Note 8 - Information About Operating Segments and Geographical Areas

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

8. Information about Operating Segments and Geographical Areas

We conduct our operations in two reportable segments: Partner Solutions and Edge to Cloud. We define our 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.

We measure the results of our segments using, among other measures, each segment’s revenue and gross profit. Information for our segments is provided in the following table (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Partner Solutions:
Revenue	$	8,634	$	7,557	$	21,652	$	26,042
Cost of revenue		7,681		6,574		18,375		22,232
Segment gross profit		953		983		3,277		3,810
Edge to Cloud:
Revenue		658		849		2,306		2,490
Cost of revenue		616		697		1,931		2,083
Segment gross profit		42		152		375		407
Total gross profit		995		1,135		3,652		4,217

Revenue by geography is based on the sales region of the customer. See Note 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, 2023		December 31, 2022
Property and equipment, net:
North America	$	473	$	813
Europe		—		—
Total property and equipment, net	$	473	$	813

Loss on Sale of Property and Equipment

In connection with the Sublease, all furniture, fixtures, and leasehold improvements related to the office facility in Seattle, Washington were sold to the subtenant. The non-cash loss on sale of approximately $98,000 was recorded in selling, general and administrative expense in the condensed consolidated statement of operations.