Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 120

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 120
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 from:        State and local income tax benefit/(provision), net of federal effect  (135)  (69)Change in the valuation allowance for net deferred income tax assets  (246)  219 Stock-based compensation  595   (418)Other, net  (29)  114 Income tax benefit/(provision) $212) $(98)

 74Table of Contents

As of December 31, 2024 and 2023, significant components of net deferred income tax assets and liabilities were as follows (in thousands):    December 31,   2024  2023 Deferred income tax assets:      Accrued expenses $290  $392 Deferred revenue  661   466 Net operating loss carry-forwards  5,729   6,451 Stock-based compensation  812   747 Other  14   20 Total deferred tax assets  7,506   8,076 Valuation allowances  (5,417)  (4,782)Net deferred tax assets  2,089   3,294          Deferred tax liabilities:        Property and equipment  (15)  (41)Prepaid expenses and other  (1,028)  (723)Intangible assets  (1,046)  (2,530)Total deferred tax liabilities  (2,089)  (3,294)         Net deferred tax assets (liabilities) $-  $-  As of December 31, 2024, we had NOL and research credit carry-forwards for U.S. federal income tax reporting purposes of approximately $17,372 and $2, respectively. $7,002 of the NOLs will begin to expire in 2032 through 2037, and the remaining $10,370 of the NOLs will not expire. The research tax credit will begin to expire in 2039 through 2040. Approximately $1,230 of the NOL carryforwards and $2 of the research credit carryforwards relate to the NetSapiens and Centric acquisitions.  A valuation allowance of $5,417 and $4,782 was recorded against our gross deferred tax asset balance as of December 31, 2024 and 2023, respectively.