Segment Reporting

6 Months Ended

Jun. 30, 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. Below provides a further breakdown of costs and expenses of our one reporting segment (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2025			2024			2025			2024
Revenues	$	5,621		$	6,020		$	11,097		$	11,592
Cost of revenues
Costs to deliver products		812			626			1,499			1,297
Employee costs		407			607			793			1,223
Teleconference costs		41			58			94			113
Amortization of capitalized software		72			54			145			100
Other segment costs		4			28			8			28
Total cost of revenue		1,336			1,373			2,539			2,761
Operating costs and expenses:
Employee costs		1,507			2,228			3,404			4,503
Consultants and professional services		563			757			1,271			1,548
Depreciation and amortization		665			674			1,335			1,356
Advertising		330			339			631			778
Provision for credit losses		279			189			556			490
Software licensing		198			248			459			501
Stock compensation		205			244			391			158
Hosting		142			133			271			234
Merchant and bank fees		111			118			218			241
Capitalized Software		—			(155	)		(23	)		(400	)
Acquisition/integration and other non-recurring costs		374			94			454			194
Rent		92			94			183			184
Other operating expenses (1)		68			215			334			437
Total operating costs and expenses		4,534			5,178			9,484			10,224
Operating loss	$	(249	)	$	(531	)	$	(926	)	$	(1,393	)

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