Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 108

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 a decrease in product revenue for the six months ended June 30, 2025.

Selling and Marketing

Selling and marketing expenses consist primarily of direct and channel sales representative salaries, benefits, bonuses, and share-based compensation, partner channel commissions, amortization of costs to acquire contracts, travel expenses, lead generation services, trade shows, internal and third-party marketing costs, amortization of customer relationship intangible assets, the production of marketing materials, and sales support software. The following table reflects our selling and marketing expenses for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  Six Months Ended June 30,   2025  2024  Dollar Change  Percent Change Selling and marketing $5,933  $5,604  $329   6%

The increase in selling and marketing expense is primarily related to an increase in commission expense of $340 directly related to the increase in revenue, an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $95, and an increase in other sales and marketing expense of $10, offset by a decrease in bad debt related to a decrease in our credit loss reserve of $116.

General and Administrative

General and administrative expenses consist of salaries, benefits, bonuses and share-based compensation for executives, administrative personnel, legal, rent, equipment, accounting and other professional services, investor relations, depreciation, amortization of intangible assets, and other administrative corporate expenses. The following table reflects our general and administrative expenses for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  Six Months Ended June 30,   2025  2024  Dollar Change  Percent Change General and administrative $3,896  $4,390  $(494)  -11%

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The decrease in general and administrative expenses is primarily related to a decrease in administrative salaries, benefits, bonuses, and share-based compensation of $360 from the allocation of costs to our Software Solutions Segment offset by increases in salaries, a decrease in telecommunication annual taxes and fees of $71, a decrease in legal fees of $56 related to the filing of our Form S-3 in 2024, a decrease in consulting fees of $28, and a decrease in other general and administrative expenses of $30,