Company: CXDO
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001654954-25-002287
Chunk: 1312

Company: Crexendo, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 8
Chunk 1312
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 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 are being amortized over the service period of three years. One support contract expired in January 2021 and the other expired in June 2024. Amortization expense is included in general and administrative expenses and totaled $2 and $5 for the years ended December 31, 2024 and 2023, respectively. The interest rates on the finance lease obligations range from 1.37% and 15.74% and interest expense was $2 and $4 for the years ended December 31, 2024 and 2023, respectively.  The maturity of operating leases and finance lease liabilities as of December 31, 2024 are as follows (in thousands): Year ending December 31,