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Segment, Customer Concentration and Geographical Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment, Customer Concentration and Geographical Information Segment, Customer 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 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 Company's Chief Operating Decision Maker ("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 (unaudited, in thousands).
For the Three Months Ended March 31,
20252024
Revenues$4,621 $5,798 
Less:
Adjusted cost of revenues1
1,257 1,982 
Adjusted selling and marketing2
1,408 2,292 
Adjusted research and development2
2,642 3,707 
Adjusted general and administrative2
2,086 2,089 
Adjusted operating loss(2,772)(4,272)
Other segment expenses3
— (135)
Stock-based compensation expense(1,088)(1,136)
Depreciation(74)(98)
Amortization(1,276)(1,816)
Goodwill impairment— (23,989)
Other income (expenses)33 478 
Loss before provision for income taxes(5,177)(30,968)
Provision for income tax expense1 39 
Net loss$(5,178)$(31,007)
(1) Adjusted amounts exclude depreciation expense.
(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 (unaudited, in thousands):
For the Three Months Ended March 31,
20252024
Family Safety$3,788 $4,464 
CommSuite734 665 
ViewSpot99 669 
Total Wireless revenues$4,621 $5,798 
Customer 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, as of March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025 and 2024.
During the three months ended March 31, 2025, three customers made up 62%, 20% and 16% of revenues. For the three months ended March 31, 2024, three customers made up 54%, 18% and 11% of revenues.
As of March 31, 2025, two customers accounted for 47% and 33% of accounts receivable. As of December 31, 2024, two customers accounted for 68% and 14% of accounts receivable.
Geographical Information
During the three months ended March 31, 2025 and 2024, 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 (unaudited, in thousands):
For the Three Months Ended March 31,
20252024
Americas$4,615 $5,477 
EMEA6 321 
Total revenues$4,621 $5,798 
The Company does not separately allocate specific assets to these geographic locations.