Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 73

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Research and development $132  $269  $(137)  (51)%

The decrease in research and development expenses is primarily related to the allocation of engineering resources to our Software Solutions segment of $130 as we finalize the migration of our customers to our VIP platform and a decrease in other research and development expenses of $7.

Other Income/(Expense)

Other income/(expense) primarily relates to interest income, interest expense, net foreign exchange gains or losses, gain on the sale of property and equipment, and credit card cash back rewards.  The following table reflects our other income/(expense) for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:

  Three Months Ended March 31,   2025  2024  Dollar Change  Percent Change Other income/(expense), net $81  $(5) $86   1,720%

The change in other income/(expense) is primarily from an increase in interest income of $79, an increase in other income of $3, and a decrease in interest expense of $4.

 36Table of Contents

Operating Results of our Software Solutions segment (in thousands):

  Three Months EndedMarch 31, Software Solutions 2025  2024 Software solutions revenue $6,868  $5,146 Operating expenses:        Cost of software solutions revenue  1,490   1,392 Selling and marketing  1,437   1,231 General and administrative  1,581   1,138 Research and development  1,391   980 Total operating expenses  5,899   4,741 Income/(loss) from operations  969   405 Other income/(expense), net  (16)  (17)Income/(loss) before income tax  $953  $388 

Three months ended March 31, 2025 compared to three months ended March 31, 2024

Software Solutions Revenue

Software solutions revenue consists primarily of software license fees, subscription maintenance and support, professional services, and annual user group meeting fees. Software licenses are billed by the number of concurrent sessions a customer has purchased or subscribes to. Subscription maintenance and