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Segment Reporting, Geographic Information, and Concentration of Credit Risk
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting, Geographic Information, and Concentration of Credit Risk

12. 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 Chief Executive Officer.

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, 2022 and 2021 are as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Identity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

19,150

 

 

$

18,745

 

 

$

50,647

 

 

$

47,199

 

Gross profit

 

 

4,319

 

 

 

5,211

 

 

 

11,459

 

 

 

12,133

 

Gross profit margin

 

 

23

%

 

 

28

%

 

 

23

%

 

 

26

%

Premises:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

11,846

 

 

 

10,352

 

 

 

33,267

 

 

 

28,053

 

Gross profit

 

 

6,869

 

 

 

5,907

 

 

 

18,905

 

 

 

15,517

 

Gross profit margin

 

 

58

%

 

 

57

%

 

 

57

%

 

 

55

%

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

30,996

 

 

 

29,097

 

 

 

83,914

 

 

 

75,252

 

Gross profit

 

 

11,188

 

 

 

11,118

 

 

 

30,364

 

 

 

27,650

 

Gross profit margin

 

 

36

%

 

 

38

%

 

 

36

%

 

 

37

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,625

 

 

 

2,088

 

 

 

7,633

 

 

 

6,556

 

Selling and marketing

 

 

5,326

 

 

 

4,471

 

 

 

15,709

 

 

 

12,682

 

General and administrative

 

 

2,639

 

 

 

2,400

 

 

 

7,623

 

 

 

7,120

 

Restructuring and severance

 

 

49

 

 

 

99

 

 

 

132

 

 

 

761

 

Total operating expenses:

 

 

10,639

 

 

 

9,058

 

 

 

31,097

 

 

 

27,119

 

Income (loss) from operations

 

 

549

 

 

 

2,060

 

 

 

(733

)

 

 

531

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(39

)

 

 

(62

)

 

 

(101

)

 

 

(451

)

Gain on forgiveness of Paycheck Protection Program note

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,946

 

Gain on investment

 

 

—

 

 

 

611

 

 

 

30

 

 

 

611

 

Foreign currency gains (losses), net

 

 

(3

)

 

 

(48

)

 

 

111

 

 

 

(2

)

Income (loss) before income tax benefit (provision)

 

$

507

 

 

$

2,561

 

 

$

(693

)

 

$

3,635

 

 

 

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, 2022 and 2021 is as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Americas

 

$

20,951

 

 

$

19,667

 

 

$

55,480

 

 

$

49,023

 

Europe and the Middle East

 

 

3,651

 

 

 

3,223

 

 

 

11,473

 

 

 

9,309

 

Asia-Pacific

 

 

6,394

 

 

 

6,207

 

 

 

16,961

 

 

 

16,920

 

Total

 

$

30,996

 

 

$

29,097

 

 

$

83,914

 

 

$

75,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As percentage of net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

68

%

 

 

68

%

 

 

66

%

 

 

65

%

Europe and the Middle East

 

 

11

%

 

 

11

%

 

 

14

%

 

 

12

%

Asia-Pacific

 

 

21

%

 

 

21

%

 

 

20

%

 

 

23

%

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, 2022 or 2021. No customer accounted for 10% or more of net accounts receivable as of September 30, 2022 or December 31, 2021.

Long-lived assets by geographic location as of September 30, 2022 and December 31, 2021 are as follows (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Property and equipment, net:

 

 

 

 

 

 

 

 

Americas

 

$

476

 

 

$

545

 

Europe and the Middle East

 

 

301

 

 

 

334

 

Asia-Pacific

 

 

5,412

 

 

 

3,187

 

Total property and equipment, net

 

$

6,189

 

 

$

4,066

 

 

 

 

 

 

 

 

 

 

Operating lease ROU assets:

 

 

 

 

 

 

 

 

Americas

 

$

3,666

 

 

$

1,344

 

Europe and the Middle East

 

 

88

 

 

 

135

 

Asia-Pacific

 

 

243

 

 

 

609

 

Total operating lease right-of-use assets

 

$

3,997

 

 

$

2,088