10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2021.

or

☐     Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number: 001-35376

OBLONG, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	77-0312442
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

25587 Conifer Road, Suite 105-231, Conifer, CO 80433

(Address of Principal Executive Offices, including Zip Code)

(303) 640-3838

(Registrant’s Telephone Number, including Area Code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	OBLG	Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)

Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock as of August 10, 2021 was 30,616,048.

OBLONG, INC.

Index

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements		1
	Condensed Consolidated Balance Sheets at June 30, 2021 (unaudited) and December 31, 2020	1
	Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020	3
	Unaudited Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020	6
	Notes to unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3. Quantitative and Qualitative Disclosures About Market Risk		30
Item 4. Controls and Procedures		30
PART II - OTHER INFORMATION
Item 1. Legal Proceedings		31
Item 1A. Risk Factors		31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		31
Item 3. Defaults Upon Senior Securities		31
Item 4. Mine Safety Disclosures		31
Item 5. Other Information		31
Item 6. Exhibits		32
Signatures		33

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q (this “Report”) contains statements that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and its rules and regulations (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, and its rules and regulations (the “Exchange Act”). These forward-looking statements include, but are not limited to, statements about the plans, objectives, expectations and intentions of Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”). All statements other than statements of current or historical fact contained in this Report, including statements regarding Oblong’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” and similar expressions, as they relate to Oblong, are intended to identify forward-looking statements. These statements are based on Oblong’s current plans, and Oblong’s actual future activities and results of operations may be materially different from those set forth in the forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Any or all of the forward-looking statements in this Report may turn out to be inaccurate. Oblong has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. The forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and assumptions. There are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors that are discussed under the section entitled “Part I. Item 1A. Risk Factors” and in our consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2020, each included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2021, as well as under “Part II. Item 1A. Risk Factors” in this Report. Oblong undertakes no obligation to publicly revise these forward-looking statements to reflect events occurring after the date hereof. All subsequent written and oral forward-looking statements attributable to Oblong or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this Report. Forward-looking statements in this Report include, among other things: our ability to meet commercial commitments; our expectations and estimates relating to customer attrition, sales cycles, future revenues, expenses, capital expenditures and cash flows; evolution of our customer solutions and our service platforms; our ability to fund operations and continue as a going concern; expectations regarding adjustments to our cost of revenue and other operating expenses; our ability to finance investments in product development and sales and marketing; our ability to raise capital through sales of additional equity or debt securities and/or loans from financial institutions; our beliefs about employee relations; statements relating to market need, evolution of our solutions and our service platforms; our beliefs about the service offerings of our competitors and our ability to differentiate Oblong’s services; adequacy of our internal controls; statements regarding our information systems and our ability to protect and prevent security breaches; expectations relating to additional patent protection; and beliefs about the strength of our intellectual property, including patents. For additional information regarding known material factors that could cause our actual results to differ materially from our projected results, please see “Part II. Item 1A. Risk Factors” in this Report. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

•the continued impact of the coronavirus pandemic on our business, including its impact on our customers and other business partners, our ability to conduct operations in the ordinary course, and our ability to obtain capital financing important to our ability to continue as a going concern;

•our ability to continue as a going concern;

•our ability to raise capital in one or more debt and/or equity offerings in order to fund operations or any growth initiatives;

•customer acceptance and demand for our video collaboration services and network applications;

•our ability to compete effectively in the video collaboration services and network services businesses;

•the quality and reliability of our services;

•the prices for our products and services;

•customer renewal rates;

•risks related to the concentration of our customers and the degree to which our sales, now or in the future, depend on certain large client relationships;

•customer acquisition costs;

•actions by our competitors, including price reductions for their competitive services;

•potential federal and state regulatory actions;

•our ability to innovate technologically, and, in particular, our ability to develop next generation Oblong technology;

•our ability to satisfy the standards for continued listing of our common stock on the Nasdaq Capital Market;

•changes in our capital structure and/or stockholder mix;

•the costs, disruption, and diversion of management’s attention associated with campaigns commenced by activist investors; and

•our management’s ability to execute its plans, strategies and objectives for future operations.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OBLONG, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value, stated value, and shares)

	June 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash	$	13,033	$	5,058
Current portion of restricted cash	61		158
Accounts receivable, net	953		3,166
Inventory	2,125		920
Prepaid expenses and other current assets	1,393		691
Total current assets	17,565		9,993
Property and equipment, net	307		573
Goodwill	7,367		7,367
Intangibles, net	8,946		10,140
Operating lease - right of use asset, net	653		903
Other assets	99		167
Total assets	$	34,937	$	29,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	2,014
Accounts payable	518		313
Accrued expenses and other current liabilities	1,420		1,201
Current portion of deferred revenue	894		1,217
Current portion of operating lease liabilities	734		830
Total current liabilities	3,566		5,575
Long-term liabilities:
Long-term debt, net of current portion	2,417		403
Operating lease liabilities, net of current portion	249		602
Deferred revenue, net of current portion	400		506
Total long-term liabilities	3,066		1,511
Total liabilities	6,632		7,086
Commitments and contingencies (see Note 12)
Stockholders’ equity:
Preferred stock Series A-2, convertible; $.0001 par value; $7,500 stated value; 7,500 shares authorized, zero and 45 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	—		—
Preferred stock Series D, convertible; $.0001 par value; $28.50 stated value; 1,750,000 shares authorized, zero and 1,697,958 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	—		—
Preferred stock Series E, convertible; $.0001 par value; $28.50 stated value; 175,000 shares authorized, zero and 131,579 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	—		—

See accompanying notes to condensed consolidated financial statements.

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Common stock, $.0001 par value; 150,000,000 shares authorized; 30,729,331 shares issued and 30,616,048 outstanding at June 30, 2021 and 7,861,912 shares issued and 7,748,629 outstanding at December 31, 2020	3		1
Treasury stock, 113,283 shares of common stock at June 30, 2021 and December 31, 2020	(181)		(181)
Additional paid-in capital	227,017		215,092
Accumulated deficit	(198,534)		(192,855)
Total stockholder's equity	28,305		22,057
Total liabilities and stockholders’ equity	$	34,937	$	29,143

See accompanying notes to condensed consolidated financial statements.

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OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Revenue	$	2,049	$	2,816	$	3,967	$	8,144
Cost of revenue (exclusive of depreciation and amortization)	1,249		1,683		2,539		4,072
Gross profit	800		1,133		1,428		4,072
Operating expenses:
Research and development	599		988		1,291		2,315
Sales and marketing	572		834		1,099		2,040
General and administrative	1,383		1,815		3,450		3,842
Impairment charges	17		—		48		550
Depreciation and amortization	707		796		1,429		1,612
Total operating expenses	3,278		4,433		7,317		10,359
Loss from operations	(2,478)		(3,300)		(5,889)		(6,287)
Interest and other expense, net	9		76		14		220
Other income	(227)		—		(227)		—
Foreign exchange loss (gain)	(14)		9		3		7
Interest and other (income) expense, net	(232)		85		(210)		227
Loss before income taxes	(2,246)		(3,385)		(5,679)		(6,514)
Income tax expense	—		—		—		—
Net loss	(2,246)		(3,385)		(5,679)		(6,514)
Preferred stock dividends	—		4		1		8
Undeclared dividends	—		—		366		—
Induced conversion of Series A-2 Preferred Stock	—		—		300		—
Net loss attributable to common stockholders	$	(2,246)	$	(3,389)	$	(6,346)	$	(6,522)
Net loss attributable to common stockholders per share:
Basic and diluted net loss per share	$	(0.08)	$	(0.65)	$	(0.29)	$	(1.25)
Weighted-average number of shares of common stock:
Basic and diluted	26,644		5,240		22,250		5,222

See accompanying notes to condensed consolidated financial statements.

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OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Three and Six Months Ended June 30, 2021

(In thousands, except shares)

(Unaudited)

	Series A-2 Preferred Stock			Series D Preferred Stock			Series E Preferred Stock			Common Stock			Treasury Stock
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid-In Capital		Accumulated Deficit		Total
Balance at December 31, 2020	45	$	—	1,697,958	$	—	131,579	$	—	7,861,912	$	1	113,283	$	(181)	$	215,092	$	(192,855)	$	22,057
Net loss	—	—		—	—		—	—		—	—		—	—		—		(3,433)		(3,433)
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		33		—		33
Conversion of Series A-2 Preferred Stock, including dividend accrual	(45)	—		—	—		—	—		84,292	—		—	—		—		—		—
Conversion of Series D and E Preferred Stock	—	—		(1,697,022)	—		(131,579)	—		18,762,119	2		—	—		(2)		—		—
Issuance of stock for services	—	—		—	—		—	—		21,008	—		—	—		274		—		274
Forfeitures of restricted stock	—	—		(81)	—		—	—		—	—		—	—		—		—		—
Series D Preferred shares to pay withholding taxes	—	—		(855)	—		—	—		—	—		—	—		—		—		—
Balance at March 31, 2021	—	—		—	—		—	—		26,729,331	3		113,283	(181)		215,397		(196,288)		18,931
Net loss	—	—		—	—		—	—		—	—		—	—		—		(2,246)		(2,246)
Issuance of stock from financing, net of issuance costs	—	—		—	—		—	—		4,000,000	—		—	—		11,504		—		11,504
Issuance of stock for services	—	—		—	—		—	—		—	—		—	—		116		—		116
Balance at June 30, 2021	—	$	—	—	$	—	—	$	—	30,729,331	$	3	113,283	$	(181)	$	227,017	$	(198,534)	$	28,305

See accompanying notes to condensed consolidated financial statements.

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OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Three and Six Months Ended June 30, 2020

(In thousands, except shares)

(Unaudited)

	Series A-2 Preferred Stock			Series C Preferred Stock			Series D Preferred Stock			Series E Preferred Stock			Common Stock			Treasury Stock
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid-In Capital		Accumulated Deficit		Total
Balance at December 31, 2019	32	$	—	475	$	—	1,734,901	$	—	131,579	$	—	5,266,828	$	1	105,285	$	(165)	$	207,383	$	(185,434)	$	21,785
Net loss	—	—		—	—		—	—		—	—		—	—		—	—		—		(3,129)		(3,129)
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		—	—		32		—		32
Forfeitures of restricted stock	—	—		—	—		(14,441)	—		—	—		—	—		—	—		—		—		—
Preferred stock conversion	—	—		(150)	—		—	—		—	—		50,000	—		—	—		—		—		—
Issuance of preferred stock for accrued dividends	13	—		—	—		—	—		—	—		—	—		—	—		98		—		98
Preferred stock dividends	—	—		—	—		—	—		—	—		—	—		—	—		(4)		—		(4)
Purchase of treasury stock	—	—		—	—		—	—		—	—		—	—		—	(7)		—		—		(7)
Balance at March 31, 2020	45	—		325	—		1,720,460	—		131,579	—		5,316,828	1		105,285	(172)		207,509		(188,563)		18,775
Net loss	—	—		—	—		—	—		—	—		—	—		—	—		—		(3,385)		(3,385)
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		—	—		29		—		29
Forfeitures of restricted stock	—	—		—	—		(17,364)	—		—	—		—	—		—	—		—		—		—
Issuance of stock on vested restricted stock units	—	—		—	—		—	—		—	—		23,334	—		—	—		—		—		—
Preferred stock dividends	—	—		—	—		—	—		—	—		—	—		—	—		(4)		—		(4)
Issuance of preferred stock for accrued dividends	—	—		—	—		—	—		—	—		—	—		—	—		1				1
Purchase of treasury stock	—	—		—	—		—	—		—	—		—	—		7,998	(9)		—		—		(9)
Balance at June 30, 2020	45	$	—	325	$	—	1,703,096	$	—	131,579	$	—	5,340,162	$	1	113,283	$	(181)	$	207,535	$	(191,948)	$	15,407

See accompanying notes to condensed consolidated financial statements.

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OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2021		2020
Cash flows from operating activities:
Net loss	$	(5,679)	$	(6,514)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,429		1,612
Bad debt expense	449		34
Amortization of debt discount	—		45
Amortization of right of use asset	250		595
Loss on disposal of equipment	—		15
Stock-based compensation	33		61
Common stock issued for services	390		—
Loss on foreign currency remeasurement	3		(12)
Gain on extinguishment of liability	(227)		—
Impairment charges - property and equipment	48		9
Impairment charges - goodwill	—		541
Changes in operating assets and liabilities:
Accounts receivable	1,764		1,149
Inventory	(1,205)		473
Prepaid expenses and other current assets	(702)		47
Other assets	7		(28)
Accounts payable	205		(3)
Accrued expenses and other current liabilities	408		(493)
Deferred revenue	(429)		238
Lease liabilities	(414)		(626)
Net cash used in operating activities	(3,670)		(2,857)
Cash flows from investing activities:
Purchases of property and equipment	(17)		(5)
Net cash used in investing activities	(17)		(5)
Cash flows from financing activities:
Proceeds from stock issuance, net of issuance costs	11,504		—
Proceeds from PPP Loan	—		2,417
Purchase of treasury stock	—		(16)
Net cash provided by in financing activities	11,504		2,401
Increase (decrease) in cash and restricted cash	7,817		(461)
Cash and restricted cash at beginning of period	5,277		4,602
Cash and restricted cash at end of period	$	13,094	$	4,141
Supplemental disclosures of cash flow information:
Reconciliation of cash and restricted cash
Cash	$	13,033	$	4,141
Restricted cash	$	61	$	—
Total cash and restricted cash	$	13,094	$	4,141
Cash paid during the period for interest	$	2	$	96
Non-cash investing and financing activities:
Issuance of preferred stock in exchange for accrued dividends	—		99
Accrued preferred stock dividends	1		8
Inducement to convert Series A-2 Preferred Stock to common	300		—
Common stock issued for conversion of Preferred Stock	3		—

See accompanying notes to condensed consolidated financial statements.

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OBLONG, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021

(Unaudited)

Note 1 - Business Description and Significant Accounting Policies

Business Description

Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and is a provider of patented multi-stream collaboration technologies and managed services for video collaboration and network applications. Prior to March 6, 2020, Oblong, Inc. was named Glowpoint, Inc. (“Glowpoint”). On March 6, 2020, Glowpoint changed its name to Oblong, Inc.

Basis of Presentation

The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2020. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

The December 31, 2020 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2020 and notes thereto included in the Company's fiscal 2020 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 30, 2021 (the “2020 10-K”).

The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) the following subsidiaries of Oblong Industries: Oblong Industries Europe, S.L. and Oblong Europe Limited. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.

Segments

The Company currently operates in two segments: 1) the Oblong (formerly Glowpoint) business, which includes managed services for video collaboration and network applications, and 2) the Oblong Industries business, which includes products and services for visual collaboration technologies. See Note 11 - Segment Reporting for further discussion.

Use of Estimates

Preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include

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determining the allowance for doubtful accounts, the estimated lives and recoverability of property and equipment, and intangible assets, the inputs used in the valuation of goodwill and intangible assets in connection with our impairment tests, and the inputs used in the fair value of equity based awards as well as the values ascribed to assets acquired and liabilities assumed in the business combination.

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2020 10-K, and there have been no changes to the Company’s significant accounting policies during the six months ended June 30, 2021.

Property and Equipment

Property and equipment are stated at cost and are depreciated over the estimated useful lives of the related assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes. During the three and six months ended June 30, 2021, the Company recorded asset impairment charges on property and equipment of $17,000 and $48,000, respectively, for the discontinued use of, or disposal of, property and equipment. These charges are included in “Impairment Charges” on our condensed consolidated statement of operations.

Recently Issued Accounting Pronouncements

In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 as amended, “Financial Instruments - Credit Losses (Topic 326).” Topic 326 introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g. accounts receivable, loans and held-to-maturity securities), including certain off-balance sheet financial instruments (e.g., loan commitments). The expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The FASB is issuing this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring after the effective date of the amendments. The Company does not expect this update to have a material effect on its consolidated financial statements.

Note 2 - Liquidity and Going Concern Uncertainty

As of June 30, 2021, we had $13,033,000 of unrestricted cash, obligations of $2,417,000 under the Paycheck Protection Program loan (the “PPP Loan”), and working capital of $13,999,000. In July 2021, the PPP Loan was entirely forgiven. For the six months ended June 30, 2021, we incurred a net loss of $5,679,000 and used $3,670,000 of net cash in operating activities. See further discussion of the PPP Loan in Note 6 - Debt.

On June 30, 2021, the Company closed on a concurrent public offering of 4,000,000 shares of the Company’s Common Stock, warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $4.00 per share (the “Series A Warrants”), and private placement of warrants to purchase 3,000,000 shares of common stock at an exercise price of $4.40 per share (the “Series B Warrants”) for gross proceeds of $12,400,000. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000.

Our capital requirements in the future will continue to depend on numerous factors, including the timing and amount of revenue for the Company, customer renewal rates and the timing of collection of outstanding accounts receivable, in each case particularly as it relates to the Company’s major customers, the expense to deliver services, expense for sales and marketing, expense for research and development, capital expenditures, and the cost involved in protecting intellectual property rights. While our acquisition of Oblong Industries provides additional revenues to the Company, the cost to further develop and commercialize Oblong Industries’ product offerings is expected to exceed its revenues for the foreseeable future. We expect to

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continue to invest in product development and sales and marketing expenses with the goal of growing the Company’s revenue in the future. The Company believes that, based on the Company’s current projection of revenue, expenses, capital expenditures, and cash flows, it will not have sufficient resources to fund its operations for the next twelve months following the filing of this Report. We believe additional capital will be required to fund operations and provide growth capital including investments in technology, product development and sales and marketing. To access capital to fund operations or provide growth capital, we will need to raise capital in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising necessary capital or that any such offering will be on terms acceptable to the Company. If we are unable to raise additional capital that may be needed on terms acceptable to us, it could have a material adverse effect on the Company. The factors discussed above raise substantial doubt as to our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from these uncertainties.

See Note 12 - Commitments and Contingencies to our condensed consolidated financial statements for discussion regarding certain additional factors that could impact the Company’s liquidity in the future.

Note 3 - Goodwill

As of June 30, 2021 and December 31, 2020, goodwill was $7,367,000, comprised of amounts recorded in connection with the October 1, 2019 Acquisition of Oblong Industries.

We test goodwill for impairment on an annual basis on September 30 of each year, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company operates two reporting segments, Oblong (formerly Glowpoint) and Oblong Industries. In March 2020, we considered the novel Coronavirus (COVID-19) pandemic and resulting declines in certain of the Company’s revenue to be a triggering event for an interim goodwill impairment test for both reporting units. To determine the fair value of each reporting unit, as of March 31, 2020 for the goodwill impairment tests, we used a weighted average of the discounted cash flow method and a market-based method (comparing the Company’s equity and analyzing multiples of revenue for comparable companies). For the Oblong Industries reporting unit, the fair value of the reporting unit exceeded its carrying amount, therefore no impairment charge was recorded. For the Oblong (formerly Glowpoint) reporting unit, we recorded an impairment charge on goodwill of $541,000 for the three months ended March 31, 2020 as the carrying amount of the reporting unit exceeded its fair value on the test date. This charge is recognized as an impairment charge on our condensed consolidated statements of operations. There were no such triggering events during the three and six months ended June 30, 2021, therefore, no impairment charges were recorded.

The activity in goodwill during the six months ended June 30, 2021 and the year ended December 31, 2020 is shown in the following table (in thousands):

Goodwill	Oblong (formerly Glowpoint)		Oblong Industries		Total
Balance December 31, 2019	$	541	$	7,367	$	7,908
Impairment charges	(541)		—		(541)
Balance December 31, 2020	—		7,367		7,367
Balance June 30, 2021	$	—	$	7,367	$	7,367

In the event we experience future declines in our revenue, cash flows and/or stock price, this may give rise to a triggering event that may require the Company to record additional impairment charges on goodwill in the future.

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Note 4 - Intangible Assets

The following table presents the components of net intangible assets (in thousands):

	As of June 30, 2021						As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Oblong (formerly Glowpoint)
Affiliate network	$	994	$	(769)	$	225	$	994	$	(735)	$	259
Oblong Industries
Developed technology	$	10,060	$	(3,528)	$	6,532	$	10,060	$	(2,520)	$	7,540
Trade names	2,410		(422)		1,988		2,410		(302)		2,108
Distributor relationships	310		(109)		201		310		(77)		233
Subtotal	12,780		(4,059)		8,721		12,780		(2,899)		9,881
Total	$	13,774	$	(4,828)	$	8,946	$	13,774	$	(3,634)	$	10,140

At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three months ended March 31, 2021, we considered the decline in revenue for Oblong Industries to be a triggering event for a recoverability test of intangible assets for this reporting unit. Based on the corresponding recoverability test of Oblong Industries’ intangible assets, we determined no impairment changes were required for the three months ended March 31, 2021. During the three months ended June 30, 2021, we did not identify a triggering event, therefore no impairment charges were required for the three months ended June 30, 2021. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five years to twelve years in accordance with ASC Topic 350.

The weighted average economic lives for the components of intangible assets are as follows:

Oblong (formerly Glowpoint)
Affiliate network	12 years
Oblong Industries
Developed technology	5 years
Trade names	10 years
Distributor relationships	5 years

Related amortization expense was $597,000, $1,194,000, $613,000, and $1,224,000 for the three and six months ended June 30, 2021 and 2020, respectively.

Amortization expense for each of the next five succeeding years will be as follows (in thousands):

Remainder of 2021	$	1,194
2022	2,385
2023	2,378
2024	1,844
2025	241
Thereafter	904
Total	$	8,946

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Note 5 - Accrued Expenses and Other Current Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued compensation costs	$	592	$	411
Accrued professional fees	359		236
Accrued taxes and regulatory fees	172		137
Customer deposits	136		127
Other accrued expenses and liabilities	161		286
Accrued dividends on Series A-2 Preferred Stock	—		4
Accrued expenses and other current liabilities	$	1,420	$	1,201

Note 6 - Debt

Debt consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
PPP Loan Principal	$	2,417	$	2,417
Less: current maturities	—		2,014
Long-term obligations, net of current maturities	$	2,417	$	403

Paycheck Protection Program Loan

On April 10, 2020 (the “Origination Date”), the Company received $2,417,000 in aggregate loan proceeds (the “PPP Loan”) from MidFirst Bank (the “Lender”) pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a Promissory Note (the “Note”), dated April 10, 2020, by and between the Company and the Lender. Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1.0%) per annum. Payments of principal and interest are deferred for the first six months following the Origination Date. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration (the “SBA”).

The PPP provides for forgiveness of up to the full amount borrowed as long as the Company uses the loan proceeds during the 24-week period following disbursement for eligible purposes as described in the CARES Act and related guidance. In May 2021, the Company submitted an application to the Lender for full forgiveness of the PPP Loan and, as of June 30, 2021, the application was under review by the SBA. On July 28, 2021, the Company received notice that the PPP Loan had been forgiven in its entirety.

As of December 31, 2020, the Company accounted for payments that are due within 12 months of the balance sheet date as current liabilities and payments due thereafter as non-current liabilities. As of June 30, 2021, the remaining principal balance on the Note was $2,417,000 and $27,000 of interest has been accrued. As no payments will be made on the PPP Loan, due to the forgiveness notice received on July 28, 2021, we have classified the entire balance as long term as of June 30, 2021. Since the PPP Loan was forgiven in its entirety (including the principal balance and accrued interest), the Company will recognize other income as of the date of forgiveness, during the three months ended September 30, 2021, for the extinguishment of the PPP Loan.

Note 7 - Capital Stock

Common Stock

On February 1, 2021, the Company, acting pursuant to authorization from its Board of Directors, determined to voluntarily withdraw the listing of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), from the NYSE American Stock Exchange (the “NYSE American”) and transfer such listing to The Nasdaq Capital Market (“Nasdaq”). The Company’s listing and trading of its Common Stock on the NYSE American ended at market close on February 11, 2021, and

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trading began on Nasdaq at market open on February 12, 2021, and is continuing to trade under the ticker symbol “OBLG”. As of June 30, 2021, we had 150,000,000 shares of our Common Stock authorized, with 30,729,331 and 30,616,048 shares of issued and outstanding, respectively.

During the six months ended June 30, 2021 and 2020, 18,846,411 and 50,000 shares of the Company’s Common stock were issued in relation to preferred stock conversions, respectively.

Issuance for Professional Service Fees

On December 10, 2020, the Company issued 50,000 shares of Common Stock as payment for services, with a fair value equal to $348,000, related to a financial advisory agreement entered into on December 1, 2020.

On January 21, 2021, the Company issued 21,008 shares of Common Stock as payment for services, with a fair value equal to $100,000, related to a financial advisory agreement entered into on January 15, 2021.

During the three and six months ended June 30, 2021, the Company expensed $116,000 and $390,000, respectfully, as professional service fees included as a component of general and administrative expense in the accompanying condensed consolidated statements of operations.

Issuance Pursuant to Prospectus dated January 15, 2021

On June 30, 2021, the Company closed on a concurrent public offering of 4,000,000 shares of Common Stock, Series A Warrants to purchase 1,000,000 shares of the Company’s Common Stock at an exercise price of $4.00 per share, and private placement of Series B Warrants to purchase 3,000,000 shares of common stock at an exercise price of $4.40 per share for gross proceeds of $12,400,000. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000.

Warrants

On October 21, 2020, the Company issued warrants to purchase up to 521,500 shares of Common Stock pursuant to a securities purchase agreement with certain accredited investors. The Warrants have a term of 2 years, are initially exercisable at $4.08 per share and are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Warrants was recorded to additional paid-in capital during the year ended December 31, 2020. As of June 30, 2021, no warrants had been exercised.

On December 6, 2020, the Company issued warrants to purchase up to 625,000 shares of Common Stock pursuant to a securities purchase agreement with certain accredited investors. The Warrants have a term of 2 years, are initially exercisable at $5.49 per share and are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Warrants was recorded to additional paid-in capital during the year ended December 31, 2020. As of June 30, 2021, no warrants had been exercised.

On June 30, 2021, the Company issued Series A Warrants to purchase up to 1,000,000 shares of Common Stock, and Series B Warrants to purchase up to 3,000,000 shares of Common Stock, pursuant to a securities purchase agreement with certain accredited investors. The Series A Warrants have a term of 6 months and are initially exercisable at $4.00 per share. The Series B Warrants have a term of 3 years, commencing six months and one day from the date of issuance, and are initially exercisable at $4.40 per share. All of the warrants are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Series A and B Warrants was recorded to additional paid-in capital during the six months ended June 30, 2021. As of June 30, 2021, no warrants had been exercised.

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Warrant activity for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below.

	Outstanding
	Number of Warrants (in thousands)	Weighted Average Exercise Price
Warrants outstanding and exercisable, December 31, 2019	72	0.01
Granted	1,147	4.85
Exercised	(72)	0.01
Warrants outstanding and exercisable, December 31, 2020	1,147	$	4.85
Granted	4,000	4.30
Warrants outstanding and exercisable, June 30, 2021	5,147	$	4.42

Treasury Shares

The Company maintains Treasury Stock for the Common Stock shares bought back by the Company when withholding shares to cover taxes on stock compensation transactions. The following table shows the activity for Treasury Stock during the year ended December 31, 2020 (in thousands). There were no treasury stock transactions during the six months ended June 30, 2021.

	Shares	Value
Treasury Shares as of December 31, 2019	105	$	(165)
Purchases to cover stock compensation taxes	8	$	(16)
Treasury Shares as of December 31, 2020	113	$	(181)
Treasury Shares as of June 30, 2021	113	$	(181)

Note 8 - Preferred Stock

Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of June 30, 2021, we had 1,941,250 designated shares of preferred stock and no shares of preferred stock issued and outstanding. As of December 31, 2020, we had 1,829,582 shares of preferred stock outstanding.

Series A-2 Preferred Stock

As of December 31, 2020, there were 45 shares of Series A-2 Preferred Stock issued and outstanding. Each share of Series A-2 Preferred Stock had a stated value of $7,500 per share (the “A-2 Stated Value”), a liquidation preference equal to the Series A-2 Stated Value, and was convertible at the holder’s election into common stock at a conversion price per share of $16.11. Therefore, each share of Series A-2 Preferred Stock was convertible into 466 shares of common stock, for an aggregate of 20,954 shares of common stock.

The Series A-2 Preferred Stock was senior to all outstanding classes of the Company’s equity and was entitled to cumulative dividends at a rate of 5.0% per annum. As of December 31, 2020, the Company had recorded $4,000 in accrued dividends on the accompanying condensed consolidated Balance Sheets related to the Series A-2 Preferred Stock outstanding. During the six months ended June 30, 2021, an additional $1,000 dividend was recorded.

On January 28, 2021, the Company entered into an agreement with the holder of the Series A-2 Preferred Stock to convert the stated value of all outstanding shares of the Series A-2 Preferred Stock, 45 shares, into 84,292 shares of the Company’s common stock, at a negotiated conversion price of $4.00 per share, after taking into consideration accrued and unpaid dividends. The incremental cost of inducing the conversion was approximately $300,000 and was treated similar to a preferred dividend, increasing the net loss attributable to common stockholders.

Series D and E Preferred Stock

In connection with the Oblong Industries acquisition, on October 1, 2019 (the “Closing Date”), the Company issued an aggregate of 1,686,659 shares of Series D Preferred Stock and an aggregate of 49,967 restricted shares of Series D Preferred

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Stock (“Restricted Series D Preferred Stock”), the latter of which were subject to vesting over a two-year period following the closing date of the acquisition.

Pursuant to the terms of the Series D Certificate of Designations, each share of Series D Preferred Stock was entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series D Preferred Stock (or October 1, 2020). Prior to the first anniversary of the issuance of the Series D Preferred Stock no dividends accrued on such stock. Dividends were cumulative and accrued daily in arrears. The accrued value of the Series D Preferred Stock was increased by the amount of such dividends from October 1, 2020 through the date of conversion as described below.

During the year ended December 31, 2020, 28,618 shares of Restricted Series D Preferred Stock were forfeited and 8,325 shares of Series D Preferred Stock were surrendered to cover the taxes on vesting shares. During the three and six months ended June 30, 2021, 81 shares of Restricted Series D Preferred Stock were forfeited and 855 shares of Series D Preferred Stock were surrendered to cover the taxes on vesting shares.

On October 1, 2019, Oblong entered into a Series E Preferred Stock Purchase Agreement relating to the offer and sale by the Company of up to 131,579 shares of its Series E Preferred Stock at a price of $28.50 per share. The Company sold a total of 131,579 shares of Series E Preferred Stock for net proceeds of approximately $3,750,000. The 131,579 shares of Series E Preferred Stock had an aggregate accrued value of $3,750,000 and upon their conversion would convert at a conversion price of $2.85 per share into 1,315,790 common shares.

Pursuant to the terms of the Series E Certificate of Designations, each share of Series E Preferred Stock was entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series E Preferred Stock (or October 1, 2019 or December 18, 2019, as applicable). Prior to the first anniversary of the issuance of the Series E Preferred Stock no dividends accrued on such stock. Dividends were cumulative and accrue daily in arrears. The accrued value of the Series E Preferred Stock was increased by the amount of such dividends from October 1, 2020 through the date of conversion as described below.

The terms of the Company’s Series D and Series E Preferred Stock provided that such shares were automatically convertible into a number of shares of the Company’s Common Stock equal to the accrued value of the preferred shares (initially $28.50), plus any accrued dividends thereon, divided by the conversion price (initially $2.85 per share, subject to specified adjustments) upon the completion of both (i) approval of such conversion by the Company’s stockholders entitled to vote thereon (which occurred on December 19, 2019); and (ii) the receipt of all required authorizations and approval of a new listing application for the Company following the Company’s October 2019 acquisition of Oblong Industries, Inc. from the NYSE American or any such other exchange upon which the Company’s securities are then listed for trading. The Company determined that this conversion condition was completed in its entirety, and the Series D and E Preferred Stock automatically converted to shares of Common Stock pursuant to their terms, effective upon the commencement of trading of the Company’s Common Stock on Nasdaq as described above, on February 12, 2021.

As of the date of conversion, the Company had 1,697,022 shares of Series D Preferred Stock and 131,579 shares of Series E Preferred Stock outstanding, respectively. The outstanding shares of Series D and Series E Preferred stock were converted into 17,416,939 and 1,345,180 shares of Common Stock, respectively, after taking into consideration all accrued and unpaid dividends.

Following the conversion of the Series A-2, Series D, and Series E Preferred Stock, the Company no longer has shares of Preferred Stock issued and outstanding.

Note 9 - Stock Based Compensation

2019 Equity Incentive Plan

On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. As of June 30, 2021, the share pool available for new grants under the 2019 Plan is 2,713,500.

Stock Options

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On June 28, 2021, the Company granted 300,000 stock options to certain employees. These options have a term of 10 years, vest equally over 3 years, upon the anniversary of the grant date, and have an exercise price of $3.25 per share. Using the Black-Scholes option pricing model, the options were determined to have a fair value of $745,000 which will be expensed ratably over the vesting term. No stock options were granted during the year ended December 31, 2020. The fair value of each stock option granted was estimated using the following weighted average assumptions:

	Six Months Ended June 30, 2021
Risk free interest rate	0.47%
Expected maturity	3 years
Expected volatility	1.36
Expected dividend yields	—
Weighted average grant date market value per share	$3.25

A summary of stock options activity during the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below:

	Outstanding			Exercisable
	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
Options outstanding, December 31, 2019	215,345	$	12.27	215,345	$	12.27
Expired	(107,845)	4.92		—	—
Options outstanding, December 31, 2020	107,500	$	19.64	107,500	$	19.64
Granted	300,000	3.25		—	—
Options outstanding, June 30, 2021	407,500	$	7.57	107,500	$	19.64

Additional information as of June 30, 2021 is as follows:

	Outstanding				Exercisable
Range of price	Number of Options	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
$0.00 – $10.00	302,500	9.93	$	3.30	2,500	$	9.00
$10.01 – $20.00	97,500	1.56	19.32		97,500	19.32
$20.01 – $30.00	2,500	0.94	21.80		2,500	21.80
$30.01 – $40.00	5,000	0.70	30.20		5,000	30.20
	407,500	7.76	$	7.57	107,500	$	19.64

The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. There was no stock compensation expense related to stock options for the three and six months ended June 30, 2021 and 2020, and $745,000 remaining as unrecognized stock-based compensation expense for options as of June 30, 2021.

Restricted Stock Awards

As of June 30, 2021 and 2020, there were 627 unvested restricted stock awards outstanding, with a weighted average grant date price of $15.80. The awards were issued in 2014 and vest over the lesser of ten years, a change in control, or separation from the company. Due to the variability of the vesting, the expense was amortized over an average service period of five years; therefore, there is no stock-based compensation expense for restricted stock awards for the three and six months ended June 30, 2021 or 2020.

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Restricted Stock Units

As of June 30, 2021 and 2020, there were no unvested restricted stock units (“RSUs”) outstanding and 28,904 vested RSUs remain outstanding as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSUs.

There was no stock compensation expense for RSUs for the three and six months ended June 30, 2021, and there was zero and $6,000 stock compensation expense for RSUs for the three and six months ended June 30, 2020, respectively, which was included in general and administrative expense. There was no remaining unrecognized stock-based compensation expense for RSUs at June 30, 2021.

Restricted Series D Preferred Stock

In connection with the acquisition of Oblong Industries in 2019, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 shares of Restricted Series D Preferred Stock, which were subject to vesting over a two-year period following the closing date. This vesting period and compensation expense were accelerated, in February 2021, when the Restricted Series D shares were converted to shares of Common Stock. Refer to Note 8 - Preferred Stock for discussion on the conversion of the Series D Restricted Preferred Stock.

Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	—	$	14	$	17	$	28
Sales, general and administrative	$	—	$	15	$	16	$	27
	$	—	$	29	$	33	$	55

During the six months ended June 30, 2021 81 shares of Restricted Series D Preferred Stock were forfeited. During the three and six months ended June 30, 2020, 17,364 and 31,805 shares of Restricted Series D Preferred Stock were forfeited, respectively. As of June 30, 2021, zero shares of Restricted Series D Preferred Stock remain outstanding and there was no remaining unrecognized stock compensation expense.

Note 10 - Net Loss Per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at June 30, 2021 and 2020, is considered contingently returnable until the restrictions lapse and will not be included in the basic net loss per share calculation until the shares are vested. Unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at time of grant.

Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock, to the extent they are dilutive. For the three and six months ended June 30, 2021 and 2020, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss).

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):

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	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net loss	$	(2,246)	$	(3,385)	$	(5,679)	$	(6,514)
Less: preferred stock dividends	—		(4)		(1)		(8)
Less: undeclared dividends	—		—		$	(366)	$	—
Less: loss on induced conversion of Series A-2 Preferred Stock	—		—		$	(300)	$	—
Net loss attributable to common stockholders	$	(2,246)	$	(3,389)	$	(6,346)	$	(6,522)
Denominator:
Weighted-average number of shares of common stock for diluted net loss per share	26,644		5,240		22,250		5,222
Basic and diluted net loss per share	$	(0.08)	$	(0.65)	$	(0.29)	$	(1.25)

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):

	Six Months Ended
	June 30,
	2021	2020
Outstanding stock options	407,500	215,345
Unvested restricted stock awards	627	627
Shares of common stock issuable upon conversion of Series A-2 preferred stock	—	15,545
Shares of common stock issuable upon conversion of Series C preferred stock	—	108,333
Shares of common stock issuable upon conversion of Series D preferred stock	—	17,030,960
Shares of common stock issuable upon conversion of Series E preferred stock	—	1,315,790
Warrants	5,146,500	72,394

Note 11 - Segment Reporting

The Company currently operates in two segments: (1) the Oblong (formerly Glowpoint) business, which includes managed services for video collaboration and network applications; and (2) the Oblong Industries business, which includes products and services for visual collaboration technologies.

Certain information concerning the Company’s segments for the three and six months ended June 30, 2021 and 2020 is presented in the following tables (in thousands):

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	Three Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,078		$	971		$	—	$	2,049
Cost of revenues	739			510			—		1,249
Gross profit	$	339		$	461		$	—	$	800
Gross profit %	31		%	47		%			39		%
Allocated operating expenses	$	82		$	1,796		$	—	$	1,878
Unallocated operating expenses	$	—		$	—		1,400		1,400
Total operating expenses	$	82		$	1,796		$	1,400	$	3,278
Income (loss) from operations	$	257		$	(1,335)		$	(1,400)	$	(2,478)
Interest and other expense (income), net	9			(241)			—		(232)
Net income (loss) before tax	$	248		$	(1,094)		$	(1,400)	$	(2,246)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	248		$	(1,094)		$	(1,400)	$	(2,246)

	Six Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	2,273		$	1,694		$	—	$	3,967
Cost of revenues	1,572			967			—		2,539
Gross profit	$	701		$	727		$	—	$	1,428
Gross profit %	31		%	43		%			36		%
Allocated operating expenses	$	193		$	3,626		$	—	$	3,819
Unallocated operating expenses							3,498		3,498
Total operating expenses	$	193		$	3,626		$	3,498	$	7,317
Income (loss) from operations	$	508		$	(2,899)		$	(3,498)	$	(5,889)
Interest and other expense (income), net	14			(224)			—		(210)
Net income (loss) before tax	$	494		$	(2,675)		$	(3,498)	$	(5,679)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	494		$	(2,675)		$	(3,498)	$	(5,679)

-18-

	Three Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,373		$	1,443		$	—	$	2,816
Cost of revenues	898			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		796
Total operating expenses	$	1,063		$	2,574		$	796	$	4,433
Loss from operations	$	(588)		$	(1,916)		$	(796)	$	(3,300)
Interest and other expense, net	7			78			—		85
Net loss before taxes	$	(595)		$	(1,994)		$	(796)	$	(3,385)
Income tax	$	—		$	—		$	—	$	—
Net loss	$	(595)		$	(1,994)		$	(796)	$	(3,385)

	Six Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	3,417		$	4,727		$	—	$	8,144
Cost of revenues	2,055			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		2,162
Total operating expenses	$	2,212		$	5,985		$	2,162	$	10,359
Loss from operations	$	(850)		$	(3,275)		$	(2,162)	$	(6,287)
Interest and other expense, net	7			220			—		227
Net loss before tax	$	(857)		$	(3,495)		$	(2,162)	$	(6,514)
Income tax	—			—			—		—
Net loss	(857)			(3,495)			$	(2,162)	$	(6,514)

Unallocated operating expenses include costs for the three and six months ended June 30, 2021 and 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.

For the three and six months ended June 30, 2021 and 2020, 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):

-19-

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Domestic	$	1,227	$	1,854	$	2,242	$	5,456
Foreign	822		962		1,725		2,688
	$	2,049	$	2,816	$	3,967	$	8,144

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,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	230	11	%	$	428	15	%
Network services	830		41	%	891		32	%
Professional and other services	18		1	%	54		2	%
Total Oblong revenue	$	1,078	53	%	$	1,373	49	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	942	46	%	923		33	%
Professional services	—		—	%	228		8	%
Licensing	29		1	%	292		10	%
Total Oblong Industries revenue	$	971	47	%	1,443		51	%
Total revenue	$	2,049	100	%	$	2,816	100	%

	Six Months Ended June 30,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	521	13	%	$	1,473	18	%
Network services	1,711		43	%	1,816		22	%
Professional and other services	41		1	%	128		2	%
Total Oblong revenue	$	2,273	57	%	$	3,417	42	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	1,635	41	%	3,245		40	%
Professional services	—		—	%	898		11	%
Licensing	59		1	%	584		7	%
Total Oblong Industries revenue	$	1,694	42.71	%	4,727		58	%
Total revenue	$	3,967	100	%	$	8,144	100	%

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:

-20-

		Three Months Ended June 30,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	32	%	23	%
Customer B	Oblong Industries	—	%	20	%

		Six Months Ended June 30,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	34	%	15	%
Customer B	Oblong Industries	—	%	21	%

Concentration of accounts receivable was as follows:

		As of June 30,
		2021		2020
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Oblong (formerly Glowpoint)	22	%	32	%
Customer B	Oblong (formerly Glowpoint)	13	%	10	%
Customer C	Oblong Industries	—	%	12	%

Note 12 - Commitments and Contingencies

Operating Leases

We currently lease three facilities in Los Angeles, California, one facility in Boston, Massachusetts, and one facility in Dallas, Texas, all providing office space. We also lease space in City of Industry, California, providing warehouse space. These leases expire between 2022 and 2023. During 2020, we exited leases in Herndon, Virginia; Atlanta, Georgia; Houston, Texas; London, England, and a warehouse space in Los Angeles, California. In February 2021, we exited an office space lease in Los Altos, California, when the Company elected to not renew the lease. In June 2021, we entered into a settlement agreement with the landlord of our Munich, Germany office space, to exit the lease early in exchange for €125,000. At the time of the settlement, the remaining liability was €316,000, resulting in a gain of €191,000 ($227,000), which is recorded as other income on the condensed consolidated statement of operations. We currently occupy two of the facilities in Los Angeles and the warehouse space in City of Industry; we have subleases in place for the third Los Angeles property, the Dallas property, and the Boston property. Lease expenses, net of common charges and sublet proceeds, for the three and six months ended June 30, 2021 and 2020 were $92,000, $167,000, $301,000, and $647,000, respectively.

The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2023. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to three years and some of the leases include a Company option to extend the lease term for less than twelve months to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. 

As the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Operating lease expense is recognized on a straight-line basis over the lease term.

-21-

Leases with an initial term of 12 months or less are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to these leases continue to be expensed as incurred.

The following provides balance sheet information related to leases as of June 30, 2021 (in thousands):

		June 30, 2021
Assets
	Operating lease, right-of-use asset, net	$	653
Liabilities
	Current portion of operating lease liabilities	$	734
	Operating lease liabilities, net of current portion	249
	Total operating lease liabilities	$	983

The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands):

Remaining Lease Payments
Remainder of 2021	$	442
2022	508
2023	116
Total lease payments	$	1,066
Effect of discounting	(83)
Total lease liability	$	983

COVID-19

On March 11, 2020, the World Health Organization announced that infections of the novel Coronavirus (COVID-19) had become pandemic, and on March 13 2020, the U.S. President announced a National Emergency relating to the disease. There is a possibility of continued widespread infection in the United States and abroad, with the potential for catastrophic impact. National, state and local authorities have required or recommended social distancing and imposed or are considering quarantine and isolation measures on large portions of the population, including mandatory business closures. These measures, while intended to protect human life, are expected to have serious adverse impacts on domestic and foreign economies of uncertain severity and duration. Some economists are predicting the United States may soon enter a recession. The sweeping nature of the coronavirus pandemic makes it extremely difficult to predict how the Company’s business and operations will be affected in the longer run. The COVID-19 pandemic has materially affected our revenue and results of operations for the three and six months ended June 30, 2021, as we experienced delayed orders in our distribution channels as a direct result of customer implementation schedules shifting due to the ongoing COVID-19 pandemic. The extent to which the coronavirus impacts our future results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. Moreover, the coronavirus outbreak has begun to have indeterminable adverse effects on general commercial activity and the world economy, and our business and results of operations could be adversely affected to the extent that this coronavirus or any other epidemic harms the global economy generally and/or the markets in which we operate specifically. Any of the foregoing factors, or other cascading effects of the coronavirus pandemic that are not currently foreseeable, could materially increase our costs, negatively impact our revenues and damage the Company’s results of operations and its liquidity position, possibly to a significant degree. The duration of any such impacts cannot be predicted. Uncertainties resulting from COVID-19 may result in additional customers delaying budget expenditures or re-allocating resources, which would result in a decrease in orders from these customers. Any such decrease in orders from these customers could cause a material adverse effect on our revenues and financial results and our ability to generate positive cash flows.

NOTE 13 - Subsequent Events

On July 28, 2021, the Company received notice from the Lender of our PPP Loan (discussed in Note 6 - Debt), that the PPP Loan had been forgiven in its entirety on July 26, 2021. In accordance with ASC 470, since the PPP Loan was forgiven, the Company will recognize other income as of the date of forgiveness, during the three months ended September 30, 2021, for the extinguishment of the debt and accrued interest.

-22-

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and prior to March 6, 2020, was named Glowpoint, Inc. (“Glowpoint”). On October 1, 2019, the Company closed an acquisition of all of the outstanding equity interests of Oblong Industries, Inc., a privately held Delaware corporation founded in 2006. Pursuant to the merger Agreement Oblong Industries became a wholly owned subsidiary of the Company. On March 6, 2020, Glowpoint changed its name to Oblong, Inc. In this Report, we use the terms “Oblong” or “we” or “us” or the “Company” to refer to (i) Oblong (formerly Glowpoint), for periods prior to the closing of the merger and (ii) the “Company” of Oblong, Inc. (formerly Glowpoint) and Oblong Industries for periods after the closing of the merger. For purposes of segment reporting, we refer to the Oblong (formerly Glowpoint) business as “Glowpoint” herein, and to the Oblong Industries business as “Oblong Industries” herein.

We believe there is a substantial market opportunity for Oblong Industries’ product offerings and services, and we are in the process of transforming our offerings to meet the evolving needs of our customers. As part of the transformation of our business, we are evolving certain aspects of our model by designing and developing software to include subscription-based offerings. Historically, our technology products and services have been developed and consumed in conventional commercial real estate spaces such as conference rooms. As our core collaboration products evolve, we expect to add more contemporary software features along with expanded accessibility beyond commercial spaces through both hybrid and SaaS offerings delivered in the cloud. These initiatives will require significant investment in technology and product development and sales and marketing. We believe additional capital will be required to fund these investments and our operations.

Oblong’s (formerly Glowpoint) business has experienced revenue declines in recent years which we expect to continue. We currently expect to continue operating the Oblong (formerly Glowpoint) business as part of our Company, however, we plan to seek opportunities in the future to divest some or all of Oblong’s (formerly Glowpoint) business.

Oblong’s Results of Operations

Three Months Ended June 30, 2021 (the “2021 Second Quarter”) compared to the Three Months Ended June 30, 2020 (the “2020 Second Quarter”)

Segment Reporting

The Company currently operates in two segments: 1) the Oblong (formerly Glowpoint) 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. Certain information concerning the Company’s segments for the three months ended June 30, 2021 and 2020 is presented in the following table (in thousands):

-23-

	Three Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,078		$	971		$	—	$	2,049
Cost of revenues	739			510			—		1,249
Gross profit	$	339		$	461		$	—	$	800
Gross profit %	31		%	47		%			39		%
Allocated operating expenses	$	82		$	1,796		$	—	$	1,878
Unallocated operating expenses	$	—		$	—		1,400		1,400
Total operating expenses	$	82		$	1,796		$	1,400	$	3,278
Income (loss) from operations	$	257		$	(1,335)		$	(1,400)	$	(2,478)
Interest and other expense (income), net	9			(241)			$	—	(232)
Net income (loss) before tax	$	248		$	(1,094)		$	(1,400)	$	(2,246)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	248		$	(1,094)		$	(1,400)	$	(2,246)

	Three Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,373		$	1,443		$	—	$	2,816
Cost of revenues	898			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		796
Total operating expenses	$	1,063		$	2,574		$	796	$	4,433
Loss from operations	$	(588)		$	(1,916)		$	(796)	$	(3,300)
Interest and other expense, net	7			78			$	—	85
Net loss before taxes	$	(595)		$	(1,994)		$	(796)	$	(3,385)
Income tax	$	—		$	—		$	—	$	—
Net loss	$	(595)		$	(1,994)		$	(796)	$	(3,385)

Unallocated operating expenses include costs 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.

Revenue. Total revenue decreased $767,000 (or 27%) to $2,049,000 in the 2021 Second Quarter from $2,816,000 in the 2020 Second Quarter. The following table summarizes the changes in components of our revenue (in thousands), and the significant changes in revenue are discussed in more detail below.

-24-

	Three Months Ended June 30,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	230	11	%	$	428	15	%
Network services	830		41	%	891		32	%
Professional and other services	18		1	%	54		2	%
Total Oblong revenue	$	1,078	53	%	$	1,373	49	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	942	46	%	$	923	33	%
Professional services	—		—	%	$	228	8	%
Licensing	29		1	%	$	292	10	%
Total Oblong Industries revenue	$	971	47	%	$	1,443	51	%
Total revenue	$	2,049	100	%	$	2,816	100	%

Oblong (formerly Glowpoint)

•Revenue for managed services for video collaboration services decreased $198,000 (or 46%) to $230,000 in the 2021 Second Quarter from $428,000 in the 2020 Second Quarter. This decrease is mainly attributable to lower revenue from existing customers (either from reductions in price or level of services) and loss of customers to competition.

•Revenue for network services decreased $61,000 (or 7%) to $830,000 in the 2021 Second Quarter from $891,000 in the 2020 Second Quarter. This decrease is mainly attributable to net attrition of customers and lower demand for our services given the competitive environment and pressure on pricing that exists in the network services business.

•Revenue for professional and other services decreased $36,000 (or 67%) to $18,000 in the 2021 Second Quarter from $54,000 in the 2020 Second Quarter. This decrease is mainly attributable to lower resale of video equipment.

Oblong Industries

•Revenue for visual collaboration product offerings increased $19,000 or (2%) to $942,000 in the 2021 Second Quarter from $923,000 in the 2020 Second Quarter.

•Revenue for professional services decreased 100.0% in the 2021 Second Quarter from $228,000 in the 2020 Second Quarter. A former customer terminated our professional services effective April 30, 2020 due to COVID-19. Our professional services revenue for the 2020 Second Quarter was primarily attributable to this customer. We do not expect to generate revenue from professional services in 2021 and in the future.

•Revenue for licensing decreased $263,000 (or 90.1%) to $29,000 in the 2021 Second Quarter from $292,000 in the 2020 Second Quarter. A former customer terminated the licensing of our technology effective December 31, 2020. Our licensing revenue for the 2020 Second Quarter was primarily attributable to this customer.

Cost of Revenue (exclusive of depreciation and amortization). Cost of revenue, exclusive of depreciation and amortization, includes all internal and external costs related to the delivery of revenue. Cost of revenue also includes taxes which have been billed to customers. Cost of revenue by segment is presented in the following table (in thousands):

-25-

	Three Months Ended June 30,
	2021		2020
Cost of Revenue
Oblong (formerly Glowpoint)	$	739	$	898
Oblong Industries	510		785
Total cost of revenue	$	1,249	$	1,683

Cost of revenue decreased to $1,249,000 in the 2021 Second Quarter from $1,683,000 in the 2020 Second Quarter. This decrease in cost of revenue is mainly attributable to lower costs associated with the decrease in revenue between the 2021 Second Quarter and the 2020 Second Quarter and the Employee Retention Credit (“ERC”) of $141,000 which reduced labor costs in cost of revenue for the 2021 Second Quarter. The Company recorded the full amount of the ERC for both the first and second quarters of 2021 in the 2021 Second Quarter due to the uncertainty of the ERC that existed during the first quarter of 2021. The Company’s gross profit as a percentage of revenue decreased to 39% in the 2021 Second Quarter as compared to 40% in the 2020 Second Quarter.

Research and Development. Research and development expenses include internal and external costs related to developing new service offerings and features and enhancements to our existing services. Research and development expenses decreased to $599,000 in the 2021 Second Quarter from $988,000 in the 2020 Second Quarter. This decrease is primarily attributable to a reduction in headcount from 2020 Second Quarter to Second Quarter 2021 and recognition of the ERC of $192,000 which reduced labor costs in research and development for Second Quarter 2021.

Sales and Marketing Expenses. Sales and marketing expenses decreased to $572,000 in the 2021 Second Quarter from $834,000 in the 2020 Second Quarter. This decrease is primarily attributable to a reduction in headcount from Second Quarter 2020 to Second Quarter 2021, a reduction in lease expense as we closed several office locations in 2020 and 2021, and recognition of the ERC of $109,000 which reduced labor costs in sales and marketing for Second Quarter 2021.

General and Administrative Expenses. General and administrative expenses include direct corporate expenses and costs of personnel in the various corporate support categories, including executive, finance and accounting, legal, human resources and information technology. General and administrative expenses decreased to $1,383,000 in the 2021 Second Quarter from $1,815,000 in the 2020 Second Quarter. This decrease is primarily attributable to a reduction in headcount from Second Quarter 2020 to Second Quarter 2021 and recognition of the ERC of $191,000 which reduced labor costs in general and administrative labor for Second Quarter 2021.

Impairment Charges. In the 2021 Second Quarter we recorded $17,000 of impairment expense related to property and equipment no longer in service. There were no impairment charges in the 2020 Second Quarter.

Depreciation and Amortization Expenses. Depreciation and amortization expenses decreased to $707,000 in the 2021 Second Quarter from $796,000 in the 2020 Second Quarter. This decrease is mainly attributable to the disposition and impairment of certain assets in 2020 as well as a decrease in depreciation as certain assets became fully depreciated.

Loss from Operations. The Company recorded a loss from operations of $2,478,000 in the 2021 Second Quarter as compared to a loss from operations of $3,300,000 in the 2020 Second Quarter. This decrease in our loss from operations from the 2020 Second Quarter to the 2021 Second Quarter is mainly attributable to lower operating expenses as addressed above, partially offset by lower gross profit.

Six Months Ended June 30, 2021 compared to the Six Months Ended June 30, 2020

Segment Reporting

The Company currently operates in two segments: 1) the Oblong (formerly Glowpoint) 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. Certain information concerning the Company’s segments for the six months ended June 30, 2021 and 2020 is presented in the following table (in thousands):

-26-

	Six Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	2,273		$	1,694		$	—	$	3,967
Cost of revenues	1,572			967			—		2,539
Gross profit	$	701		$	727		$	—	$	1,428
Gross profit %	31		%	43		%			36		%
Allocated operating expenses	$	193		$	3,626		$	—	$	3,819
Unallocated operating expenses							$	3,498	$	3,498
Total operating expenses	$	193		$	3,626		$	3,498	$	7,317
Income (loss) from operations	$	508		$	(2,899)		$	(3,498)	$	(5,889)
Interest and other expense (income), net	$	14		$	(224)		$	—	$	(210)
Net income (loss) before tax	$	494		$	(2,675)		$	(3,498)	$	(5,679)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	494		$	(2,675)		$	(3,498)	$	(5,679)

	Six Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	3,417		$	4,727		$	—	$	8,144
Cost of revenues	2,055			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		2,162
Total operating expenses	$	2,212		$	5,985		$	2,162	$	10,359
Loss from operations	$	(850)		$	(3,275)		$	(2,162)	$	(6,287)
Interest and other expense, net	7			220			—		227
Net loss before tax	$	(857)		$	(3,495)		$	(2,162)	$	(6,514)
Income tax	—			—			—		—
Net loss	(857)			(3,495)			$	(2,162)	$	(6,514)

Unallocated operating expenses include costs 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.

Revenue. Total revenue decreased $4,177,000 (or 51%) to $3,967,000 in the Six Months Ended June 30, 2021 from $8,144,000 in the Six Months Ended June 30, 2020. The following table summarizes the changes in components of our revenue (in thousands), and the significant changes in revenue are discussed in more detail below.

-27-

	Six Months Ended June 30,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	521	13	%	$	1,473	18	%
Network services	1,711		43	%	1,816		22	%
Professional and other services	41		1	%	128		2	%
Total Glowpoint revenue	$	2,273	57	%	$	3,417	42	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	1,635	41	%	$	3,245	40	%
Professional services	—		—	%	898		11	%
Licensing	59		1	%	584		7	%
Total Oblong Industries revenue	$	1,694	43	%	$	4,727	58	%
Total revenue	$	3,967	100	%	$	8,144	100	%

Oblong (formerly Glowpoint)

•Revenue for managed services for video collaboration services decreased $952,000 (or 65%) to $521,000 in the Six Months Ended June 30, 2021 from $1,473,000 in the Six Months Ended June 30, 2020. This decrease is mainly attributable to lower revenue from existing customers (either from reductions in price or level of services) and loss of customers to competition.

•Revenue for network services decreased $105,000 (or 6%) to $1,711,000 in the Six Months Ended June 30, 2021 from $1,816,000 in the Six Months Ended June 30, 2020. This decrease is mainly attributable to net attrition of customers and lower demand for our services given the competitive environment and pressure on pricing that exists in the network services business.

•Revenue for professional and other services decreased $87,000 (or 68%) to $41,000 in the Six Months Ended June 30, 2021 from $128,000 in the Six Months Ended June 30, 2020. This decrease is mainly attributable to lower resale of video equipment.

Oblong Industries

•Revenue for visual collaboration product offerings decreased $1,610,000 or (50%) to $1,635,000 in the Six Months Ended June 30, 2021 from $3,245,000 in the Six Months Ended June 30, 2020. This decrease is primarily attributable to delayed orders in our distribution channels as a direct result of customer implementation schedules shifting due to the COVID-19 pandemic.

•Revenue for professional services decreased 100% in the Six Months Ended June 30, 2021 from $898,000 in the Six Months Ended June 30, 2020. A former customer terminated our professional services effective April 30, 2020 due to COVID-19. Our professional services revenue for the Six Months Ended June 30, 2020 was primarily attributable to this customer. We do not expect to generate revenue from professional services in 2021 and in the future.

•Revenue for licensing decreased $525,000 (or 90%) to $59,000 in the Six Months Ended June 30, 2021 from $584,000 in the Six Months Ended June 30, 2020. A former customer terminated the licensing of our technology effective December 31, 2020. Our licensing revenue for the Six Months Ended June 30, 2020 was primarily attributable to this customer.

Cost of Revenue (exclusive of depreciation and amortization). Cost of revenue, exclusive of depreciation and amortization, includes all internal and external costs related to the delivery of revenue. Cost of revenue also includes taxes which have been billed to customers. Cost of revenue by segment is presented in the following table (in thousands):

-28-

	Six Months Ended June 30,
	2021		2020
Cost of Revenue
Oblong (formerly Glowpoint)	$	1,572	$	2,055
Oblong Industries	$	967	$	2,017
Total cost of revenue	$	2,539	$	4,072

Cost of revenue decreased to $2,539,000 in the Six Months Ended June 30, 2021 from $4,072,000 in the Six Months Ended June 30, 2020. This decrease in cost of revenue is mainly attributable to lower costs associated with the decrease in revenue between the Six Months Ended June 30, 2021 and the Six Months Ended June 30, 2020 and the ERC of $141,000 attributable to cost of revenue labor for the Six Months Ended June 30, 2021. The Company’s gross profit as a percentage of revenue decreased to 36% in the 2021 period as compared to 50% in the 2020 period, mainly due to decreases in revenue with higher margins.

Research and Development. Research and development expenses include internal and external costs related to developing new service offerings and features and enhancements to our existing services. Research and development expenses decreased to $1,291,000 in the Six Months Ended June 30, 2021 from $2,315,000 in the Six Months Ended June 30, 2020. This decrease is primarily attributable to a reduction in headcount from the 2020 period to the 2021 period and the ERC of $193,000 attributable to research and development labor for the Six Months Ended June 30, 2021.

Sales and Marketing Expenses. Sales and marketing expenses decreased to $1,099,000 in the Six Months Ended June 30, 2021 from $2,040,000 in the Six Months Ended June 30, 2020. This decrease is primarily attributable to a reduction in headcount from the 2020 period to the 2021 period, a reduction in lease expense as we closed several office locations in 2020, and the ERC of $109,000 attributable to sales and marketing labor for the Six Months Ended June 30, 2021.

General and Administrative Expenses. General and administrative expenses include direct corporate expenses and costs of personnel in the various corporate support categories, including executive, finance and accounting, legal, human resources and information technology. General and administrative expenses decreased to $3,450,000 in the Six Months Ended June 30, 2021 from $3,842,000 in the Six Months Ended June 30, 2020. This decrease is primarily attributable to a reduction in headcount from the 2020 period to the 2021 period and the ERC of $191,000 attributable to general and administrative labor for the Six Months Ended June 30, 2021.

Impairment Charges. Impairment charges in the Six Months Ended June 30, 2021 were $48,000 as compared to $550,000 in the Six Months Ended June 30, 2020. The impairment charges in the 2021 period are attributable to impairment charges on property and equipment no longer in service, and the impairment in the 2020 period was attributable to impairment charges on the Oblong (formerly Glowpoint) goodwill.

Depreciation and Amortization Expenses. Depreciation and amortization expenses decreased to $1,429,000 in the Six Months Ended June 30, 2021 from $1,612,000 in the Six Months Ended June 30, 2020. This decrease is mainly attributable to the disposition and impairment of certain assets in 2020 as well as a decrease in depreciation as certain assets became fully depreciated.

Loss from Operations. The Company recorded a loss from operations of $5,889,000 in the Six Months Ended June 30, 2021 as compared to a loss from operations of $6,287,000 in the Six Months Ended June 30, 2020. This decrease in our loss from operations from the 2020 period to the 2021 period is mainly attributable to lower operating expenses, as discussed above, partially offset by lower gross profit.

Off-Balance Sheet Arrangements

As of June 30, 2021, we had no off-balance sheet arrangements.

Inflation

Management does not believe inflation had a significant effect on the condensed consolidated financial statements for the periods presented.

-29-

Critical Accounting Policies

There have been no changes to our critical accounting policies during the six months ended June 30, 2021. Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies” in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as in our condensed consolidated financial statements and the footnotes thereto, each included in our 2020 10-K.

Liquidity and Capital Resources

As of June 30, 2021, we had $13,033,000 of cash, obligations of $2,417,000 under the Paycheck Protection Program loan, (the “PPP Loan”) and working capital of $13,999,000. In July 2021, the PPP Loan was entirely forgiven. For the six months ended June 30, 2021, we incurred a net loss of $5,679,000 and used $3,670,000 of net cash in operating activities.

On June 30, 2021, the Company closed on a concurrent public offering of 4,000,000 shares of the Company’s Common Stock, warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $4.00 per share (the “Series A Warrants”), and private placement of warrants to purchase 3,000,000 shares of common stock at an exercise price of $4.40 per share (the “Series B Warrants”) for gross proceeds of $12,400,000. The Common Stock and Series A Warrants were offered and sold pursuant to the prospectus supplement dated June 28, 2021 and accompanying base prospectus dated January 15, 2021, relating to the Company’s existing shelf registration statement on Form S-3 (333-252145) that was declared effective by the Securities and Exchange Commission on January 21, 2021. Both offerings were conducted pursuant to a securities purchase agreement (the “Purchase Agreement”), dated June 28, 2021, between the Company and the purchasers party thereto. The Purchase Agreement includes customary representations, warranties and covenants by the Company and obligates the Company to indemnify each purchaser named therein and certain related parties for certain losses, including those resulting from a breach of any of the representations, warranties, covenants or agreements made by the Company in the Purchase Agreement. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000.

Our capital requirements in the future will continue to depend on numerous factors, including the timing and amount of revenue for the Company, customer renewal rates and the timing of collection of outstanding accounts receivable, in each case particularly as it relates to the Company’s major customers, the expense to deliver services, expense for sales and marketing, expense for research and development, capital expenditures, and the cost involved in protecting intellectual property rights. While our acquisition of Oblong Industries provides additional revenues to the Company, the cost to further develop and commercialize Oblong Industries’ product offerings is expected to exceed its revenues for the foreseeable future. We expect to continue to invest in product development and sales and marketing expenses with the goal of growing the Company’s revenue in the future. The Company believes that, based on the Company’s current projection of revenue, expenses, capital expenditures, and cash flows, it will not have sufficient resources to fund its operations for the next twelve months following the filing of this Report. We believe additional capital will be required to fund operations and provide growth capital including investments in technology, product development and sales and marketing. To access capital to fund operations or provide growth capital, we will need to raise capital in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising necessary capital or that any such offering will be on terms acceptable to the Company. If we are unable to raise additional capital that may be needed on terms acceptable to us, it could have a material adverse effect on the Company. The factors discussed above raise substantial doubt as to our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from these uncertainties.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by the rules and regulations of the SEC, we are not required to provide this information.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2021. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2021, the Company’s disclosure controls and

-30-

procedures are effective to ensure that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and are designed to ensure that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

No change in our internal control over financial reporting occurred during the fiscal quarter ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to various legal proceedings arising in the ordinary course of business, including proceedings for which we have insurance coverage. As of the date hereof, we are not party to any legal proceedings that we currently believe will have a material adverse effect on our business, financial position, results of operations or liquidity.

ITEM 1A. RISK FACTORS

A description of the risks associated with our business, financial conditions and results of operations is set forth under the heading “Updating Risk Factors” in our Current Report on Form 8-K filed June 28, 2021 (the “Current Report”). The risks described in the Current Report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities by the Company

There have been no unregistered sales of securities by the Company during the period covered by this Report that have not been previously reported in a Current Report on Form 8-K.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

-31-

ITEM 6. EXHIBITS

Exhibit Number	Description
31.1*	Rule 13a—14(a)/15d—14(a) Certification of the Chief Executive Officer.
31.2*	Rule 13a—14(a)/15d—14(a) Certification of the Chief Financial Officer.
32.1**	Section 1350 Certification of the Chief Executive Officer and Chief Financial Officer.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith.

** Furnished herewith.

-32-

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.    

	OBLONG, INC.
August 11, 2021	By:	/s/ Peter Holst
		Peter Holst
		Chief Executive Officer
		(Principal Executive Officer)

August 11, 2021	By:	/s/ David Clark
		David Clark
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

-33-

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Peter Holst, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Oblong, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;  and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 11, 2021

/s/ Peter Holst    

Peter Holst

Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, David Clark, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Oblong, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;  and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 11, 2021

/s/ David Clark    

David Clark

Chief Financial Officer

(principal financial and accounting officer)

EX-32.1

Exhibit 32.1

SECTION 906 CERTIFICATION

The undersigned officers of Oblong, Inc., a Delaware corporation (the "Company"), do hereby certify, in accordance with 18 U.S.C. Section 1350, as created pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The accompanying Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 11, 2021

/s/ Peter Holst    

Peter Holst

Chief Executive Officer

/s/ David Clark    

David Clark

Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-35376
Entity Registrant Name	OBLONG, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0312442
Entity Address, Address Line One	25587 Conifer Road
Entity Address, Address Line Two	Suite 105-231
Entity Address, City or Town	Conifer
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80433
City Area Code	303
Local Phone Number	640-3838
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	OBLG
Security Exchange Name	NASDAQ
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Central Index Key	0000746210
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,616,048
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 13,033	$ 5,058
Current portion of restricted cash	61	158
Accounts receivable, net	953	3,166
Inventory	2,125	920
Prepaid expenses and other current assets	1,393	691
Total current assets	17,565	9,993
Property and equipment, net	307	573
Goodwill	7,367	7,367
Intangibles, net	8,946	10,140
Operating lease - right of use asset, net	653	903
Other assets	99	167
Total assets	34,937	29,143
Current liabilities:
Current portion of long-term debt	0	2,014
Accounts payable	518	313
Accrued expenses and other current liabilities	1,420	1,201
Current portion of deferred revenue	894	1,217
Current portion of operating lease liabilities	734	830
Total current liabilities	3,566	5,575
Long-term liabilities:
Long-term debt, net of current portion	2,417	403
Operating lease liabilities, net of current portion	249	602
Deferred revenue, net of current portion	400	506
Total long-term liabilities	3,066	1,511
Total liabilities	6,632	7,086
Commitments and contingencies (see Note 12)
Stockholders’ equity:
Common stock, $.0001 par value; 150,000,000 shares authorized; 30,729,331 shares issued and 30,616,048 outstanding at June 30, 2021 and 7,861,912 shares issued and 7,748,629 outstanding at December 31, 2020	3	1
Treasury stock, 113,283 shares of common stock at June 30, 2021 and December 31, 2020	(181)	(181)
Additional paid-in capital	227,017	215,092
Accumulated deficit	(198,534)	(192,855)
Total stockholder's equity	28,305	22,057
Total liabilities and stockholders’ equity	34,937	29,143
Series A-2 Preferred Stock
Stockholders’ equity:
Preferred stock	0	0
Series D Preferred Stock
Stockholders’ equity:
Preferred stock	0	0
Series E Preferred Stock
Stockholders’ equity:
Preferred stock	$ 0	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, convertible, shares authorized (in shares)	5,000,000
Preferred stock, convertible, shares issued (in shares)	0
Preferred stock, convertible, shares outstanding (in shares)	0	1,829,582
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	30,729,331	7,861,912
Common stock, shares outstanding (in shares)	30,616,048	7,748,629
Treasury stock, shares (in shares)	113,283	113,283
Series A-2 Preferred Stock
Preferred stock, convertible, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, stated value	$ 7,500	$ 7,500
Preferred stock, convertible, shares authorized (in shares)	7,500	7,500
Preferred stock, convertible, shares issued (in shares)	0	45
Preferred stock, convertible, shares outstanding (in shares)	0	45
Series D Preferred Stock
Preferred stock, convertible, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, stated value	$ 28.50	$ 28.50
Preferred stock, convertible, shares authorized (in shares)	1,750,000	1,750,000
Preferred stock, convertible, shares issued (in shares)	0	1,697,958
Preferred stock, convertible, shares outstanding (in shares)	0	1,697,958
Series E Preferred Stock
Preferred stock, convertible, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, stated value	$ 28.50	$ 28.50
Preferred stock, convertible, shares authorized (in shares)	175,000	175,000
Preferred stock, convertible, shares issued (in shares)	0	131,579
Preferred stock, convertible, shares outstanding (in shares)	0	131,579

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 2,049	$ 2,816	$ 3,967	$ 8,144
Cost of revenue (exclusive of depreciation and amortization)	1,249	1,683	2,539	4,072
Gross profit	800	1,133	1,428	4,072
Operating expenses:
Research and development	599	988	1,291	2,315
Sales and marketing	572	834	1,099	2,040
General and administrative	1,383	1,815	3,450	3,842
Impairment charges	17	0	48	550
Depreciation and amortization	707	796	1,429	1,612
Total operating expenses	3,278	4,433	7,317	10,359
Loss from operations	(2,478)	(3,300)	(5,889)	(6,287)
Interest and other expense, net	9	76	14	220
Other income	(227)	0	(227)	0
Foreign exchange loss (gain)	(14)	9	3	7
Interest and other (income) expense, net	(232)	85	(210)	227
Loss before income taxes	(2,246)	(3,385)	(5,679)	(6,514)
Income tax expense	0	0	0	0
Net loss	(2,246)	(3,385)	(5,679)	(6,514)
Preferred stock dividends	0	4	1	8
Less: undeclared dividends	0	0	366	0
Induced conversion of Series A-2 Preferred Stock	0	0	300	0
Net loss attributable to common stockholders	(2,246)	(3,389)	(6,346)	(6,522)
Net loss attributable to common stockholders	$ (2,246)	$ (3,389)	$ (6,346)	$ (6,522)
Net loss attributable to common stockholders per share:
Basic net loss per share (in dollars per share)	$ (0.08)	$ (0.65)	$ (0.29)	$ (1.25)
Diluted net loss per share (in dollars per share)	$ (0.08)	$ (0.65)	$ (0.29)	$ (1.25)
Weighted-average number of shares of common stock:
Basic (in shares)	26,644	5,240	22,250	5,222
Diluted (in shares)	26,644	5,240	22,250	5,222

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Series D and E Preferred Stock	Preferred Stock Series A-2 Preferred Stock	Preferred Stock Series C Preferred Stock	Preferred Stock Series D Preferred Stock	Preferred Stock Series E Preferred Stock	Common Stock	Common Stock Series A-2 Preferred Stock	Common Stock Series D and E Preferred Stock	Treasury Stock	Additional Paid-In Capital	Additional Paid-In Capital Series D and E Preferred Stock	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2019			32	475	1,734,901	131,579	5,266,828			105,285
Beginning Balance at Dec. 31, 2019	$ 21,785		$ 0	$ 0	$ 0	$ 0	$ 1			$ (165)	$ 207,383		$ (185,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,129)												(3,129)
Stock-based compensation	32										32
Preferred stock conversion (in shares)				(150)			50,000
Issuance of preferred stock for accrued dividends (in shares)			13
Issuance of preferred stock for accrued dividends	98										98
Forfeited restricted stock (in shares)					(14,441)
Preferred stock dividends	(4)										(4)
Purchase of treasury stock	(7)									$ (7)
Ending Balance (in shares) at Mar. 31, 2020			45	325	1,720,460	131,579	5,316,828			105,285
Ending Balance at Mar. 31, 2020	18,775		$ 0	$ 0	$ 0	$ 0	$ 1			$ (172)	207,509		(188,563)
Beginning Balance (in shares) at Dec. 31, 2019			32	475	1,734,901	131,579	5,266,828			105,285
Beginning Balance at Dec. 31, 2019	21,785		$ 0	$ 0	$ 0	$ 0	$ 1			$ (165)	207,383		(185,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,514)
Preferred stock conversion (in shares)							50,000
Ending Balance (in shares) at Jun. 30, 2020			45	325	1,703,096	131,579	5,340,162			113,283
Ending Balance at Jun. 30, 2020	15,407		$ 0	$ 0	$ 0	$ 0	$ 1			$ (181)	207,535		(191,948)
Beginning Balance (in shares) at Dec. 31, 2019			32	475	1,734,901	131,579	5,266,828			105,285
Beginning Balance at Dec. 31, 2019	21,785		$ 0	$ 0	$ 0	$ 0	$ 1			$ (165)	207,383		(185,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation										$ (16)
Series D Preferred Stock exchanged for taxes (in shares)										(8,000)
Ending Balance (in shares) at Dec. 31, 2020			45		1,697,958	131,579	7,861,912			113,283
Ending Balance at Dec. 31, 2020	22,057		$ 0		$ 0	$ 0	$ 1			$ (181)	215,092		(192,855)
Beginning Balance (in shares) at Mar. 31, 2020			45	325	1,720,460	131,579	5,316,828			105,285
Beginning Balance at Mar. 31, 2020	18,775		$ 0	$ 0	$ 0	$ 0	$ 1			$ (172)	207,509		(188,563)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,385)												(3,385)
Stock-based compensation	29										29
Issuance of preferred stock for accrued dividends	1										1
Forfeited restricted stock (in shares)					(17,364)
Issuance of restricted stock (in shares)							23,334
Preferred stock dividends	(4)										(4)
Purchase of treasury stock (in shares)										7,998
Purchase of treasury stock	(9)									$ (9)
Ending Balance (in shares) at Jun. 30, 2020			45	325	1,703,096	131,579	5,340,162			113,283
Ending Balance at Jun. 30, 2020	15,407		$ 0	$ 0	$ 0	$ 0	$ 1			$ (181)	207,535		(191,948)
Beginning Balance (in shares) at Dec. 31, 2020			45		1,697,958	131,579	7,861,912			113,283
Beginning Balance at Dec. 31, 2020	22,057		$ 0		$ 0	$ 0	$ 1			$ (181)	215,092		(192,855)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,433)												(3,433)
Stock-based compensation	33										33
Preferred stock conversion (in shares)			(45)		(1,697,022)	(131,579)		84,292	18,762,119
Preferred stock conversion		$ 0							$ 2			$ (2)
Issuance of stock for services (in shares)							21,008
Issuance of stock for services	274										274
Forfeited restricted stock (in shares)					(81)
Series D Preferred Stock exchanged for taxes (in shares)					(855)
Ending Balance (in shares) at Mar. 31, 2021			0		0	0	26,729,331			113,283
Ending Balance at Mar. 31, 2021	18,931		$ 0		$ 0	$ 0	$ 3			$ (181)	215,397		(196,288)
Beginning Balance (in shares) at Dec. 31, 2020			45		1,697,958	131,579	7,861,912			113,283
Beginning Balance at Dec. 31, 2020	22,057		$ 0		$ 0	$ 0	$ 1			$ (181)	215,092		(192,855)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,679)
Preferred stock conversion (in shares)							18,846,411
Ending Balance (in shares) at Jun. 30, 2021			0		0	0	30,729,331			113,283
Ending Balance at Jun. 30, 2021	28,305		$ 0		$ 0	$ 0	$ 3			$ (181)	227,017		(198,534)
Beginning Balance (in shares) at Mar. 31, 2021			0		0	0	26,729,331			113,283
Beginning Balance at Mar. 31, 2021	18,931		$ 0		$ 0	$ 0	$ 3			$ (181)	215,397		(196,288)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,246)												(2,246)
Issuance of stock from financing, net of issuance costs (in shares)							4,000,000
Issuance of stock from financing, net of issuance costs	11,504										11,504
Issuance of stock for services	116										116
Ending Balance (in shares) at Jun. 30, 2021			0		0	0	30,729,331			113,283
Ending Balance at Jun. 30, 2021	$ 28,305		$ 0		$ 0	$ 0	$ 3			$ (181)	$ 227,017		$ (198,534)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net loss		$ (2,246)	$ (3,433)	$ (3,385)	$ (3,129)	$ (5,679)	$ (6,514)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization						1,429	1,612
Bad debt expense						449	34
Amortization of debt discount						0	45
Amortization of right of use asset						250	595
Loss on disposal of equipment						0	15
Stock-based compensation						33	61
Common stock issued for services						390	0
Loss on foreign currency remeasurement						3	(12)
Gain on extinguishment of liability						(227)	0
Impairment charges - property and equipment						48	9
Impairment charges - goodwill						0	541	$ 541
Changes in operating assets and liabilities:
Accounts receivable						1,764	1,149
Inventory						(1,205)	473
Prepaid expenses and other current assets						(702)	47
Other assets						7	(28)
Accounts payable						205	(3)
Accrued expenses and other current liabilities						408	(493)
Deferred revenue						(429)	238
Lease liabilities						(414)	(626)
Net cash used in operating activities						(3,670)	(2,857)
Cash flows from investing activities:
Purchases of property and equipment						(17)	(5)
Net cash used in investing activities						(17)	(5)
Cash flows from financing activities:
Proceeds from stock issuance, net of issuance costs	$ 11,504					11,504	0
Proceeds from PPP Loan						0	2,417
Purchase of treasury stock						0	(16)
Net cash provided by in financing activities						11,504	2,401
Increase (decrease) in cash and restricted cash						7,817	(461)
Cash and restricted cash at beginning of period			$ 5,277		$ 4,602	5,277	4,602	4,602
Cash and restricted cash at end of period	13,094	13,094		4,141		13,094	4,141	5,277
Reconciliation of cash and restricted cash
Cash	13,033	13,033		4,141		13,033	4,141	5,058
Current portion of restricted cash	61	61		0		61	0	158
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	13,094	13,094		4,141		13,094	4,141	$ 5,277
Cash paid during the period for interest						2	96
Non-cash investing and financing activities:
Issuance of preferred stock in exchange for accrued dividends						0	99
Accrued preferred stock dividends	$ 1	$ 1		$ 8		1	8
Inducement to convert Series A-2 Preferred Stock to common						300	0
Common stock issued for services						$ 3	$ 0

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Business Description and Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Business Description and Significant Accounting Policies

Business Description and Significant Accounting Policies

Business Description

Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and is a provider of patented multi-stream collaboration technologies and managed services for video collaboration and network applications. Prior to March 6, 2020, Oblong, Inc. was named Glowpoint, Inc. (“Glowpoint”). On March 6, 2020, Glowpoint changed its name to Oblong, Inc.

Basis of Presentation

The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2020. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

The December 31, 2020 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2020 and notes thereto included in the Company's fiscal 2020 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 30, 2021 (the “2020 10-K”).

The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) the following subsidiaries of Oblong Industries: Oblong Industries Europe, S.L. and Oblong Europe Limited. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.

Segments

The Company currently operates in two segments: 1) the Oblong (formerly Glowpoint) business, which includes managed services for video collaboration and network applications, and 2) the Oblong Industries business, which includes products and services for visual collaboration technologies. See Note 11 - Segment Reporting for further discussion.

Use of Estimates

Preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include

determining the allowance for doubtful accounts, the estimated lives and recoverability of property and equipment, and intangible assets, the inputs used in the valuation of goodwill and intangible assets in connection with our impairment tests, and the inputs used in the fair value of equity based awards as well as the values ascribed to assets acquired and liabilities assumed in the business combination.

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2020 10-K, and there have been no changes to the Company’s significant accounting policies during the six months ended June 30, 2021.

Property and Equipment

Property and equipment are stated at cost and are depreciated over the estimated useful lives of the related assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes. During the three and six months ended June 30, 2021, the Company recorded asset impairment charges on property and equipment of $17,000 and $48,000, respectively, for the discontinued use of, or disposal of, property and equipment. These charges are included in “Impairment Charges” on our condensed consolidated statement of operations.

Recently Issued Accounting Pronouncements

In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 as amended, “Financial Instruments - Credit Losses (Topic 326).” Topic 326 introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g. accounts receivable, loans and held-to-maturity securities), including certain off-balance sheet financial instruments (e.g., loan commitments). The expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The FASB is issuing this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring after the effective date of the amendments. The Company does not expect this update to have a material effect on its consolidated financial statements.

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Liquidity and Going Concern Uncertainty

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Going Concern Uncertainty

Liquidity and Going Concern Uncertainty

As of June 30, 2021, we had $13,033,000 of unrestricted cash, obligations of $2,417,000 under the Paycheck Protection Program loan (the “PPP Loan”), and working capital of $13,999,000. In July 2021, the PPP Loan was entirely forgiven. For the six months ended June 30, 2021, we incurred a net loss of $5,679,000 and used $3,670,000 of net cash in operating activities. See further discussion of the PPP Loan in Note 6 - Debt.

On June 30, 2021, the Company closed on a concurrent public offering of 4,000,000 shares of the Company’s Common Stock, warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $4.00 per share (the “Series A Warrants”), and private placement of warrants to purchase 3,000,000 shares of common stock at an exercise price of $4.40 per share (the “Series B Warrants”) for gross proceeds of $12,400,000. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000.

Our capital requirements in the future will continue to depend on numerous factors, including the timing and amount of revenue for the Company, customer renewal rates and the timing of collection of outstanding accounts receivable, in each case particularly as it relates to the Company’s major customers, the expense to deliver services, expense for sales and marketing, expense for research and development, capital expenditures, and the cost involved in protecting intellectual property rights. While our acquisition of Oblong Industries provides additional revenues to the Company, the cost to further develop and commercialize Oblong Industries’ product offerings is expected to exceed its revenues for the foreseeable future. We expect to

continue to invest in product development and sales and marketing expenses with the goal of growing the Company’s revenue in the future. The Company believes that, based on the Company’s current projection of revenue, expenses, capital expenditures, and cash flows, it will not have sufficient resources to fund its operations for the next twelve months following the filing of this Report. We believe additional capital will be required to fund operations and provide growth capital including investments in technology, product development and sales and marketing. To access capital to fund operations or provide growth capital, we will need to raise capital in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising necessary capital or that any such offering will be on terms acceptable to the Company. If we are unable to raise additional capital that may be needed on terms acceptable to us, it could have a material adverse effect on the Company. The factors discussed above raise substantial doubt as to our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from these uncertainties.

See Note 12 - Commitments and Contingencies to our condensed consolidated financial statements for discussion regarding certain additional factors that could impact the Company’s liquidity in the future.

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Goodwill

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

As of June 30, 2021 and December 31, 2020, goodwill was $7,367,000, comprised of amounts recorded in connection with the October 1, 2019 Acquisition of Oblong Industries.

We test goodwill for impairment on an annual basis on September 30 of each year, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. The Company operates two reporting segments, Oblong (formerly Glowpoint) and Oblong Industries. In March 2020, we considered the novel Coronavirus (COVID-19) pandemic and resulting declines in certain of the Company’s revenue to be a triggering event for an interim goodwill impairment test for both reporting units. To determine the fair value of each reporting unit, as of March 31, 2020 for the goodwill impairment tests, we used a weighted average of the discounted cash flow method and a market-based method (comparing the Company’s equity and analyzing multiples of revenue for comparable companies). For the Oblong Industries reporting unit, the fair value of the reporting unit exceeded its carrying amount, therefore no impairment charge was recorded. For the Oblong (formerly Glowpoint) reporting unit, we recorded an impairment charge on goodwill of $541,000 for the three months ended March 31, 2020 as the carrying amount of the reporting unit exceeded its fair value on the test date. This charge is recognized as an impairment charge on our condensed consolidated statements of operations. There were no such triggering events during the three and six months ended June 30, 2021, therefore, no impairment charges were recorded.

The activity in goodwill during the six months ended June 30, 2021 and the year ended December 31, 2020 is shown in the following table (in thousands):

Goodwill	Oblong (formerly Glowpoint)		Oblong Industries		Total
Balance December 31, 2019	$	541	$	7,367	$	7,908
Impairment charges	(541)		—		(541)
Balance December 31, 2020	—		7,367		7,367
Balance June 30, 2021	$	—	$	7,367	$	7,367

In the event we experience future declines in our revenue, cash flows and/or stock price, this may give rise to a triggering event that may require the Company to record additional impairment charges on goodwill in the future.

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Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The following table presents the components of net intangible assets (in thousands):

	As of June 30, 2021						As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Oblong (formerly Glowpoint)
Affiliate network	$	994	$	(769)	$	225	$	994	$	(735)	$	259
Oblong Industries
Developed technology	$	10,060	$	(3,528)	$	6,532	$	10,060	$	(2,520)	$	7,540
Trade names	2,410		(422)		1,988		2,410		(302)		2,108
Distributor relationships	310		(109)		201		310		(77)		233
Subtotal	12,780		(4,059)		8,721		12,780		(2,899)		9,881
Total	$	13,774	$	(4,828)	$	8,946	$	13,774	$	(3,634)	$	10,140

At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three months ended March 31, 2021, we considered the decline in revenue for Oblong Industries to be a triggering event for a recoverability test of intangible assets for this reporting unit. Based on the corresponding recoverability test of Oblong Industries’ intangible assets, we determined no impairment changes were required for the three months ended March 31, 2021. During the three months ended June 30, 2021, we did not identify a triggering event, therefore no impairment charges were required for the three months ended June 30, 2021. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five years to twelve years in accordance with ASC Topic 350.

The weighted average economic lives for the components of intangible assets are as follows:

Oblong (formerly Glowpoint)
Affiliate network	12 years
Oblong Industries
Developed technology	5 years
Trade names	10 years
Distributor relationships	5 years

Related amortization expense was $597,000, $1,194,000, $613,000, and $1,224,000 for the three and six months ended June 30, 2021 and 2020, respectively.

Amortization expense for each of the next five succeeding years will be as follows (in thousands):

Remainder of 2021	$	1,194
2022	2,385
2023	2,378
2024	1,844
2025	241
Thereafter	904
Total	$	8,946

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Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2021

Other Liabilities Disclosure [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued compensation costs	$	592	$	411
Accrued professional fees	359		236
Accrued taxes and regulatory fees	172		137
Customer deposits	136		127
Other accrued expenses and liabilities	161		286
Accrued dividends on Series A-2 Preferred Stock	—		4
Accrued expenses and other current liabilities	$	1,420	$	1,201

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

Debt consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
PPP Loan Principal	$	2,417	$	2,417
Less: current maturities	—		2,014
Long-term obligations, net of current maturities	$	2,417	$	403

Paycheck Protection Program Loan

On April 10, 2020 (the “Origination Date”), the Company received $2,417,000 in aggregate loan proceeds (the “PPP Loan”) from MidFirst Bank (the “Lender”) pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a Promissory Note (the “Note”), dated April 10, 2020, by and between the Company and the Lender. Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1.0%) per annum. Payments of principal and interest are deferred for the first six months following the Origination Date. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration (the “SBA”).

The PPP provides for forgiveness of up to the full amount borrowed as long as the Company uses the loan proceeds during the 24-week period following disbursement for eligible purposes as described in the CARES Act and related guidance. In May 2021, the Company submitted an application to the Lender for full forgiveness of the PPP Loan and, as of June 30, 2021, the application was under review by the SBA. On July 28, 2021, the Company received notice that the PPP Loan had been forgiven in its entirety.

As of December 31, 2020, the Company accounted for payments that are due within 12 months of the balance sheet date as current liabilities and payments due thereafter as non-current liabilities. As of June 30, 2021, the remaining principal balance on the Note was $2,417,000 and $27,000 of interest has been accrued. As no payments will be made on the PPP Loan, due to the forgiveness notice received on July 28, 2021, we have classified the entire balance as long term as of June 30, 2021. Since the PPP Loan was forgiven in its entirety (including the principal balance and accrued interest), the Company will recognize other income as of the date of forgiveness, during the three months ended September 30, 2021, for the extinguishment of the PPP Loan.

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Capital Stock

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Capital Stock

Capital Stock

Common Stock

On February 1, 2021, the Company, acting pursuant to authorization from its Board of Directors, determined to voluntarily withdraw the listing of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), from the NYSE American Stock Exchange (the “NYSE American”) and transfer such listing to The Nasdaq Capital Market (“Nasdaq”). The Company’s listing and trading of its Common Stock on the NYSE American ended at market close on February 11, 2021, and

trading began on Nasdaq at market open on February 12, 2021, and is continuing to trade under the ticker symbol “OBLG”. As of June 30, 2021, we had 150,000,000 shares of our Common Stock authorized, with 30,729,331 and 30,616,048 shares of issued and outstanding, respectively.

During the six months ended June 30, 2021 and 2020, 18,846,411 and 50,000 shares of the Company’s Common stock were issued in relation to preferred stock conversions, respectively.

Issuance for Professional Service Fees

On December 10, 2020, the Company issued 50,000 shares of Common Stock as payment for services, with a fair value equal to $348,000, related to a financial advisory agreement entered into on December 1, 2020.

On January 21, 2021, the Company issued 21,008 shares of Common Stock as payment for services, with a fair value equal to $100,000, related to a financial advisory agreement entered into on January 15, 2021.

During the three and six months ended June 30, 2021, the Company expensed $116,000 and $390,000, respectfully, as professional service fees included as a component of general and administrative expense in the accompanying condensed consolidated statements of operations.

Issuance Pursuant to Prospectus dated January 15, 2021

On June 30, 2021, the Company closed on a concurrent public offering of 4,000,000 shares of Common Stock, Series A Warrants to purchase 1,000,000 shares of the Company’s Common Stock at an exercise price of $4.00 per share, and private placement of Series B Warrants to purchase 3,000,000 shares of common stock at an exercise price of $4.40 per share for gross proceeds of $12,400,000. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000.

Warrants

On October 21, 2020, the Company issued warrants to purchase up to 521,500 shares of Common Stock pursuant to a securities purchase agreement with certain accredited investors. The Warrants have a term of 2 years, are initially exercisable at $4.08 per share and are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Warrants was recorded to additional paid-in capital during the year ended December 31, 2020. As of June 30, 2021, no warrants had been exercised.

On December 6, 2020, the Company issued warrants to purchase up to 625,000 shares of Common Stock pursuant to a securities purchase agreement with certain accredited investors. The Warrants have a term of 2 years, are initially exercisable at $5.49 per share and are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Warrants was recorded to additional paid-in capital during the year ended December 31, 2020. As of June 30, 2021, no warrants had been exercised.

On June 30, 2021, the Company issued Series A Warrants to purchase up to 1,000,000 shares of Common Stock, and Series B Warrants to purchase up to 3,000,000 shares of Common Stock, pursuant to a securities purchase agreement with certain accredited investors. The Series A Warrants have a term of 6 months and are initially exercisable at $4.00 per share. The Series B Warrants have a term of 3 years, commencing six months and one day from the date of issuance, and are initially exercisable at $4.40 per share. All of the warrants are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Series A and B Warrants was recorded to additional paid-in capital during the six months ended June 30, 2021. As of June 30, 2021, no warrants had been exercised.

Warrant activity for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below.

	Outstanding
	Number of Warrants (in thousands)	Weighted Average Exercise Price
Warrants outstanding and exercisable, December 31, 2019	72	0.01
Granted	1,147	4.85
Exercised	(72)	0.01
Warrants outstanding and exercisable, December 31, 2020	1,147	$	4.85
Granted	4,000	4.30
Warrants outstanding and exercisable, June 30, 2021	5,147	$	4.42

Treasury Shares

The Company maintains Treasury Stock for the Common Stock shares bought back by the Company when withholding shares to cover taxes on stock compensation transactions. The following table shows the activity for Treasury Stock during the year ended December 31, 2020 (in thousands). There were no treasury stock transactions during the six months ended June 30, 2021.

	Shares	Value
Treasury Shares as of December 31, 2019	105	$	(165)
Purchases to cover stock compensation taxes	8	$	(16)
Treasury Shares as of December 31, 2020	113	$	(181)
Treasury Shares as of June 30, 2021	113	$	(181)

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Preferred Stock

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Preferred Stock

Preferred Stock

Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of June 30, 2021, we had 1,941,250 designated shares of preferred stock and no shares of preferred stock issued and outstanding. As of December 31, 2020, we had 1,829,582 shares of preferred stock outstanding.

Series A-2 Preferred Stock

As of December 31, 2020, there were 45 shares of Series A-2 Preferred Stock issued and outstanding. Each share of Series A-2 Preferred Stock had a stated value of $7,500 per share (the “A-2 Stated Value”), a liquidation preference equal to the Series A-2 Stated Value, and was convertible at the holder’s election into common stock at a conversion price per share of $16.11. Therefore, each share of Series A-2 Preferred Stock was convertible into 466 shares of common stock, for an aggregate of 20,954 shares of common stock.

The Series A-2 Preferred Stock was senior to all outstanding classes of the Company’s equity and was entitled to cumulative dividends at a rate of 5.0% per annum. As of December 31, 2020, the Company had recorded $4,000 in accrued dividends on the accompanying condensed consolidated Balance Sheets related to the Series A-2 Preferred Stock outstanding. During the six months ended June 30, 2021, an additional $1,000 dividend was recorded.

On January 28, 2021, the Company entered into an agreement with the holder of the Series A-2 Preferred Stock to convert the stated value of all outstanding shares of the Series A-2 Preferred Stock, 45 shares, into 84,292 shares of the Company’s common stock, at a negotiated conversion price of $4.00 per share, after taking into consideration accrued and unpaid dividends. The incremental cost of inducing the conversion was approximately $300,000 and was treated similar to a preferred dividend, increasing the net loss attributable to common stockholders.

Series D and E Preferred Stock

In connection with the Oblong Industries acquisition, on October 1, 2019 (the “Closing Date”), the Company issued an aggregate of 1,686,659 shares of Series D Preferred Stock and an aggregate of 49,967 restricted shares of Series D Preferred

Stock (“Restricted Series D Preferred Stock”), the latter of which were subject to vesting over a two-year period following the closing date of the acquisition.

Pursuant to the terms of the Series D Certificate of Designations, each share of Series D Preferred Stock was entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series D Preferred Stock (or October 1, 2020). Prior to the first anniversary of the issuance of the Series D Preferred Stock no dividends accrued on such stock. Dividends were cumulative and accrued daily in arrears. The accrued value of the Series D Preferred Stock was increased by the amount of such dividends from October 1, 2020 through the date of conversion as described below.

During the year ended December 31, 2020, 28,618 shares of Restricted Series D Preferred Stock were forfeited and 8,325 shares of Series D Preferred Stock were surrendered to cover the taxes on vesting shares. During the three and six months ended June 30, 2021, 81 shares of Restricted Series D Preferred Stock were forfeited and 855 shares of Series D Preferred Stock were surrendered to cover the taxes on vesting shares.

On October 1, 2019, Oblong entered into a Series E Preferred Stock Purchase Agreement relating to the offer and sale by the Company of up to 131,579 shares of its Series E Preferred Stock at a price of $28.50 per share. The Company sold a total of 131,579 shares of Series E Preferred Stock for net proceeds of approximately $3,750,000. The 131,579 shares of Series E Preferred Stock had an aggregate accrued value of $3,750,000 and upon their conversion would convert at a conversion price of $2.85 per share into 1,315,790 common shares.

Pursuant to the terms of the Series E Certificate of Designations, each share of Series E Preferred Stock was entitled to receive an annual dividend equal to 6.0% of its then-existing Accrued Value per annum, commencing on the first anniversary of the issuance of the Series E Preferred Stock (or October 1, 2019 or December 18, 2019, as applicable). Prior to the first anniversary of the issuance of the Series E Preferred Stock no dividends accrued on such stock. Dividends were cumulative and accrue daily in arrears. The accrued value of the Series E Preferred Stock was increased by the amount of such dividends from October 1, 2020 through the date of conversion as described below.

The terms of the Company’s Series D and Series E Preferred Stock provided that such shares were automatically convertible into a number of shares of the Company’s Common Stock equal to the accrued value of the preferred shares (initially $28.50), plus any accrued dividends thereon, divided by the conversion price (initially $2.85 per share, subject to specified adjustments) upon the completion of both (i) approval of such conversion by the Company’s stockholders entitled to vote thereon (which occurred on December 19, 2019); and (ii) the receipt of all required authorizations and approval of a new listing application for the Company following the Company’s October 2019 acquisition of Oblong Industries, Inc. from the NYSE American or any such other exchange upon which the Company’s securities are then listed for trading. The Company determined that this conversion condition was completed in its entirety, and the Series D and E Preferred Stock automatically converted to shares of Common Stock pursuant to their terms, effective upon the commencement of trading of the Company’s Common Stock on Nasdaq as described above, on February 12, 2021.

As of the date of conversion, the Company had 1,697,022 shares of Series D Preferred Stock and 131,579 shares of Series E Preferred Stock outstanding, respectively. The outstanding shares of Series D and Series E Preferred stock were converted into 17,416,939 and 1,345,180 shares of Common Stock, respectively, after taking into consideration all accrued and unpaid dividends.

Following the conversion of the Series A-2, Series D, and Series E Preferred Stock, the Company no longer has shares of Preferred Stock issued and outstanding.

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Stock Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation

2019 Equity Incentive Plan

On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. As of June 30, 2021, the share pool available for new grants under the 2019 Plan is 2,713,500.

Stock Options

On June 28, 2021, the Company granted 300,000 stock options to certain employees. These options have a term of 10 years, vest equally over 3 years, upon the anniversary of the grant date, and have an exercise price of $3.25 per share. Using the Black-Scholes option pricing model, the options were determined to have a fair value of $745,000 which will be expensed ratably over the vesting term. No stock options were granted during the year ended December 31, 2020. The fair value of each stock option granted was estimated using the following weighted average assumptions:

	Six Months Ended June 30, 2021
Risk free interest rate	0.47%
Expected maturity	3 years
Expected volatility	1.36
Expected dividend yields	—
Weighted average grant date market value per share	$3.25

A summary of stock options activity during the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below:

	Outstanding			Exercisable
	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
Options outstanding, December 31, 2019	215,345	$	12.27	215,345	$	12.27
Expired	(107,845)	4.92		—	—
Options outstanding, December 31, 2020	107,500	$	19.64	107,500	$	19.64
Granted	300,000	3.25		—	—
Options outstanding, June 30, 2021	407,500	$	7.57	107,500	$	19.64

Additional information as of June 30, 2021 is as follows:

	Outstanding				Exercisable
Range of price	Number of Options	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
$0.00 – $10.00	302,500	9.93	$	3.30	2,500	$	9.00
$10.01 – $20.00	97,500	1.56	19.32		97,500	19.32
$20.01 – $30.00	2,500	0.94	21.80		2,500	21.80
$30.01 – $40.00	5,000	0.70	30.20		5,000	30.20
	407,500	7.76	$	7.57	107,500	$	19.64

The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. There was no stock compensation expense related to stock options for the three and six months ended June 30, 2021 and 2020, and $745,000 remaining as unrecognized stock-based compensation expense for options as of June 30, 2021.

Restricted Stock Awards

As of June 30, 2021 and 2020, there were 627 unvested restricted stock awards outstanding, with a weighted average grant date price of $15.80. The awards were issued in 2014 and vest over the lesser of ten years, a change in control, or separation from the company. Due to the variability of the vesting, the expense was amortized over an average service period of five years; therefore, there is no stock-based compensation expense for restricted stock awards for the three and six months ended June 30, 2021 or 2020.

Restricted Stock Units

As of June 30, 2021 and 2020, there were no unvested restricted stock units (“RSUs”) outstanding and 28,904 vested RSUs remain outstanding as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSUs.

There was no stock compensation expense for RSUs for the three and six months ended June 30, 2021, and there was zero and $6,000 stock compensation expense for RSUs for the three and six months ended June 30, 2020, respectively, which was included in general and administrative expense. There was no remaining unrecognized stock-based compensation expense for RSUs at June 30, 2021.

Restricted Series D Preferred Stock

In connection with the acquisition of Oblong Industries in 2019, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 shares of Restricted Series D Preferred Stock, which were subject to vesting over a two-year period following the closing date. This vesting period and compensation expense were accelerated, in February 2021, when the Restricted Series D shares were converted to shares of Common Stock. Refer to Note 8 - Preferred Stock for discussion on the conversion of the Series D Restricted Preferred Stock.

Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	—	$	14	$	17	$	28
Sales, general and administrative	$	—	$	15	$	16	$	27
	$	—	$	29	$	33	$	55

During the six months ended June 30, 2021 81 shares of Restricted Series D Preferred Stock were forfeited. During the three and six months ended June 30, 2020, 17,364 and 31,805 shares of Restricted Series D Preferred Stock were forfeited, respectively. As of June 30, 2021, zero shares of Restricted Series D Preferred Stock remain outstanding and there was no remaining unrecognized stock compensation expense.

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Net Loss Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at June 30, 2021 and 2020, is considered contingently returnable until the restrictions lapse and will not be included in the basic net loss per share calculation until the shares are vested. Unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at time of grant.

Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock, to the extent they are dilutive. For the three and six months ended June 30, 2021 and 2020, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss).

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net loss	$	(2,246)	$	(3,385)	$	(5,679)	$	(6,514)
Less: preferred stock dividends	—		(4)		(1)		(8)
Less: undeclared dividends	—		—		$	(366)	$	—
Less: loss on induced conversion of Series A-2 Preferred Stock	—		—		$	(300)	$	—
Net loss attributable to common stockholders	$	(2,246)	$	(3,389)	$	(6,346)	$	(6,522)
Denominator:
Weighted-average number of shares of common stock for diluted net loss per share	26,644		5,240		22,250		5,222
Basic and diluted net loss per share	$	(0.08)	$	(0.65)	$	(0.29)	$	(1.25)

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):

	Six Months Ended
	June 30,
	2021	2020
Outstanding stock options	407,500	215,345
Unvested restricted stock awards	627	627
Shares of common stock issuable upon conversion of Series A-2 preferred stock	—	15,545
Shares of common stock issuable upon conversion of Series C preferred stock	—	108,333
Shares of common stock issuable upon conversion of Series D preferred stock	—	17,030,960
Shares of common stock issuable upon conversion of Series E preferred stock	—	1,315,790
Warrants	5,146,500	72,394

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Segment Reporting

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company currently operates in two segments: (1) the Oblong (formerly Glowpoint) business, which includes managed services for video collaboration and network applications; and (2) the Oblong Industries business, which includes products and services for visual collaboration technologies.

Certain information concerning the Company’s segments for the three and six months ended June 30, 2021 and 2020 is presented in the following tables (in thousands):

	Three Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,078		$	971		$	—	$	2,049
Cost of revenues	739			510			—		1,249
Gross profit	$	339		$	461		$	—	$	800
Gross profit %	31		%	47		%			39		%
Allocated operating expenses	$	82		$	1,796		$	—	$	1,878
Unallocated operating expenses	$	—		$	—		1,400		1,400
Total operating expenses	$	82		$	1,796		$	1,400	$	3,278
Income (loss) from operations	$	257		$	(1,335)		$	(1,400)	$	(2,478)
Interest and other expense (income), net	9			(241)			—		(232)
Net income (loss) before tax	$	248		$	(1,094)		$	(1,400)	$	(2,246)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	248		$	(1,094)		$	(1,400)	$	(2,246)

	Six Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	2,273		$	1,694		$	—	$	3,967
Cost of revenues	1,572			967			—		2,539
Gross profit	$	701		$	727		$	—	$	1,428
Gross profit %	31		%	43		%			36		%
Allocated operating expenses	$	193		$	3,626		$	—	$	3,819
Unallocated operating expenses							3,498		3,498
Total operating expenses	$	193		$	3,626		$	3,498	$	7,317
Income (loss) from operations	$	508		$	(2,899)		$	(3,498)	$	(5,889)
Interest and other expense (income), net	14			(224)			—		(210)
Net income (loss) before tax	$	494		$	(2,675)		$	(3,498)	$	(5,679)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	494		$	(2,675)		$	(3,498)	$	(5,679)

	Three Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,373		$	1,443		$	—	$	2,816
Cost of revenues	898			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		796
Total operating expenses	$	1,063		$	2,574		$	796	$	4,433
Loss from operations	$	(588)		$	(1,916)		$	(796)	$	(3,300)
Interest and other expense, net	7			78			—		85
Net loss before taxes	$	(595)		$	(1,994)		$	(796)	$	(3,385)
Income tax	$	—		$	—		$	—	$	—
Net loss	$	(595)		$	(1,994)		$	(796)	$	(3,385)

	Six Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	3,417		$	4,727		$	—	$	8,144
Cost of revenues	2,055			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		2,162
Total operating expenses	$	2,212		$	5,985		$	2,162	$	10,359
Loss from operations	$	(850)		$	(3,275)		$	(2,162)	$	(6,287)
Interest and other expense, net	7			220			—		227
Net loss before tax	$	(857)		$	(3,495)		$	(2,162)	$	(6,514)
Income tax	—			—			—		—
Net loss	(857)			(3,495)			$	(2,162)	$	(6,514)

Unallocated operating expenses include costs for the three and six months ended June 30, 2021 and 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.

For the three and six months ended June 30, 2021 and 2020, 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,				Six Months Ended June 30,
	2021		2020		2021		2020
Domestic	$	1,227	$	1,854	$	2,242	$	5,456
Foreign	822		962		1,725		2,688
	$	2,049	$	2,816	$	3,967	$	8,144

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,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	230	11	%	$	428	15	%
Network services	830		41	%	891		32	%
Professional and other services	18		1	%	54		2	%
Total Oblong revenue	$	1,078	53	%	$	1,373	49	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	942	46	%	923		33	%
Professional services	—		—	%	228		8	%
Licensing	29		1	%	292		10	%
Total Oblong Industries revenue	$	971	47	%	1,443		51	%
Total revenue	$	2,049	100	%	$	2,816	100	%

	Six Months Ended June 30,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	521	13	%	$	1,473	18	%
Network services	1,711		43	%	1,816		22	%
Professional and other services	41		1	%	128		2	%
Total Oblong revenue	$	2,273	57	%	$	3,417	42	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	1,635	41	%	3,245		40	%
Professional services	—		—	%	898		11	%
Licensing	59		1	%	584		7	%
Total Oblong Industries revenue	$	1,694	42.71	%	4,727		58	%
Total revenue	$	3,967	100	%	$	8,144	100	%

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,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	32	%	23	%
Customer B	Oblong Industries	—	%	20	%

		Six Months Ended June 30,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	34	%	15	%
Customer B	Oblong Industries	—	%	21	%

Concentration of accounts receivable was as follows:

		As of June 30,
		2021		2020
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Oblong (formerly Glowpoint)	22	%	32	%
Customer B	Oblong (formerly Glowpoint)	13	%	10	%
Customer C	Oblong Industries	—	%	12	%

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12 - Commitments and Contingencies

Operating Leases

We currently lease three facilities in Los Angeles, California, one facility in Boston, Massachusetts, and one facility in Dallas, Texas, all providing office space. We also lease space in City of Industry, California, providing warehouse space. These leases expire between 2022 and 2023. During 2020, we exited leases in Herndon, Virginia; Atlanta, Georgia; Houston, Texas; London, England, and a warehouse space in Los Angeles, California. In February 2021, we exited an office space lease in Los Altos, California, when the Company elected to not renew the lease. In June 2021, we entered into a settlement agreement with the landlord of our Munich, Germany office space, to exit the lease early in exchange for €125,000. At the time of the settlement, the remaining liability was €316,000, resulting in a gain of €191,000 ($227,000), which is recorded as other income on the condensed consolidated statement of operations. We currently occupy two of the facilities in Los Angeles and the warehouse space in City of Industry; we have subleases in place for the third Los Angeles property, the Dallas property, and the Boston property. Lease expenses, net of common charges and sublet proceeds, for the three and six months ended June 30, 2021 and 2020 were $92,000, $167,000, $301,000, and $647,000, respectively.

The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2023. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to three years and some of the leases include a Company option to extend the lease term for less than twelve months to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. 

As the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Operating lease expense is recognized on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to these leases continue to be expensed as incurred.

The following provides balance sheet information related to leases as of June 30, 2021 (in thousands):

		June 30, 2021
Assets
	Operating lease, right-of-use asset, net	$	653
Liabilities
	Current portion of operating lease liabilities	$	734
	Operating lease liabilities, net of current portion	249
	Total operating lease liabilities	$	983

The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands):

Remaining Lease Payments
Remainder of 2021	$	442
2022	508
2023	116
Total lease payments	$	1,066
Effect of discounting	(83)
Total lease liability	$	983

COVID-19

On March 11, 2020, the World Health Organization announced that infections of the novel Coronavirus (COVID-19) had become pandemic, and on March 13 2020, the U.S. President announced a National Emergency relating to the disease. There is a possibility of continued widespread infection in the United States and abroad, with the potential for catastrophic impact. National, state and local authorities have required or recommended social distancing and imposed or are considering quarantine and isolation measures on large portions of the population, including mandatory business closures. These measures, while intended to protect human life, are expected to have serious adverse impacts on domestic and foreign economies of uncertain severity and duration. Some economists are predicting the United States may soon enter a recession. The sweeping nature of the coronavirus pandemic makes it extremely difficult to predict how the Company’s business and operations will be affected in the longer run. The COVID-19 pandemic has materially affected our revenue and results of operations for the three and six months ended June 30, 2021, as we experienced delayed orders in our distribution channels as a direct result of customer implementation schedules shifting due to the ongoing COVID-19 pandemic. The extent to which the coronavirus impacts our future results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. Moreover, the coronavirus outbreak has begun to have indeterminable adverse effects on general commercial activity and the world economy, and our business and results of operations could be adversely affected to the extent that this coronavirus or any other epidemic harms the global economy generally and/or the markets in which we operate specifically. Any of the foregoing factors, or other cascading effects of the coronavirus pandemic that are not currently foreseeable, could materially increase our costs, negatively impact our revenues and damage the Company’s results of operations and its liquidity position, possibly to a significant degree. The duration of any such impacts cannot be predicted. Uncertainties resulting from COVID-19 may result in additional customers delaying budget expenditures or re-allocating resources, which would result in a decrease in orders from these customers. Any such decrease in orders from these customers could cause a material adverse effect on our revenues and financial results and our ability to generate positive cash flows.

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Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

NOTE 13 - Subsequent Events

On July 28, 2021, the Company received notice from the Lender of our PPP Loan (discussed in Note 6 - Debt), that the PPP Loan had been forgiven in its entirety on July 26, 2021. In accordance with ASC 470, since the PPP Loan was forgiven, the Company will recognize other income as of the date of forgiveness, during the three months ended September 30, 2021, for the extinguishment of the debt and accrued interest.

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Business Description and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2020. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

The December 31, 2020 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2020 and notes thereto included in the Company's fiscal 2020 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 30, 2021 (the “2020 10-K”).

The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) the following subsidiaries of Oblong Industries: Oblong Industries Europe, S.L. and Oblong Europe Limited. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.

Segments

Segments

The Company currently operates in two segments: 1) the Oblong (formerly Glowpoint) business, which includes managed services for video collaboration and network applications, and 2) the Oblong Industries business, which includes products and services for visual collaboration technologies. See Note 11 - Segment Reporting for further discussion.

Use of Estimates

Use of Estimates

Preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include

determining the allowance for doubtful accounts, the estimated lives and recoverability of property and equipment, and intangible assets, the inputs used in the valuation of goodwill and intangible assets in connection with our impairment tests, and the inputs used in the fair value of equity based awards as well as the values ascribed to assets acquired and liabilities assumed in the business combination.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost and are depreciated over the estimated useful lives of the related assets, which range from three to ten years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes. During the three and six months ended June 30, 2021, the Company recorded asset impairment charges on property and equipment of $17,000 and $48,000, respectively, for the discontinued use of, or disposal of, property and equipment. These charges are included in “Impairment Charges” on our condensed consolidated statement of operations.

Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 as amended, “Financial Instruments - Credit Losses (Topic 326).” Topic 326 introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g. accounts receivable, loans and held-to-maturity securities), including certain off-balance sheet financial instruments (e.g., loan commitments). The expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The FASB is issuing this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring after the effective date of the amendments. The Company does not expect this update to have a material effect on its consolidated financial statements.

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The activity in goodwill during the six months ended June 30, 2021 and the year ended December 31, 2020 is shown in the following table (in thousands):

Goodwill	Oblong (formerly Glowpoint)		Oblong Industries		Total
Balance December 31, 2019	$	541	$	7,367	$	7,908
Impairment charges	(541)		—		(541)
Balance December 31, 2020	—		7,367		7,367
Balance June 30, 2021	$	—	$	7,367	$	7,367

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The following table presents the components of net intangible assets (in thousands):

	As of June 30, 2021						As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Oblong (formerly Glowpoint)
Affiliate network	$	994	$	(769)	$	225	$	994	$	(735)	$	259
Oblong Industries
Developed technology	$	10,060	$	(3,528)	$	6,532	$	10,060	$	(2,520)	$	7,540
Trade names	2,410		(422)		1,988		2,410		(302)		2,108
Distributor relationships	310		(109)		201		310		(77)		233
Subtotal	12,780		(4,059)		8,721		12,780		(2,899)		9,881
Total	$	13,774	$	(4,828)	$	8,946	$	13,774	$	(3,634)	$	10,140

The weighted average economic lives for the components of intangible assets are as follows:

Oblong (formerly Glowpoint)
Affiliate network	12 years
Oblong Industries
Developed technology	5 years
Trade names	10 years
Distributor relationships	5 years

Schedule of Future Amortization Expense

Amortization expense for each of the next five succeeding years will be as follows (in thousands):

Remainder of 2021	$	1,194
2022	2,385
2023	2,378
2024	1,844
2025	241
Thereafter	904
Total	$	8,946

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Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued compensation costs	$	592	$	411
Accrued professional fees	359		236
Accrued taxes and regulatory fees	172		137
Customer deposits	136		127
Other accrued expenses and liabilities	161		286
Accrued dividends on Series A-2 Preferred Stock	—		4
Accrued expenses and other current liabilities	$	1,420	$	1,201

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Debt consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
PPP Loan Principal	$	2,417	$	2,417
Less: current maturities	—		2,014
Long-term obligations, net of current maturities	$	2,417	$	403

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Capital Stock (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of Warrants Activity

Warrant activity for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below.

	Outstanding
	Number of Warrants (in thousands)	Weighted Average Exercise Price
Warrants outstanding and exercisable, December 31, 2019	72	0.01
Granted	1,147	4.85
Exercised	(72)	0.01
Warrants outstanding and exercisable, December 31, 2020	1,147	$	4.85
Granted	4,000	4.30
Warrants outstanding and exercisable, June 30, 2021	5,147	$	4.42

Summary of Treasury Stock Activity

The following table shows the activity for Treasury Stock during the year ended December 31, 2020 (in thousands). There were no treasury stock transactions during the six months ended June 30, 2021.

	Shares	Value
Treasury Shares as of December 31, 2019	105	$	(165)
Purchases to cover stock compensation taxes	8	$	(16)
Treasury Shares as of December 31, 2020	113	$	(181)
Treasury Shares as of June 30, 2021	113	$	(181)

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Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Valuation Assumptions

The fair value of each stock option granted was estimated using the following weighted average assumptions:

	Six Months Ended June 30, 2021
Risk free interest rate	0.47%
Expected maturity	3 years
Expected volatility	1.36
Expected dividend yields	—
Weighted average grant date market value per share	$3.25

Summary of Options Granted, Exercised, Expired and Forfeited

A summary of stock options activity during the six months ended June 30, 2021 and the year ended December 31, 2020 is presented below:

	Outstanding			Exercisable
	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
Options outstanding, December 31, 2019	215,345	$	12.27	215,345	$	12.27
Expired	(107,845)	4.92		—	—
Options outstanding, December 31, 2020	107,500	$	19.64	107,500	$	19.64
Granted	300,000	3.25		—	—
Options outstanding, June 30, 2021	407,500	$	7.57	107,500	$	19.64

Shares Outstanding and Exercisable, By Exercise Price Range

Additional information as of June 30, 2021 is as follows:

	Outstanding				Exercisable
Range of price	Number of Options	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
$0.00 – $10.00	302,500	9.93	$	3.30	2,500	$	9.00
$10.01 – $20.00	97,500	1.56	19.32		97,500	19.32
$20.01 – $30.00	2,500	0.94	21.80		2,500	21.80
$30.01 – $40.00	5,000	0.70	30.20		5,000	30.20
	407,500	7.76	$	7.57	107,500	$	19.64

Schedule of Compensation Expense

Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Research and development	$	—	$	14	$	17	$	28
Sales, general and administrative	$	—	$	15	$	16	$	27
	$	—	$	29	$	33	$	55

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net loss	$	(2,246)	$	(3,385)	$	(5,679)	$	(6,514)
Less: preferred stock dividends	—		(4)		(1)		(8)
Less: undeclared dividends	—		—		$	(366)	$	—
Less: loss on induced conversion of Series A-2 Preferred Stock	—		—		$	(300)	$	—
Net loss attributable to common stockholders	$	(2,246)	$	(3,389)	$	(6,346)	$	(6,522)
Denominator:
Weighted-average number of shares of common stock for diluted net loss per share	26,644		5,240		22,250		5,222
Basic and diluted net loss per share	$	(0.08)	$	(0.65)	$	(0.29)	$	(1.25)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):

	Six Months Ended
	June 30,
	2021	2020
Outstanding stock options	407,500	215,345
Unvested restricted stock awards	627	627
Shares of common stock issuable upon conversion of Series A-2 preferred stock	—	15,545
Shares of common stock issuable upon conversion of Series C preferred stock	—	108,333
Shares of common stock issuable upon conversion of Series D preferred stock	—	17,030,960
Shares of common stock issuable upon conversion of Series E preferred stock	—	1,315,790
Warrants	5,146,500	72,394

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Certain information concerning the Company’s segments for the three and six months ended June 30, 2021 and 2020 is presented in the following tables (in thousands):

	Three Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,078		$	971		$	—	$	2,049
Cost of revenues	739			510			—		1,249
Gross profit	$	339		$	461		$	—	$	800
Gross profit %	31		%	47		%			39		%
Allocated operating expenses	$	82		$	1,796		$	—	$	1,878
Unallocated operating expenses	$	—		$	—		1,400		1,400
Total operating expenses	$	82		$	1,796		$	1,400	$	3,278
Income (loss) from operations	$	257		$	(1,335)		$	(1,400)	$	(2,478)
Interest and other expense (income), net	9			(241)			—		(232)
Net income (loss) before tax	$	248		$	(1,094)		$	(1,400)	$	(2,246)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	248		$	(1,094)		$	(1,400)	$	(2,246)

	Six Months Ended June 30, 2021
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	2,273		$	1,694		$	—	$	3,967
Cost of revenues	1,572			967			—		2,539
Gross profit	$	701		$	727		$	—	$	1,428
Gross profit %	31		%	43		%			36		%
Allocated operating expenses	$	193		$	3,626		$	—	$	3,819
Unallocated operating expenses							3,498		3,498
Total operating expenses	$	193		$	3,626		$	3,498	$	7,317
Income (loss) from operations	$	508		$	(2,899)		$	(3,498)	$	(5,889)
Interest and other expense (income), net	14			(224)			—		(210)
Net income (loss) before tax	$	494		$	(2,675)		$	(3,498)	$	(5,679)
Income tax	$	—		$	—		$	—	$	—
Net income (loss)	$	494		$	(2,675)		$	(3,498)	$	(5,679)

	Three Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	1,373		$	1,443		$	—	$	2,816
Cost of revenues	898			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		796
Total operating expenses	$	1,063		$	2,574		$	796	$	4,433
Loss from operations	$	(588)		$	(1,916)		$	(796)	$	(3,300)
Interest and other expense, net	7			78			—		85
Net loss before taxes	$	(595)		$	(1,994)		$	(796)	$	(3,385)
Income tax	$	—		$	—		$	—	$	—
Net loss	$	(595)		$	(1,994)		$	(796)	$	(3,385)

	Six Months Ended June 30, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate		Total
Revenue	$	3,417		$	4,727		$	—	$	8,144
Cost of revenues	2,055			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		2,162
Total operating expenses	$	2,212		$	5,985		$	2,162	$	10,359
Loss from operations	$	(850)		$	(3,275)		$	(2,162)	$	(6,287)
Interest and other expense, net	7			220			—		227
Net loss before tax	$	(857)		$	(3,495)		$	(2,162)	$	(6,514)
Income tax	—			—			—		—
Net loss	(857)			(3,495)			$	(2,162)	$	(6,514)

Concentration of revenues was as follows:

		Three Months Ended June 30,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	32	%	23	%
Customer B	Oblong Industries	—	%	20	%

		Six Months Ended June 30,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Oblong (formerly Glowpoint)	34	%	15	%
Customer B	Oblong Industries	—	%	21	%

Concentration of accounts receivable was as follows:

		As of June 30,
		2021		2020
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Oblong (formerly Glowpoint)	22	%	32	%
Customer B	Oblong (formerly Glowpoint)	13	%	10	%
Customer C	Oblong Industries	—	%	12	%

Revenue from External Customers by Geographic Areas

Revenue by geographic area is allocated as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Domestic	$	1,227	$	1,854	$	2,242	$	5,456
Foreign	822		962		1,725		2,688
	$	2,049	$	2,816	$	3,967	$	8,144

Schedule of Disaggregated Revenue Information

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,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	230	11	%	$	428	15	%
Network services	830		41	%	891		32	%
Professional and other services	18		1	%	54		2	%
Total Oblong revenue	$	1,078	53	%	$	1,373	49	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	942	46	%	923		33	%
Professional services	—		—	%	228		8	%
Licensing	29		1	%	292		10	%
Total Oblong Industries revenue	$	971	47	%	1,443		51	%
Total revenue	$	2,049	100	%	$	2,816	100	%

	Six Months Ended June 30,
	2021		% of Revenue		2020		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	521	13	%	$	1,473	18	%
Network services	1,711		43	%	1,816		22	%
Professional and other services	41		1	%	128		2	%
Total Oblong revenue	$	2,273	57	%	$	3,417	42	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	1,635	41	%	3,245		40	%
Professional services	—		—	%	898		11	%
Licensing	59		1	%	584		7	%
Total Oblong Industries revenue	$	1,694	42.71	%	4,727		58	%
Total revenue	$	3,967	100	%	$	8,144	100	%

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Balance Sheet Information

The following provides balance sheet information related to leases as of June 30, 2021 (in thousands):

		June 30, 2021
Assets
	Operating lease, right-of-use asset, net	$	653
Liabilities
	Current portion of operating lease liabilities	$	734
	Operating lease liabilities, net of current portion	249
	Total operating lease liabilities	$	983

Schedule of Future Minimum Rental Payments for Operating Leases

The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands):

Remaining Lease Payments
Remainder of 2021	$	442
2022	508
2023	116
Total lease payments	$	1,066
Effect of discounting	(83)
Total lease liability	$	983

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Business Description and Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
Accounting Policies [Abstract]
Number of operating segments | segment			2
Property, Plant and Equipment [Line Items]
Impairment charges | $	$ 17	$ 0	$ 48	$ 550
Minimum
Property, Plant and Equipment [Line Items]
Useful lives			3 years
Maximum
Property, Plant and Equipment [Line Items]
Useful lives			10 years

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Liquidity and Going Concern Uncertainty (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Apr. 10, 2020
Line of Credit Facility [Line Items]
Cash	$ 13,033		$ 4,141		$ 13,033	$ 4,141	$ 5,058
Working capital	13,999				13,999
Net loss	2,246	$ 3,433	$ 3,385	$ 3,129	5,679	6,514
Net cash used in operating activities					3,670	$ 2,857
PPP Loan
Line of Credit Facility [Line Items]
Long term debt	$ 2,417				$ 2,417		$ 2,417	$ 2,417

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Liquidity and Going Concern Uncertainty - Issuance Pursuant to Prospectus (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Line of Credit Facility [Line Items]
Issuance costs	$ 896
Proceeds from stock issuance, net of issuance costs	$ 11,504	$ 11,504	$ 0
Public Offering
Line of Credit Facility [Line Items]
Sale of stock, price per share (in dollars per share)	$ 4.00	$ 4.00
Common Stock | Private Placement
Line of Credit Facility [Line Items]
Sale of stock, price per share (in dollars per share)	$ 4.40	4.40
Proceeds from issuance of common stock gross	$ 12,400
Common Stock | Public Offering
Line of Credit Facility [Line Items]
Number of shares closed in transaction (in shares)	4,000,000
Sale of stock, price per share (in dollars per share)	$ 4.00	4.00
Warrants | Private Placement
Line of Credit Facility [Line Items]
Number of shares closed in transaction (in shares)	3,000,000
Sale of stock, price per share (in dollars per share)	$ 4.40	$ 4.40
Warrants | Public Offering
Line of Credit Facility [Line Items]
Number of shares closed in transaction (in shares)	1,000,000

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Goodwill - Narrative (Details)	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Goodwill [Line Items]
Goodwill		$ 7,367,000		$ 7,367,000	$ 7,908,000
Number of reporting units | segment		2
Impairment charges - goodwill		$ 0	$ 541,000	541,000
Oblong Industries
Goodwill [Line Items]
Goodwill		7,367,000		7,367,000	7,367,000
Impairment charges - goodwill		0		0
Oblong (formerly Glowpoint)
Goodwill [Line Items]
Goodwill		$ 0		0	$ 541,000
Impairment charges - goodwill	$ 541,000			$ 541,000

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Goodwill - Schedule of Goodwill (Details) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 7,908,000	$ 7,367,000	$ 7,908,000	$ 7,908,000
Impairment charges		0	(541,000)	(541,000)
Ending balance		7,367,000		7,367,000
Oblong (formerly Glowpoint)
Goodwill [Roll Forward]
Beginning balance	541,000	0	541,000	541,000
Impairment charges	(541,000)			(541,000)
Ending balance		0		0
Oblong Industries
Goodwill [Roll Forward]
Beginning balance	$ 7,367,000	7,367,000	$ 7,367,000	7,367,000
Impairment charges		0		0
Ending balance		$ 7,367,000		$ 7,367,000

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Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Gross Carrying Amount	$ 13,774	$ 13,774
Accumulated Amortization	(4,828)	(3,634)
Net Carrying Amount	8,946	10,140
Oblong (formerly Glowpoint) | Affiliate network
Business Acquisition [Line Items]
Gross Carrying Amount	994	994
Accumulated Amortization	(769)	(735)
Net Carrying Amount	$ 225	259
Estimated Useful Life	12 years
Oblong Industries
Business Acquisition [Line Items]
Gross Carrying Amount	$ 12,780	12,780
Accumulated Amortization	(4,059)	(2,899)
Net Carrying Amount	8,721	9,881
Oblong Industries | Developed technology
Business Acquisition [Line Items]
Gross Carrying Amount	10,060	10,060
Accumulated Amortization	(3,528)	(2,520)
Net Carrying Amount	$ 6,532	7,540
Estimated Useful Life	5 years
Oblong Industries | Trade names
Business Acquisition [Line Items]
Gross Carrying Amount	$ 2,410	2,410
Accumulated Amortization	(422)	(302)
Net Carrying Amount	$ 1,988	2,108
Estimated Useful Life	10 years
Oblong Industries | Distributor relationships
Business Acquisition [Line Items]
Gross Carrying Amount	$ 310	310
Accumulated Amortization	(109)	(77)
Net Carrying Amount	$ 201	$ 233
Estimated Useful Life	5 years

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Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Amortization expense	$ 597	$ 1,194	$ 613	$ 1,224
Minimum
Business Acquisition [Line Items]
Intangible assets, estimated useful life			5 years
Maximum
Business Acquisition [Line Items]
Intangible assets, estimated useful life			12 years

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Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 1,194
2022	2,385
2023	2,378
2024	1,844
2025	241
Thereafter	904
Net Carrying Amount	$ 8,946	$ 10,140

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Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Accrued compensation costs	$ 592	$ 411
Accrued professional fees	359	236
Accrued taxes and regulatory fees	172	137
Customer deposits	136	127
Other accrued expenses and liabilities	161	286
Accrued dividends on Series A-2 Preferred Stock	0	4
Accrued expenses and other current liabilities	$ 1,420	$ 1,201

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Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Apr. 10, 2020
Debt Instrument [Line Items]
Current portion of long-term debt	$ 0	$ 2,014
PPP Loan
Debt Instrument [Line Items]
Long term debt	2,417	2,417	$ 2,417
Current portion of long-term debt	0	2,014
Long-term obligations, net of current maturities	$ 2,417	$ 403

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Debt - Paycheck Protection Program Loan (Details) - PPP Loan - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Apr. 10, 2020
Debt Instrument [Line Items]
Long term debt	$ 2,417	$ 2,417	$ 2,417
Fixed rate			1.00%
Interest accrued	$ 27

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Capital Stock - Common Stock (Details) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	30,729,331	7,861,912
Common stock, shares outstanding (in shares)	30,616,048	7,748,629

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Capital Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands							3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jan. 21, 2021	Dec. 10, 2020	Dec. 06, 2020	Oct. 21, 2020	Oct. 01, 2019	Jun. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Conversion of convertible preferred stock, shares (in shares)						1,315,790
Issuance of stock for services							$ 116	$ 274
Exercised												$ 0.01
Issuance of common shares from warrant exercise (in shares)					521,500
Warrant term					2 years
Exercise price (in dollars per share)	$ 4.42						$ 4.42			$ 4.42		$ 4.85	$ 0.01
Warrant exercises	0						0			0
Issuance costs	$ 896
Proceeds from stock issuance, net of issuance costs	$ 11,504									$ 11,504	$ 0
Public Offering
Class of Stock [Line Items]
Sale of stock, price per share (in dollars per share)	$ 4.00						$ 4.00			$ 4.00
General and administrative expense
Class of Stock [Line Items]
Accrued professional fees							$ 116			$ 390
Warrants
Class of Stock [Line Items]
Issuance of common shares from warrant exercise (in shares)				625,000
Warrant term				2 years
Exercise price (in dollars per share)				$ 5.49	$ 4.08
Warrants | Public Offering
Class of Stock [Line Items]
Number of shares issued (in shares)	1,000,000
Warrants | Private Placement
Class of Stock [Line Items]
Number of shares issued (in shares)	3,000,000
Sale of stock, price per share (in dollars per share)	$ 4.40						$ 4.40			$ 4.40
Common Stock
Class of Stock [Line Items]
Conversion of convertible preferred stock, shares (in shares)									50,000	18,846,411	50,000
Issuance of shares for professional service fees (in shares)		21,008	50,000					21,008
Issuance of stock for services		$ 100	$ 348
Common Stock | Public Offering
Class of Stock [Line Items]
Number of shares issued (in shares)	4,000,000
Sale of stock, price per share (in dollars per share)	$ 4.00						4.00			$ 4.00
Common Stock | Private Placement
Class of Stock [Line Items]
Proceeds from issuance of common stock gross	$ 12,400
Sale of stock, price per share (in dollars per share)	$ 4.40						$ 4.40			$ 4.40
Series A Warrants
Class of Stock [Line Items]
Warrant term	6 months						6 months			6 months
Series B Warrants
Class of Stock [Line Items]
Warrant term	3 years						3 years			3 years

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Capital Stock - Warrants Activity (Details) - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Number of Warrants (in thousands)
Warrants outstanding and exercisable, Beginning (in shares)	1,147	72
Granted (in shares)	4,000	1,147
Exercised (in shares)		(72)
Warrants outstanding and exercisable, Ending (in shares)	5,147	1,147
Weighted Average Exercise Price
Warrants outstanding and exercisable, Beginning (in dollars per share)	$ 4.85	$ 0.01
Granted, (in dollars per share)	4.30	4.85
Exercised, (in dollars per share)		0.01
Warrants outstanding and exercisable, Ending (in dollars per share)	$ 4.42	$ 4.85

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Capital Stock - Equity Activity (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 22,057	$ 18,775	$ 21,785	$ 21,785
Purchases to cover stock compensation taxes	33	29	32
Ending Balance	$ 18,931	$ 15,407	$ 18,775	$ 22,057
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	113,283	105,285	105,285	105,285
Beginning Balance	$ (181)	$ (172)	$ (165)	$ (165)
Purchases to cover stock compensation taxes (in shares)				8,000
Purchases to cover stock compensation taxes				$ (16)
Ending Balance (in shares)	113,283	113,283	105,285	113,283
Ending Balance	$ (181)	$ (181)	$ (172)	$ (181)

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Preferred Stock (Details) - USD ($)			3 Months Ended				6 Months Ended		12 Months Ended
	Jan. 28, 2021	Oct. 01, 2019	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Preferred stock, convertible, shares authorized (in shares)			5,000,000				5,000,000
Preferred stock designated share			1,941,250				1,941,250
Preferred stock, shares issued (in shares)			0				0
Preferred stock, shares outstanding (in shares)			0				0		1,829,582
Accrued dividends on Series A-2 Preferred Stock			$ 0				$ 0		$ 4,000
Dividends							$ 1,000
Preferred stock conversion	$ 300,000
Conversion of convertible preferred stock, shares (in shares)		1,315,790
Common Stock
Class of Stock [Line Items]
Shares issued in conversion (in shares)	84,292								20,954
Conversion of convertible preferred stock, shares (in shares)						50,000	18,846,411	50,000
Issuance of restricted stock (in shares)					23,334
Restricted stock
Class of Stock [Line Items]
Vesting period							10 years
Series A-2 Preferred Stock
Class of Stock [Line Items]
Preferred stock, convertible, shares authorized (in shares)			7,500				7,500		7,500
Preferred stock, shares issued (in shares)			0				0		45
Preferred stock, shares outstanding (in shares)	45		0				0		45
Preferred stock, stated value			$ 7,500				$ 7,500		$ 7,500
Stock issued during period, conversion of convertible securities, price (in dollars per share)	$ 4.00								$ 16.11
Preferred stock percentage									5.00%
Series A-2 Preferred Stock | Preferred Stock
Class of Stock [Line Items]
Conversion of convertible preferred stock, shares (in shares)				(45)
Series A-2 Preferred Stock | Common Stock
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion (in shares)									466
Conversion of convertible preferred stock, shares (in shares)				84,292
Series D Convertible Preferred Stock | Common Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)		17,416,939
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, convertible, shares authorized (in shares)			1,750,000				1,750,000		1,750,000
Preferred stock, shares issued (in shares)			0				0		1,697,958
Preferred stock, shares outstanding (in shares)			0				0		1,697,958
Preferred stock, stated value			$ 28.50				$ 28.50		$ 28.50
Shares issued in conversion (in shares)		1,697,022
Preferred stock percentage		6.00%
Conversion of convertible preferred stock, shares (in shares)		1,686,659
Forfeited, restricted shares (in shares)			81				81		28,618
Series D Preferred Stock | Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			855				855		8,325
Conversion of convertible preferred stock, shares (in shares)				(1,697,022)
Series D Preferred Stock | Restricted stock
Class of Stock [Line Items]
Issuance of restricted stock (in shares)		49,967
Vesting period		2 years
Forfeited, restricted shares (in shares)					17,364		81	31,805
Series E Preferred Stock
Class of Stock [Line Items]
Preferred stock, convertible, shares authorized (in shares)			175,000				175,000		175,000
Preferred stock, shares issued (in shares)			0				0		131,579
Preferred stock, shares outstanding (in shares)		131,579	0				0		131,579
Preferred stock, stated value		$ 28.50	$ 28.50				$ 28.50		$ 28.50
Shares issued in conversion (in shares)		131,579
Preferred stock percentage		6.00%
Series E Preferred Stock | Preferred Stock
Class of Stock [Line Items]
Conversion of convertible preferred stock, shares (in shares)				(131,579)
Series E Preferred Stock | Common Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)		1,345,180
Series E Preferred Stock | Series E Financing
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		131,579
Stock issued during period, conversion of convertible securities, price (in dollars per share)		$ 2.85
Sale of stock consideration received		$ 3,750,000
Sale of stock, price per share (in dollars per share)		$ 2.85

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Stock Based Compensation - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2021	Oct. 01, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)					300,000
Outstanding Weighted Average Exercise Price, Granted (in dollars per share)					$ 3.25
Options, intrinsic value, vested			$ 0		$ 0
Unrecognized stock-based compensation expense for stock options			$ 745,000		$ 745,000
2019 Equity incentive plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)			2,713,500		2,713,500
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option compensation expense			$ 0	$ 0	$ 0	$ 0
Stock options | Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)	300,000						0
Vesting period	3 years
Exercise period	10 years
Outstanding Weighted Average Exercise Price, Granted (in dollars per share)	$ 3.25
Share-based compensation vested in period, fair Value	$ 745,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					10 years
Stock option compensation expense			$ 0	$ 0	$ 0	$ 0
Unvested restricted shares outstanding (in shares)			627	627	627	627
Weighted average price of shares (in dollars per share)			$ 15.80	$ 15.80	$ 15.80	$ 15.80
Award service period					5 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option compensation expense			$ 0	$ 0	$ 0	$ 6,000
Unvested restricted shares outstanding (in shares)			0	0	0	0
Unrecognized stock-based compensation expense for other than options			$ 0		$ 0
Stock-based compensation arrangement, vested in period, remain outstanding (in shares)			28,904	28,904
Series D Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited, restricted shares (in shares)			81		81		28,618
Series D Preferred Stock | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		2 years
Stock option compensation expense			$ 0	$ 29,000	$ 33,000	$ 55,000
Unvested restricted shares outstanding (in shares)			0		0
Issuance of restricted stock (in shares)		49,967
Unrecognized stock-based compensation expense for other than options			$ 0		$ 0
Forfeited, restricted shares (in shares)				17,364	81	31,805

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Stock Based Compensation - Parameters of Fair Value Calculation (Details)	6 Months Ended
	Jun. 30, 2021 $ / shares
Share-based Payment Arrangement [Abstract]
Risk free interest rate	0.47%
Expected maturity	3 years
Expected volatility	1.36%
Expected dividend yields	0.00%
Weighted average grant date market value per share	$ 3.25

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Stock Based Compensation - Options Outstanding (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Options
Outstanding Number of Options, Beginning (in shares)	107,500	215,345
Expired (in shares)		(107,845)
Number of options granted (in shares)	300,000
Outstanding Number of Options, Ending (in shares)	407,500	107,500
Weighted Average Exercise Price
Outstanding Weighted Average Exercise Price, Beginning (in dollars per share)	$ 19.64	$ 12.27
Outstanding Weighted Average Exercise Price, Expired (in dollars per share)		4.92
Outstanding Weighted Average Exercise Price, Granted (in dollars per share)	3.25
Outstanding and Exercisable Weighted Average Exercise Price, Ending (in dollars per share)	$ 7.57	$ 19.64
Exercisable
Exercisable Number of Options (in shares)	107,500	107,500	215,345
Exercisable Weighted Average Exercise Price (in dollars per share)	$ 19.64	$ 19.64	$ 12.27

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Stock Based Compensation - Exercise Price Range (Details) - $ / shares	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of Options, Outstanding (in shares)	407,500	107,500	215,345
Weighted Average Remaining Contractual Life (In Years)	7 years 9 months 3 days
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 7.57	$ 19.64	$ 12.27
Number of Options, Exercisable (in shares)	107,500	107,500	215,345
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 19.64	$ 19.64	$ 12.27
$0.00 – $10.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of price, lower range limit (in dollars per share)	0.00
Range of price, upper range limit (in dollars per share)	$ 10.00
Number of Options, Outstanding (in shares)	302,500
Weighted Average Remaining Contractual Life (In Years)	9 years 11 months 4 days
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 3.30
Number of Options, Exercisable (in shares)	2,500
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 9.00
$10.01 – $20.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of price, lower range limit (in dollars per share)	10.01
Range of price, upper range limit (in dollars per share)	$ 20.00
Number of Options, Outstanding (in shares)	97,500
Weighted Average Remaining Contractual Life (In Years)	1 year 6 months 21 days
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 19.32
Number of Options, Exercisable (in shares)	97,500
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 19.32
$20.01 – $30.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of price, lower range limit (in dollars per share)	20.01
Range of price, upper range limit (in dollars per share)	$ 30.00
Number of Options, Outstanding (in shares)	2,500
Weighted Average Remaining Contractual Life (In Years)	11 months 8 days
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 21.80
Number of Options, Exercisable (in shares)	2,500
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 21.80
$30.01 – $40.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of price, lower range limit (in dollars per share)	30.01
Range of price, upper range limit (in dollars per share)	$ 40.00
Number of Options, Outstanding (in shares)	5,000
Weighted Average Remaining Contractual Life (In Years)	8 months 12 days
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 30.20
Number of Options, Exercisable (in shares)	5,000
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 30.20

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Stock Based Compensation - Stock Compensation Expense, Restricted Stock Units (Details) - Restricted stock - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock compensation expense	$ 0	$ 0	$ 0	$ 0
Series D Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock compensation expense	0	29,000	33,000	55,000
Series D Preferred Stock | Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock compensation expense	0	14,000	17,000	28,000
Series D Preferred Stock | Sales, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock compensation expense	$ 0	$ 15,000	$ 16,000	$ 27,000

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Net Loss Per Share - Narrative (Details)	6 Months Ended
	Jun. 30, 2021 shares
Earnings Per Share [Abstract]
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares)	0

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Net Loss Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net loss	$ (2,246)	$ (3,433)	$ (3,385)	$ (3,129)	$ (5,679)	$ (6,514)
Less: preferred stock dividends	0		(4)		(1)	(8)
Less: undeclared dividends	0		0		(366)	0
Induced conversion of Series A-2 Preferred Stock	0		0		(300)	0
Net loss attributable to common stockholders	(2,246)		(3,389)		(6,346)	(6,522)
Net loss attributable to common stockholders	$ (2,246)		$ (3,389)		$ (6,346)	$ (6,522)
Denominator:
Diluted (in shares)	26,644		5,240		22,250	5,222
Basic net loss per share (in dollars per share)	$ (0.08)		$ (0.65)		$ (0.29)	$ (1.25)
Diluted net loss per share (in dollars per share)	$ (0.08)		$ (0.65)		$ (0.29)	$ (1.25)

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Net Loss Per Share - Effect of Antidilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	407,500	215,345
Unvested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	627	627
Series A-2 Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	15,545
Series C Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	108,333
Series D Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	17,030,960
Series E Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	1,315,790
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	5,146,500	72,394

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Segment Reporting (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment					2
Revenue	$ 2,049		$ 2,816		$ 3,967	$ 8,144
Cost of revenues	1,249		1,683		2,539	4,072
Gross profit	$ 800		$ 1,133		$ 1,428	$ 4,072
Gross profit %	39.00%		40.00%		36.00%	50.00%
Total operating expenses	$ 3,278		$ 4,433		$ 7,317	$ 10,359
Loss from operations	(2,478)		(3,300)		(5,889)	(6,287)
Interest and other expense (income), net	(232)		85		(210)	227
Loss before income taxes	(2,246)		(3,385)		(5,679)	(6,514)
Income tax expense	0		0		0	0
Net loss	(2,246)	$ (3,433)	(3,385)	$ (3,129)	(5,679)	(6,514)
Allocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	1,878		3,637		3,819	8,197
Unallocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	1,400		796		3,498	2,162
Oblong (formerly Glowpoint)
Segment Reporting Information [Line Items]
Revenue	1,078		1,373		2,273	3,417
Cost of revenues	739		898		1,572	2,055
Gross profit	$ 339		$ 475		$ 701	$ 1,362
Gross profit %	31.00%		35.00%		31.00%	40.00%
Total operating expenses	$ 82		$ 1,063		$ 193	$ 2,212
Loss from operations	257		(588)		508	(850)
Interest and other expense (income), net	9		7		14	7
Loss before income taxes	248		(595)		494	(857)
Income tax expense	0		0		0	0
Net loss	248		(595)		494	(857)
Oblong (formerly Glowpoint) | Allocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	82		1,063		193	2,212
Oblong (formerly Glowpoint) | Unallocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	0		0			0
Oblong Industries
Segment Reporting Information [Line Items]
Revenue	971		1,443		1,694	4,727
Cost of revenues	510		785		967	2,017
Gross profit	$ 461		$ 658		$ 727	$ 2,710
Gross profit %	47.00%		46.00%		43.00%	57.00%
Total operating expenses	$ 1,796		$ 2,574		$ 3,626	$ 5,985
Loss from operations	(1,335)		(1,916)		(2,899)	(3,275)
Interest and other expense (income), net	(241)		78		(224)	220
Loss before income taxes	(1,094)		(1,994)		(2,675)	(3,495)
Income tax expense	0		0		0	0
Net loss	(1,094)		(1,994)		(2,675)	(3,495)
Oblong Industries | Allocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	1,796		2,574		3,626	5,985
Oblong Industries | Unallocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	0		0			0
Corporate
Segment Reporting Information [Line Items]
Revenue	0		0		0	0
Cost of revenues	0		0		0	0
Gross profit	0		0		0	0
Total operating expenses	1,400		796		3,498	2,162
Loss from operations	(1,400)		(796)		(3,498)	(2,162)
Interest and other expense (income), net	0		0		0	0
Loss before income taxes	(1,400)		(796)		(3,498)	(2,162)
Income tax expense	0		0		0	0
Net loss	(1,400)		(796)		(3,498)	(2,162)
Corporate | Allocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	0		0		0	0
Corporate | Unallocated operating expenses
Segment Reporting Information [Line Items]
Total operating expenses	$ 1,400		$ 796		$ 3,498	$ 2,162

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Segment Reporting - Disaggregation of Revenue and Total Assets (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Disaggregation of Revenue [Line Items]
Foreign revenue	0.01	0.01	0.01	0.01
Revenue	$ 2,049	$ 2,816	$ 3,967	$ 8,144
Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 2,049	$ 2,816	$ 3,967	$ 8,144
Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	100.00%	100.00%	100.00%	100.00%
Oblong (formerly Glowpoint)
Disaggregation of Revenue [Line Items]
Revenue	$ 1,078	$ 1,373	$ 2,273	$ 3,417
Oblong (formerly Glowpoint) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 1,078	$ 1,373	$ 2,273	$ 3,417
Oblong (formerly Glowpoint) | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	53.00%	49.00%	57.00%	42.00%
Oblong (formerly Glowpoint) | Video collaboration services | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 230	$ 428	$ 521	$ 1,473
Oblong (formerly Glowpoint) | Video collaboration services | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	11.00%	15.00%	13.00%	18.00%
Oblong (formerly Glowpoint) | Network services | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 830	$ 891	$ 1,711	$ 1,816
Oblong (formerly Glowpoint) | Network services | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	41.00%	32.00%	43.00%	22.00%
Oblong (formerly Glowpoint) | Professional and other services | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 18	$ 54	$ 41	$ 128
Oblong (formerly Glowpoint) | Professional and other services | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	1.00%	2.00%	1.00%	2.00%
Oblong Industries
Disaggregation of Revenue [Line Items]
Revenue	$ 971	$ 1,443	$ 1,694	$ 4,727
Oblong Industries | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 971	$ 1,443	$ 1,694	$ 4,727
Oblong Industries | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	47.00%	51.00%	42.71%	58.00%
Oblong Industries | Video collaboration services | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 942	$ 923	$ 1,635	$ 3,245
Oblong Industries | Video collaboration services | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	46.00%	33.00%	41.00%	40.00%
Oblong Industries | Professional and other services | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 228	$ 0	$ 898
Oblong Industries | Professional and other services | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	0.00%	8.00%	0.00%	11.00%
Oblong Industries | Licensing | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 29	$ 292	$ 59	$ 584
Oblong Industries | Licensing | Revenue | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue	1.00%	10.00%	1.00%	7.00%
Domestic
Disaggregation of Revenue [Line Items]
Revenue	$ 1,227	$ 1,854	$ 2,242	$ 5,456
Foreign
Disaggregation of Revenue [Line Items]
Revenue	$ 822	$ 962	$ 1,725	$ 2,688

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Segment Reporting - Concentration Percentage (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Customer A | Oblong (formerly Glowpoint) | Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	32.00%	23.00%	34.00%	15.00%
Customer A | Oblong Industries | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			22.00%	32.00%
Customer B | Oblong Industries | Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	0.00%	20.00%	0.00%	21.00%
Customer B | Oblong Industries | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%	10.00%
Customer C | Oblong Industries | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			0.00%	12.00%

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Commitments and Contingencies - Narrative (Details) € in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 EUR (€) facility	Jun. 30, 2021 USD ($) facility	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) facility
Lessee, Lease, Description [Line Items]
Operating lease liability | $						$ 983
Non-cash lease expense | $	$ 92	$ 301		$ 167	$ 647
Los Angeles, California
Lessee, Lease, Description [Line Items]
Number of facilities			3	3
Number of facilities occupied			2			2
Boston, Massachusetts
Lessee, Lease, Description [Line Items]
Number of facilities			1	1
Dallas, Texas
Lessee, Lease, Description [Line Items]
Number of facilities			1	1
Munich, Germany
Lessee, Lease, Description [Line Items]
Contract termination fee | €			€ 125
Operating lease liability | €			316
Termination of lease			€ 191	$ 227
Minimum
Lessee, Lease, Description [Line Items]
Term of contract			1 year			1 year
Renewal term			12 months			12 months
Maximum
Lessee, Lease, Description [Line Items]
Term of contract			3 years			3 years
Renewal term			5 years			5 years

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Commitments and Contingencies - Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease, right-of-use asset, net	$ 653	$ 903
Current portion of operating lease liabilities	734	830
Operating lease liabilities, net of current portion	249	$ 602
Total operating lease liabilities	$ 983

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Commitments and Contingencies - Table Operating Lease Future Minimum Rental Commitment (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2021	$ 442
2022	508
2023	116
Total lease payments	1,066
Effect of discounting	(83)
Total lease liability	$ 983