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Segment Information
 9 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have two reportable segments: IoT Products & Services and IoT Solutions. Effective with the reorganization announcement on October 7, 2020, our IoT Products & Services business is now structured to include four operating segments, each with a segment manager. These four operating segments include:
•Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications.
•Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications (also exclusively using cellular communications).
•OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone module, or from a systems-on-module ("SOMs"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application.
•Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications.
8. SEGMENT INFORMATION (CONTINUED)
Following the acquisition of Ventus on November 1, 2021, IoT Solutions is now comprised of two operating segments:
•SmartSense - offers wireless temperature and other condition-based monitoring services for perishable goods such as food or medicine, as well as employee task management services.
•Ventus - provides MNaaS solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions.
The operating segments included in each reportable segment have similar qualitative and quantitative factors which allow us to aggregate them under each reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating margins. Our CODM reviews and makes business decisions which includes a primary review of operating income but also includes gross profit. Following the October 2020 reorganization, the shared general and administrative costs began being allocated to each operating segment. As a result, our disclosed measure of segment operating income has been updated for all periods presented to conform with this change.
Summary operating results for each of our segments were (in thousands):
Three months ended June 30,Nine months ended June 30,
2022202120222021
Revenue
IoT Products & Services$79,758 $66,812 $216,872 $194,224 
IoT Solutions23,759 12,267 65,615 35,302 
Total revenue$103,517 $79,079 $282,487 $229,526 
Gross Profit
IoT Products & Services$42,643 $36,806 $116,779 $106,942 
IoT Solutions14,783 5,750 40,512 17,089 
Total gross profit$57,426 $42,556 $157,291 $124,031 
Operating Income (Loss)
IoT Products & Services$10,881 $6,101 $24,046 $11,954 
IoT Solutions(907)(2,083)(2,709)(4,712)
Total operating income (loss)$9,974 $4,018 $21,337 $7,242 
Depreciation and Amortization
IoT Products & Services$3,471 $3,181 $10,633 $9,390 
IoT Solutions5,276 1,964 14,760 5,810 
Total depreciation and amortization$8,747 $5,145 $25,393 $15,200 
Total expended for property, plant and equipment was (in thousands):
Nine months ended June 30,
20222021
IoT Products & Services$1,722 $1,645 
IoT Solutions*2,496 — 
Total expended for property, plant and equipment$4,218 $1,645 
* Excluded from this amount is $1,742 and $1,624 of transfers of inventory to property plant and equipment for subscriber assets for the nine months ended June 30, 2022 and 2021, respectively.
8. SEGMENT INFORMATION (CONTINUED)
Total assets for each of our segments were (in thousands):
June 30,
2022		September 30,
2021
IoT Products & Services$398,129 $386,934 
IoT Solutions423,995 80,165 
Unallocated*41,515 152,432 
Total assets$863,639 $619,531 
*Unallocated consists of cash and cash equivalents.