Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 85

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 services. The software solutions segment generates revenue from selling perpetual software licenses and software subscriptions, subscription maintenance and support, and professional services. 

 27Table of Contents

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 six months ended June 30, 2025 and 2024 are as follows (in thousands):  Three Months Ended June 30, 2025 Cloud  Software    (In thousands) Telecommunications  Solutions  Total   Segment  Segment  Consolidated Service revenue $8,374  $-  $8,374 Software solutions revenue  -   6,975   6,975 Product revenue  1,203   -   1,203 Consolidated revenue  9,577   6,975   16,552              Less: significant and other segment expenses            Employee expenses  3,931   3,214   7,145 Commissions  1,416   317   1,733 Contractor expense  471   554   1,025 Depreciation and amortization  349   509   858 Other segment items (1)  3,230   1,458   4,688 Total operating expense  9,397   6,052   15,449              Segment income/(loss) from operations  180   923   1,103              Less: other segment income/(expense)            Interest income  126   -   126 Interest expense  (6)  -   (6)Other income/(expense)  3   54   57