v3.26.1
Note 11 - Segment, Customer Concentration and Geographical Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

11. Segment, Customer Concentration and Geographical Information

 

Segment Information

 

Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting (“Topic 280”). The Company has one primary business unit based on how management internally evaluates separate financial information, business activities and management responsibility: Wireless. The Wireless segment includes the Family Safety (which includes SafePath), CommSuite, and ViewSpot families of products (prior to the divestiture of ViewSpot in 2025).

 

The Company's chief operating decision maker (“CODM”) as such term is defined in Topic 280, is its Chief Executive Officer. As infrastructure and resources are shared across the Company’s operations, the CODM manages the Company's operations based on consolidated financial information for purposes of evaluating financial performance, investment, cash flow metrics and allocating resources.

 

The accounting policies of the Company's single operating segment are the same as those described in the summary of significant accounting policies appearing in Note 1. Although the CODM uses other measures of operating performance, the Company concluded that consolidated net loss is the measure required to be disclosed as the segment measure of profit or loss. Adjusted operating loss and net loss are used to evaluate the effectiveness of the Company's performance and to monitor budget versus actual results. The measure of segment assets is reflected as "total assets" in the accompanying consolidated balance sheet.

 

 

 

Revenue and expenses regularly provided to the CODM are included in the following reconciliation of the Company's net adjusted operating loss and net loss. It includes the significant expense categories computed under US GAAP, reconciled to the Company's total net loss as presented in the consolidated statement of operations (unaudited, in thousands).

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues

 

$

4,341

 

 

$

4,420

 

 

$

8,562

 

 

$

9,041

 

Less:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Adjusted cost of revenues¹

 

 

811

 

 

 

1,171

 

 

 

1,723

 

 

 

2,428

 

Adjusted selling and marketing²

 

 

1,178

 

 

 

1,402

 

 

 

2,340

 

 

 

2,811

 

Adjusted research and development²

 

 

1,335

 

 

 

2,548

 

 

 

3,102

 

 

 

5,191

 

Adjusted general and administrative²

 

 

1,834

 

 

 

1,964

 

 

 

3,628

 

 

 

4,050

 

Adjusted operating loss

 

 

(817

)

 

 

(2,665

)

 

 

(2,231

)

 

 

(5,439

)

Other segment expenses³

 

 

(84

)

 

 

(78

)

 

 

(211

)

 

 

(79

)

Stock-based compensation expense

 

 

(171

)

 

 

(1,096

)

 

 

(757

)

 

 

(2,183

)

Depreciation

 

 

(120

)

 

 

(73

)

 

 

(189

)

 

 

(146

)

Amortization

 

 

(1,177

)

 

 

(1,276

)

 

 

(2,355

)

 

 

(2,552

)

Goodwill impairment

 

 

—

 

 

 

(11,052

)

 

 

—

 

 

 

(11,052

)

Proceeds from sale of ViewSpot, net

 

 

—

 

 

 

1,287

 

 

 

—

 

 

 

1,287

 

Total other (expenses) income, net

 

 

(280

)

 

 

(109

)

 

 

(803

)

 

 

(75

)

Loss before provision for income taxes

 

 

(2,649

)

 

 

(15,062

)

 

 

(6,546

)

 

 

(20,239

)

Provision for income tax expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Net loss

 

$

(2,649

)

 

$

(15,062

)

 

$

(6,546

)

 

$

(20,240

)

Deemed dividend

 

 

(86

)

 

 

—

 

 

 

(86

)

 

 

—

 

Net loss attributable to common stockholders

 

$

(2,735

)

 

$

(15,062

)

 

$

(6,632

)

 

$

(20,240

)

1 Adjusted amounts exclude depreciation expense.

2 Adjusted amounts exclude stock-based compensation expense and other adjustments as further described in footnote 3 to this table.

3 Other segment expenses include personnel severance and reorganization activities and costs associated with the shareholder-approved reverse stock split, and other corporate non-recurring activities.

 

The following table presents the disaggregation of Wireless revenues by product line (unaudited, in thousands):

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Family Safety

 

$

3,515

 

 

$

3,626

 

 

$

6,936

 

 

$

7,414

 

CommSuite

 

 

826

 

 

 

777

 

 

 

1,626

 

 

 

1,511

 

ViewSpot

 

 

—

 

 

 

17

 

 

 

—

 

 

 

116

 

Total Wireless revenues

 

$

4,341

 

 

$

4,420

 

 

$

8,562

 

 

$

9,041

 

 

 

 

Customer Concentration Information

 

The Company has certain customers whose revenues individually represented greater than 10% of the Company’s total revenues, or whose accounts receivable balances individually represented greater than 10% of the Company’s total accounts receivable, for the three and six months ended June 30, 2026 and 2025.

 

During the three months ended  June 30, 2026, three customers made up 56%, 21% and 19% of revenues. For the three months ended  June 30, 2025, three customers made up 62%, 21% and 18% of revenues.

 

As of  June 30, 2026, three customers accounted for 48%, 32% and 12% of accounts receivable. As of  June 30, 2025, two customers accounted for 39% and 33% of accounts receivable.

 

Geographical Information

 

During the three and six months ended June 30, 2026 and 2025, the Company operated in two geographic locations: the Americas and Europe, Middle East and Africa ("EMEA"). Revenues attributed to the geographic location of the customers’ bill-to address were as follows (unaudited, in thousands):

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Americas

 

$

4,314

 

 

$

4,407

 

 

$

8,510

 

 

$

9,022

 

EMEA

 

 

27

 

 

 

13

 

 

 

52

 

 

 

19

 

Total revenues

 

$

4,341

 

 

$

4,420

 

 

$

8,562

 

 

$

9,041

 

 

The Company does not separately allocate specific assets to these geographic locations.