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.

In the fourth quarter of 2018, the Company realigned the way in which it organized its operating segments in making operating decisions and assessing financial performance by combining the Identity and Credential segments. The combined segment is referred to as the Identity segment. All comparative segment information for fiscal 2018 has been reclassified to conform to the fiscal 2019 presentation.

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 for the three months ended March 31, 2019 and 2018 is as follows (in thousands):

	Three Months Ended March 31,
	2019			2018
Premises:
Net revenue	$	9,330		$	7,506
Gross profit		4,379			4,155
Gross profit margin		47	%		55	%
Identity:
Net revenue		10,192			9,022
Gross profit		4,325			2,353
Gross profit margin		42	%		26	%
Total:
Net revenue		19,522			16,528
Gross profit		8,704			6,508
Gross profit margin		45	%		39	%
Operating expenses:
Research and development		2,026			1,687
Selling and marketing		4,498			3,903
General and administrative		2,622			2,555
Restructuring and severance		(12	)		110
Total operating expenses:		9,134			8,255
Loss from operations		(430	)		(1,747	)
Non-operating income (expense):
Interest expense, net		(279	)		(476	)
Foreign currency losses, net		(2	)		(38	)
Loss before income taxes and noncontrolling interest	$	(711	)	$	(2,261	)

Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the three months ended March 31, 2019 and 2018 is as follows (in thousands):

	Three Months Ended
	March 31,
	2019			2018
Americas	$	14,725		$	13,232
Europe and the Middle East		2,930			2,308
Asia-Pacific		1,867			988
Total	$	19,522		$	16,528

Percentage of net revenue:
Americas		75	%		80	%
Europe and the Middle East		15	%		14	%
Asia-Pacific		10	%		6	%
Total		100	%		100	%

No customer accounted for 10% or more of net revenue for either of the three months ended March 31, 2019 or 2018. One customer accounted for 10% of net accounts receivable at March 31, 2019. No customer accounted for 10% or more of net accounts receivable balance at December 31, 2018.

Long-lived assets by geographic location as of March 31, 2019 and December 31, 2018 are as follows (in thousands):

	March 31,		December 31,
	2019		2018
Property and equipment, net:
Americas	$	1,178	$	1,060
Europe and the Middle East		35		43
Asia-Pacific		1,456		1,521
Total property and equipment, net	$	2,669	$	2,624

Operating lease ROU assets:
Americas	$	5,177	$	—
Europe and the Middle East		130		—
Asia-Pacific		663		—
Total operating lease right-of-use assets	$	5,970	$	—