Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 348

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 348
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  (32)Warranty settlements  (23)Balance at December 31, 2023  25 Accrual for warranties  32 Adjustments related to pre-existing warranties  (4)Warranty settlements  (21)Balance at December 31, 2024 $32  Product warranty expense is included in cost of product revenue and totaled $32 and $25 for the years ended December 31, 2024 and 2023, respectively.

 69Table of Contents

10.Notes Payable Notes payable consists of a short and long-term financing arrangements (in thousands):    December 31,   2024  2023 Related party note payable $478  $843 Other notes payable  114   206 Total notes payable $592  $1,049 Less: current notes payable  (478)  (457)Notes payable, net of current portion $114  $592  On February 27, 2023, we entered into a promissory note with CrossFirst Bank in the amount of $278. The promissory note has a term of three (3) years with monthly payments of Eight Thousand Five Hundred Forty-Three ($8,543), including interest of 6.58%, beginning on March 27, 2023. Additionally, the promissory note is subject to certain financial covenants.  On November 1, 2022, as part of the acquisition of Allegiant Networks, we entered into a promissory note with the seller in the amount of $1.1 million. The loan agreement has a term of three (3) years with quarterly payments of Ninety-Eight Thousand Three Hundred Eighty-One ($98,381), including interest at 4.00%, beginning on April 1, 2023. As of December 31, 2024 and 2023, the outstanding balance of the related party note payable was $478 and $843, respectively. During the year ended December 31, 2024 and 2023, the Company paid principal of $365 and $257, respectively, and interest of $27 and $37, respectively. As of December 31, 2024, future principal payments are scheduled as follows (in thousands): Year ending December 31,   2025 $478 2026  114 202