| SEGMENT REPORTING |
The Company’s chief operating decision maker is its chief executive officer who reviews financial information presented on a consolidated basis for the purposes of making operating decisions, assessing financial performance, and allocating resources. The Company’s chief operating decision maker reviews segment performance and allocates resources based upon revenues and expenses. As the Company has only one reportable segment, revenues and expenses are reported only on a consolidated basis. The measure of segment assets is reported in the balance sheet as total consolidated assets. The following table presents selected financial information about revenues, expenses and net loss for the three and six months ended June 30, 2025 and 2024 for the Company’s one reportable segment: | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | Revenues: | | | | | | | | | | | | | | | Hardware | | $ | 4,311 | | $ | 4,207 | | $ | 8,140 | | $ | 9,402 | | | Software | | | 2,396 | | | 2,649 | | | 4,348 | | | 4,610 | | | Services | | | 752 | | | 647 | | | 1,730 | | | 1,332 | | | Total revenues | | | 7,459 | | | 7,503 | | | 14,218 | | | 15,344 | | | Cost of goods sold | | | | | | | | | | | | | | | Hardware | | | 2,928 | | | 3,217 | | | 5,345 | | | 7,018 | | | Software | | | 767 | | | 841 | | | 1,439 | | | 1,844 | | | Services | | | 410 | | | 408 | | | 874 | | | 743 | | | Excess and obsolete | | | 180 | | | 4 | | | 180 | | | 4 | | | Total cost of goods sold | | | 4,285 | | | 4,470 | | | 7,838 | | | 9,609 | | | Gross profit | | | 3,174 | | | 3,033 | | | 6,380 | | | 5,735 | | | Operating expenses: | | | | | | | | | | | | | | | Research and development | | | 124 | | | 166 | | | 314 | | | 750 | | | Software engineering | | | 421 | | | 220 | | | 704 | | | 628 | | | Platform engineering | | | 730 | | | 685 | | | 1,352 | | | 1,670 | | | Sales | | | 1,828 | | | 1,673 | | | 3,847 | | | 4,405 | | | General and administrative | | | 4,277 | | | 2,128 | | | 7,770 | | | 8,737 | | | Marketing and business development | | | 1,986 | | | 1,367 | | | 3,834 | | | 3,876 | | | International sales | | | 137 | | | 323 | | | 272 | | | 587 | | | Total operating expenses | | | 9,503 | | | 6,562 | | | 18,093 | | | 20,653 | | | Loss from operations | | | (6,329) | | | (3,529) | | | (11,713) | | | (14,918) | | | Other (expense) income: | | | | | | | | | | | | | | | Interest expense | | | (301) | | | (910) | | | (803) | | | (1,639) | | | Other income (expense), net | | | 14 | | | (268) | | | 70 | | | (350) | | | Gain on change in fair value of convertible debt | | | 525 | | | — | | | 525 | | | — | | | Loss on extinguishment of debt | | | — | | | — | | | — | | | (52) | | | Loss before income taxes | | | (6,091) | | | (4,707) | | | (11,921) | | | (16,959) | | | Income tax expense (benefit) | | | 11 | | | 39 | | | 13 | | | 34 | | | Segment net loss | | $ | (6,102) | | $ | (4,746) | | $ | (11,934) | | $ | (16,993) | | |
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