Note 8 - Information About Operating Segments and Geographic Areas

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

8. Information about Operating Segments and Geographical Areas

The Company’s operations are conducted in two reportable segments: Partner Solutions and Edge to Cloud. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. We operate within a single industry segment of computer software and services.

The Company measures the results of its segments using, among other measures, each segment's revenue and gross profit. Information for the Company's segments is provided in the following table (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Partner Solutions:
Revenue	$	7,557	$	9,638	$	26,042	$	28,393
Cost of revenue		6,574		8,491		22,232		24,528
Segment gross profit		983		1,147		3,810		3,865
Edge to Cloud:
Revenue		849		1,008		2,490		2,896
Cost of revenue		697		827		2,083		2,648
Segment gross profit		152		181		407		248
Total gross profit		1,135		1,328		4,217		4,113

Revenue by geography is based on the sales region of the customer. See Footnote 2 - Revenue Recognition for a disaggregation of revenue by segment and geographic area.

We do not track assets at the segment level. The following table sets forth total long-lived assets by geographic area (in thousands):

	September 30, 2022		December 31, 2021
Long-lived assets:
North America	$	757	$	1,430
Europe		145		177
Total long-lived assets	$	902	$	1,607

Total long-lived assets decreased due to the removal of fully-depreciated assets in North America.