Note 4 - Segment Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(4) Segment Information

Significant Segment Expenses

The Company derives its revenue from a single reporting segment: product digitization solutions. Revenue is generated in this segment primarily through software subscriptions and software development services. The Company manages its business activities on a consolidated basis. In addition, the Chief Executive Officer of the Company, as the chief operating decision-maker (“CODM”), reviews the Company’s operating results and makes decisions to allocate resources based on consolidated financial information. As such, the Company has one single reportable segment. The CODM uses consolidated net income (loss) as a performance measure and total consolidated assets as an asset measure, to assess performance of the company, to allocate working capital, and to monitor budget versus actual results. 

The following table illustrates reported segment revenue, segment profit and loss, and significant segment expenses.

	Year Ended December 31,
	2024			2023
Revenue:
Subscription	$	22,418		$	18,973
Service		16,000			15,878
Total revenue		38,418			34,851
Cost of revenue:
Subscription (1)		2,959			2,975
Service (1)		6,628			7,252
Amortization expense on acquired intangible assets		4,592			4,459
Total cost of revenue		14,179			14,686
Operating expenses
Cash compensation		38,997			40,471
Stock-based compensation		9,323			10,032
Professional services and consultants		7,757			7,303
Software and hardware		3,538			3,581
Depreciation and amortization		2,104			2,582
Impairment of lease right of use assets and leasehold improvements		—			250
Other segment items (2)		3,827			4,153
Total operating expenses		65,546			68,372
Operating loss		(41,307	)		(48,207	)
Other income, net		2,341			2,452
Provision for income taxes		(44	)		(204	)
Net loss	$	(39,010	)	$	(45,959	)

(1) Cost of revenue for Subscription and Service excludes amortization expense on acquired intangible assets.

(2) Other segment items include training and travel expenses, recruiting expenses, rent and facility expenses, bad debt expenses and other miscellaneous costs.

Geographic Information

The Company markets its products in the U.S. and in non-U.S. countries through its sales personnel and partners. Revenue by geographic area, based upon the “bill-to” location, was as follows:

	Year Ended December 31,
	2024		2023
Domestic	$	10,195	$	11,380
International (1)		28,223		23,471
Total	$	38,418	$	34,851

(1) Revenue from the Central Banks is classified as international revenue. Reporting revenue by country for this customer is not practicable.

Major Customers

The following customers accounted for 10% or more of revenue:

	Year Ended December 31,
	2024			2023
Customer A		41	%		46	%
Customer B		15	%		*
Customer C		14	%		21	%

Long-lived tangible assets by geographical area

Long-lived tangible assets by geographic area were as follows:

	December 31,		December 31,
	2024		2023
United States	$	1,026	$	1,535
Europe		14		35
Total	$	1,040	$	1,570