Segment Reporting and Geographic Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

13. 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 for the years ended December 31, 2021 and 2020 are as follows (in thousands):

	Year Ended December 31,
	2021			2020
Identity:
Net revenue	$	64,725		$	52,742
Gross profit		15,670			14,781
Gross profit margin		24	%		28	%
Premises:
Net revenue		39,044			34,178
Gross profit		21,397			18,900
Gross profit margin		55	%		55	%
Total:
Net revenue		103,769			86,920
Gross profit		37,067			33,681
Gross profit margin		36	%		39	%
Operating expenses:
Research and development		8,673			9,781
Selling and marketing		17,033			17,270
General and administrative		11,891			8,623
Decrease in fair value of earnout liability		—			(261	)
Restructuring and severance		817			1,716
Total operating expenses:		38,414			37,129
Loss from operations		(1,347	)		(3,448	)
Non-operating income (expense):
Interest expense, net		(483	)		(1,462	)
Gain on forgiveness of Paycheck Protection Program note		2,946			—
Gain on investment		611			—
Foreign currency losses, net		(79	)		(122	)
Income (loss) before income tax provision	$	1,648		$	(5,032	)

Geographic Information

Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the years ended December 31, 2021 and 2020 is as follows (in thousands):

	Year Ended December 31,
	2021			2020
Americas	$	69,396		$	58,302
Europe and the Middle East		12,876			9,497
Asia-Pacific		21,497			19,121
Total	$	103,769		$	86,920
As percentage of net revenue:
Americas		67	%		67	%
Europe and the Middle East		12	%		11	%
Asia-Pacific		21	%		22	%
Total		100	%		100	%

Long-lived assets by geographic location as of December 31, 2021 and 2020 are as follows (in thousands):

	December 31,
	2021		2020
Property and equipment, net:
Americas	$	545	$	606
Europe and the Middle East		334		73
Asia-Pacific		3,187		2,148
Total property and equipment, net	$	4,066	$	2,827
Operating lease ROU assets:
Americas	$	1,344	$	2,100
Europe and the Middle East		135		224
Asia-Pacific		609		1,081
Total property and equipment, net	$	2,088	$	3,405