Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 42

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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3, the employee bonus plan performance targets were achieved at 100% or greater. Based on our financial performance as of September 30, 2025 and forecasted annualized results for the year ended December 31, 2025, management determined that the achievement of 100% of the annual revenue and Adjusted EBITDA performance targets is probable. Based on management’s estimate, the Company recorded an accrual of $1,005 for the employee bonus plan, which is included in accrued expense in the accompanying condensed consolidated balance sheet at September 30, 2025. 

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Purchase Obligations In February 2024, the Company entered into a $5.4 million noncancellable five-year hosting service contract with Oracle, a third-party network service provider. The contract includes minimum quarterly commitments and the requirements to maintain the service level for the entire contract period. Under this agreement, $113 remains due during fiscal year 2025, $1.1 million will be due during fiscal 2026, $1.4 million will be due during fiscal 2027, $1.7 million will be due during fiscal 2028, and $456 will be due during fiscal 2029. During the three months ended September 30, 2025 and 2024, the Company has expensed $189 and $145, respectively, and for the nine months ended September 30, 2025 and 2024 was $211 and $270, respectively, of the purchase obligation and $65 and $234 is included in accrued expenses at September 30, 2025 and December 31, 2024, respectively. Legal Proceedings In the ordinary course of business, the Company may be involved in a variety of claims, lawsuits, investigations, and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters, and contractual disputes, that can arise in the normal course of the Company's operations. The Company recognizes a provision when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts the amount of the provision to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. As of September 30, 2025, the Company does not have a recorded liability for estimated losses. Legal costs are expensed as incurred.