# EDGAR Filing Document

**Accession Number:** 0001075736
**File Stem:** 0001654954-26-004313
**Filing Date:** 2026-5
**Character Count:** 31252
**Document Hash:** f16476a934c311ba7c4e5084e1055dd3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-26-004313.hdr.sgml**: 20260504

**ACCESSION NUMBER**: 0001654954-26-004313

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 39

**CONFORMED PERIOD OF REPORT**: 20260504

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260504

**DATE AS OF CHANGE**: 20260504

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Crexendo, Inc.
- **CENTRAL INDEX KEY:** 0001075736
- **STANDARD INDUSTRIAL CLASSIFICATION:** TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 870591719
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32277
- **FILM NUMBER:** 26938763

**BUSINESS ADDRESS:**
- **STREET 1:** 1225 W. WASHINGTON ST.
- **STREET 2:** SUITE 213
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288
- **BUSINESS PHONE:** 8012270004

**MAIL ADDRESS:**
- **STREET 1:** 1225 W. WASHINGTON ST.
- **STREET 2:** SUITE 213
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IMERGENT INC
- **DATE OF NAME CHANGE:** 20020710

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETGATEWAY INC
- **DATE OF NAME CHANGE:** 19990527

?xml version='1.0' encoding='ASCII'? cxdo_8ka.htm

&nbsp;&nbsp;&nbsp;&nbsp;

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**_______________**

**FORM 8-K/A**

**(Amendment No. 1)**

**_________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934**

Date of report (Date of earliest event reported): May 4, 2026

**_______________**

---

| |
|:---|
| **Crexendo, Inc.**  |
| *(Exact Name of Registrant as Specified in Its Charter)* |

---

**______________**

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-32277** | **87-0591719** |
| *(State or Other Jurisdiction* <br>*of Incorporation)* | *(Commission* <br>*File Number)* | *(IRS Employer* <br>*Identification No.)* |

---

**<u>1225 W. Washington Street, Tempe, AZ 85288</u>**

*(Address of Principal Executive Offices) (Zip Code)*

**<u>(602) 714-8500</u>**

*(Registrant's Telephone Number, Including Area Code)*

**<u>Not applicable.</u>**

*(Former Name or Former Address, if Changed Since Last Report)*

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered or to be registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | CXDO  | The Nasdaq Capital Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**EXPLANATORY NOTE**

This Amendment No. 1 to Current Report on Form 8-K (this "Amendment") amends the Current Report on Form 8-K filed by Crexendo, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC") on March 1, 2026 (the "Original Form 8-K") to provide the information required by Items 9.01(a) and (b) of Form 8-K related to the completion of the previously announced acquisition (the "Acquisition") of one hundred percent (100%) of the membership interests of Estech Holdings, Inc., a Texas corporation ("Seller"), pursuant to which the Company agreed to purchase from Seller one hundred percent (100%) of the issued and outstanding membership interests (the "Purchased Interests") of Estech Systems, LLC, a Delaware limited liability company, and its operating subsidiary, ESI Hosted Services, LLC (collectively, "ESI"), in exchange for (i) a cash payment at closing in the amount of $27.3 million, and (ii) 1,159,638 shares of the Company's common stock, par value $0.001 per share. The Company Shares shall be issued pursuant to a valid exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The shares have not been registered under the Securities Act and may not be offered or sold absent registration or an applicable exemption. Pursuant to the lock-up agreement, after six months, 50% of the shares will be permitted to be sold, with an additional 50% permitted to be sold after twelve months. On March 1, 2026, the Company closed the transaction, and the Company issued the seller cash consideration of $27,300 and 1,159,638 shares of the Company's common stock valued at $6.41 per share, for an aggregate purchase price of approximately $34.7 million. Except as otherwise stated above, all other information in the original Form 8-K remains unchanged.

**Item 9.01 Financial Statements and Exhibits**

(a) <u>Financial Statements of Business Acquired.</u>

The audited financial statements of ESI for the year ended December 31, 2025 are filed herewith as Exhibit 99.1 to this Amendment and incorporated herein by reference.

(b) <u>Pro Forma Financial Information.</u>

The unaudited pro forma condensed consolidated financial information identified below giving effect to the Acquisition is attached as Exhibit 99.2 to this Amendment and incorporated herein by reference:

· Pro forma balance sheet as of December 31, 2025

· Pro forma statement of operation for the fiscal year ended December 31, 2025

**(c) Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;**EXHIBIT INDEX**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated By Reference** | **Incorporated By Reference** | **Incorporated By Reference** | |
| **Exhibit**<br>**No.** | <br>**Exhibit Description** | **Form** | **Date** | **Number** | **Filed**<br>**Herewith** |
| [23.1](cxdo_ex231.htm) | [Consent of Urish Popeck & Co., LLC, independent registered public accounting firm of Estech Systems, Inc.](cxdo_ex231.htm) |  |  |  | X |
| [23.2](cxdo_ex232.htm) | [Consent of Urish Popeck & Co., LLC, independent registered public accounting firm of Crexendo, Inc. and Subsidiaries.](cxdo_ex232.htm) |  |  |  | X |
| [99.1](cxdo_ex991.htm) | [Audited consolidated financial statements of Estech Systems, Inc. for the year ended December 31, 2025.](cxdo_ex991.htm)  |  |  |  | X |
| [99.2](cxdo_ex992.htm) | [Unaudited pro forma financial information of Crexendo, Inc. for the fiscal year ended December 31, 2025.](cxdo_ex992.htm) |  |  |  | X |
| 99.3 | Audited consolidated financial statement for Crexendo, Inc and Subsidiaries for the year ended December 31, 2025.  | 10-K | 3/3/26 | N/A |  |
| 101.INS | XBRL INSTANCE DOCUMENT |  |  |  |  |
| 101.SCH | XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT |  |  |  |  |
| 101.CAL | XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT |  |  |  |  |
| 101.DEF | XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT |  |  |  |  |
| 101.LAB | XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT |  |  |  |  |
| 101.PRE | XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT |  |  |  |  |

---

———————

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In accordance with Rule 406T of Regulation S-T, these XBRL (eXtensible Business Reporting Language) documents are furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

2<br>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Crexendo, Inc.** | **Crexendo, Inc.** |
| Dated: May 4, 2026 | By:  | /S/ RONALD VINCENT |
|  |  | Ronald Vincent<br>Chief Financial Officer |

---

3<br>

## Exhibit 23.1

**EXHIBIT 23.1**

**Consent of Independent Auditors**

We consent to the use of our report dated May 4, 2026, with respect to the consolidated financial statements of Estech Systems, Inc. and subsidiary included in this Current Report on Form 8-K/A of Crexendo, Inc. and subsidiaries.

---

| |
|:---|
| /s/ Urish Popeck & Co., LLC  |
| Pittsburgh, Pennsylvania <br> May 4, 2026  |

---

## Exhibit 23.2

**EXHIBIT 23.2**

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statements No. 333-248767 of Form S-1, No. 333-256409 on Form S-8, and No. 333-279175 on Form S-3 of our report dated March 3, 2026, relating to the consolidated financial statements and financial statement schedule of Crexendo, Inc. and subsidiaries incorporated by reference in this Current Report on Form 8-K/A of Crexendo Inc. and subsidiaries.

---

| |
|:---|
| /s/ Urish Popeck & Co., LLC |
| Pittsburgh, Pennsylvania <br> May 4, 2026  |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](cxdo_ex991img1.jpg)

![](cxdo_ex991img2.jpg)

![](cxdo_ex991img3.jpg)

![](cxdo_ex991img4.jpg)

![](cxdo_ex991img5.jpg)

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![](cxdo_ex991img8.jpg)

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![](cxdo_ex991img11.jpg)

![](cxdo_ex991img12.jpg)

![](cxdo_ex991img13.jpg)

![](cxdo_ex991img14.jpg)

![](cxdo_ex991img15.jpg)

![](cxdo_ex991img16.jpg)

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![](cxdo_ex991img18.jpg)

![](cxdo_ex991img19.jpg)

![](cxdo_ex991img20.jpg)

![](cxdo_ex991img21.jpg)

![](cxdo_ex991img22.jpg)

## Exhibit 99.2

**EXHIBIT 99.2**

**CREXENDO, INC. AND SUBSIDIARIES**

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS**

The following unaudited pro forma condensed combined financial statements and accompanying notes reflect the pro forma effects of the following transaction ("Transaction"). On March 1, 2026, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with Estech Holdings, Inc., a Texas corporation ("Seller"), pursuant to which the Company agreed to purchase from Seller one hundred percent (100%) of the issued and outstanding membership interests (the "Purchased Interests") of Estech Systems, LLC, a Delaware limited liability company, and its operating subsidiary, ESI Hosted Services, LLC (collectively, "ESI"), subject to the terms and conditions set forth in the Purchase Agreement. The aggregate purchase price for the Purchased Interests was $34,733, subject to customary post-closing purchase price adjustments based on working capital, indebtedness, and transaction expenses. The Purchase Price consists of $27,300 in cash and $7,433 in shares of the Company's common stock, resulting in the issuance following closing of the Acquisition of 1,159,638 shares of the Company's common stock, par value $0.001. The Shares were issued in a private transaction in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The shares have not been registered under the Securities Act and may not be offered or sold absent registration or an applicable exemption. Pursuant to the lock-up agreement, after six months, 50% of the shares will be permitted to be sold, with an additional 50% permitted to be sold after twelve months. On March 1, 2026, the Company closed the transaction, and the Company issued the seller cash consideration of $27,300 and 1,159,638 shares of the Company's common stock valued at $6.41 per share, for an aggregate purchase price of approximately $34.7 million.

The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only and are not necessarily indicative of the financial position or results of operations that would have actually been reported had the acquisition described above occurred on January 1, 2025 for statements of operation purposes and as of December 31, 2025 for balance sheet purposes, nor is it necessarily indicative of the future financial position or results of operations. The unaudited pro forma condensed combined financial statements include adjustments, which are based upon preliminary estimates, to reflect the allocation of the purchase price to the acquired assets and assumed liabilities of ESI. The final allocation of the purchase price will be based upon actual net tangible and intangible assets acquired as well as liabilities assumed. The preliminary purchase price allocation for ESI is subject to revision as more detailed analysis is completed and additional information on the fair values of ESI' assets and liabilities become available. Any change in the fair value of the net assets of ESI will change the amount of the purchase price allocable to goodwill. Final purchase accounting adjustments may differ materially from the pro forma adjustments presented here.

The unaudited pro forma condensed combined balance sheet assumes that the Transaction was completed on December 31, 2025. The unaudited pro forma condensed combined statements of operations for the fiscal year ended December 31, 2025 assume the Transaction was completed on January 1, 2025 and reflect the pro forma operating results of ESI for its fiscal year 2025, derived from the Company's audited financial statements for such period.

The Company prepares its financial statements in accordance with U.S. Generally Accepted Accounting Principles. The unaudited pro forma condensed combined financial statements were prepared in accordance with the rules and regulations of the SEC and should not be considered indicative of the financial position or results of operations that would have occurred if the Transaction had been completed on the dates indicated, nor are they indicative of the future financial position or results of operations of Crexendo and ESI following completion of the Transaction. The historical financial information of ESI has been adjusted in the unaudited pro forma condensed combined financial statements to give effect to pro forma events that are (1) directly attributable to the acquisition, (2) factually supportable, and (3) with respect to the statement of operations, expected to have a continuing impact on the combined results.

The unaudited pro forma condensed combined financial information should be read in conjunction with the accompanying notes thereto. In addition, the unaudited pro forma financial information was based on, and should be read in conjunction with:

· The separate historical consolidated financial statements of Crexendo, Inc. and Subsidiaries (Crexendo") as of and for the fiscal year ended December 31, 2025 and the related notes included in Crexendo's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 3, 2026; and

· The separate historical financial statements of ESI as of and for the year ended December 31, 2025 and the related notes, which are attached as Exhibit 99.1, to this Form 8-K/A.

**CREXENDO, INC. AND SUBSIDIARIES**

**Unaudited Pro Forma Condensed Combined Balance Sheet**

**As of December 31, 2025**

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro Forma** | **Pro Forma** |
|  | **Crexendo** | **ESI** | **Adjustments (i)** | **Combined** |
| **Assets** |  | *(Note 2)* | *(Note 3)* |  |
| Current assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $31378 | $301 | $(26947)(a) | $4732 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables, net | 4913 | 325 |  | 5238 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract assets, net |  | 151 |  | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | 454 | 820 |  | 1274 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables | 1416 | 1219 |  | 2635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | 2318 | 1559 |  | 3877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 892 | 207 |  | 1099 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable | 234 |  |  | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 292 | 52 | - | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 41897 | 4634 | (26947) | 19584 |
| Contract assets, net of current portion, net | 402 | 334 |  | 736 |
| Long-term equipment financing receivables, net | 3223 | 2436 |  | 5659 |
| Property and equipment, net | 195 | 302 |  | 497 |
| Operating lease right-of-use assets | 1006 |  |  | 1006 |
| Intangible assets, net | 17860 |  | 23400 (b) | 41260 |
| Goodwill | 9454 | 534 | 4731 (c)(d) | 14719 |
| Contract costs, net of current portion | 3319 | 2440 |  | 5759 |
| Other long-term assets | 330 | - | - | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | $77686 | $10680 | $1184 | $89550 |
| **Liabilities and Stockholders' Equity** |  |  |  |  |
| Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $649 | $1314 | $- | $1963 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 8391 | 1911 |  | 10302 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 2 | 133 | (133)(e) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 114 |  |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 493 | 30 |  | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 151 |  |  | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 2528 | 800 | - | 3328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 12328 | 4188 | (133) | 16383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, net of current portion | 1008 | 376 |  | 1384 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases, net of current portion |  | 43 | (43)(e) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Related party notes payable, net of current portion |  | 5198 | (5198)(f) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 529 | - | - | 529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 13865 | 9805 | (5374) | 18296 |
| Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 63821 | 875 | 6558 (g) | 71254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Stockholders' Equity | $77686 | $10680 | $1184 | $89550 |

---

*The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.*

**CREXENDO, INC. AND SUBSIDIARIES**

**Unaudited Pro Forma Condensed Combined Statement of Operations** 

**For the Year Ended December 31, 2025**

(in thousands, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Pro Forma** | **Pro Forma** |
|  | **Crexendo** | **ESI** | **Adjustments** | **Combined** |
|  |  |  | *(Note 3)* |  |
| Service revenue | $33782 | $21276 | $- | $55058 |
| Software solutions revenue | 29664 |  | (598)(h) | 29066 |
| Product revenue | 4721 | 4827 | - | 9548 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 68167 | 26103 | (598) | 93672 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of service revenue | 14153 | 6750 | (587)(i) | 20316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of software solutions revenue | 8275 |  |  | 8275 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of product revenue | 2835 | 1744 |  | 4579 |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling and marketing | 17771 | 8180 | 4499 (j) | 30450 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 14723 | 5382 | 190 (j)(k) | 20295 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 5720 | 1248 | - | 6968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 63477 | 23304 | 4102 | 90883 |
| Income/(loss) from operations | 4690 | 2799 | (4700) | 2789 |
| Other income/(expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 637 |  | (637)(l) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (19) | (385) | 385 (m) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income/(expense), net | 63 | 645 | (645)(n) | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income/(expense), net | 681 | 260 | (897) | 44 |
| Income/(loss) before income tax | 5371 | 3059 | (5597) | 2833 |
| Income tax benefit/(provision) | (300) | - | - | (300) |
| Net income/(loss) | $5071 | $3059 | $(5597) | $2533 |
| Earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.17 |  |  | $0.08 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.16 |  |  | $0.08 |
| Weighted-average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 29681847 |  | 1159638 (o) | 30841485 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 31641294 |  | 1159638 (o) | 32800932 |

---

The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.

**NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED**

**FINANCIAL STATEMENTS**

The unaudited pro forma condensed combined financial statements included herein have been prepared pursuant to the rules and regulations of the SEC.

**1. Basis of Pro Forma Presentation**

On March 1, 2026, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with Estech Holdings, Inc., a Texas corporation ("Seller"), pursuant to which the Company agreed to purchase from Seller one hundred percent (100%) of the issued and outstanding membership interests (the "Purchased Interests") of Estech Systems, LLC, a Delaware limited liability company, and its operating subsidiary, ESI Hosted Services, LLC (collectively, "ESI"), subject to the terms and conditions set forth in the Purchase Agreement. The aggregate purchase price for the Purchased Interests was $34,733, subject to customary post-closing purchase price adjustments based on working capital, indebtedness, and transaction expenses. The Purchase Price consists of $27,300 in cash and $7,433 in shares of the Company's common stock, resulting in the issuance following closing of the Acquisition of 1,159,638 shares of the Company's common stock, par value $0.001. The Shares were issued in a private transaction in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The shares have not been registered under the Securities Act and may not be offered or sold absent registration or an applicable exemption. Pursuant to the lock-up agreement, after six months, 50% of the shares will be permitted to be sold, with an additional 50% permitted to be sold after twelve months. On March 1, 2026, the Company closed the transaction, and the Company issued the seller cash consideration of $27,300 and 1,159,638 shares of the Company's common stock valued at $6.41 per share, for an aggregate purchase price of approximately $34.7 million.

The unaudited pro forma condensed combined balance sheet as of December 31, 2025 was prepared by combining the historical audited consolidated balance sheet data as of December 31, 2025 for Crexendo and ESI as if the Transactions had been consummated on that date.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 combines the audited statements of operations of Crexendo and ESI for the year ended December 31, 2025, as if the transactions had been consummated on January 1, 2025.

**2. ESI Balance Sheet**

ESI classified certain amounts differently than Crexendo in its balance sheet. The following schedule summarizes the necessary adjustments to conform the ESI balance sheet as of December 31, 2025 to Crexendo's basis of presentation (Unaudited, in thousands):

**Consolidated Balance Sheet as of December 31, 2025** (Unaudited, in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported**<br>**ESI** | <br>**Adjustments (I)** | **As Revised**<br>**ESI** |
| **Assets** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $301 | $- | $301 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables, net | 325 |  | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | 820 |  | 820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables, net | 1219 |  | 1219 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | 1559 |  | 1559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract assets, net | 151 |  | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 207 |  | 207 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 52 | - | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 4634 |  | 4634 |
| Contract assets, net of current portion, net | 334 |  | 334 |
| Long-term equipment financing receivables, net | 2436 |  | 2436 |
| Property and equipment, net | 31 | 271 | 302 |
| Finance lease right-of-use assets | 271 | (271) |  |
| Goodwill | 534 |  | 534 |
| Contract costs, net of current portion | 2440 | - | 2440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $10680 | $- | $10680 |
| **Liabilities and Stockholders' Equity** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $1314 | $- | $1314 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 1911 |  | 1911 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 133 |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 30 |  | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 250 | 550 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deverred revenues | 550 | (550) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 4188 |  | 4188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, net of current portion | 376 |  | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases, net of current portion | 43 |  | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp; Related-party notes payable, net of current portion | 5198 | - | 5198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 9805 |  | 9805 |
| Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 875 |  | 875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $10680 | $- | $10680 |

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The adjustments presented above to ESIs' balance sheet are as follows:

(i) Reflects a reclassification of assets under finance leases to property and equipment, net to be consistent with Crexendo's classifications. Also reflects a reclassification of deferred revenues to contract liabilities to be consistent with Crexendo's classifications.

**3. Pro Forma Adjustments**

The accompanying unaudited pro forma condensed combined financial statements have been prepared as if the transactions described above were completed on December 31, 2025 for balance sheet purposes and as of January 1, 2025 for statement of operations purposes.

The unaudited pro forma condensed combined balance sheet gives effect to the following pro forma adjustments (in thousands):

(a) The following adjustments to cash and cash equivalents:

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| | |
|:---|:---|
| Cash portion of ESI purchase price | $(27300) |
| less: Cash to ESI to fund liabilities assumed | 353 |
|  | $(26947) |

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(b) The following adjustments to intangible assets, net:

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| | |
|:---|:---|
| Value attributed to new intangible asset - customer relationships | $22300 |
| Value attributed to new intangible asset - trademarks and trade name | 1100 |
|  | $23400 |

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(c) Adjustment to record goodwill of $5,265 resulting from the difference between the purchase price and identifiable net assets as follows:

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| | |
|:---|:---|
|  | **Preliminary Purchase Price Allocation** |
| Total purchase price | $34733 |
| Cash and cash equivalents | 654 |
| Trade receivables, net of allowance | 325 |
| Contract assets, net of allowance | 151 |
| Inventories | 820 |
| Equipment financing receivables, net of allowance | 1219 |
| Contract costs | 1559 |
| Prepaid expenses | 207 |
| Other current assets | 52 |
| Contract assets, net of current portion | 334 |
| Long-term equipment financing receivables, net of allowance | 2436 |
| Property and equipment, net | 302 |
| Contract costs, net of current portion | 2440 |
| Intangible assets acquired (FV) | 23400 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total identifiable assets | 33899 |
| Accounts payable | 1314 |
| Accrued expenses | 1911 |
| Operating lease liabilities | 30 |
| Contract liabilities | 800 |
| Contract liabilities, net of current portion | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 4431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total goodwill | $5265 |

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(d) Adjustment to write off $534 of goodwill on ESI's balance sheet.

(e) Adjustment for the repayment of ESI's outstanding finance leases of $133 and finance leases, net of current portion of $43.

(f) Adjustment for the repayment of $5,198 of ESI's outstanding related party notes payable.

(g) The following adjustments to stockholders' equity:

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| | |
|:---|:---|
| Elimination of ESI's historical stockholders' equity | $(875) |
| Fair value of Crexendo common stock portion of ESI purchase price | 7433 |
|  | $6558 |

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The unaudited pro forma condensed combined statements of operations give effect to the following pro forma adjustments (in thousands, except per share data):

(h) ESI was a customer of Crexendo, adjustment to eliminate the associated software solutions revenue of $598.

(i) ESI was a customer of Crexendo, adjustment to eliminate ESI's associated cost of service revenue of $587.

(j) Adjustment to record amortization expense related to the identifiable intangible assets recorded in connection with the acquisition as noted below:

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| | |
|:---|:---|
| Customer relationships | $4499 |
| Trademarks and trade names | 234 |
|  | $4733 |

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(k) Adjustment to eliminate $44 of share-based compensation on ESI's statement of operations.

(l) Adjustment to eliminate $637 of Crexendo's interest income, as the cash balance was utilized for the cash portion of the acquisition from the decrease of the cash balance due to the acquisition of ESI.

(m) Adjustment to eliminate $385 in ESI interest expense due to the repayment of the finance leases and related party note payable as part of the acquisition.

(n) Adjustment to eliminate ESI's other income/(expense), net due to the associated other income and expense not being included in the acquisition.

(o) Adjustments to weighted average shares outstanding to record the Crexendo common stock issued.