Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Effective October 1, 2019, the former businesses of Glowpoint (now Oblong, Inc.) and Oblong Industries have been managed separately, and involve different products and services. Accordingly, the Company currently operates in two segments for purposes of segment reporting: (1) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings and (2) “Managed Services” which represents the Oblong (formerly Glowpoint) business surrounding managed services for video collaboration and network solutions.

Certain information concerning the Company’s segments for the years ended December 31, 2021 and 2020 is presented in the following tables (in thousands):

	For the Year Ended December 31, 2021
	Managed Services			Collaboration Products			Corporate			Total
Revenue	$	4,270		$	3,469		$	—		$	7,739
Cost of revenues	2,991			2,030			—			5,021
Gross profit	$	1,279		$	1,439		$	—		$	2,718
Gross profit %	30.0		%	41.5		%	—		%	35.1		%
Allocated operating expenses	$	593		$	7,556		$	—		$	8,149
Unallocated operating expenses	—			—			6,363			6,363
Total operating expenses	$	593		$	7,556		$	6,363		$	14,512
Income (loss) from operations	$	686		$	(6,117)		$	(6,363)		$	(11,794)
Interest and other income (expense), net	(22)			227			2,448			2,653
Income (loss) before income taxes	$	664		$	(5,890)		$	(3,915)		$	(9,141)
Income tax expense	$	(15)		$	(75)		$	—		$	(90)
Net income (loss)	$	679		$	(5,815)		$	(3,915)		$	(9,051)
	As of December 31, 2021
Total assets	$	9,259		$	19,348		$	—		$	28,607

	For the Year Ended December 31, 2020
	Managed Services			Collaboration Products			Corporate			Total
Revenue	$	6,227		$	9,106		$	—		$	15,333
Cost of revenues	3,789			3,491			—			7,280
Gross profit	$	2,438		$	5,615		$	—		$	8,053
Gross profit %	39.2		%	61.7		%	—		%	52.5		%
Allocated operating expenses	$	1,479		$	9,913		$	—		$	11,392
Unallocated operating expenses	—			—			6,725			6,725
Total operating expenses	$	1,479		$	9,913		$	6,725		$	18,117
Income (loss) from operations	$	959		$	(4,298)		$	(6,725)		$	(10,064)
Interest and other income (expense), net	(19)			2,765			—			2,746
Income (loss) before income taxes	$	940		$	(1,533)		$	(6,725)		$	(7,318)
Income tax expense	$	50		$	53		$	—		$	103
Net income (loss)	$	890		$	(1,586)		$	(6,725)		$	(7,421)
	As of December 31, 2020
Total assets	$	6,494		$	22,649		$	—		$	29,143

Unallocated operating expenses include costs for the year ending December 31, 2021 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 years ended December 31, 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):

	Year Ended December 31,
	2021		2020
Domestic	$	4,615	$	10,288
Foreign	3,124		5,045
	$	7,739	$	15,333

Disaggregated information for the Company’s revenue has been recognized in the accompanying consolidated statements of operations and is presented below according to contract type (dollars in thousands):

	Year ended December 31,
	2021		% of Revenue		2020		% of Revenue
Revenue: Managed Services
Video collaboration services	$	854	11.0	%	$	2,413	15.7	%
Network services	3,347		43.2	%	3,611		23.6	%
Professional and other services	69		0.9	%	203		1.3	%
Total Managed Services revenue	$	4,270	55.2	%	$	6,227	40.6	%
Revenue: Collaboration Products
Visual collaboration product offerings	$	3,367	43.5	%	$	6,873	44.8	%
Professional services	—		—	%	1,033		6.7	%
Licensing	102		1.3	%	1,200		7.8	%
Total Collaboration Products revenue	$	3,469	44.8	%	$	9,106	59.4	%
Total revenue	$	7,739	100.0	%	$	15,333	100.0	%

The Company’s long-lived assets were 100% located in domestic markets as of December 31, 2021 and 2020.

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:

		Year Ended December 31,
		2021		2020
	Segment	% of Revenue		% of Revenue
Customer A	Managed Services	34.7	%	17.0	%
Customer B	Collaboration Products	—	%	17.0	%

Concentration of accounts receivable was as follows:

		As of December 31,
		2021		2020
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Managed Services	24.9	%	14.1	%
Customer B	Collaboration Products	—	%	20.1	%
Customer C	Collaboration Products	—	%	12.0	%
Customer D	Collaboration Products	20.1	%	—	%
Customer E	Collaboration Products	18.2	%	—	%