Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 245

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 245
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 energy-related costs for our network operations, and transportation and labor costs. We expect the inflationary environment and related pressures to continue into 2025. In that case and if other unfavorable economic conditions continue or worsen, they could have a material adverse effect on our results of operations and financial condition.

The US economy has been strong, however there is a possibility of a recession or increase in inflation.  If Inflation rises the Federal Reserve may not continue to reduce rates any further or may raise them and these factors may negatively affect our business.

The economy has been strong; however, interest rates are still high and rate reductions are uncertain and there is a risk of a recession which may cause substantial disruption in our sales and results. Of particular concern is (1) impact of market downturn on sales; (2) impact of uncertain capital markets; (3) rising interest rates; and (4) the impact of inflation. Those issues, together with other uncertainties based on the economy may cause customers to cease operations, reduce spending by our customers, have customers defer purchase decisions and or reduce spending. All of those factors may have a material adverse effect on our business, results of operations, or financial condition.

 7Table of Contents

Our quarterly and annual results of operations have fluctuated in the past and may continue to do so in the future. As a result, we may fail to meet or to exceed the expectations of research analysts or investors, which could cause our stock price to fluctuate and impair our ability to raise capital.

Our quarterly and annual results of operations have varied historically from period to period, and we expect that they will continue to fluctuate due to a variety of factors (including but not limited to inflation, economic uncertainty and potential recession), some of which are outside of our control, including:

 ●our ability to retain existing customers and resellers, expand our existing customers’ user base, and attract new customers; ●our ability to introduce new solutions; ●the actions of our competitors, including pricing changes or the introduction of new solutions; ●our ability to effectively manage our growth; ●our ability to successfully penetrate the market for larger businesses; ●the mix of annual and multi-year subscriptions at any given time; ●the timing, cost, and effectiveness of our advertising and marketing efforts; ●the timing, operating cost, and capital expenditures related to the operation, maintenance and expansion of our business; ●service outages or information security breaches and any related impact on our reputation; ●