CXDO — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-04

• The decrease in income tax provision is due to a decrease in taxable for the three months ended June 30, 2026.

• Six months ended June 30, 2026 compared to six months ended June 30, 2025

• Total revenue consists of service revenue, software solutions revenue and product revenue. The following table reflects our service revenue for the six months ended June 30, 2026, compared to the six months ended June 30, 2025:

• The increase in total revenue is due to acquired revenue contributed by our acquisition of ESI on March 1, 2026 of $9,062, an increase in organic product revenue of $1,317, an increase in software solutions revenue of $1,207, and an increase in organic service revenue of $1,161.

• The following table reflects our income/(loss) before income tax for the six months ended June 30, 2026, compared to the six months ended June 30, 2025:

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• The increase in income tax provision is due to minimum state tax increases as a result of increased revenue.

• (1) For the three months ended March 31, 2026 and 2025, employer payroll tax expense related to share-based compensation was $6 and $72, respectively.

• Product revenue fluctuates from one period to the next based on timing of installations. Our typical customer installation is complete within 30-60 days. However, larger enterprise customers can take multiple months, depending on size and the number of locations. Product revenue is recognized when p…

• The increase in selling and marketing expense is primarily related to additional selling and marketing expense of $1,024 contributed by our March 1, 2026 acquisition of ESI, an increase in commission expense of $204 directly related to the increase in revenue, an increase in bad debt of $178 related…

• The increase in general and administrative expenses is primarily related to an increase in executive and administrative salaries, benefits, bonuses, and share-based compensation, of $584, an increase in legal expenses of $338 related to the acquisition of ESI, and additional general and administrati…

Text added vs the prior filing · source: 10-Q · 2026-08-04

• On March 5, 2026, ReadyComm LLC (“ReadyComm”) filed a complaint against Crexendo, Inc. in the United States District Court for the District of Delaware, captioned ReadyComm LLC v. Crexendo, Inc., Case No. 1:26-cv-00234-MN. The complaint alleges that certain of the Company’s products and services dir…

• The Company denies ReadyComm’s allegations and does not believe that it has infringed any valid and enforceable claim of the patent. The Company has asserted counterclaims seeking declarations that it does not infringe the patent and that the patent is invalid, as well as dismissal of the complaint …

• The Company intends to vigorously defend against ReadyComm’s claims and pursue its counterclaims. Based on the information currently available, the Company does not believe that a loss is probable and, therefore, has not recorded a reserve relating to this matter. However, litigation is inherently u…

Text added vs the prior filing · source: 10-Q · 2026-08-04

• On May 11, 2026, Jeffrey Korn, our Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 70,000 shares common stock. The number of shares that may be sold under the trading arrangement will be reduced by the number of shares (not yet det…

• On May 11, 2026, Ronald Vincent, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 105,000 shares common stock. The number of shares that may be sold under the trading arrangement will be reduced by the number of shares (not yet …

• On May 11, 2026, Douglas Gaylor, our President and Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 105,000 shares common stock. The number of shares that may be sold under the trading arrangement will be reduced by the number of sh…

• No directors or officers, as defined in Rule 16a-1(f), have adopted and/or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408, during the three months ended June 30, 2026.

Text removed vs the prior filing · source: 10-Q · 2026-05-05

• No directors or officers, as defined in Rule 16a-1(f), have adopted a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408, during the three months ended March 31, 2026.

• No directors or officers, as defined in Rule 16a-1(f), have terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408, during the three months ended March 31, 2026.