v3.25.4
Note 4 - Segment Information
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

(4) Segment Information

 

Significant Segment Expenses

 

The Company derives its revenue from a single reporting segment: product digitization solutions. Revenue is generated in this segment primarily through software subscriptions and software development services. The Company manages its business activities on a consolidated basis. In addition, the Chief Executive Officer of the Company, as the CODM, reviews the Company’s operating results and makes decisions to allocate resources based on consolidated financial information. As such, the Company has one single reportable segment. The CODM uses consolidated net income (loss) as a performance measure and total consolidated assets as an asset measure, to assess performance of the company, to allocate working capital, and to monitor budget versus actual results. 

 

The following table illustrates reported segment revenue, segment profit and loss, and significant segment expenses.

 

  

Year Ended December 31,

 
  

2025

  

2024

 

Revenue:

        

Subscription

 $19,844  $22,418 

Service

  14,069   16,000 

Total revenue

  33,913   38,418 

Cost of revenue:

        

Subscription (1)

  2,633   2,959 

Service (1)

  5,648   6,628 

Amortization expense on acquired intangible assets

  4,736   4,592 

Total cost of revenue

  13,017   14,179 

Operating expenses:

        

Cash compensation

  26,445   38,997 

Stock-based compensation

  10,854   9,323 

Professional services and consultants

  8,110   7,757 

Software and hardware

  2,679   3,538 

Depreciation and amortization

  2,260   2,104 

Other segment items (2)

  3,710   3,827 

Total operating expenses

  54,058   65,546 

Operating loss

  (33,162)  (41,307)

Other income, net

  884   2,341 

Provision for income taxes

  (31)  (44)

Net loss

 $(32,309) $(39,010)
(1)

Cost of revenue for Subscription and Service excludes amortization expense on acquired intangible assets.

(2)

Other segment items include training and travel expenses, recruiting expenses, rent and facility expenses, bad debt expenses and other miscellaneous costs.

 

Geographic Information

 

The Company markets its products in the U.S. and in non-U.S. countries through its sales personnel and partners. Revenue by geographic area, based upon the “bill-to” location, was as follows:

 

  

Year Ended December 31,

 
  

2025

  

2024

 

Domestic

 $8,784  $10,195 

International (1)

  25,129   28,223 

Total

 $33,913  $38,418 

(1)

Revenue from the Central Banks is classified as international revenue. Reporting revenue by country for this customer is not practicable.

 

Major Customers

 

The following customers accounted for 10% or more of revenue:

 

  

Year Ended December 31,

 
  

2025

  

2024

 

Customer A

  41%  41%

Customer B

  12%  15%

Customer C

  *   14%

*

Less than 10%

 

Long-lived tangible assets by geographical area

 

Long-lived tangible assets by geographic area were as follows:

 

  

December 31,

  

December 31,

 
  

2025

  

2024

 

United States

 $1,102  $1,026 

Europe

  2   14 

Total

 $1,104  $1,040