Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 301

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 301
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 of Contents

We develop an estimate of the number of share-based awards that will be forfeited due to employee turnover. We will continue to use judgment in evaluating the expected term, volatility, and forfeiture rate related to our own share-based awards on a prospective basis, and in incorporating these factors into the model. If our actual experience differs significantly from the assumptions used to compute our share-based compensation cost, or if different assumptions had been used, we may have recorded too much or too little share-based compensation cost.

For additional information on use of estimates, see summary of Significant Accounting Policies in the notes to the Consolidated Financial Statements.

Segment Operating Results

The Company has two operating segments, which consist of Cloud Telecommunications Services and Software Solutions. The information below is organized in accordance with our two reportable segments. Segment operating income is equal to segment net revenue less segment cost of service revenue, cost of software solution revenue, cost of product revenue, sales and marketing, research and development, and general and administrative expenses.

Operating Results of our Cloud Telecommunications Services Segment (in thousands):

  Year Ended December 31, Cloud Telecommunications Services 2024  2023 Service revenue $31,849  $29,668 Product revenue  5,615   5,484 Total revenue  37,464   35,152 Operating expenses:        Cost of service revenue  13,087   12,606 Cost of product revenue  3,215   3,331 Selling and marketing  11,564   10,251 General and administrative  8,556   9,275 Research and development  788   1,172 Total operating expenses  37,210   36,635 Income/(loss) from operations  254   (1,483)Other income/(expense), net  159   1,359 Income/(loss) before income tax  $413  $(124)

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Quarterly Financial Information

  For the three months ended   March 31,  June 30,  September 30,  December 31,  Cloud Telecommunications Services 2024  2024  2024  2024 Service revenue $7,845  $8,067  $7,953  $7,984 Product revenue