Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 26

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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406 Contract liabilities  4,398   3,372  Significant changes in the contract assets and the contract liabilities balances during the period are as follows:   For the Nine Months Ended  For the Year Ended (In thousands) September 30, 2025  December 31, 2024   ContractAssets  ContractLiabilities  ContractAssets  ContractLiabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $-  $(2,107) $-  $(3,154)Increase due to cash received, excluding amounts recognized as revenue during the period  -   3,133   -   3,938 Transferred to receivables from contract assets recognized at the beginning of the period, net of allowance for credit losses  (190)  -   (302)  - Increase due to additional unamortized discounts  230   -   366   -  Contract assets and allowance for credit losses Our contract assets balance consists of the Company’s rights to consideration for work completed but not billed as of the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract assets were as follows (in thousands):   September 30,  December 31,   2025  2024 Gross contract assets $600  $533 Less: allowance for credit losses  (154)  (127)Contract assets, net of allowance for credit losses $446  $406  The allowance for credit losses was as follows (in thousands): Balance at December 31, 2024 $127 Provision  - Write-offs  (2)Recoveries and other  (3)Balance at March 31, 2025 $122 Provision  37 Write-offs  (4)Recoveries and other  - Balance at June 30, 2025 $155 Provision  - Write-offs  - Recoveries and other  (1)Balance at September 30, 2025 $154 

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The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes