Note 4 - Segment Information

3 Months Ended

Mar. 31, 2025

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.

	Three Months Ended March 31,
	2025			2024
Revenue:
Subscription	$	5,314		$	5,762
Service		4,054			4,176
Total revenue		9,368			9,938
Cost of revenue:
Subscription (1)		744			747
Service (1)		1,407			1,839
Amortization expense on acquired intangible assets		1,132			1,140
Total cost of revenue		3,283			3,726
Operating expenses
Cash compensation		12,041			9,893
Stock-based compensation		1,123			2,578
Professional services		2,853			1,929
Software and hardware		853			962
Depreciation and amortization		476			600
Other segment items (2)		818			1,107
Total operating expenses		18,164			17,069
Operating loss		(12,079	)		(10,857	)
Other income, net		369			528
Provision for income taxes		(20	)		(9	)
Net loss	$	(11,730	)	$	(10,338	)

(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:

	Three Months Ended March 31,
	2025		2024
Domestic	$	2,146	$	2,874
International (1)		7,222		7,064
Total	$	9,368	$	9,938

(1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, 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:

	Three Months Ended March 31,
	2025			2024
Customer A		38	%		42	%
Customer B		19	%		14	%
Customer C		*			18	%

* Less than 10%

Long-Lived Assets by Geographical Area

Long-lived assets by geographic area were as follows:

	March 31,		December 31,
	2025		2024
United States	$	899	$	1,026
Europe		10		14
Total	$	909	$	1,040