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Segment Reporting, Geographic Information, and Concentration of Credit Risk
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting, Geographic Information, and Concentration of Credit Risk

14. Segment Reporting, Geographic Information, and Concentration of Credit Risk

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 for the three and nine months ended September 30, 2020 and 2019 are as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Premises:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

9,430

 

 

$

12,938

 

 

$

25,146

 

 

$

32,939

 

Gross profit

 

 

5,191

 

 

 

7,212

 

 

 

13,810

 

 

 

17,573

 

Gross profit margin

 

 

55

%

 

 

56

%

 

 

55

%

 

 

53

%

Identity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

15,429

 

 

 

10,088

 

 

 

36,938

 

 

 

31,846

 

Gross profit

 

 

4,694

 

 

 

3,314

 

 

 

11,287

 

 

 

11,540

 

Gross profit margin

 

 

30

%

 

 

33

%

 

 

31

%

 

 

36

%

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

24,859

 

 

 

23,026

 

 

 

62,084

 

 

 

64,785

 

Gross profit

 

 

9,885

 

 

 

10,526

 

 

 

25,097

 

 

 

29,113

 

Gross profit margin

 

 

40

%

 

 

46

%

 

 

40

%

 

 

45

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,380

 

 

 

2,125

 

 

 

7,398

 

 

 

6,229

 

Selling and marketing

 

 

4,245

 

 

 

4,470

 

 

 

12,978

 

 

 

13,689

 

General and administrative

 

 

2,118

 

 

 

2,591

 

 

 

6,460

 

 

 

7,492

 

Increase (decrease) in fair value of earnout liability

 

 

—

 

 

 

175

 

 

 

(261

)

 

 

175

 

Restructuring and severance

 

 

163

 

 

 

(87

)

 

 

1,645

 

 

 

(101

)

Total operating expenses:

 

 

8,906

 

 

 

9,274

 

 

 

28,220

 

 

 

27,484

 

Income (loss) from operations

 

 

979

 

 

 

1,252

 

 

 

(3,123

)

 

 

1,629

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(407

)

 

 

(246

)

 

 

(1,066

)

 

 

(766

)

Foreign currency (losses) gains, net

 

 

(175

)

 

 

168

 

 

 

(119

)

 

 

96

 

Income (loss) before income tax provision

 

$

397

 

 

$

1,174

 

 

$

(4,308

)

 

$

959

 

 

 

 

Geographic Information

 

Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the three and nine months ended September 30, 2020 and 2019 is as follows (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas

 

$

15,050

 

 

$

17,825

 

 

$

42,588

 

 

$

48,495

 

Europe and the Middle East

 

 

2,082

 

 

 

2,436

 

 

 

7,312

 

 

 

8,790

 

Asia-Pacific

 

 

7,727

 

 

 

2,765

 

 

 

12,184

 

 

 

7,500

 

Total

 

$

24,859

 

 

$

23,026

 

 

$

62,084

 

 

$

64,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

61

%

 

 

77

%

 

 

69

%

 

 

75

%

Europe and the Middle East

 

 

8

%

 

 

11

%

 

 

12

%

 

 

14

%

Asia-Pacific

 

 

31

%

 

 

12

%

 

 

19

%

 

 

11

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

Concentration of Credit Risk

No customer accounted for 10% or more of net revenue for either of the three or nine months ended September 30, 2020 or 2019. No customer accounted for 10% of net accounts receivable as of September 30, 2020 or December 31, 2019.

 

Long-lived assets by geographic location as of September 30, 2020 and December 31, 2019 are as follows (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Property and equipment, net:

 

 

 

 

 

 

 

 

Americas

 

$

677

 

 

$

839

 

Europe and the Middle East

 

 

75

 

 

 

55

 

Asia-Pacific

 

 

1,640

 

 

 

1,148

 

Total property and equipment, net

 

$

2,392

 

 

$

2,042

 

 

 

 

 

 

 

 

 

 

Operating lease ROU assets:

 

 

 

 

 

 

 

 

Americas

 

$

2,356

 

 

$

4,265

 

Europe and the Middle East

 

 

129

 

 

 

105

 

Asia-Pacific

 

 

978

 

 

 

259

 

Total operating lease right-of-use assets

 

$

3,463

 

 

$

4,629