Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 71

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 $146 Provision  48 Write-offs  (31)Recoveries and other  2 Balance at March 31, 2025 $165 Provision  27 Write-offs  (20)Recoveries and other  (26)Balance at June 30, 2025 $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 decreased to 2.5% at June 30, 2025 from 3.3% at December 31, 2024.

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):   June 30,  December 31,   2025  2024 Gross equipment financing receivables $5,502  $5,164 Less: unearned income  (1,550)  (1,492)Less: allowance for credit losses  (110)  (226)Equipment financing receivables, net $3,842  $3,446          Current equipment financing receivables, net $1,185  $1,049 Long-term equipment financing  receivables, net  2,657   2,397 Equipment financing receivables, net $3,842  $3,446 

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A summary of our gross equipment financing receivables’ future contractual maturities, is as follows (in thousands): Year ending December 31,   2025 remaining $1,005 2026  1,753 2027  1,390 2028