Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 574

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 3
Chunk 574
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 Ended (In thousands) December 31, 2024  December 31, 2023   Contract Assets  Contract Liabilities  Contract Assets  Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $-  $(3,154) $-  $(3,393)Increase due to cash received, excluding amounts recognized as revenue during the period  -   3,938   -   2,396 Transferred to receivables from contract assets recognized at the beginning of the period  (302)  -   (192)  - Increase due to additional unamortized discounts  366   -   216   -  Contract assets and allowance for credit losses Our contract assets balance consists of the Company’s rights to consideration for work completed but not billed as of the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract assets were as follows (in thousands):    December 31,   2024  2023 Gross contract assets $533  $427 Less: allowance for credit losses  (127)  (85)Contract assets, net of allowance for credit losses $406  $342   The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $85 Provision  1 Write-offs  (4)Recoveries and other  - Balance at March 31, 2024 $82 Provision  18 Write-offs  - Recoveries and other  - Balance at June 30, 2024 $100 Provision  11 Write-offs  - Recoveries and other  - Balance at September 30, 2024 $111 Provision  18 Write-offs  (2)Recoveries and other  - Balance at December 31, 2024 $127  The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years.