Credit Risk and Concentrations

9 Months Ended

Sep. 30, 2021

Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, consequently, believes that its accounts receivable credit risk exposure beyond such allowances is limited.

The Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured limits. Cash is also maintained at foreign financial institutions for its Canadian subsidiary, UK subsidiary, German subsidiaries and its majority-owned India subsidiary. Cash in foreign financial institutions as of September 30, 2021 and December 31, 2020 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.

The following table sets forth the percentages of revenue derived by the Company from those customers, which accounted for at least 10% of revenues during the three and nine months ended September 30, 2021 and 2020 (in thousands):


	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020
	$	%	$	%
Customer A	—	—%	800	31%
Customer B	327	8%	305	12%

	For the nine months ended September 30, 2021		For the nine months ended September 30, 2020
	$	%	$	%
Customer A	—	—%	1,300	23%
Customer B	956	9%	916	17%

As of September 30, 2021, two customers represented approximately 27% of total accounts receivable.

As of September 30, 2021, two vendors represented approximately 37% of total gross accounts payable. Purchases from these vendors during the nine months ended September 30, 2021 was $512,201.

For the nine months ended September 30, 2021 three vendors represented approximately 24%, 18%, and 8% of total purchases. For the nine months ended September 30, 2020, five vendors represented approximately 30%, 18%, 15%, 14%, and 13% of total purchases.

Revenue Segments

The Company’s operations consist of three reportable segments based on similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Indoor Intelligence, Saves, and Shoom.

During the second quarter of 2021, the Company changed the level of detail at which its Chief Executive Officer (“CEO”) acting as the Chief Operating Decision Maker, or “CODM”) regularly reviews and manages certain of its businesses, resulting in the bifurcation of its former one segment into three standalone reportable segments: Indoor Intelligence, Saves, and Shoom. The Company now manages and reports its operating results through these three reportable segments. This change allows the Company to enhance its customer focus and better align its business models, resources, and cost structure to the specific current and future growth drivers of each business, while providing increased transparency to the Company’s shareholders. The historical segment information has been recast to conform to the current segment structure.

Gross profit is the primary measure of segment profitability used by the Company’s CODM.

Revenues and gross profit segments consisted of the following (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue by Segment
Indoor Intelligence	$	3,234	$	1,466	$	7,121	$	3,329
Saves	714		585		2,229		585
Shoom	502		503		1,507		1,520
Total segment revenue	4,450		2,554		10,857		5,434

Gross profit by Segment
Indoor Intelligence	2,343		1,066		5,020		2,287
Saves	490		418		1,588		418
Shoom	431		425		1,283		1,270
Gross profit by Segment	3,264		1,909		7,891		3,975

The reporting package provided to the Company's CODM does not include the measure of assets by segment as that information isn't reviewed by the CODM when assessing segment performance or allocating resources.