Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting

Segment Reporting

Note 7: Segment Reporting

Operating segments are components of an enterprise about which separate financial information is available and is evaluated periodically by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its Chief Executive Officer as the CODM. The Company considers itself to be in a single reportable segment under the authoritative guidance for segment reporting, specifically a communications company for publicly traded and private companies. The CODM uses operating income to evaluate our capital allocation, which could be re-investing income back into the Company, executing a share-repurchase, paying dividends or acquiring other entities. Operating income is used to monitor budget versus actual results. The CODM also uses operating income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the Company.

In $000’s

	Three Months Ended March 31,
	2025			2024
Revenues	$	5,476		$	5,572
Cost of revenues
Costs to deliver products		687			671
Employee costs		386			616
Teleconference costs		53			55
Amortization of capitalized software		73			46
Other segment costs		4			—
Total cost of revenue		1,203			1,388
Operating costs and expenses:
Employee costs		1,897			2,275
Consultants and professional services		708			791
Depreciation and amortization		670			682
Advertising		301			439
Provision for credit losses		277			301
Software licensing		261			253
Stock compensation		186			(86	)
Hosting		129			101
Merchant and bank fees		107			123
Capitalized Software		(23	)		(245	)
Acquisition/integration and other non-recurring costs		80			100
Rent		91			90
Other operating expenses (1)		266			222
Total operating costs and expenses		4,950			5,046
Operating loss	$	(677	)	$	(862	)

(1) Other operating expenses include insurance, travel, reseller commissions, tradeshow expense and other miscellaneous selling, general and administrative expenses