Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 1113

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 8
Chunk 1113
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 insurance, and common area maintenance (CAM). We account for the lease components and non-lease components such as fixed fee property tax and insurance charges as a single lease component. The CAM charges are considered a separate non-lease component of the lease agreement and are excluded from the measurement of the lease liability. We utilized our incremental borrowing rate of 6.58% to determine the present value of lease payments to determine our lease liability. Rental expense for the year ended December 31, 2024 and 2023 was approximately $290 and $111, respectively. Subsequent to the year ended December 31, 2024, the Company terminated the lease agreement as of January 31, 2025. We currently are in a non-cancelable commercial sublease operating agreement to sublease office space in Tempe Arizona, which is the headquarters for the Company. This sublease commenced on October 1, 2024, and will continue for thirty-seven (37) months through October 31, 2027. The base monthly rent is as follows: October 1, 2024 – September 30, 2025, $28; October 1, 2025 – September 30, 2026, $29, and October 1, 2026 – October 31, 2027, $30. The Company is entitled to three months of rent abatement, which will be January 2025, January 2026, and January 2027. If Operating Costs exceed $20 in a calendar year, then the Company shall be responsible for fifty (50%) percent of the amount exceeding $20. Rental expense for the year ended December 31, 2024 and 2023 was approximately $80 and $0, respectively We leased office space in Reston, Virginia under a non-cancelable operating lease agreement that expired in October 2024. The operating lease contains customary escalation clauses. Rental expense for the years ended December 31, 2024 and 2023 was approximately $48 and $39, respectively.

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We currently lease office space in San Diego, California under a non-cancelable operating lease agreement that expires in 2025. Rental expense for the years ended December 31, 2024 and 2023 was approximately $87 and $84, 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