Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 109

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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 offset by an increase in the amortization of the capitalized software development costs intangible asset of $51.

Research and Development

Research and development expenses primarily consist of salaries, benefits, bonuses, and share-based compensation, outsourced engineering services related to the development of new cloud telecommunications features and products. The following table reflects our research and development expenses for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  Six Months Ended June 30,   2025  2024  Dollar Change  Percent Change Research and development $247  $527  $(280)  -53%

The decrease in research and development expenses is primarily related to the allocation of engineering resources to our Software Solutions segment of $279 as we finalize the migration of our customers to our VIP platform and a decrease in other research and development expenses of $1.

Other Income/(Expense)

Other income/(expense) primarily relates to interest expense and net foreign exchange gains or losses, offset by credit card cash back rewards. The following table reflects our other income/(expense) for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  2025  2024  Dollar Change  Percent Change Other income/(expense), net $204  $40  $164   410%

The change in other income/(expense) is primarily related to an increase in interest income of $152, an increase in other income of $3, and a decrease in interest expense of $9. 

Operating Results of Software Solutions segment (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30, Software Solutions 2025  2024  2025  2024 Software solutions revenue $6,975  $5,325  $13,843  $10,471 Operating expenses:                Cost of software solutions revenue  1,813   1,445   3,303   2,837 Selling and marketing  1,290   1,150   2,727   2,381 General and administrative  1,627   1,200   3,208   2,338 Research and development  1,322   1,070   2,713