Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 81

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 81
---
able operating lease agreement that expires in 2025. Rental expense for the three months ended June 30, 2025 and 2024 was approximately $21 and $22, respectively, and for the six months ended June 30, 2025 and 2024 was $43 and $43, respectively. We currently lease office space in Overland Park, Kansas under a non-cancelable operating lease agreement that expires in 2027. The operating lease contains customary escalation clauses. Rental expense for the three months ended June 30, 2025 and 2024 was approximately $41 and $50, respectively, and for the six months ended June 30, 2025 and 2024 was $82 and $102, respectively. We currently lease other assets under multiple operating leases. The leases expire on various dates through 2027 and the interest rates range from 3% to 15.74%. The expense is included in cost of product expenses and totaled approximately $17 and $20 for the three months ended June 30, 2025 and 2024, respectively, and for the six months ended June 30, 2025 and 2024 was $35 and $41, respectively. We currently lease data center colocation space in Grand Rapids, Michigan, Las Vegas, Nevada, Dallas, Texas, Lenexa, Kansas, and Phoenix, Arizona under non-cancelable operating lease agreements that expire on various dates through 2029. Rental expense for the three months ended June 30, 2025 and 2024 was approximately $102 and $128, respectively, and for the six months ended June 30, 2025 and 2024 was $216 and $272, respectively. We have lease agreements with lease and non-lease components, and we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company leases equipment and support under finance lease agreements which extend through 2026. The Company also leases one vehicle under a financing agreement. The outstanding balance for finance leases was $4 and $23 as of June 30, 2025 and December 31, 2024, respectively. The Company recorded assets classified as property and equipment under finance lease obligations of $486 and $486 as of June 30, 2025 and December 31, 2024, respectively. Related accumulated depreciation totaled $433 and $