Business Context and Reporting Period
Crexendo, Inc. filed a Current Report on Form 8-K dated July 19, 2024, regarding the entry into a Material Definitive Agreement. The company is incorporated in Nevada and maintains its principal executive offices in Tempe, Arizona.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on the terms of a new commercial sublease agreement.
Material Changes and Agreement Terms
On July 19, 2024, Crexendo, Inc. entered into a Commercial Sublease Agreement with Acronis, Inc. for office space to serve as the company's headquarters. Key terms include:
- Term: 36 months, commencing October 1, 2024, and ending October 31, 2027.
- Base Monthly Rent:
- October 1, 2024 – September 30, 2025: $27,599.00
- October 1, 2025 – September 30, 2026: $28,853.50
- October 1, 2026 – October 31, 2027: $30,108.00
- Rent Abatement: The Company is entitled to three months of rent abatement.
- Operating Costs: The Company may be responsible for 50% of operating costs exceeding $20,000.00 in a calendar year. Historically, costs have not exceeded this threshold.
- Condition: The location is fully furnished and ready for immediate occupancy.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. The document includes a standard disclaimer stating that the agreement's representations and warranties are not intended to characterize the actual state of facts about the Company and should not be relied upon as such.
Investor Verification Checklist
- Verify the total committed lease obligation over the 36-month term, accounting for the three-month rent abatement.
- Review the attached Exhibit 10.1 (Commercial Sublease Agreement) for specific definitions of "Operating Costs" and potential cap limits.
- Confirm the company's current cash position to ensure it can meet the initial rent payments starting October 1, 2024.
- Assess the strategic rationale for subleasing from Acronis, Inc., rather than entering a direct master lease.