v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

NOTE 12. 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 $8,599 and $10,080 of assets outside the United States on March 31, 2026, and December 31, 2025, 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 March 31,

 

 

2026

 

 

2025

 

 

Revenue

 

 

 

 

 

 

 

Hardware

 

$

15,381

 

 

$

18,830

 

 

Professional Services

 

 

6,033

 

 

 

3,893

 

 

Deferred hub amortization

 

 

2,050

 

 

 

4,658

 

 

SaaS - Smart Apartments

 

 

11,052

 

 

 

9,757

 

 

SaaS - Smart Operations

 

 

2,402

 

 

 

2,798

 

 

SaaS - All Other

 

 

1,765

 

 

 

1,408

 

 

SaaS

 

 

15,219

 

 

 

13,963

 

 

Total revenue

 

 

38,683

 

 

 

41,344

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Hardware

 

 

12,576

 

 

 

13,960

 

 

Professional Services

 

 

5,898

 

 

 

7,293

 

 

Deferred hub amortization

 

 

1,203

 

 

 

2,440

 

 

SaaS

 

 

3,885

 

 

 

4,089

 

 

Total cost of revenue

 

 

23,562

 

 

 

27,782

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

15,121

 

 

 

13,562

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

 

5,442

 

 

 

7,086

 

 

Sales and marketing

 

 

4,182

 

 

 

4,542

 

 

General and administrative

 

 

6,351

 

 

 

14,606

 

 

Stock compensation

 

 

2,957

 

 

 

2,543

 

 

Depreciation and amortization

 

 

1,283

 

 

 

1,145

 

 

Total operating expenses

 

 

20,215

 

 

 

29,922

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

-

 

 

 

24,929

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(5,094

)

 

 

(41,289

)

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

646

 

 

 

1,105

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,448

)

 

$

(40,184

)

 

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

 

During the three months ended March 31, 2026, the Company revised the presentation of key financial information provided to the CODM. The table above reflects the updated presentation, which has been applied retrospectively in the financial information for the comparative period ended March 31, 2025.

 

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.