XML 28 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2020 and 2019 included in this Report only reflect Oblong Industries’ financial results for the first through third quarters of 2020.
Certain information concerning the Company’s segments for the three and nine months ended September 30, 2020 is presented in the following tables (in thousands):
Three Months ended September 30, 2020
GlowpointOblong IndustriesTotal
Revenue$1,324 $1,942 $3,266 
Cost of revenues893 719 1,612 
Gross profit$431 $1,223 $1,654 
Gross profit %33 %63 %51 %
Allocated operating expenses$1,187 $1,477 $2,664 
Unallocated operating expenses980 
Total operating expenses$1,187 $1,477 $3,644 
Loss from operations$(756)$(254)$(1,990)
Interest and other expense, net5 90 95 
Net loss$(761)$(344)$(2,085)

Nine Months Ended September 30,
GlowpointOblong IndustriesTotal
Revenue$4,741 $6,669 $11,410 
Cost of revenues2,948 2,736 5,684 
Gross profit$1,793 $3,933 $5,726 
Gross profit %38 %59 %50 %
Allocated operating expenses$3,398 $7,545 $10,943 
Unallocated operating expenses3,059 
Total operating expenses$3,398 $7,545 $14,002 
Loss from operations$(1,605)$(3,612)$(8,276)
Interest and other expense, net12 310 322 
Net loss$(1,617)$(3,922)$(8,598)

Unallocated operating expenses include costs for the three and nine months ended September 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 nine months ended September 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 September 30,
20202019
Domestic$2,080 $1,571 
Foreign1,186 799 
$3,266 $2,370 
Nine Months Ended September 30,
20202019
Domestic$7,536 $5,042 
Foreign3,874 2,361 
$11,410 $7,403 

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 September 30,
2020% of Revenue2019% of Revenue
Revenue: Glowpoint
Video collaboration services$249 8 %$1,317 56 %
Network services1,028 31 %969 41 %
Professional and other services47 1 %84 4 %
      Total Glowpoint revenue$1,324 40 %$2,370 100 %
Revenue: Oblong Industries
Visual collaboration product offerings$1,686 52 %— — %
Professional services— — %— — %
Licensing256 8 %— — %
      Total Oblong Industries revenue$1,942 60 %— — %
Total revenue$3,266 100 %$2,370 100 %

Nine Months Ended September 30,
2020% of Revenue2019% of Revenue
Revenue: Glowpoint
Video collaboration services$1,847 16 %$4,335 59 %
Network services2,719 24 %2,879 39 %
Professional and other services175 2 %189 3 %
      Total Glowpoint revenue
4,741 42 %7,403 100 %
Revenue: Oblong Industries
Visual collaboration product offerings4,931 43 %— — %
Professional services898 8 %— — %
Licensing840 7 %— — %
      Total Oblong Industries revenue
6,669 58 %— — %
Total revenue
$11,410 100 %$7,403 100.00 %
Glowpoint’s fixed assets were 100% located in domestic markets as of September 30, 2020 and December 31, 2019. Oblong Industries’ long-lived assets were located 88% in domestic and 12% in foreign markets as of September 30, 2020.
The disaggregation of the Company’s total assets as of September 30, 2020 is presented below (in thousands):
As of September 30, 2020
GlowpointOblongTotal
Total assets$3,370 $23,872 $27,242 

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 September 30,
20202019
Segment% of Revenue% of Revenue
Customer AGlowpoint20 %26 %
Customer BOblong Industries12 %— %
Customer CGlowpoint*25 %
* The amount did not exceed 10% of the Company’s consolidated total revenues.

Nine Months Ended September 30,
20202019
Segment% of Revenue% of Revenue
Customer AGlowpoint17 %23 %
Customer BOblong Industries19 %— %
Customer CGlowpoint*27 %

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


Concentration of accounts receivable was as follows:
As of September 30, 2020
20202019
Segment% of Accounts Receivable% of Accounts Receivable
Customer AGlowpoint20 %15 %
Customer BOblong Industries*— %
Customer CGlowpoint*51 %
Customer EOblong Industries15 %— %

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