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Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting
Note 10 - Segment Reporting

The Company currently operates in two segments: (1) “Managed Services”, which represents the business surrounding managed services for video collaboration and network applications; and (2) “Collaboration Products” which represents the business surrounding our Mezzanine™ product offerings.

Certain information concerning the Company’s segments for the three and six months ended June 30, 2023 and 2022 is presented in the following tables (in thousands):
Three Months Ended June 30, 2023
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$640 $316 $— $956 
Cost of revenues430 404 — 834 
  Gross profit (loss)$210 $(88)$— $122 
  Gross profit (loss)%33 %(28)%13 %
Allocated operating expenses (gains)$3 $(376)$— $(373)
Unallocated operating expenses— — 1,586 1,586 
  Total operating expenses (gains)$3 $(376)$1,586 $1,213 
Income (loss) from operations$207 $288 $(1,586)$(1,091)
Interest and other income, net(37)(5)— (42)
Net income (loss) before tax244 293 (1,586)(1,049)
Income tax expense— — — — 
Net income (loss)$244 $293 $(1,586)$(1,049)
Three Months Ended June 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$810 $523 $— $1,333 
Cost of revenues525 401 — 926 
Gross profit$285 $122 $— $407 
Gross profit %35 %23 %31 %
Allocated operating expenses$1 $8,404 $— $8,405 
Unallocated operating expenses— — 1,035 1,035 
Total operating expenses$1 $8,404 $1,035 $9,440 
Income (loss) from operations$284 $(8,282)$(1,035)$(9,033)
Interest and other expense, net— — — — 
Income (loss) before income taxes284 (8,282)(1,035)(9,033)
Income tax expense (benefit)(1)1 — — 
Net income (loss)$285 $(8,283)$(1,035)$(9,033)


Six Months Ended June 30, 2023
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$1,330 $664 $— $1,994 
Cost of revenues890 706 — 1,596 
Gross profit (loss)$440 $(42)$— $398 
Gross profit (loss)%33 %(6)%20 %
Allocated operating expenses (gains)$3 $(90)$— $(87)
Unallocated operating expenses— — 2,779 2,779 
Total operating expenses (gains)$3 $(90)$2,779 $2,692 
Income (loss) from operations$437 $48 $(2,779)$(2,294)
Interest and other income, net(34)(30)— (64)
Net income (loss) before tax471 78 (2,779)(2,230)
Income tax expense7 31 — 38 
Net income (loss)$464 $47 $(2,779)$(2,268)
Six Months Ended June 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$1,776 $1,089 $— $2,865 
Cost of revenues1,170 789 — 1,959 
Gross profit$606 $300 $— $906 
Gross profit %34 %28 %32 %
Allocated operating expenses$57 $11,679 $— $11,736 
Unallocated operating expenses— — 2,725 2,725 
Total operating expenses$57 $11,679 $2,725 $14,461 
Income (loss) from operations$549 $(11,379)$(2,725)$(13,555)
Interest and other expense, net6 — — 6 
Net income (loss) before tax543 (11,379)(2,725)(13,561)
Income tax expense8 3 — 11 
Net income (loss)$535 $(11,382)$(2,725)$(13,572)

Unallocated operating expenses in Corporate include costs for the three and six months ended June 30, 2023 and 2022 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 months ended June 30, 2023, 10% of our revenue was attributable to Saudi Arabia. For the six months ended June 30, 2023, and the three and six months ended June 30, 2022, there was no material revenue attributable to any individual foreign country.

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

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Domestic$437 $705 $1,000 $1,546 
Foreign519 628 994 1,319 
$956 $1,333 $1,994 $2,865 

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,
2023% of Revenue2022% of Revenue
Revenue: Managed Services
Video collaboration services$46 5 %$79 5 %
Network services583 61 %723 54 %
Professional and other services11 1 %8 1 %
      Total Managed Services revenue$640 67 %$810 61 %
Revenue: Collaboration Products
Visual collaboration product offerings$316 33 %$520 39 %
Licensing— — %3 — %
      Total Collaboration Products revenue316 33 %523 39 %
Total revenue$956 100 %$1,333 100 %

Six Months Ended June 30,
2023% of Revenue2022% of Revenue
Revenue: Managed Services
Video collaboration services$110 6 %$195 7 %
Network services1,201 60 %1,544 54 %
Professional and other services19 1 %37 1 %
Total Managed Services revenue$1,330 67 %$1,776 62 %
Revenue: Collaboration Products
Visual collaboration product offerings$664 33 %$1,082 38 %
Professional services— — %— — %
Licensing— — %7 — %
Total Collaboration Products revenue664 33 %1,089 38 %
Total revenue$1,994 100 %$2,865 100 %

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,
20232022
Segment% of Revenue% of Revenue
Customer AManaged Services56 %48 %
Customer BCollaboration Products— %11 %

Six Months Ended June 30,
20232022
Segment% of Revenue% of Revenue
Customer AManaged Services54 %46 %
Concentration of accounts receivable was as follows:

As of June 30, 2023
20232022
Segment% of Accounts Receivable% of Accounts Receivable
Customer AManaged Services58 %42 %
Customer BManaged Services11 %7 %
Customer CCollaboration Products14 %— %
Customer DCollaboration Products— %10 %