v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 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 President and 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 $8,863 and $8,023 of assets outside the United States on June 30, 2025, and December 31, 2024, respectively.

 

The CODM uses revenue, gross profit, 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 June 30,

 

 

For the six months ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

15,143

 

 

$

24,676

 

 

$

33,973

 

 

$

53,753

 

 

Professional Services

 

 

4,327

 

 

 

5,816

 

 

 

8,220

 

 

 

9,274

 

 

Deferred hub amortization

 

 

4,619

 

 

 

5,215

 

 

 

9,277

 

 

 

11,257

 

 

SaaS

 

 

14,219

 

 

 

12,811

 

 

 

28,182

 

 

 

24,723

 

 

Total revenue

 

 

38,308

 

 

 

48,518

 

 

 

79,652

 

 

 

99,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

 

12,868

 

 

 

16,318

 

 

 

26,828

 

 

 

35,002

 

 

Professional Services

 

 

6,237

 

 

 

8,869

 

 

 

13,530

 

 

 

15,317

 

 

Deferred hub amortization

 

 

2,300

 

 

 

2,841

 

 

 

4,740

 

 

 

5,726

 

 

SaaS

 

 

4,235

 

 

 

3,185

 

 

 

8,324

 

 

 

6,234

 

 

Total cost of revenue

 

 

25,640

 

 

 

31,213

 

 

 

53,422

 

 

 

62,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

12,668

 

 

 

17,305

 

 

 

26,230

 

 

 

36,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses excluding stock compensation and depreciation and amortization

 

 

21,118

 

 

 

20,101

 

 

 

47,353

 

 

 

45,266

 

 

Stock compensation

 

 

2,035

 

 

 

2,992

 

 

 

4,578

 

 

 

5,975

 

 

Depreciation and amortization

 

 

1,200

 

 

 

1,130

 

 

 

2,344

 

 

 

2,564

 

 

Total operating expenses

 

 

24,353

 

 

 

24,223

 

 

 

54,275

 

 

 

53,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

-

 

 

 

-

 

 

 

24,929

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(11,685

)

 

 

(6,918

)

 

 

(52,974

)

 

 

(17,077

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

825

 

 

 

2,313

 

 

 

1,930

 

 

 

4,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(10,860

)

 

$

(4,605

)

 

$

(51,044

)

 

$

(12,297

)

 

(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.