Crexendo, Inc. Debt Disclosure
10.Notes Payable
Notes payable consists of a short and long-term financing arrangements (in thousands):
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| December 31, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Related party note payable |
| $ | 478 |
|
| $ | 843 |
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Other notes payable |
|
| 114 |
|
|
| 206 |
|
Total notes payable |
| $ | 592 |
|
| $ | 1,049 |
|
Less: current notes payable |
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| (478 | ) |
|
| (457 | ) |
Notes payable, net of current portion |
| $ | 114 |
|
| $ | 592 |
|
On February 27, 2023, we entered into a promissory note with CrossFirst Bank in the amount of $278. The promissory note has a term of three (3) years with monthly payments of Eight Thousand Five Hundred Forty-Three ($8,543), including interest of 6.58%, beginning on March 27, 2023. Additionally, the promissory note is subject to certain financial covenants.
On November 1, 2022, as part of the acquisition of Allegiant Networks, we entered into a promissory note with the seller in the amount of $1.1 million. The loan agreement has a term of three (3) years with quarterly payments of Ninety-Eight Thousand Three Hundred Eighty-One ($98,381), including interest at 4.00%, beginning on April 1, 2023. As of December 31, 2024 and 2023, the outstanding balance of the related party note payable was $478 and $843, respectively. During the year ended December 31, 2024 and 2023, the Company paid principal of $365 and $257, respectively, and interest of $27 and $37, respectively.
As of December 31, 2024, future principal payments are scheduled as follows (in thousands):
Year ending December 31, |
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|
| |
2025 |
| $ | 478 |
|
2026 |
|
| 114 |
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2027 |
|
| - |
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2028 |
|
| - |
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2029 and thereafter |
|
| - |
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Total |
| $ | 592 |
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About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.