v3.25.4
Segment Reporting
 12 Months Ended
Dec. 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 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 $10,080 and $8,023 of assets outside the United States on December 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 years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

 

Hardware

 

$

57,973

 

 

$

82,844

 

 

 

137,201

 

Professional Services

 

 

21,133

 

 

 

18,803

 

 

 

35,473

 

Deferred hub amortization

 

 

15,396

 

 

 

21,600

 

 

 

23,096

 

SaaS

 

 

57,824

 

 

 

51,638

 

 

 

41,068

 

Total revenue

 

 

152,326

 

 

 

174,885

 

 

 

236,838

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Hardware

 

 

52,829

 

 

 

58,833

 

 

 

108,780

 

Professional Services

 

 

26,167

 

 

 

31,160

 

 

 

55,495

 

Deferred hub amortization

 

 

8,146

 

 

 

11,168

 

 

 

12,602

 

SaaS

 

 

15,315

 

 

 

13,386

 

 

 

10,432

 

Total cost of revenue

 

 

102,457

 

 

 

114,547

 

 

 

187,309

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

49,869

 

 

 

60,338

 

 

 

49,529

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Operating expenses excluding stock compensation and depreciation and amortization

 

 

75,783

 

 

 

87,666

 

 

 

75,179

 

Stock compensation

 

 

8,208

 

 

 

9,654

 

 

 

12,245

 

Depreciation and amortization

 

 

4,925

 

 

 

4,790

 

 

 

5,264

 

Total operating expenses

 

 

88,916

 

 

 

102,110

 

 

 

92,688

 

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

24,929

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(63,976

)

 

 

(41,772

)

 

 

(43,159

)

 

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

3,418

 

 

 

8,129

 

 

 

8,572

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(60,558

)

 

$

(33,643

)

 

$

(34,587

)

(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 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.