XML 25 R16.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting
Note 10 - Segment Reporting

The Company currently operates in two segments: (1) “Managed Services”, which represents the Oblong (former Glowpoint) business surrounding managed services for video collaboration and network applications; and (2) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings.

Certain information concerning the Company’s segments for the three and nine months ended September 30, 2022 and 2021 is presented in the following tables (in thousands):
Three Months Ended September 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$797 $388 $— $1,185 
Cost of revenues552 289 — 841 
  Gross profit$245 $99 $— $344 
  Gross profit %31 %26 %29 %
Allocated operating expenses$— $6,275 $— $6,275 
Unallocated operating expenses— — 1,229 1,229 
  Total operating expenses$— $6,275 $1,229 $7,504 
Income (loss) from operations$245 $(6,176)$(1,229)$(7,160)
Interest and other expense (income), net1 (6)— (5)
Net income (loss) before tax246 (6,170)(1,229)(7,155)
Income tax benefit— (3)— (3)
Net income (loss)$246 $(6,167)$(1,229)$(7,152)
Nine Months Ended September 30, 2022
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$2,573 $1,477 $— $4,050 
Cost of revenues1,722 1,078 — 2,800 
Gross profit$851 $399 $— $1,250 
Gross profit %33 %27 %31 %
Allocated operating expenses$57 $17,804 $— $17,861 
Unallocated operating expenses— — 4,104 4,104 
Total operating expenses$57 $17,804 $4,104 $21,965 
Income (loss) from operations$794 $(17,405)$(4,104)$(20,715)
Interest and other expense (income), net7 (6)— 1 
Net income (loss) before tax787 (17,399)(4,104)(20,716)
Income tax expense8 — — 8 
Net income (loss)$779 $(17,399)$(4,104)$(20,724)

Three Months Ended September 30, 2021
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$1,006 $793 $— $1,799 
Cost of revenues721 507 — 1,228 
Gross profit$285 $286 $— $571 
Gross profit %28 %36 %32 %
Allocated operating expenses$337 $1,717 $— $2,054 
Unallocated operating expenses— — 1,628 1,628 
Total operating expenses$337 $1,717 $1,628 $3,682 
Loss from operations$(52)$(1,431)$(1,628)$(3,111)
Interest and other expense (income), net2 (3)(2,448)(2,449)
Income (loss) before income taxes(54)(1,428)820 (662)
Income tax expense— — — — 
Net income (loss)$(54)$(1,428)$820 $(662)
Nine Months Ended September 30, 2021
Managed ServicesCollaboration ProductsCorporateTotal
Revenue$3,279 $2,487 $— $5,766 
Cost of revenues2,293 1,474 — 3,767 
Gross profit$986 $1,013 $— $1,999 
Gross profit %30 %41 %35 %
Allocated operating expenses$527 $5,394 $— $5,921 
Unallocated operating expenses— — 5,078 5,078 
Total operating expenses$527 $5,394 $5,078 $10,999 
Income (loss) from operations$459 $(4,381)$(5,078)$(9,000)
Interest and other expense (income), net16 (227)(2,448)(2,659)
Net income (loss) before tax443 (4,154)(2,630)(6,341)
Income tax expense— — — — 
Net income (loss)$443 $(4,154)$(2,630)$(6,341)

Unallocated operating expenses in Corporate include costs for the three and nine months ended September 30, 2022 and 2021 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 three months ended September 30, 2022, approximately 10% of our revenue was attributable to customers in Singapore. For the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, there was no material revenue attributable to any individual foreign country.

Revenue by geographic area is allocated as follows (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Domestic$575 $1,035 $2,120 $3,277 
Foreign610 764 1,930 2,489 
$1,185 $1,799 $4,050 $5,766 

Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated Statements of Operations and is presented below according to contract type (in thousands):
Three Months Ended September 30,
2022% of Revenue2021% of Revenue
Revenue: Managed Services
Video collaboration services$69 6 %$179 10 %
Network services716 60 %813 45 %
Professional and other services12 1 %14 1 %
      Total Managed Services revenue$797 67 %$1,006 56 %
Revenue: Collaboration Products
Visual collaboration product offerings$385 33 %$771 43 %
Licensing3 — %22 1 %
      Total Collaboration Products revenue388 33 %793 44 %
Total revenue$1,185 100 %$1,799 100 %

Nine Months Ended September 30,
2022% of Revenue2021% of Revenue
Revenue: Managed Services
Video collaboration services$264 7 %$700 21 %
Network services2,260 56 %2,524 77 %
Professional and other services49 1 %55 2 %
      Total Managed Services revenue$2,573 64 %$3,279 57 %
Revenue: Collaboration Products
Visual collaboration product offerings$1,467 36 %$2,406 42 %
Licensing10 — %81 1 %
      Total Collaboration Products revenue1,477 36 %2,487 43 %
Total revenue$4,050 100 %$5,766 100 %
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:
Three Months Ended September 30,
20222021
Segment% of Revenue% of Revenue
Customer AManaged Services53 %37 %

Nine Months Ended September 30,
20222021
Segment% of Revenue% of Revenue
Customer AManaged Services48 %35 %
Concentration of accounts receivable was as follows:

As of September 30, 2022
20222021
Segment% of Accounts Receivable% of Accounts Receivable
Customer AManaged Services52 %17 %
Customer BCollaboration Products12 %— %
Customer CCollaboration Products— %12 %
Customer DCollaboration Products— %11 %