Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 23

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 on a monthly basis. Subscription Maintenance and Support -Subscription maintenance and support revenue includes revenue from maintenance service contracts, customer support, and other supportive services. The Company offers warranties on its products. The warranty period for the Company’s licensed software is generally 90 days. Certain of the Company's warranties are considered to be assurance-type in nature and do not cover anything beyond ensuring that the product is functioning as intended. Based on the guidance in ASC 606, assurance-type warranties do not represent separate performance obligations. The Company also sells separately-priced maintenance service contracts, which qualify as service-type warranties and represent separate performance obligations. The Company does not typically allow and has no history of accepting material product returns. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Subscription and maintenance support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. Professional Services and Other -The Company's professional services include consulting, technical support, resident engineer services, design services and installation services. Revenue from professional services and other is recognized when the performance obligation is complete and the customer has accepted the performance obligation.

 15Table of Contents

Disaggregation of Revenue In the following table, revenue is disaggregated by primary major product line, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Three Months Ended September 30, 2025 Cloud  Software  Total (In thousands) Telecommunications  Solutions  Reportable   Segment  Segment  Segments Major products/services lines         Desktop devices $1,369  $-  $1,369 Equipment financing revenue  213   -   213 Telecommunications services  7,312   -   7,312 Fees, commissions, and other, recognized over time  628   -   628 One time fees, commissions and other  454   -   454 Software licenses  -   2,071   2,071 Software license and maintenance and support subscriptions  -   5,142   5,142 Professional services and other  -   308   308   $9,976  $7,521  $17,497 Timing of revenue recognition            Products, services, and fees recognized at a