Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 30

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 thereafter  183 Total $6,230  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 Provision  18 Write-offs  (8)Recoveries and other  - Balance at June 30, 2025 $110 Provision  20 Write-offs  (11)Recoveries and other  - Balance at September 30, 2025 $119 

 19Table of Contents

Aging of Receivables                The aging of gross equipment financing receivables was as follows (in thousands):   September 30,  December 31,   2025  2024 Past due amounts 0 - 90 days $4,481  $3,444 Past due amounts > 90 days  4   2 Total $4,485  $3,446  Our equipment financing receivable portfolio is primarily in the United States. The allowance for credit losses is determined principally based on an assessment of origination year and past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, the allowance for credit losses as a percent  of gross equipment financing receivables (net of unearned income) decreased to 2.6% at September 30, 2025 from 6.1% at December 31, 2024.   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