Segment, Concentration and Geographical Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment, Concentration and Geographical Information

Segment, Concentration and Geographical Information

Segment Information

Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting. The Company has one primary business unit based on how management internally evaluates separate financial information, business activities and management responsibility: Wireless. The Wireless segment includes the Family Safety (which includes SafePath), CommSuite, and ViewSpot families of products.

The Company does not separately allocate operating expenses to these product lines, nor does it allocate specific assets. Therefore, product line information reported includes only revenues.

The following table presents the Wireless revenues by product line (in thousands):

	Year Ended December 31,
	2023		2022
Family Safety	$	34,513	$	39,798
CommSuite	2,834		4,846
ViewSpot	3,515		3,869
Total Wireless revenues	$	40,862	$	48,513

Concentration Information

The Company has certain customers whose revenues individually represented greater than 10% of the Company’s total revenues, or whose accounts receivable balances individually represented greater than 10% of the Company’s total accounts receivable.

For the year ended December 31, 2023, three customers made up 41%, 35%, and 13% of revenues. For the year ended December 31, 2022, two customers made up 40% and 38% of revenues.

As of December 31, 2023, three customers accounted for 38%, 37%, and 11% of accounts receivable, and as of December 31, 2022, three customers accounted for 40%, 26%, and 17%, of accounts receivable.

As discussed in Note 4., on February 21, 2023, the Company received written notice of termination of a U.S. Tier 1 customer agreement for the Company’s family safety solution, effective June 30, 2023. Thereafter, the Company was obligated to deliver service under the agreement in a post-termination period through November 2023. The agreement accounted for approximately 36% of the revenues of the Company for the year ended December 31, 2023, and approximately 33% of the revenues for the Company for the year ended December 31, 2022.

For the year ended December 31, 2023, one service provider accounted for 16% of purchases in the year, totaling 33% of trade payables as of December 31, 2023. For the year ended December 31, 2022, one service provider accounted for 19% of purchases in the year, totaling 36% of trade payables as of December 31, 2022.

The Company’s major customers could reduce their orders of the Company’s products in favor of a competitor's product or for any reason. The loss of these major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on Smith Micro’s business.

Geographical Information

During the years ended December 31, 2023 and 2022, the Company operated in two geographic locations: the Americas and Europe, Middle East and Africa (EMEA). Revenues attributed to the geographic location of the customers’ bill-to address were as follows (in thousands):

	Year Ended December 31,
	2023		2022
Americas	$	39,712	$	46,621
EMEA	1,150		1,892
Total revenues	$	40,862	$	48,513

The Company does not separately allocate specific assets to these geographic locations.