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Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022 is presented in the following tables (in thousands):
Three Months Ended September 30, 2023
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$603 $269 $— $872 
Cost of revenues398 250 — 648 
  Gross profit$205 $19 $— $224 
  Gross profit %34 %7 %26 %
Allocated operating expenses$— $151 $— $151 
Unallocated operating expenses— — 998 998 
  Total operating expenses$— $151 $998 $1,149 
Income (loss) from operations$205 $(132)$(998)$(925)
Interest and other (income) expense, net(35)5 — (30)
Net income (loss) before tax240 (137)(998)(895)
Income tax expense— — — — 
Net income (loss)$240 $(137)$(998)$(895)

Three Months Ended September 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$797 $388 $— $1,185 
Cost of revenues552 289 — 841 
Gross profit$245 $99 $— $344 
Gross profit %31 %26 %29 %
Allocated operating expenses$— $6,425 $— $6,425 
Unallocated operating expenses— — 1,079 1,079 
Total operating expenses$— $6,425 $1,079 $7,504 
Income (loss) from operations$245 $(6,326)$(1,079)$(7,160)
Interest and other expense (income), net1 (6)— (5)
Income (loss) before income taxes244 (6,320)(1,079)(7,155)
Income tax benefit— (3)— (3)
Net income (loss)$244 $(6,317)$(1,079)$(7,152)
Nine Months Ended September 30, 2023
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$1,933 $933 $— $2,866 
Cost of revenues1,288 956 — 2,244 
Gross profit (loss)$645 $(23)$— $622 
Gross profit (loss)%33 %(2)%22 %
Allocated operating expenses$3 $61 $— $64 
Unallocated operating expenses— — 3,777 3,777 
Total operating expenses$3 $61 $3,777 $3,841 
Income (loss) from operations$642 $(84)$(3,777)$(3,219)
Interest and other income, net(69)(25)— (94)
Net income (loss) before tax711 (59)(3,777)(3,125)
Income tax expense7 31 — 38 
Net income (loss)$704 $(90)$(3,777)$(3,163)

Nine Months Ended September 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$2,573 $1,477 $— $4,050 
Cost of revenues1,722 1,078 — 2,800 
Gross profit$851 $399 $— $1,250 
Gross profit %33 %27 %31 %
Allocated operating expenses$57 $17,954 $— $18,011 
Unallocated operating expenses— — 3,954 3,954 
Total operating expenses$57 $17,954 $3,954 $21,965 
Income (loss) from operations$794 $(17,555)$(3,954)$(20,715)
Interest and other expense (income), net7 (6)— 1 
Net income (loss) before tax787 (17,549)(3,954)(20,716)
Income tax expense8 — — 8 
Net income (loss)$779 $(17,549)$(3,954)$(20,724)

Unallocated operating expenses in Corporate include costs for the three and nine months ended September 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 September 30, 2023, 11% of our revenue was attributable to the United Kingdom. For the three months ended September 30, 2022, 10% of our revenue was attributable to Singapore. For the nine months ended September 30, 2023 and 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 September 30,Nine Months Ended September 30,
2023202220232022
Domestic$356 $575 $1,356 $2,120 
Foreign516 610 1,510 1,930 
$872 $1,185 $2,866 $4,050 

Disaggregated information for the Company’s revenue has been recognized in the accompanying Condensed Consolidated Statements of Operations and is presented below according to contract type (in thousands):

Three Months Ended September 30,
2023% of Revenue2022% of Revenue
Revenue: Managed Services
Video collaboration services$38 4 %$69 6 %
Network services557 64 %716 60 %
Professional and other services8 1 %12 1 %
      Total Managed Services revenue$603 69 %$797 67 %
Revenue: Collaboration Products
Visual collaboration product offerings$268 31 %$385 33 %
Professional services1 — %— — %
Licensing— — %3 — %
      Total Collaboration Products revenue269 31 %388 33 %
Total revenue$872 100 %$1,185 100 %

Nine Months Ended September 30,
2023% of Revenue2022% of Revenue
Revenue: Managed Services
Video collaboration services$148 5 %$264 7 %
Network services1,758 61 %2,260 56 %
Professional and other services27 1 %49 1 %
Total Managed Services revenue$1,933 67 %$2,573 64 %
Revenue: Collaboration Products
Visual collaboration product offerings$932 33 %$1,467 36 %
Professional services1 — %— — %
Licensing— — %10 — %
Total Collaboration Products revenue933 33 %1,477 36 %
Total revenue$2,866 100 %$4,050 100 %

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 September 30,
20232022
Segment% of Revenue% of Revenue
Customer AManaged Services60 %53 %

Nine Months Ended September 30,
20232022
Segment% of Revenue% of Revenue
Customer AManaged Services56 %48 %


Concentration of accounts receivable was as follows:

As of September 30, 2023
20232022
Segment% of Accounts Receivable% of Accounts Receivable
Customer AManaged Services— %52 %
Customer BCollaboration Products38 %— %
Customer CCollaboration Products— %12 %
Customer DCollaboration Products12 %— %