Segment Reporting and Geographic Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

12. Segment Reporting and Geographic Information

Segment Reporting

ASC 280, Segment Reporting (“ASC 280”) establishes standards for the reporting by public business enterprises of information about operating segments, products and services, geographic areas, and major customers. The method for determining what information to report is based on the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses and about which separate financial information is available to its chief operating decision makers (“CODM”). The Company’s CODM is its CEO.

The CODM reviews financial information and business performance for each operating segment. The Company evaluates the performance of its operating segments at the revenue and gross profit levels. The Company does not report total assets, capital expenditures or operating expenses by operating segment as such information is not used by the CODM for purposes of assessing performance or allocating resources.

Net revenue and gross profit information by segment are as follows (in thousands):

	Year Ended December 31,
	2023			2022			2021
Identity:
Net revenue	$	68,117		$	67,422		$	64,725
Gross profit		14,679			15,153			15,670
Gross profit margin		22	%		22	%		24	%
Premises:
Net revenue		48,266			45,493			39,044
Gross profit		27,485			25,791			21,397
Gross profit margin		57	%		57	%		55	%
Total:
Net revenue		116,383			112,915			103,769
Gross profit		42,164			40,944			37,067
Gross profit margin		36	%		36	%		36	%
Operating expenses:
Research and development		11,590			9,916			8,673
Selling and marketing		22,555			20,730			17,033
General and administrative		12,360			10,429			11,891
Restructuring and severance		714			202			817
Total operating expenses:		47,219			41,277			38,414
Loss from operations		(5,055	)		(333	)		(1,347	)
Non-operating income (expense):
Interest expense, net		(427	)		(143	)		(483	)
Gain on forgiveness of Paycheck Protection Program note		—			—			2,946
Gain on investment		132			30			611
Foreign currency gains (losses), net		25			155			(79	)
Income (loss) before income tax provision	$	(5,325	)	$	(291	)	$	1,648

Geographic Information

Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region is as follows (in thousands):

	Year Ended December 31,
	2023			2022			2021
Americas	$	84,512		$	76,799		$	69,396
Europe and the Middle East		17,880			15,900			12,876
Asia-Pacific		13,991			20,216			21,497
Total	$	116,383		$	112,915		$	103,769
As percentage of net revenue:
Americas		73	%		68	%		67	%
Europe and the Middle East		15	%		14	%		12	%
Asia-Pacific		12	%		18	%		21	%
Total		100	%		100	%		100	%

Long-lived assets by geographic location as of December 31, 2023 and 2022 are as follows (in thousands):

	December 31,
	2023		2022
Property and equipment, net:
Americas	$	711	$	530
Europe and the Middle East		519		458
Asia-Pacific		8,090		5,731
Total property and equipment, net	$	9,320	$	6,719
Operating lease ROU assets:
Americas	$	2,836	$	3,637
Europe and the Middle East		371		384
Asia-Pacific		2,007		352
Total operating lease ROU assets	$	5,214	$	4,373