v3.26.3
Segment Reporting
 9 Months Ended
Sep. 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 $7,090 and $10,080 of assets outside the United States on September 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 September 30,

 

 

For the nine months ended September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

$

18,492

 

 

$

11,506

 

 

$

47,497

 

 

$

45,479

 

 

Professional Services

 

 

6,469

 

 

 

7,035

 

 

 

21,138

 

 

 

15,255

 

 

Deferred hub amortization

 

 

877

 

 

 

3,424

 

 

 

4,383

 

 

 

12,701

 

 

SaaS - Smart Apartments

 

 

11,918

 

 

 

10,175

 

 

 

35,002

 

 

 

29,922

 

 

SaaS - Smart Operations

 

 

2,170

 

 

 

2,632

 

 

 

6,866

 

 

 

8,056

 

 

SaaS - All Other

 

 

1,640

 

 

 

1,430

 

 

 

5,207

 

 

 

4,441

 

 

SaaS

 

 

15,728

 

 

 

14,237

 

 

 

47,075

 

 

 

42,419

 

 

Total revenue

 

 

41,566

 

 

 

36,202

 

 

 

120,093

 

 

 

115,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware

 

 

13,642

 

 

 

13,836

 

 

 

38,132

 

 

 

40,664

 

 

Professional Services

 

 

6,284

 

 

 

6,800

 

 

 

19,042

 

 

 

20,330

 

 

Deferred hub amortization

 

 

532

 

 

 

1,819

 

 

 

2,594

 

 

 

6,559

 

 

SaaS

 

 

3,999

 

 

 

4,178

 

 

 

11,875

 

 

 

12,502

 

 

Total cost of revenue

 

 

24,457

 

 

 

26,633

 

 

 

71,643

 

 

 

80,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

17,109

 

 

 

9,569

 

 

 

48,450

 

 

 

35,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,905

 

 

 

5,419

 

 

 

15,385

 

 

 

18,200

 

 

Sales and marketing

 

 

5,270

 

 

 

4,220

 

 

 

14,401

 

 

 

14,956

 

 

General and administrative

 

 

7,258

 

 

 

3,647

 

 

 

21,880

 

 

 

27,483

 

 

Stock compensation

 

 

3,056

 

 

 

2,019

 

 

 

9,166

 

 

 

6,597

 

 

Depreciation and amortization

 

 

1,428

 

 

 

1,291

 

 

 

3,981

 

 

 

3,635

 

 

Total operating expenses

 

 

21,917

 

 

 

16,596

 

 

 

64,813

 

 

 

70,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charge

 

 

-

 

 

 

-

 

 

 

-

 

 

 

24,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(4,808

)

 

 

(7,027

)

 

 

(16,363

)

 

 

(60,001

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment items(1)

 

 

896

 

 

 

757

 

 

 

2,362

 

 

 

2,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,912

)

 

$

(6,270

)

 

$

(14,001

)

 

$

(57,314

)

 

(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 September 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 and other segment items defined in accordance with ASC 280-10-50-26A is equal to the reported segment profit or loss.

 

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.