Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Prior to the acquisition of Oblong Industries on October 1, 2019, the Company operated in one segment. The businesses of Oblong (formerly Glowpoint) and Oblong Industries were managed separately during the fourth quarter of 2019 and the year ended December 31, 2020, and involve different products and services. Accordingly, the Company currently operates in two segments: (1) the Oblong business which mainly consists of managed services for video collaboration and network applications; and (2) the Oblong Industries business which consists of products and services for visual collaboration technologies.

Because the closing of the acquisition of Oblong Industries occurred on October 1, 2019, the Company’s consolidated financial statements as of and for the year ended December 31, 2019 included in this Report only reflect Oblong Industries’ financial results for the fourth quarter of 2019, as compared to full year results for the year ended December 31, 2020.

Certain information concerning the Company’s segments for the years ended December 31, 2020 and 2019 is presented in the following tables (in thousands):

	For the Year Ended December 31, 2020
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate			Total
Revenue	$	6,227		$	9,106		$	—		$	15,333
Cost of revenues	3,789			3,491			—			7,280
Gross profit	$	2,438		$	5,615		$	—		$	8,053
Gross profit %	39.2		%	61.7		%	—		%	52.5		%
Allocated operating expenses	$	1,479		$	9,913		$	—		$	11,392
Unallocated operating expenses	—			—			6,725			6,725
Total operating expenses	$	1,479		$	9,913		$	6,725		$	18,117
Income (loss) from operations	$	959		$	(4,298)		$	(6,725)		$	(10,064)
Interest and other income (expense), net	(19)			2,765			—			2,746
Income (loss) before income taxes.	$	940		$	(1,533)		$	(6,725)		$	(7,318)
Income tax expense	$	50		$	53		$	—		$	103
Net income (loss)	$	890		$	(1,586)		$	(6,725)		$	(7,421)
	As of December 31, 2020
Total assets	$	6,494		$	22,649		$	—		$	29,143

	For the Year Ended December 31, 2019
	Oblong (formerly Glowpoint)			Oblong Industries			Corporate			Total
Revenue	$	9,660		$	3,167		$	—		$	12,827
Cost of revenues	6,269			1,158			—			7,427
Gross profit	$	3,391		$	2,009		$	—		$	5,400
Gross profit %	35.1		%	63.4		%	—		%	42.1		%
Allocated operating expenses	$	6,835		$	5,183		$	—		$	12,018
Unallocated operating expenses	—			—			956			956
Total operating expenses	$	6,835		$	5,183		$	956		$	12,974
Loss from operations	$	(3,444)		$	(3,173)		$	(956)		$	(7,574)
Interest and other expense, net	—			—			(187)			(187)
Loss before income taxes	$	(3,444)		$	(3,173)		$	(1,143)		$	(7,761)
Income tax expense	$	—		$	—		$	—		$	—
Net loss	$	(3,444)		$	(3,173)		$	(1,143)		$	(7,761)
	As of December 31, 2019
Total assets	$	5,942		$	28,967		$	—		$	34,909

Unallocated operating expenses include costs for the year ending December 31, 2020 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses.

For the years ended December 31, 2020 and 2019, there was no material revenue attributable to any individual foreign country. Approximately 1% of foreign revenue is billed in foreign currency and foreign currency gains and losses are not material. Revenue by geographic area is allocated as follows (in thousands):

	Year Ended December 31,
	2020		2019
Domestic	$	10,288	$	9,096
Foreign	$	5,045	$	3,731
	$	15,333	$	12,827

Disaggregated information for the Company’s revenue has been recognized in the accompanying consolidated statements of operations and is presented below according to contract type (dollars in thousands):

	Year ended December 31,
	2020		% of Revenue		2019		% of Revenue
Revenue: Oblong (formerly Glowpoint)
Video collaboration services	$	2,413	15.7	%	$	5,566	43.4	%
Network services	3,611		23.6	%	3,860		30.1	%
Professional and other services	203		1.3	%	234		1.8	%
Total Oblong revenue	$	6,227	40.6	%	$	9,660	75.3	%
Revenue: Oblong Industries
Visual collaboration product offerings	$	6,873	44.8	%	$	2,180	17.0	%
Professional services	1,033		6.7	%	709		5.5	%
Licensing	1,200		7.8	%	278		2.2	%
Total Oblong Industries revenue	$	9,106	59.4	%	$	3,167	24.7	%
Total revenue	$	15,333	100.0	%	$	12,827	100.0	%

Oblong fixed assets were 100% located in domestic markets at December 31, 2020. Oblong Industries’ long-lived assets were located 80% in domestic and 20% in foreign markets at December 31, 2020.

The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition and results of operations.

Concentration of revenues was as follows:

		Year Ended December 31,
		2020		2019
	Segment	% of Revenue		% of Revenue
Customer A	Oblong	17.0	%	17.8	%
Customer B	Oblong Industries	17.0	%	*
Customer C	Oblong	—	%	19.8	%

Concentration of accounts receivable was as follows:

		As of December 31,
		2020		2019
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Oblong	14.1	%	*
Customer B	Oblong Industries	20.1	%	*
Customer C	Oblong Industries	12.0	%	16.0	%
Customer D	Oblong Industries	—	%	18.0	%
Customer E	Oblong	*		11.5	%

    * The amount did not exceed 10% of the Company’s consolidated total revenue or accounts receivable.