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

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 Contents

5. Equipment Financing Receivables and Allowance for Credit Losses Our equipment financing receivables balance consists of sales-type leases arising from lease financing of cloud telecommunication equipment (IP or cloud telephone desktop devices) bundled and sold with our cloud telecommunications services. The majority of our leases that qualify as sales-type leases are non-cancelable and include cancellation penalties approximately equal to the full value of the lease receivables. Revenue from sales-type leases is recognized upon installation and the interest portion is deferred and recognized as earned. These receivables are typically collateralized by a security interest in the underlying equipment. Equipment financing receivables were as follows (in thousands):   March 31,  December 31,   2025  2024 Gross equipment financing receivables $5,291  $5,164 Less: unearned income  (1,504)  (1,492)Less: allowance for credit losses  (100)  (226)Equipment financing receivables, net $3,687  $3,446          Current equipment financing receivables, net $1,138  $1,049 Long-term equipment financing  receivables, net  2,549   2,397 Equipment financing receivables, net $3,687  $3,446                   A summary of our gross equipment financing receivables’ future contractual maturities, is as follows (in thousands): Year ending December 31,   2025 remaining $1,416 2026  1,579 2027  1,222 2028  748 2029  326 2030 and thereafter  - Total $5,291  Allowance for Credit Losses The allowance for credit losses was as follows (in thousands): Balance at December 31, 2024 $226 Provision  - Write-offs  (8)Recoveries and other  (118)Balance at March 31, 2025 $100   Aging of Receivables The aging of gross equipment financing receivables was as follows (in thousands):   March 31,  December 31,   2025  2024 Past due amounts 0 - 90 days $3,677  $3