Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 37

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 deferred tax assets of $5,417 are realizable.  Therefore, a valuation allowance of $5,417 was recorded against our gross deferred tax asset balance as of September 30, 2025 and December 31, 2024.

14. Share-Based Compensation The following table summarizes the statement of operations effect of share-based compensation for the three and nine months ended September 30, 2025 and 2024 (in thousands):   Three Months Ended September 30,  Nine Months Ended September 30,   2025  2024  2025  2024 Cost of service revenue $57  $96  $198  $302 Cost of software solutions revenue  32   20   92   63 Selling and marketing  114   144   353   420 General and administrative  449   365   1,242   1,044 Research and development  114   156   369   464 Total share-based compensation expense $766  $781  $2,254  $2,293 

15. Leases Lessee Accounting We determine if an agreement is a lease at inception. We lease office space, data center colocation space, other assets, and office equipment under operating leases. We lease data center equipment, including maintenance contracts and vehicles under finance leases. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the balance sheet, excluding leases that are less than 12 months. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or any restrictive covenants. Our lease terms may include options, at our sole discretion, to extend or terminate the lease. 

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We leased office space in Tempe, Arizona under a non-cancelable operating lease agreement that expired in January 2025.