v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 $7,002 and $10,080 of assets outside the United States on June 30, 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 June 30,

 

 

For the six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

13,624

 

 

$

15,143

 

 

$

29,005

 

 

$

33,973

 

 

Professional Services

 

 

8,636

 

 

 

4,327

 

 

 

14,669

 

 

 

8,220

 

 

Deferred hub amortization

 

 

1,456

 

 

 

4,619

 

 

 

3,506

 

 

 

9,277

 

 

SaaS - Smart Apartments

 

 

12,032

 

 

 

9,990

 

 

 

23,084

 

 

 

19,747

 

 

SaaS - Smart Operations

 

 

2,294

 

 

 

2,625

 

 

 

4,696

 

 

 

5,424

 

 

SaaS - All Other

 

 

1,802

 

 

 

1,604

 

 

 

3,567

 

 

 

3,011

 

 

SaaS

 

 

16,128

 

 

 

14,219

 

 

 

31,347

 

 

 

28,182

 

 

Total revenue

 

 

39,844

 

 

 

38,308

 

 

 

78,527

 

 

 

79,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

 

11,914

 

 

 

12,868

 

 

 

24,490

 

 

 

26,828

 

 

Professional Services

 

 

6,860

 

 

 

6,237

 

 

 

12,758

 

 

 

13,530

 

 

Deferred hub amortization

 

 

859

 

 

 

2,300

 

 

 

2,062

 

 

 

4,740

 

 

SaaS

 

 

3,991

 

 

 

4,235

 

 

 

7,876

 

 

 

8,324

 

 

Total cost of revenue

 

 

23,624

 

 

 

25,640

 

 

 

47,186

 

 

 

53,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

16,220

 

 

 

12,668

 

 

 

31,341

 

 

 

26,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

5,038

 

 

 

5,695

 

 

 

10,480

 

 

 

12,781

 

 

Sales and marketing

 

 

4,949

 

 

 

6,194

 

 

 

9,131

 

 

 

10,736

 

 

General and administrative

 

 

8,271

 

 

 

9,229

 

 

 

14,622

 

 

 

23,836

 

 

Stock compensation

 

 

3,153

 

 

 

2,035

 

 

 

6,110

 

 

 

4,578

 

 

Depreciation and amortization

 

 

1,270

 

 

 

1,200

 

 

 

2,553

 

 

 

2,344

 

 

Total operating expenses

 

 

22,681

 

 

 

24,353

 

 

 

42,896

 

 

 

54,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

-

 

 

 

-

 

 

 

-

 

 

 

24,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(6,461

)

 

 

(11,685

)

 

 

(11,555

)

 

 

(52,974

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

820

 

 

 

825

 

 

 

1,466

 

 

 

1,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(5,641

)

 

$

(10,860

)

 

$

(10,089

)

 

$

(51,044

)

 

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

 

Beginning in 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 periods ending June 30, 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.