Segment Reporting

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021 is presented in the following tables (in thousands):

	Year Ended December 31, 2022
	Managed Services			Collaboration Products			Corporate			Total
Revenue	$	3,348		$	2,128		$	—		$	5,476
Cost of revenues	2,273			1,657			—			3,930
Gross profit	$	1,075		$	471		$	—		$	1,546
Gross profit %	32		%	22		%	—		%	28		%
Allocated operating expenses	$	19		$	18,355		$	—		$	18,374
Unallocated operating expenses	—			—			5,160			5,160
Total operating expenses	$	19		$	18,355		$	5,160		$	23,534
Income (loss) from operations	$	1,056		$	(17,884)		$	(5,160)		$	(21,988)
Interest and other expense (income), net	12			(52)			—			(40)
Income (loss) before income taxes	$	1,044		$	(17,832)		$	(5,160)		$	(21,948)
Income tax expense	$	(4)		$	(3)		$	—		$	(7)
Net income (loss)	$	1,048		$	(17,829)		$	(5,160)		$	(21,941)
	As of December 31, 2022
Total assets	$	752		$	1,824		$	3,085		$	5,661

	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	$	591		$	7,879		$	—		$	8,470
Unallocated operating expenses	—			—			6,042			6,042
Total operating expenses	$	591		$	7,879		$	6,042		$	14,512
Income (loss) from operations	$	688		$	(6,440)		$	(6,042)		$	(11,794)
Interest and other (income) expense, net	22			(227)			(2,448)			(2,653)
Loss before income taxes	$	666		$	(6,213)		$	(3,594)		$	(9,141)
Income tax benefit	$	(15)		$	(75)					$	(90)
Net income (loss)	$	681		$	(6,138)		$	(3,594)		$	(9,051)
	As of December 31, 2021
Total assets	$	1,053		$	18,615		$	8,939		$	28,607

Unallocated operating expenses include costs for the year ending December 31, 2022 and 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. Unallocated assets consist of unrestricted cash.

For the years ended December 31, 2022 and 2021, no material revenue was 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,
	2022		2021
Domestic	$	2,781	$	4,614
Foreign	2,695		3,125
	$	5,476	$	7,739

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,
	2022		% of Revenue		2021		% of Revenue
Revenue: Managed Services
Video collaboration services	$	334	6.1	%	$	854	11.0	%
Network services	2,954		53.9	%	3,347		43.3	%
Professional and other services	60		1.1	%	69		0.9	%
Total Managed Services revenue	$	3,348	61.1	%	$	4,270	55.2	%
Revenue: Collaboration Products
Visual collaboration product offerings	$	2,114	38.6	%	$	3,367	43.5	%
Licensing	14		0.3	%	102		1.3	%
Total Collaboration Products revenue	$	2,128	38.9	%	$	3,469	44.8	%
Total revenue	$	5,476	100.0	%	$	7,739	100.0	%

The Company’s long-lived assets were 100% located in domestic markets as of December 31, 2022 and 2021.

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, 2022
		2022		2021
	Segment	% of Revenue		% of Revenue
Customer A	Managed Services	46.8	%	34.7	%

Concentration of accounts receivable was as follows:

		As of December 31,
		2022		2021
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Managed Services	42.8	%	24.9	%
Customer B	Collaboration Products	22.0	%	8.5	%
Customer C	Collaboration Products	—	%	20.0	%
Customer D	Managed Services	4.3	%	18.2	%