XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting
Note 12 - Segment Reporting

Prior to the acquisition of Oblong Industries on October 1, 2019, the Company operated in one segment. Following October 1, 2019, the former businesses of Glowpoint and Oblong Industries were managed separately and involve different products and services. Accordingly, the Company currently operates in two segments: (1) the Glowpoint (now named Oblong) business which mainly consists of managed services for video collaboration and network applications; and (2) the Oblong Industries business which consists of products and services for visual collaboration technologies.

Because the closing of the acquisition of Oblong Industries occurred on October 1, 2019, the Company’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2020 and 2019 included in this Report only reflect Oblong Industries’ financial results for the first and second quarter of 2020.
Certain information concerning the Company’s segments for the three and six months ended June 30, 2020 is presented in the following tables (in thousands):
Three Months ended June 30, 2020
GlowpointOblong IndustriesTotal
Revenue$1,373  $1,443  $2,816  
Cost of revenues898  785  1,683  
Gross profit$475  $658  $1,133  
Gross profit %35 %46 %40 %
Allocated operating expenses$1,063  $2,574  $3,637  
Unallocated operating expenses—  —  796  
Total operating expenses$1,063  $2,574  $4,433  
Loss from operations$(588) $(1,916) $(3,300) 
Interest and other expense, net(7) (78) (85) 
Net loss$(595) $(1,994) $(3,385) 

Six Months Ended June 30, 2020
GlowpointOblong IndustriesTotal
Revenue$3,417  $4,727  $8,144  
Cost of revenues2,055  2,017  4,072  
Gross profit$1,362  $2,710  $4,072  
Gross profit %40 %57 %50 %
Allocated operating expenses$2,212  $5,985  $8,197  
Unallocated operating expenses—  —  2,162  
Total operating expenses$2,212  $5,985  $10,359  
Loss from operations$(850) $(3,275) $(6,287) 
Interest and other expense, net(7) (220) (227) 
Net loss$(857) $(3,495) $(6,514) 

Unallocated operating expenses include costs for the three and six months ended June 30, 2020 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Interest and other expense, net, is also not allocated to the operating segments.
For the three and six months ended June 30, 2020 and 2019, there was no material revenue attributable to any individual foreign country. Approximately 1% of foreign revenue is billed in foreign currency and foreign currency gains and losses are not material.
Revenue by geographic area is allocated as follows (in thousands):
Three Months ended June 30,
20202019
Domestic$1,854  $1,675  
Foreign962  764  
$2,816  $2,439  
Six Months Ended June 30,
20202019
Domestic$5,456  $3,471  
Foreign2,688  1,562  
$8,144  $5,033  

Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated statements of operations and is presented below according to contract type (in thousands):
Three Months ended June 30,
2020% of Revenue2019% of Revenue
Revenue: Glowpoint
Video collaboration services
$553  20 %$1,452  60 %
Network services
766  27 %945  39 %
Professional and other services
54  2 %42  2 %
      Total Glowpoint revenue
$1,373  49 %$2,439  100 %
Revenue: Oblong Industries
Visual collaboration product offerings
$923  33 %—  — %
Professional services
228  8 %—  — %
Licensing
292  10 %—  — %
      Total Oblong Industries revenue
$1,443  51 %—  — %
Total revenue
$2,816  100 %$2,439  100 %
Six Months Ended June 30,
2020% of Revenue2019% of Revenue
Revenue: Glowpoint
Video collaboration services$1,598  20 %$3,018  60 %
Network services1,691  21 %1,910  38 %
Professional and other services128  2 %105  2 %
      Total Glowpoint revenue
3,417  42 %5,033  100 %
Revenue: Oblong Industries
Visual collaboration product offerings3,245  40 %—  — %
Professional services898  11 %—  — %
Licensing584  7 %—  — %
      Total Oblong Industries revenue
4,727  58 %—  — %
Total revenue
$8,144  100 %$5,033  100.00 %
Glowpoint’s fixed assets were 100% located in domestic markets as of June 30, 2020 and December 31, 2019. Oblong Industries’ long-lived assets were located 82% in domestic and 18% in foreign markets as of June 30, 2020.
The disaggregation of the Company’s total assets as of June 30, 2020 is presented below (in thousands):
As of June 30, 2020
GlowpointOblongTotal
Total assets$5,235  $24,058  $29,293  

The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition and results of operations.

Concentration of revenues was as follows:
Three Months Ended June 30,
20202019
Segment% of Revenue% of Revenue
Customer AGlowpoint23 %22 %
Customer BOblong Industries20 %— %
Customer CGlowpoint*29 %
Customer DOblong Industries*10 %
Customer EOblong Industries**
* The amount did not exceed 10% of the Company’s consolidated total revenues.

Six Months Ended June 30,
20202019
Segment% of Revenue% of Revenue
Customer AGlowpoint15 %22 %
Customer BOblong Industries21 %— %
Customer CGlowpoint*29 %
Customer DOblong Industries*— %
Customer EOblong Industries**

* The amount did not exceed 10% of the Company’s consolidated total revenues.
Concentration of accounts receivable was as follows:
As of June 30, 2020
20202019
Segment% of Accounts Receivable% of Accounts Receivable
Customer AGlowpoint32 %*
Customer BOblong Industries— %— %
Customer CGlowpoint*46 %
Customer DOblong Industries10 %— %
Customer EOblong Industries12 %— %

* The amount did not exceed 10% of the Company’s consolidated total accounts receivable.