 Deferred income tax assets:      Accrued expenses $290  $392 Deferred revenue  661   466 Net operating loss carry-forwards  5,729   6,451 Stock-based compensation  812   747 Other  14   20 Total deferred tax assets  7,506   8,076 Valuation allowances  (5,417)  (4,782)Net deferred tax assets  2,089   3,294          Deferred tax liabilities:        Property and equipment  (15)  (41)Prepaid expenses and other  (1,028)  (723)Intangible assets  (1,046)  (2,530)Total deferred tax liabilities  (2,089)  (3,294)         Net deferred tax assets (liabilities) $-  $-  As of December 31, 2024, we had NOL and research credit carry-forwards for U.S. federal income tax reporting purposes of approximately $17,372 and $2, respectively. $7,002 of the NOLs will begin to expire in 2032 through 2037, and the remaining $10,370 of the NOLs will not expire. The research tax credit will begin to expire in 2039 through 2040. Approximately $1,230 of the NOL carryforwards and $2 of the research credit carryforwards relate to the NetSapiens and Centric acquisitions.  A valuation allowance of $5,417 and $4,782 was recorded against our gross deferred tax asset balance as of December 31, 2024 and 2023, respectively.  As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the evidence available, it is more-likely-than-not that such assets will not be realized. In making