Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 34

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 Lenexa, Kansas, and Phoenix, Arizona under non-cancelable operating lease agreements that expire on various dates through 2029. Rental expense for the three months ended March 31, 2025 and 2024 was approximately $114 and $144, respectively. We have lease agreements with lease and non-lease components, and we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.  The Company leases equipment and support under finance lease agreements which extends through 2026. The Company also leases one vehicle under a financing agreement. The outstanding balance for finance leases was $4 and $23 as of March 31, 2025 and December 31, 2024, respectively. The Company recorded assets classified as property and equipment under finance lease obligations of $486 and $486 as of March 31, 2025 and December 31, 2024, respectively. Related accumulated depreciation totaled $419 and $403 as of March 31, 2025 and December 31, 2024, respectively. The $40 in support contracts were classified as a prepaid expense and are being amortized over the service period of three years. One support contract expired in January 2021 and the other expired in June 2024.  Amortization expense is included in general and administrative expenses and totaled $23 and $1 for the three months ended March 31, 2025 and 2024, respectively. The interest rates on finance lease obligations range from 1.37% and 15.74% and interest expense was $0 and $1 for the three months ended March 31, 2025 and 2024, respectively.  The maturity of operating leases and finance lease liabilities as of March 31, 2025 are as follows: Year ending December 31, OperatingLeases  FinanceLeases 2025 remaining $479  $2 2026  555   2 2027  458   - 2028  62   - 2029  41   - Total minimum lease payments  1,595   4 Less: amount representing interest  (163)  - Present value of minimum lease payments $1,432  $4    Lease term and discount rate March 31,2025 Weighted-average remaining lease