Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 656

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 4
Chunk 656
---
 and share-based compensation, and 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 year ended December 31, 2024, compared to the year ended December 31, 2023:

  Year Ended December 31,   2024  2023  Dollar Change  Percent Change Research and development $788  $1,172  $(384)  -33%

The decrease in research and development expenses is primarily related to the allocation of engineering resources to our Software Solutions segment of $380 as we finalize the migration of our customers to our VIP platform, and a decrease other research and development expenses of $4.

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 year ended December 31, 2024, compared to the year ended December 31, 2023:

  Year Ended December 31,   2024  2023  Dollar Change  Percent Change Other income/(expense), net $159  $1,359  $(1,200)  -88%

 40Table of Contents

The change in other income/(expense) is primarily from the gain on sale of our corporate office building reported during the year ended December 31, 2023 of $1,459 and a decrease in other income of $3, offset by an increase in interest income of $189 and a decrease in interest expense of $73.

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

Software Solutions 2024  2023 Software solutions revenue $23,374  $18,047 Operating expenses:        Cost of software solutions revenue  6,793   5,627 Selling and marketing  4,974   4,420 General and administrative  5,273   4,518 Research and development  4,764   3,688 Total operating expenses  21,804   18,253 Income/(loss) from operations  1,570   (206)Other income/(expense), net  (94)  66 Income/(loss) before income tax $1