Credit Risk, Concentrations, and Segment Reporting

12 Months Ended

Dec. 31, 2023

Credit Risk, Concentrations, and Segment Reporting

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 UK subsidiary and German subsidiaries. Cash in foreign financial institutions as of December 31, 2023 and 2022 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.

The Company is exposed to the following concentration risk:

The customers who account for 10% or more of the Company's revenue for the year ended December 31, 2023 or 10% or more of the Company's outstanding receivable balance as of December 31, 2023 are presented as follows:


	Year ended December 31, 2023				As of December 31, 2023
Customer	Revenues (millions)		Percentage of revenues		Accounts Receivable (millions)		Percentage of accounts receivable
A	$	0.8	17	%	$	—	—	%
B	$	0.2	4	%	$	0.1	10	%
C	$	0.4	10	%	$	—	—	%
Total	$	1.4	31	%	$	0.1	10	%

The customers who account for 10% or more of the Company's revenue for the year ended December 31, 2022 or 10% or more of the Company's outstanding receivable balance as of December 31, 2022 are presented as follows:


	Year ended December 31, 2022				As of December 31, 2022
Customer	Revenues (millions)		Percentage of revenues		Accounts Receivable (millions)		Percentage of accounts receivable
A	$	0.6	9	%	$	0.2	12	%
B	$	0.2	4	%	$	0.2	18	%
C	$	1.4	23	%	$	0.2	16	%
Total	$	2.2	36	%	$	0.6	46	%

The vendors who account for 10% or more of the Company's purchases for the year ended December 31, 2023 or 10% or more of the Company's outstanding payable balance as of December 31, 2023 are presented as follows:


	Year ended December 31, 2023				As of December 31, 2023
Vendor	Purchases (millions)		Percentage of purchases		Accounts Payable (millions)		Percentage of accounts payable
A	$	2.1	10	%	$	0.4	15	%
B	$	2.7	13	%	$	—	—	%
C	$	1.0	5	%	$	0.5	20	%
Total	$	5.8	28	%	$	0.9	35	%

The vendors who account for 10% or more of the Company's purchases for the year ended December 31, 2022 or 10% or more of the Company's outstanding payable balance as of December 31, 2022 are presented as follows:


	Year ended December 31, 2022				As of December 31, 2022
Vendor	Purchases (millions)		Percentage of purchases		Accounts Payable (millions)		Percentage of accounts payable
A	$	0.2	1	%	$	0.1	12	%
B	$	7.3	31	%	$	—	—	%
C	$	1.4	6	%	$	0.2	31	%
Total	$	8.9	38	%	$	0.3	43	%

Segments

The Company notes that as of December 31, 2023, the Grafiti Holding Inc., Grafiti LLC, and Enterprise Apps divestiture are presented as discontinued operations. The Company notes that Grafiti Holding Inc., Grafiti LLC, and the Enterprise Apps divestiture consist of the entirety of the Shoom and SAVES operating segments, along with a portion of the Indoor Intelligence operating segments. Therefore, only the Indoor Intelligence operating segment remains as of December 31, 2023. See Note 26 for more details.

The Company and its Chief Executive Officer (“CEO”), acting as the Chief Operating Decision Maker (“CODM”) determines its operating segments in accordance with FASB ASC 280, “Segment Reporting” (“ASC 280”). The Company has one operating segment in continuing operations, Indoor Intelligence. The Company is organized and operated as one business based on similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments. Management reviews its business as a single operating segment, using financial and other information rendered meaningful only by the fact that such information is presented and reviewed in the aggregate.