Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 591

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 3
Chunk 591
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We leased office space in Reston, Virginia under a non-cancelable operating lease agreement that expired in October 2024. The operating lease contains customary escalation clauses. Rental expense for the years ended December 31, 2024 and 2023 was approximately $48 and $39, respectively.

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We currently lease office space in San Diego, California under a non-cancelable operating lease agreement that expires in 2025. Rental expense for the years ended December 31, 2024 and 2023 was approximately $87 and $84, respectively. We currently lease office space in Overland Park, Kansas under a non-cancelable operating lease agreement that expires in 2027. The operating lease contains customary escalation clauses. Rental expense for the years ended December 31, 2024 and 2023 was approximately $170 and $196, respectively. We currently lease other assets under multiple operating leases. The leases expire on various dates through 2027 and the interest rates range from 2.81% to 15.74%. The expense is included in cost of product expenses and totaled approximately $81 and $87 for the years ended December 31, 2024 and 2023, respectively. We currently lease data center colocation space in Grand Rapids, Michigan, Las Vegas, Nevada, Dallas, Texas and Lenexa, Kansas, under non-cancelable operating lease agreements that expire through 2029. Rental expense for the years ended December 31, 2024 and 2023 was approximately $451 and $388, respectively. We have lease agreements with lease and non-lease components, and we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.  The Company leases equipment and support under finance lease agreements which extends through 2026. The Company also leases three vehicles under financing agreements and two of the vehicle leases ended in 2023. The outstanding balance for finance leases was $23 and $98 as of December 31, 2024 and 2023, respectively. The Company recorded assets classified as property and equipment under finance lease obligations of $486 and $486 as of December 31, 2024 and 2023, respectively. Related accumulated depreciation totaled $403 and $337 as of December 31, 2024 and 2023, respectively. The $40 in support contracts were classified as a prepaid expense and