Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 825

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 5
Chunk 825
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Weighted-average discount rate    Operating leases  7.5%Finance leases  4.3%

 77Table of Contents

  Year Ended December 31,   2024  2023 Cash paid for amounts included in the measurement of lease liabilities:      Operating cash flows from operating leases $1,039  $674 Operating cash flows from finance leases  2   5 Financing cash flows from finance leases  (75)  (95)         Non-cash investing and financing activities:         Additions to ROU assets obtained from:        New operating lease liabilities $1,236  $349 New finance lease liabilities  -   - 

17. Commitments and Contingencies Annual Employee Bonus Plan Accrual  We utilize incentive bonuses to reward performance achievements, which provides potential annual cash bonus awards to Company employees, including Named Executive Officers (“NEOs”). Under the Bonus Plan, the Compensation Committee of the Board of Directors of the Company (the “Board”) has established a bonus pool of $896, for our NEOs and executive management team for the year ended December 31, 2024. The Board established a bonus pool of $272 for our non-executive employees, for the year ended December 31, 2024. Participants will be eligible to receive cash bonus awards based upon annual performance targets established by the Compensation Committee for the year ended December 31, 2024, relating to annual revenue and adjusted EBITDA. Awards will be paid on a tiered scale based upon actual performance as a percentage of the performance targets with a floor and cap. Payments for individual performance targets met or exceeded are payable, whether or not all performance targets are met, consistent with the weighted amounts for each performance target within the bonus pools. Bonus awards for NEOs and executive management will be weighted 50% on annual revenue and 50% on Adjusted EBITDA. No bonus will be awarded for any performance target for which actual performance is less than 90% of target. At 90% or greater actual performance relative to the target, 50% of the weighted bonus amount for the performance target is payable. From 90% to 100% actual performance relative to the target, the remaining 50% of the weighted bonus amount is awarded pro rata with the percentage of actual performance exceeding 90% of target (i.e., each 1% excess