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

NOTE 14 – Segment Information

 

The Company has determined that it operates as a single operating segment. The Company offers a vertical software-as-a-service (or SaaS) platform for the enterprise. The flagship product, the CXAI Platform (pronounced “Sky”), provides a comprehensive suite of tools designed to empower employees and enable organizations to create smarter workplaces. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM allocates resources and makes operating decisions based on consolidated net income.

 

The CODM does not evaluate profitability below the level of the consolidated company. The Company uses net income (loss) as the primary measure of financial performance. However, in evaluating operating results on a budget versus actual basis, the Company focuses on cash-based operating expenses as a more cost of revenue, professional services, marketing, research and development, and other general and administrative expenses—to be significant. In contrast, the Company does not place significant emphasis on stock-based compensation, amortization of intangibles, change in fair value of warrant liabilities, loss on debt extinguishment, and other non-cash adjustments in its internal analysis of period-over-period operating results.

 

The following table presents selected financial information with respect to the Company’s single operating segment:

 

               
    Three Months Ended
March 31,
2026		     Three Months Ended
March 31,
2025		  
Revenue - Licenses   $ 934     $ 1,211  
Revenue - Professional Services     14       13  
Revenue - Hardware     2       -  
Less:                
Cost of revenue     160       150  
Research and development     1,492       1,362  
Sales and marketing     403       506  
General and administrative     1,708       1,644  
Interest expense (income), net     (17 )     37  
Gain on warrant liabilities     (178 )     (2,196 )
Loss on debt extinguishment     -       48  
Other expense/(income), net     72       (18 )
Add:                
Income tax benefit     (2 )     -  
                 
Total income without non-cash     (2,692 )     (309 )
Less:                
Other non-cash expenses(1)     1,311       1,307  
Net loss   $ (4,003 )   $ (1,616 )

 

 
(1) Other non-cash expenses for the three months ended March 31, 2026 includes $391 thousand of stock compensation and related expenses, and $683 thousand of intangible amortization expense. Other non-cash expenses for the three months ended March 31, 2025 includes $624 thousand of stock compensation expenses and $683 thousand of intangible amortization expense.