Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 77

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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- 2029  - Total $356 

11. Line of Credit The Company maintains a line of credit with a maximum principal amount of $700, payable upon demand. The line of credit expires on February 24, 2026. The line of credit bears interest at 0.50% over the Wall Street Journal Prime Rate. As of June 30, 2025, there was an outstanding balance of $0, and $700 remained available for borrowing. The line of credit is collateralized by all company assets. Additionally, the line of credit is subject to certain financial covenants.

12. Fair Value Measurements We have financial instruments as of June 30, 2025 and December 31, 2024 for which the fair value is summarized below (in thousands):   June 30, 2025  December 31, 2024   Carrying Value  Estimated Fair Value  Carrying Value  Estimated Fair Value Assets:            Trade receivables, net $5,620  $5,620  $4,352  $4,352 Equipment financing receivables   3,842   3,842   3,446   3,446 Liabilities:                Finance lease obligations $4  $4  $23  $23 Notes payable  356   356   592   587  We have no liabilities for which fair value is recognized in the balance sheet on a recurring basis as of June 30, 2025 and December 31, 2024.

13. Income Taxes Our effective tax rate for the three months ended June 30, 2025 and 2024 was 3.8% and 4.4%, respectively, which resulted in an income tax benefit/(provision) of $(48) and $(27), respectively. Our effective tax rate for the six months ended June 30, 2025 and 2024 was 3.7% and 5.0%, respectively, which resulted in an income tax benefit/(provision) of $(92) and $(54), respectively. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those