Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 67

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 $50.

Research and Development

Research and development expenses primarily consist of salaries, benefits, bonuses, and share-based compensation, and outsourced engineering services related to the development of new cloud telecommunications features and products. The following table reflects our research and development expenses for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,   2025  2024  Dollar Change  Percent Change Research and development $369  $661  $(292)  -44%

The decrease in research and development expenses is primarily related to the allocation of engineering resources to our Software Solutions segment of $302 as we finalize the migration of our customers to our VIP platform, offset by an increase in other research and development expenses of $10.

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Other Income/(Expense)

Other income/(expense) primarily relates to interest income, interest expense, net foreign exchange gains or losses, gain on the sale of property and equipment, and credit card cash back rewards. The following table reflects our other income/(expense) for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,    2025  2024  Dollar Change  Percent Change Other income/(expense), net $398  $104  $294   283%

The change in other income/(expense) is primarily related to an increase in interest income of $281 and a decrease in interest expense of $13.

Operating Results of Software Solutions segment (in thousands):

  Three Months Ended September 30,  Nine Months Ended September 30, Software Solutions 2025  2024  2025  2024 Software solutions revenue $7,521  $5,860  $21,364  $16,331 Operating expenses:                Cost of software solutions revenue  1,924   1,686   5,227   4,523 Selling and marketing  1,307   1,245   4,034   3,626 General and administrative  1,852   1,417   5,060   3,755 Research and development  1,292   1