Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 695

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 4
Chunk 695
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 at December 31, 2024 and December 31, 2023.

 66Table of Contents

The allowance for credit losses represents an estimate of the losses expected to be incurred from the Company's equipment financing receivable portfolio. The projected loss rates are primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current and future economic conditions as well as delinquency trends, resolution rates, and the aging of receivables. The allowance for credit losses for equipment finance receivables is inherently more difficult to estimate than the allowance for trade receivables because the underlying lease portfolio has an average maturity, at any time, of approximately three to five years and contains unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for credit losses. We believe our estimates, including any qualitative adjustments, are reasonable and have considered all reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. The identification of account-specific exposure is not a significant factor in establishing the allowance for credit losses for equipment finance receivables. We continue to monitor developments in future economic conditions and trends, and as a result, our reserve may need to be updated in future periods. The table below shows gross equipment financing receivables and current period gross write offs by year of origination (in thousands):   December 31, 2024  December 31, 2023   2024  2023  2022  2021  2020  Prior  Total Equipment Financing Receivables  Total Equipment Financing Receivables United States $1,849   1,167   497   94   65   -  $3,672  $2,795 Current period gross write offs $5   18   7   6   -   -  $36  $33 

6. Prepaid Expenses Prepaid expenses consisted of the following (in thousands):     December 31,   2024  2023 Prepaid corporate insurance $88  $68 Prepaid software services and support  455   245 User group meeting fees  86   84 Prepaid rent  103   - Other prepaid expenses  144   111 Total prepaid expenses $876  $508