Crexendo, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Crexendo, Inc. filed its 2023 10-K report detailing its annual financial performance and business operations.</b>

AI Summary

Crexendo, Inc. (CXDO) filed a Annual Report (10-K) with the SEC on March 5, 2024. Crexendo, Inc. reported its fiscal year 2023 results on March 5, 2024. The company's fiscal year ended on December 31, 2023. The filing is a Form 10-K, indicating a comprehensive annual report. Crexendo, Inc. was formerly known as IMERGENT INC and NETGATEWAY INC. The company is incorporated in Delaware and headquartered in Tempe, Arizona.

Why It Matters

For investors and stakeholders tracking Crexendo, Inc., this filing contains several important signals. This 10-K filing provides a detailed overview of Crexendo's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The report includes historical financial data and segment information, allowing for year-over-year comparisons and analysis of business unit performance, which is vital for understanding growth trends and areas of focus.

Risk Assessment

Risk Level: medium — Crexendo, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various market and operational risks inherent in the telecommunications and software industries, as detailed in the full 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Crexendo's performance drivers and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-05 — Filing Date (Conformed submission date)
• 137 — Public Document Count (Number of documents in the filing)
• 4813 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Crexendo, Inc. (company) — Filer name
• IMERGENT INC (company) — Former company name
• NETGATEWAY INC (company) — Former company name
• DE (jurisdiction) — State of incorporation
• AZ (location) — State of business address
• 870591719 (identifier) — IRS Number
• 001-32277 (identifier) — SEC File Number
• 24722279 (identifier) — Film Number

FAQ

Industry Context

Crexendo, Inc. operates within the telecommunications industry, specifically focusing on cloud-based communication services and software solutions.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations annually.

What Investors Should Do

1. Analyze the revenue breakdown by segment to understand growth drivers.
2. Examine any disclosed executive compensation details for insights into management incentives.
3. Review the risk factors section for potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-05: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023. Previous filings would provide comparative data.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share The Nasdaq Stock Market Se
• $4,860 — RESEARCH AND DEVELOPMENT We invested $4,860 and $3,955 for the years ended December
• $3,955 — ND DEVELOPMENT We invested $4,860 and $3,955 for the years ended December 31, 2023 a

Filing Documents

• cxdo_10k.htm (10-K) — 2629KB
• cxdo_ex41.htm (EX-4.1) — 14KB
• cxdo_ex1011.htm (EX-10.11) — 9KB
• cxdo_ex211.htm (EX-21.1) — 7KB
• cxdo_ex231.htm (EX-23.1) — 2KB
• cxdo_ex311.htm (EX-31.1) — 11KB
• cxdo_ex312.htm (EX-31.2) — 11KB
• cxdo_ex321.htm (EX-32.1) — 4KB
• cxdo_ex322.htm (EX-32.2) — 4KB
• cxdo_ex971.htm (EX-97.1) — 14KB
• cxdo_10kimg108.jpg (GRAPHIC) — 5KB
• 0001654954-24-002655.txt (&nbsp;) — 11072KB
• cxdo-20231231.xsd (EX-101.SCH) — 106KB
• cxdo-20231231_lab.xml (EX-101.LAB) — 602KB
• cxdo-20231231_cal.xml (EX-101.CAL) — 80KB
• cxdo-20231231_pre.xml (EX-101.PRE) — 495KB
• cxdo-20231231_def.xml (EX-101.DEF) — 226KB
• cxdo_10k_htm.xml (XML) — 1926KB

BUSINESS

BUSINESS 1 ITEM 1A. RISK FACTORS. 7 ITEM 2.

PROPERTIES

PROPERTIES 27 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 27 ITEM 4. MINE SAFETY DISCLOSURES 27 PART II 28 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 28 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS 45 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 46 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 85 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 85 ITEM 9B. OTHER INFORMATION 85 PART III 86 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 86 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 92 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS 101 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 102 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 102 PART IV 104 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULE 104 Table of Contents PART I Throughout this Annual Report, we refer to Crexendo, Inc., together with its subsidiaries, as "we," "us," "our Company," "Crexendo" or "the Company." As used in this Annual Report, "Ride The Cloud " is a registered trademark of our Company in the United States and other countries. All other product names are or may be trademarks of, and are used to identify the products and services of, their respective owners. THIS ANNUAL REPORT ON FORM 10-K CONTAINS FORWARD-LOOKING STATEMENTS. THESE STATEMENTS RELATE TO FUTURE EVENTS OR OUR FUTURE FINANCIAL PERFORMANCE. IN SOME CASES, YOU CAN IDENTIFY FORWARD-LOOKING STATEMENTS BY TERMINOLOGY SUCH AS "MAY," "WILL," "SHOULD," "EXPECT," "PLAN," "INTEND," "ANTICIPATE," "BELIEVE," "ESTIMATE," "PROJECT," "PREDICT," "POTENTIAL" OR "CONTINUE" (INCLUDING THE NEGATIVE OF SUCH TERMS), OR OTHER SIMILAR TERMINOLOGY. THESE STATEMENTS ARE ONLY ESTIMATIONS, AND ARE BASED UPON VARIOUS ASSUMPTIONS THAT MAY NOT BE REALIZED. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY. IN EVALUATING THESE STATEMENTS, YOU SHOULD SPECIFICALLY CONSIDER VARIOUS FACTORS, INCLUDING, BUT NOT LIMITED TO, THE RISKS OUTLINED BELOW UNDER ITEM 1A. THESE FACTORS MAY CAUSE OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FORWARD-LOOKING STATEMENT. ALTHOUGH WE BELIEVE THAT THE ESTIMATIONS REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, WE CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. MOREOVER, NEITHER WE NOR ANY OTHER PERSON ASSUMES RESPONSIBILITY FOR THE ACCURACY AND COMPLETENESS OF THE FORWARD-LOOKING STATEMENTS. WE DO NOT INTEND TO UPDATE ANY OF THE FORWARD-LOOKING STATEMENTS

BUSINESS

ITEM 1. BUSINESS OVERVIEW Crexendo, Inc. is an award-winning premier provider of cloud communication platform and services, video collaboration and managed IT services designed to provide enterprise-class cloud solutions to any size business. By providing a variety of comprehensive and scalable solutions, we are able to cater to businesses of all sizes on a monthly subscription basis without the need for expensive capital investments, regardless of where their business is in its lifecycle. Our products and services can be categorized in the following offerings: Cloud Telecommunications Services – Our cloud telecommunications services transmit calls using IP or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud. Each of our calling plans provides a number of basic features typically offered by traditional telephone service providers, plus a wide range of enhanced features that we believe offer an attractive value proposition to our customers. This platform enables a user, via a single "identity" or telephone number, to access and utilize services and features regardless of how the user is connected to the Internet or cloud, whether it's from a desktop device or an application on a mobile device. We generate recurring revenue from our cloud telecommunications services, broadband Internet services, managed IT services, software license sales, and infrastructure as a service. Our cloud telecommunications contracts typically have a thirty-six to sixty month term. We may also charge activation and flash fees and the Company generally allocates a portion of the activation fees to the desktop devices, which is recognized at the time of the installation or customer acceptance, and a portion to the service, which is recognized over the contract term using the straight-line method. We also charge other various contracted and non-contracted fees. We generate product revenue, equipment financing revenue, an

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View this 10-K filing on SEC EDGAR