Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 809

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 5
Chunk 809
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, net $4,352  $3,476   The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $116 Provision  57 Write-offs  (48)Recoveries and other  - Balance at March 31, 2024 $125 Provision  18 Write-offs  (18)Recoveries and other  (39)Balance at June 30, 2024 $86 Provision  14 Write-offs  (11)Recoveries and other  (17)Balance at September 30, 2024 $72 Provision  94 Write-offs  (34)Recoveries and other  14 Balance at December 31, 2024 $146   The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Based on that assessment, the allowance for credit losses as a percent of gross trade receivables increased to 3.3% at December 31, 2024 from 3.2% at December 31, 2023.

5. Equipment Financing Receivables and Allowance for Credit Losses Our equipment financing receivables balance consists of sales-type leases arising from lease financing of cloud telecommunication equipment (IP or cloud telephone desktop devices) bundled and sold with our cloud telecommunications services. The majority of our leases that qualify as sales-type leases are non-cancelable and include cancellation penalties approximately equal to the full value of the lease receivables. Revenue from sales-type leases is recognized upon installation and the interest portion is deferred and recognized as earned. These receivables are typically collateralized by a security interest in the underlying equipment. Equipment financing receivables were as follows (in thousands):   December 31,   2024  2023 Gross equipment financing receivables $5,164  $3,888 Less: unearned income  (1,492)  (1,093)Less: allowance for credit losses  (226)  (171)Equipment financing receivables, net $3,446  $2,624          Current equipment financing receivables, net $1,049  $856 Long-term equipment financing  rece