v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

NOTE 13. SEGMENT REPORTING

 

The Company operates as a single operating segment, which is also its only reportable segment as its CODM, which is currently the Company's Interim Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s principal operations are in the United States and the Company’s long-lived assets are located primarily within the United States. The Company held $8,512 and $8,023 of assets outside the United States on March 31, 2025, and December 31, 2024, respectively.

 

The CODM uses revenue, gross margin, operating expenses, and net income as the primary measures to assess performance and to make strategic decisions regarding product development, market expansion, and resource allocation. Key financial performance measures of the segment are as follows.

 

 

For the three months ended March 31,

 

 

2025

 

 

2024

 

 

Revenue

 

 

 

 

 

 

 

Hardware

 

 

18,830

 

 

 

29,077

 

 

Professional Services

 

 

3,893

 

 

 

3,458

 

 

Deferred hub amortization

 

 

4,658

 

 

 

6,042

 

 

SaaS

 

 

13,963

 

 

 

11,912

 

 

Total revenue

 

 

41,344

 

 

 

50,489

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Hardware

 

 

13,960

 

 

 

18,684

 

 

Professional Services

 

 

7,293

 

 

 

6,448

 

 

Deferred hub amortization

 

 

2,440

 

 

 

2,885

 

 

SaaS

 

 

4,089

 

 

 

3,049

 

 

Total cost of revenue

 

 

27,782

 

 

 

31,066

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

13,562

 

 

 

19,423

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Operating expenses excluding stock compensation and depreciation and amortization

 

 

26,234

 

 

 

25,165

 

 

Stock compensation

 

 

2,543

 

 

 

2,983

 

 

Depreciation and amortization

 

 

1,145

 

 

 

1,434

 

 

Total operating expenses

 

 

29,922

 

 

 

29,582

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

24,929

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(41,289

)

 

 

(10,159

)

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

1,105

 

 

 

2,467

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(40,184

)

 

$

(7,692

)

 

(1) Other segment items include interest income, net, other income (expense), net, and income tax expense (benefit).

 

The CODM is regularly provided with the consolidated cost of revenue and consolidated operating expenses as noted on the face of the Condensed Consolidated Statement of Operations and Comprehensive Loss, as these make up the significant expenses included in the measure of the segment profit or loss. Reported segment revenues less the significant expenses defined in accordance with ASC 280-10-50-26A is equal to the reported segment profit or loss, and thus there are no other segment items to disclose herein.

 

The Company considers these categories significant based on their materiality to the segment’s results and their importance in the CODM’s evaluation of segment performance and resource allocation decisions.