Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Effective October 1, 2019, the former businesses of Glowpoint (now Oblong, Inc.) and Oblong Industries have been managed separately, and involve different products and services. Accordingly, the Company currently operates in two segments for purposes of segment reporting: (1) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings and (2) “Managed Services” which represents the Oblong (formerly Glowpoint) business surrounding managed services for video collaboration and network solutions.

Certain information concerning the Company’s segments for the years ended December 31, 2023 and 2022 is presented in the following tables (in thousands):

	Year Ended December 31, 2023
	Managed Services			Collaboration Products			Corporate			Total
Revenue	$	2,518		$	1,292		$	—		$	3,810
Cost of revenues	1,671			1,228			—			2,899
Gross profit	$	847		$	64		$	—		$	911
Gross profit %	34		%	5		%	—		%	24		%
Allocated operating expenses	$	3		$	481		$	—		$	484
Unallocated operating expenses	—			—			4,922			4,922
Total operating expenses	$	3		$	481		$	4,922		$	5,406
Income (loss) from operations	$	844		$	(417)		$	(4,922)		$	(4,495)
Interest and other income, net	—			—			(138)			(138)
Income (loss) before income taxes	$	844		$	(417)		$	(4,784)		$	(4,357)
Income tax expense	$	11		$	16		$	—		$	27
Net income (loss)	$	833		$	(433)		$	(4,784)		$	(4,384)
	As of December 31, 2023
Total assets	$	367		$	568		$	5,990		$	6,925

	Year Ended December 31, 2022
	Managed Services			Collaboration Products			Corporate			Total
Revenue	$	3,348		$	2,128		$	—		$	5,476
Cost of revenues	2,273			1,657			—			3,930
Gross profit	$	1,075		$	471		$	—		$	1,546
Gross profit %	32.1		%	22.1		%	—		%	28.2		%
Allocated operating expenses	$	19		$	18,355		$	—		$	18,374
Unallocated operating expenses	—			—			5,160			5,160
Total operating expenses	$	19		$	18,355		$	5,160		$	23,534
Income (loss) from operations	$	1,056		$	(17,884)		$	(5,160)		$	(21,988)
Interest and other (income) expense, net	12			(52)			—			(40)
Income (loss) before income taxes	$	1,044		$	(17,832)		$	(5,160)		$	(21,948)
Income tax benefit	$	(4)		$	(3)					$	(7)
Net income (loss)	$	1,048		$	(17,829)		$	(5,160)		$	(21,941)
	As of December 31, 2022
Total assets	$	752		$	1,824		$	3,085		$	5,661

Unallocated operating expenses include costs for the year ending December 31, 2023 and 2022 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. Unallocated assets consist of unrestricted cash.

For the years ended December 31, 2023 and 2022, no material revenue was 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,
	2023		2022
Domestic	$	1,843	$	2,781
Foreign	1,967		2,695
	$	3,810	$	5,476

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,
	2023		% of Revenue		2022		% of Revenue
Revenue: Managed Services
Video collaboration services	$	183	4.8	%	$	334	6.1	%
Network services	2,301		60.4	%	2,954		53.9	%
Professional and other services	34		0.9	%	60		1.1	%
Total Managed Services revenue	$	2,518	66.1	%	$	3,348	61.1	%
Revenue: Collaboration Products
Visual collaboration product offerings	$	1,291	33.9	%	$	2,114	38.6	%
Licensing	1		—	%	14		0.3	%
Total Collaboration Products revenue	$	1,292	33.9	%	$	2,128	38.9	%
Total revenue	$	3,810	100.0	%	$	5,476	100.0	%

The Company’s long-lived assets were 100% located in domestic markets as of December 31, 2023 and 2022.

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, 2023
		2023		2022
	Segment	% of Revenue		% of Revenue
Customer A	Managed Services	55.9	%	46.8	%

Concentration of accounts receivable was as follows:

		As of December 31,
		2023		2022
	Segment	% of Accounts Receivable		% of Accounts Receivable
Customer A	Managed Services	38.2	%	42.8	%
Customer B	Collaboration Products	46.8	%	22.0	%