Note 9 - Information About Geographic Areas and Operating Segments

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9. Information about Geographic Areas and Operating Segments

Our chief operating decision-makers (i.e. our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. We operate within a single industry segment of computer software and services.

We have two major product lines, Partner Solutions and Edge to Cloud, each of which we consider to be operating and reportable segments. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements, and we do not produce asset information by reportable segment. The following table sets forth profit and loss information about our segments (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Partner Solutions:
Revenue	$	9,638		$	9,145		$	28,393		$	33,160
Cost of revenue		8,491			7,402			24,528			27,502
Gross profit		1,147			1,743			3,865			5,658
Edge to Cloud:
Revenue		1,008			1,275			2,896			2,913
Cost of revenue		827			1,128			2,648			3,050
Gross profit		181			147			248			(137	)
Total gross profit		1,328			1,890			4,113			5,521
Operating expenses		2,194			2,028			7,150			7,173
Other (expense) income, net		(29	)		2			1,575			(31	)
Income tax benefit (expense)		—			—			—			—
Net loss	$	(895	)	$	(136	)	$	(1,462	)	$	(1,683	)

Revenue by geographic area is based on the sales region of the customer. The following tables set forth total revenue and long-lived assets by geographic area (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Total revenue:
North America	$	9,258	$	8,919	$	26,067	$	30,449
Europe		112		785		476		1,819
Asia		1,276		716		4,746		3,805
Total revenue	$	10,646	$	10,420	$	31,289	$	36,073

	September 30, 2021		December 31, 2020
Long-lived assets:
North America	$	1,780	$	1,179
Europe		176		179
Total long-lived assets	$	1,956	$	1,358

Long-lived assets increased due to additions of internally developed software throughout the year in North America.