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Segment, Concentration and Geographical Information
 12 Months Ended
Dec. 31, 2024
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 (“Topic 280”). 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's chief operating decision maker (“CODM”) as such term is defined in Topic 280, is its President and CEO. As infrastructure and resources are shared across the Company’s operations, the CODM manages the Company's operations based on consolidated financial information for purposes of evaluating financial performance, investment, cash flow metrics and allocating resources.
The accounting policies of the Company's single operating segment are the same as those described in the summary of significant accounting policies appearing in Note 1. Although the CODM uses other measures of operating performance, the Company concluded that consolidated net loss is the measure required to be disclosed as the segment measure of profit or loss. Adjusted operating loss and net loss are used to evaluate the effectiveness of Smith Micro's performance and to monitor budget versus actual results. The measure of segment assets is reflected as "total assets" in the accompanying consolidated balance sheet.
Revenue and expenses regularly provided to the CODM are included in the following reconciliation of the Company's net adjusted operating loss and net loss. It includes the significant expense categories computed under US GAAP, reconciled to the Company's total net loss as presented in the consolidated statement of operations.

Year Ended December 31,
20242023
Revenues$20,555 $40,862 
Less:
Adjusted cost of revenues1
$6,100 $10,326 
Adjusted selling and marketing2
$7,496 $10,041 
Adjusted research and development2
$12,687 $15,618 
Adjusted general and administrative2
$8,072 $9,593 
Adjusted operating loss
$(13,800)$(4,716)
Other segment expenses3
$(798)$(1,110)
Stock-based compensation expense
$(4,503)$(4,834)
Depreciation
$(365)$(606)
Amortization
$(5,935)$(6,789)
Goodwill impairment
$(23,989)$— 
Other Income (expenses)
$680 $(6,183)
Loss before provision for income taxes
$(48,710)$(24,238)
(Benefit) provision for income tax expense
$(13)$158 
Net loss
$(48,697)$(24,396)
(1) Adjusted amounts exclude depreciation expense and other adjustments as further described in footnote 3 to this table.
(2) Adjusted amounts exclude stock-based compensation expense and other adjustments as further described in footnote 3 to this table.
(3) Other segment expenses include personnel severance and reorganization activities and other corporate non-recurring expenditures.
The following table presents the disaggregation of Wireless revenues by product line (in thousands):
Year Ended December 31,
20242023
Family Safety$16,430 $34,513 
CommSuite2,956 2,834 
ViewSpot1,169 3,515 
Total Wireless revenues$20,555 $40,862 
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, 2024, three customers made up 58%, 20%, and 14% of revenues. For the year ended December 31, 2023, three customers made up 41%, 35%, and 13% of revenues.
As of December 31, 2024, two customers accounted for 68% and 14% of accounts receivable, and as of December 31, 2023, three customers accounted for 38%, 37%, and 11%, 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 we recognized no revenues for the Company related to that contract for the year ended December 31, 2024.
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.
For the year ended December 31, 2024, three service providers accounted for 22%, 18%, and 14% of purchases in the year, totaling 35% of trade payables as of December 31, 2024. 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.
Geographical Information
During the years ended December 31, 2024 and 2023, 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,
20242023
Americas$20,017 $39,712 
EMEA538 1,150 
Total revenues$20,555 $40,862 
The Company does not separately allocate specific assets to these geographic locations.