Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Note 8 - 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 months ended March 31, 2024 and 2023 is presented in the following tables (in thousands):

	Three Months Ended March 31, 2024
	Managed Services			Collaboration Products			Corporate		Total
Revenue	$	522		$	104		$	—	$	626
Cost of revenues	369			260			—		629
Gross profit	$	153		$	(156)		$	—	$	(3)
Gross profit %	29		%	(150)		%			—		%
Allocated operating expenses	$	—		$	121		$	—	$	121
Unallocated operating expenses	—			—			1,060		1,060
Total operating expenses	$	—		$	121		$	1,060	$	1,181
Income (loss) from operations	$	153		$	(277)		$	(1,060)	$	(1,184)
Interest and other income, net	(32)			(16)			—		(48)
Net income (loss) before tax	185			(261)			(1,060)		(1,136)
Income tax expense	—			—			—		—
Net income (loss)	$	185		$	(261)		$	(1,060)	$	(1,136)

	Three Months Ended March 31, 2023
	Managed Services			Collaboration Products			Corporate		Total
Revenue	$	690		$	348		$	—	$	1,038
Cost of revenues	460			302			—		762
Gross profit	$	230		$	46		$	—	$	276
Gross profit %	33		%	13		%			27		%
Allocated operating expenses	$	—		$	286		$	—	$	286
Unallocated operating expenses	—			—			1,193		1,193
Total operating expenses	$	—		$	286		$	1,193	$	1,479
Income (loss) from operations	$	230		$	(240)		$	(1,193)	$	(1,203)
Interest and other expense (income), net	3			(25)			—		(22)
Income (loss) before income taxes	227			(215)			(1,193)		(1,181)
Income tax expense	7			31			—		38
Net income (loss)	$	220		$	(246)		$	(1,193)	$	(1,219)

Unallocated operating expenses in Corporate include costs for the three months ended March 31, 2024 and 2023 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 March 31, 2024, and 2023, there was no material revenue attributable to any individual foreign country.

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

	Three Months Ended March 31,
	2024		2023
Domestic	$	261	$	563
Foreign	365		475
	$	626	$	1,038

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 March 31,
	2024		% of Revenue		2023		% of Revenue
Revenue: Managed Services
Video collaboration services	$	14	2	%	$	64	6	%
Network services	503		80	%	618		60	%
Professional and other services	5		1	%	8		1	%
Total Managed Services revenue	$	522	83	%	$	690	66	%
Revenue: Collaboration Products
Visual collaboration product offerings	$	104	17	%	$	348	34	%
Total revenue	$	626	100	%	$	1,038	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 consolidated revenues was as follows:

		Three Months Ended March 31,
		2024		2023
	Segment	% of Revenue		% of Revenue
Customer A	Managed Services	82	%	52	%

Concentration of accounts receivable was as follows:

		As of March 31, 2024
		2024		2023
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Managed Services	—	%	41	%
Customer B	Managed Services	—	%	11	%
Customer C	Collaboration Products	—	%	14	%
Customer D	Collaboration Products	—	%	15	%
Customer E	Collaboration Products	73	%	—	%