Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 43

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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17. Segment Reporting  The Company has two reportable operating segments, which consist of cloud telecommunications services and software solutions and uses segment income/(loss) from operations to assess performance against forecasted results and allocate resources to its segments. Segment income/(loss) from operations is determined on the same basis as consolidated income/(loss) from operations presented in the Company’s consolidated statements of operations. The cloud telecommunications services segment generates revenue from selling cloud telecommunication services, products, and other internet services. The software solutions segment generates revenue from selling perpetual software licenses and software subscriptions, subscription maintenance and support, and professional services. 

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Our chief operating decision maker (CODM) is our Chief Executive Officer, Jeffrey G. Korn. The CODM uses segment income/(loss) from operations before income tax for purposes of allocating resources and evaluating financial performance predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis using the segment income/(loss) before income tax measure when making decisions about allocating capital and personnel to the segments. The CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented. Segment revenue, significant segment expenses, income/(loss) from operations, other income/(expense) and income/(loss) before income tax for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands):  Three Months Ended September 30, 2025 Cloud  Software    (In thousands) Telecommunications  Solutions  Total   Segment  Segment  Consolidated Service revenue $8,607  $-  $8,607 Software solutions revenue  -   7,521   7,521 Product revenue  1,369   -   1,369 Consolidated revenue  9,976   7,521   17,497              Less: significant and other segment expenses            Employee expenses  3,809   3,110   6,919 Commissions  1,488   397   1,885 Contractor expense  635   450   1,085 Depreciation and amortization  344   495   839 Other segment items (1)  3,541   1,922   5,463