Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 691

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 4
Chunk 691
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 $427 Less: allowance for credit losses  (127)  (85)Contract assets, net of allowance for credit losses $406  $342   The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $85 Provision  1 Write-offs  (4)Recoveries and other  - Balance at March 31, 2024 $82 Provision  18 Write-offs  - Recoveries and other  - Balance at June 30, 2024 $100 Provision  11 Write-offs  - Recoveries and other  - Balance at September 30, 2024 $111 Provision  18 Write-offs  (2)Recoveries and other  - Balance at December 31, 2024 $127  The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Based on that assessment, the allowance for credit losses as a percent of gross contract assets increased to 23.8% at December 31, 2024 from 20.0% at December 31, 2023.

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Transaction price allocated to the remaining performance obligations                          The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):    2025  2026  2027  2028  2029 and thereafter  Total Desktop devices $703              $703 Telecommunications services $22,106   14,760   9,907   6,250   1,643  $54,666 Software solutions $15,762   7,114   4,654   1,527   1,205  $30,262 Total $38,571   21,874   14,561   7,777   2,848  $85,631