10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-35525

SMITH MICRO SOFTWARE, INC.

(Exact name of registrant as specified in its charter)

Delaware	33-0029027
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5800 Corporate Drive, Pittsburgh, PA	15237
(Address of principal executive offices)	(Zip Code)

(412) 837-5300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SMSI	The Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 6, 2025, there were 20,994,917 shares of Common Stock outstanding.

SMITH MICRO SOFTWARE, INC.

QUARTERLY REPORT ON FORM 10-Q

June 30, 2025

TABLE OF CONTENTS

Explanatory Note
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	2
	Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	2
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024	3
	Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024	4
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	6
	Notes to the Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.	Controls and Procedures	28
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 6.	Exhibits	30
SIGNATURES		31

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value data)

	June 30,			December 31,
	2025			2024
	(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	1,401		$	2,808
Accounts receivable, net of related allowances of $106 and $3 at 2025 and 2024, respectively		2,867			5,721
Prepaid expenses and other current assets		1,597			1,467
Total current assets		5,865			9,996
Equipment and improvements, net		423			538
Right-of-use assets		1,754			2,367
Other assets		496			496
Intangible assets, net		21,044			23,597
Goodwill		—			11,052
Total assets	$	29,582		$	48,046
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,766		$	1,738
Accrued payroll and benefits		1,820			1,694
Current operating lease liabilities		1,418			1,279
Other current liabilities		1,269			940
Total current liabilities		6,273			5,651
Non-current liabilities:
Warrant liabilities		121			224
Operating lease liabilities		646			1,287
Deferred tax liabilities, net		128			128
Total non-current liabilities		895			1,639
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 19,382,014 and 17,673,404 shares issued and outstanding at 2025 and 2024, respectively		19			18
Additional paid-in capital		397,280			395,383
Accumulated comprehensive deficit		(374,885	)		(354,645	)
Total stockholders’ equity		22,414			40,756
Total liabilities and stockholders' equity	$	29,582		$	48,046

See accompanying notes to the consolidated financial statements.

2

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues	$	4,420		$	5,140		$	9,041		$	10,938
Cost of revenues (including depreciation of $0, $4, $1, and $11 in the three and six months ended June 30, 2025 and 2024, respectively)		1,171			1,607			2,429			3,595
Gross profit		3,249			3,533			6,612			7,343
Operating expenses:
Selling and marketing		1,665			2,529			3,309			5,143
Research and development		2,752			3,702			5,609			7,691
General and administrative		2,671			2,740			5,395			5,496
Depreciation and amortization		1,349			1,541			2,698			3,449
Gain on sale of ViewSpot, net		(1,287	)		—			(1,287	)		—
Goodwill impairment		11,052			—			11,052			23,989
Total operating expenses		18,202			10,512			26,776			45,768
Operating loss		(14,953	)		(6,979	)		(20,164	)		(38,425	)
Other income (expense):
Change in fair value of warrant liabilities		(20	)		42			103			227
Interest (expense) income, net		(22	)		26			(47	)		100
Other (expense) income, net		(67	)		(18	)		(131	)		201
Loss before provision for income tax provision		(15,062	)		(6,929	)		(20,239	)		(37,897	)
Provision for income tax expense		—			—			1			39
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)
Loss per share:
Basic and diluted	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)
Weighted average shares outstanding:
Basic and diluted		19,417			10,567			18,820			10,016

See accompanying notes to the consolidated financial statements.

3

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

						Additional			Accumulated
	Common Stock					Paid-in			Comprehensive
	Shares			Amount		Capital			Deficit			Total
BALANCE, March 31, 2025 (unaudited)		19,459		$	19	$	396,366		$	(359,823	)	$	36,562
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")		—			—		5			—			5
Restricted stock grants, net of cancellations		123			—		1,090			—			1,090
Cancellation of shares for payment of withholding tax		(200	)		—		(181	)		—			(181	)
Net loss		—			—		—			(15,062	)		(15,062	)
BALANCE, June 30, 2025 (unaudited)		19,382		$	19	$	397,280		$	(374,885	)	$	22,414

						Additional			Accumulated
	Common Stock					Paid-in			Comprehensive
	Shares			Amount		Capital			Deficit			Total
BALANCE, December 31, 2024 (audited)		17,673		$	18	$	395,383		$	(354,645	)	$	40,756
Non-cash compensation recognized on stock options and ESPP		—			—		11			—			11
Restricted stock grants, net of cancellations		1,991			1		2,170			—			2,171
Cancellation of shares for payment of withholding tax		(285	)		—		(286	)		—			(286	)
ESPP shares issued		3			—		2			—			2
Net loss		—			—		—			(20,240	)		(20,240	)
BALANCE, June 30, 2025 (unaudited)		19,382		$	19	$	397,280		$	(374,885	)	$	22,414

4

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

						Additional			Accumulated
	Common Stock					Paid-in			Comprehensive
	Shares			Amount		Capital			Deficit			Total
BALANCE, March 31, 2024 (unaudited)		9,602		$	10	$	382,387		$	(336,955	)	$	45,442
Non-cash compensation recognized on stock options and ESPP		—			—		4			—			4
Restricted stock grants, net of cancellations		—			—		1,133			—			1,133
Cancellation of shares for payment of withholding tax		(42	)		—		(99	)		—			(99	)
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs		1,065			1		3,350			—			3,351
Net loss		—			—		—			(6,929	)		(6,929	)
BALANCE, June 30, 2024 (unaudited)		10,625		$	11	$	386,775		$	(343,884	)	$	42,902

						Additional			Accumulated
	Common Stock					Paid-in			Comprehensive
	Shares			Amount		Capital			Deficit			Total
BALANCE, December 31, 2023 (audited)		9,348		$	9	$	381,329		$	(305,948	)	$	75,390
Non-cash compensation recognized on stock options and ESPP		—			—		9			—			9
Restricted stock grants, net of cancellations		266			1		2,263			—			2,264
Cancellation of shares for payment of withholding tax		(55	)		—		(178	)		—			(178	)
ESPP shares issued		1			—		2			—			2
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs		1,065			1		3,350			—			3,351
Net loss		—			—		—			(37,936	)		(37,936	)
BALANCE, June 30, 2024 (unaudited)		10,625		$	11	$	386,775		$	(343,884	)	$	42,902

5

SMITH MICRO SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	For the Six Months Ended
	June 30,
	2025			2024
	(unaudited)			(unaudited)
Operating activities:
Net loss	$	(20,240	)	$	(37,936	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,698			3,460
Goodwill impairment		11,052			23,989
Non-cash lease expense		110			(224	)
Change in fair value of warrant liabilities		(103	)		(227	)
Provision for credit losses		103			—
Stock based compensation		2,183			2,272
Gain on sale of ViewSpot, net		(1,287	)		—
Gain on license of patents, net		—			(198	)
Changes in operating accounts:
Accounts receivable		3,051			4,087
Prepaid expenses and other assets		(128	)		(241	)
Accounts payable, accrued, and other liabilities		(309	)		(535	)
Net cash used in operating activities		(2,870	)		(5,553	)
Investing activities:
Capital expenditures, net		(31	)		(11	)
Proceeds from sale of ViewSpot, net		987			—
Proceeds from license of patents, net		—			198
Net cash provided by investing activities		956			187
Financing activities:
Proceeds from Common Stock, Warrants, and Pre-Funded Warrants Offering, net		—			3,351
Proceeds from financing arrangements		933			1,044
Repayments of financing arrangements		(428	)		(529	)
Other financing activities		2			3
Net cash provided by financing activities		507			3,869
Net decrease in cash and cash equivalents		(1,407	)		(1,497	)
Cash and cash equivalents, beginning of period		2,808			7,125
Cash and cash equivalents, end of period	$	1,401		$	5,628

See accompanying notes to the consolidated financial statements.

6

SMITH MICRO SOFTWARE, INC.

Notes to the Consolidated Financial Statements

(Unaudited)

1. The Company

Smith Micro Software, Inc. (“Smith Micro” or “the Company”) develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, the Company strives to enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer Internet of Things (“IoT”) devices. Smith Micro’s portfolio includes family safety software solutions to support families in the digital age and visual voice messaging.

Smith Micro’s solution portfolio is comprised of proven products that enable its customers to provide:

• In-demand digital services that connect today’s digital lifestyle, including family location services, parental controls, and consumer IoT devices to mobile consumers worldwide; and

• Easy visual access to voice messages on mobile devices through visual voicemail and voice-to-text transcription functionality

On June 3, 2025, the Company sold its ViewSpot product for total consideration of $1.3 million, of which $1.0 million was paid on the closing date, with the remaining amounts to be paid in two installments, the first of which was collected on July 1, 2025, and the final balance is due October 1, 2025.

On April 3, 2024, the Company filed a certificate of amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a one-for-eight (1:8) reverse stock split of the shares of the Company's common stock, par value $0.001 per share (the "Common Stock"), with an effective time of 11:59 p.m., Eastern Time on April 10, 2024 (the "Reverse Stock Split"). At the effective time, every eight shares of Common Stock, whether issued and outstanding or held by the Company as treasury stock were automatically combined and converted (without any further act) into one share of fully paid and nonassessable Common Stock, with any fractional shares resulting from the Reverse Stock Split rounded up to the nearest whole share. At the effective time, the number of shares of Common Stock then outstanding was reduced from approximately 76.8 million shares to approximately 9.6 million shares due to the Reverse Stock Split.

The Reverse Stock Split did not change the Company's authorized shares of Common Stock from 100,000,000 shares or the par value of the Common Stock. Proportionate adjustments were made to the per share exercise price and/or the number of shares issuable upon the exercise of stock options and the settlement of restricted stock awards and the number of shares authorized and reserved for issuance pursuant to the Company's equity incentive plans (see Note 9). Additionally, there were adjustments to the per share exercise price and the number of shares issuable upon exercise of warrants (see Note 5).

All share and per share amounts for Common Stock (including share amounts underlying convertible securities and the applicable exercise prices of such convertible securities) in these consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to the Reverse Stock Split, including reclassifying an amount equal to the reduction in the number of shares of Common Stock at par value to additional paid-in capital.

2. Accounting Policies

Basis of Presentation

The accompanying interim consolidated balance sheet as of June 30, 2025, and the related consolidated statements of operations and stockholders’ equity for the three and six months ended June 30, 2025 and 2024, and the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted.

7

 

In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments which are normal and recurring, and necessary to fairly state the financial position, results of operations, and cash flows of the Company. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on March 12, 2025 (the "2024 Form 10-K").

Intercompany balances and transactions have been eliminated in consolidation.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2025.

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board, ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The improved disclosure requirements apply to all public entities that are required to report segment information, including those with only reportable segment. In addition to the current requirements, the amendments require all segment profit or loss and asset disclosures to be provided on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2023 and will be effective for interim reporting periods beginning after December 15, 2024. The Company adopted ASU 2023-07 with no material effect on its consolidated financial statements other than the additional disclosure requirements, which are included in Note 11.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, and the adoption of this standard is not anticipated to have a significant impact on the Company's consolidated financial statements other than adding new disclosures, which the Company is currently evaluating.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which is intended to improve the decision-usefulness of expense information on public companies' income through disaggregation of relevant expense captions in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures.

3. Going Concern

The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In connection with preparing consolidated financial statements for the three and six months ended June 30, 2025, certain conditions in the Company's evaluation, considered in the aggregate, have raised substantial doubt about the Company's ability to continue as a going concern within one year from the date that the financial statements are issued, which has not been alleviated. The evaluation considered the Company's financial condition, including its liquidity sources, funds necessary to maintain the Company's operations considering the current financial condition, obligations, and other expected cash flows, and negative financial trends of recurring operating losses and negative cash flows.

8

 

The Company has no outstanding debt and is continuing operations and generating revenues in the normal course, however the Company is dependent, to an extent, on the timing of subscriber and revenue growth for its products and the related cash generation from that growth and/or the ability to obtain the necessary capital to meet its obligations and fund its working capital requirements to maintain normal business operations. Management believes that the actions presently being taken to implement the Company's business plan to expand subscriber growth, to acquire new customers, and to expand its offerings to existing customers to generate increased revenues, and, as necessary, to raise additional capital will support the Company's operations; as such the financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. The Company believes, based on its history of being able to complete debt and equity financings, that it would be able to raise additional funds as necessary, through public or private equity offerings, including by filing one or more registration statements, through debt financings, or from a combination of these funding sources. However, it may not be able to secure such incremental capital in a timely manner or on favorable terms, if at all. To preserve liquidity, the Company may also take one or more of the following additional actions:

• Implement additional restructuring and cost reductions,

• Secure a revolving line of credit, if available,

• Dispose of one or more product lines and/or,

• Sell or license intellectual property.

While management believes that the Company’s plans for growing revenue and the other potential actions available to it would alleviate the conditions that raise substantial doubt, these strategies are not entirely within the Company’s control and cannot be assessed as being probable of occurring.

4. Common Stock

Minimum Bid Price Requirement and Reverse Stock Split

On December 27, 2023, the Company received a notice from the Nasdaq Stock Market ("Nasdaq") that the Company was not in compliance with the $1.00 minimum bid price requirement for continued listing, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"), as the closing bid price of the Company’s Common Stock had been below $1.00 per share for more than thirty (30) consecutive business days as of the date of that notice. The Company undertook the Reverse Stock Split to enable the Company to regain compliance with the Minimum Bid Price Requirement. On April 29, 2024, the Company received notice from Nasdaq that it had regained compliance with the Minimum Bid Price Requirement, and the matter is now closed.

On November 26, 2024, the Company received a notice from Nasdaq that the Company’s Common Stock did not meet the $1.00 minimum bid price requirement pursuant to the Minimum Bid Price Requirement, and in accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial compliance period of 180 calendar days, or until May 26, 2025, to regain compliance with the Minimum Bid Price Requirement. On January 8, 2025, the Company received written notification from Nasdaq indicating that the Company’s Common Stock had a closing price at or greater than $1.00 per share for the last 10 consecutive business days, from December 23, 2024 to January 7, 2025, and that, as a result, the Company has regained compliance with the Minimum Bid Price Requirement and the matter is now closed.

On June 23, 2025, the Company received a notice from Nasdaq that the Company’s Common Stock did not meet the $1.00 minimum bid price requirement pursuant to the Minimum Bid Price Requirement, and in accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial compliance period of 180 calendar days, or until December 22, 2025, to regain compliance with the Minimum Bid Price Requirement.

May 2024 Registered Direct Offering & Private Placement

On May 10, 2024, the Company entered into a securities purchase agreement (the “May 2024 Purchase Agreement”) with certain institutional and accredited investors (the “May 2024 Purchasers”) relating to the registered direct offering and sale of an aggregate of 1,065,000 shares of the Company’s Common Stock at an offering price of $2.15 per share of Common Stock and pre-funded warrants ( “May 2024 Pre-Funded Warrants”) to purchase up to 845,000 shares of Common Stock (the “May 2024 Registered Direct Offering”). The May 2024 Pre-Funded Warrants were purchased at a price of $2.149 per underlying share and had an exercise price of $0.001 per share and could be exercised at any time after their original issuance until such May 2024 Pre-Funded Warrants were exercised in full. The shares of Common Stock and May 2024 Pre-Funded Warrants (including the shares of Common Stock underlying the warrants) were offered by the Company pursuant to a prospectus supplement dated May 10, 2024, and accompanying prospectus dated May 12, 2022, in connection with a takedown from the Company’s shelf registration statement on Form S-3 (File No. 333-264667), which was declared effective by the SEC on May 12, 2022.

9

 

In a private placement on May 14, 2024, concurrent with the May 2024 Registered Direct Offering, the Company also sold to the May 2024 Purchasers unregistered warrants (the “May 2024 Common Warrants”) to purchase up to an aggregate of 1,910,000 shares of Common Stock (the “May 2024 Private Placement”). Each unregistered May 2024 Common Warrant has an exercise price of $2.34 per share, is exercisable at any time beginning November 14, 2024 and will expire November 14, 2029. Both the May 2024 Registered Direct Offering and the May 2024 Private Placement closed on May 14, 2024.

Roth Capital Partners, LLC (“Roth”) acted as the exclusive placement agent for the May 2024 Registered Direct Offering and the May 2024 Private Placement pursuant to a placement agency agreement (the “Placement Agency Agreement”) dated May 10, 2024, by and between the Company and Roth, and a related engagement letter with Roth. Pursuant to the Placement Agency Agreement, on May 14, 2024 the Company issued to Roth warrants to purchase up to 133,700 shares of Common Stock (the “May 2024 Placement Agent Warrants”), which represented 7.0% of the aggregate number of shares of Common Stock and May 2024 Pre-Funded Warrants sold in the May 2024 Registered Direct Offering. The May 2024 Placement Agent Warrants are exercisable at any time beginning November 14, 2024, have an exercise price equal to $2.86, and expire November 16, 2026.

The shares of Common Stock underlying the May 2024 Common Warrants and the May 2024 Placement Agent Warrants (collectively referred to herein as the “May 2024 Warrants”) were registered on a registration statement on Form S-1 (File No. 333-280542) filed with the SEC on June 27, 2024, which was declared effective by the SEC on July 10, 2024. Shares of Common Stock issued by the Company upon exercise of the May 2024 Warrants may be resold by the holders pursuant to the prospectus dated July 11, 2024. The filings made by the Company in connection with the potential resale of the Common Stock underlying the May 2024 Warrants were filed within the time period agreed by the parties in the Purchase Agreement.

The net cash proceeds to the Company, after deducting offering related expenses was $3.4 million. The May 2024 Pre-Funded Warrants, May 2024 Common Warrants, and May 2024 Placement Agent Warrants were all assessed and recorded as equity instruments.

During the third quarter of 2024, all 845,000 May 2024 Pre-Funded Warrants from the May 2024 Registered Direct Offering and May 2024 Private Placement were exercised on a cashless basis resulting in the issuance of 844,061 shares of Common Stock.

October 2024 Registered Direct Offering and Private Placement

On October 3, 2024, the Company announced its completion of two securities offerings raising aggregate gross proceeds of $6.9 million: a registered direct offering of 3,321,881 registered shares of Common Stock and concurrent private placement of unregistered warrants exercisable for an equal number of shares of Common Stock (collectively, the “October 2024 RDO”) for gross proceeds of approximately $3.9 million, including $0.2 million from a related party, and an unregistered private placement transaction of 2,575,107 shares of Common Stock and warrants exercisable for an equal number of shares of Common Stock with William W. Smith Jr., the Company's Chief Executive Officer, a related party, who participated in the private placement through a trust for which he serves as co-trustee (the “October 2024 Private Placement”), for gross proceeds of approximately $3.0 million. Both offerings were approved by an independent special committee of the Company's Board of Directors and were priced based on the market value of the offered securities, at a purchase price of $1.165 per share of Common Stock with a warrant exercise price of $1.04 per share of Common Stock. Each of the warrants issued in the October 2024 offerings was initially exercisable at any time beginning six months following its original issuance and expires five and one-half years from the initial issuance of the warrant. In January 2025, at the request of certain holders of the warrants issued in the October 2024 RDO, the Company provided all of the October 2024 RDO warrant holders the opportunity to amend their warrants to adjust the start of the warrant exercise period to January 9, 2025, and as a result a portion of the warrants issued in connection with the October 2024 RDO were so amended. No other terms were changed as a result of that amendment to certain of the warrants.

10

 

In addition, concurrent with the offerings, the Company issued to Roth a warrant to purchase up to 20,000 shares of the Company’s Common Stock (the “Roth Warrant”), which has substantially the same terms as the warrants issued in the registered offering, except that the Roth Warrant has an exercise price of $1.46 per share of Common Stock and will expire two-and-a-half years from the effective date of the October registered offering.

On October 21, 2024, the Company filed a definitive proxy statement for a Special Meeting of Stockholders to approve the issuance of the number of shares of the Company’s Common Stock that would cause William W. Smith, Jr. to beneficially own twenty percent or more of the Company, through the exercise of the warrants purchased in the unregistered private placement transaction. The shareholders approved this proposal on December 10, 2024.

On October 28, 2024, the Company filed a registration statement with the SEC (File No. 333-282858) registering the resale of the shares of stock issued in the October 2024 Private Placement and the shares of common stock issuable upon exercise of the warrants issued in the October 2024 RDO and the October 2024 Private Placement. This registration statement was declared effective by the SEC on November 8, 2024.

The net cash proceeds to the Company from both offerings, after deducting offering related expenses was $6.6 million. All warrants associated with these transactions were assessed and recorded as equity instruments.

5. Warrant Liabilities

On August 11, 2022, the Company issued warrants (the "Notes Warrants") to purchase Common Stock in conjunction with a senior secured convertibles notes (the "Notes") and warrants offering (the "Notes and Warrants Offering"), at an initial fair value of $3.8 million. The Notes sold by the Company in the Notes and Warrants Offering were subsequently retired upon maturity at December 31, 2023. The exercise price of and number of shares underlying the Notes Warrants were immediately proportionately adjusted pursuant to the Reverse Stock Split to $26.80 and 279,851 shares, respectively, and on May 2, 2024, the exercise price for each of the Notes Warrants was further adjusted to $2.06 in accordance with their terms.

The Company issued additional warrants (the "Additional Warrants") to purchase Common Stock on August 12, 2022 in conjunction with a registered direct offering for the sale of shares of the Company's Common Stock and the Additional Warrants. The Additional Warrants do not reprice further beyond the immediate proportionate adjustments to the per share exercise price and number of shares issuable of $21.20 and 141,509 shares, respectively, that occurred upon and as a result of the Reverse Stock Split.

11

 

All changes in the fair value of the Notes Warrants and Additional Warrants liabilities are recognized in the Company's consolidated statements of operations until they are either exercised or expire. Since their issuance, none of the Notes Warrants or Additional Warrants have been exercised. The Notes Warrants and Additional Warrants are not traded in an active securities market and, as such, the estimated fair value is determined by using a Black-Scholes option pricing model which considers the likelihood of repricing adjustments and utilizes assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of valuation. Expected volatility is based on the historical volatility over the expected remaining term of the warrants. The Company has no reason to believe future volatility over the expected remaining life of the Notes Warrants and Additional Warrants is likely to differ materially from historical volatility. Expected life is based on the term of the applicable warrants. Below are the specific assumptions utilized (unaudited, except for December 31, 2024):

Notes Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.2	%
Expected dividend yield		—			—
Expected term (in years)		2.12			2.61
Expected volatility		117.3	%		105.9	%

Additional Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.3	%
Expected dividend yield		—			—
Expected term (in years)		2.62			3.12
Expected volatility		112.7	%		99.6	%

6. Fair Value of Financial Instruments

The Company measures and discloses fair value measurements as required by FASB Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures.

Fair value is an exit price, representing the amount that would be received upon the sale of an asset or the amount that would be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

• Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.

• Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table presents information about the financial liabilities that are measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 (unaudited except for December 31, 2024, in thousands):

Level 3	June 30, 2025		December 31, 2024
Notes Warrants	$	107	$	197
Additional Warrants		14		27
Total	$	121	$	224

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The following tables present the changes in the fair value (unaudited, except for December 31, 2024, in thousands):

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2024	$	197		$	27		$	224
Change in fair value	$	(107	)	$	(16	)	$	(123	)
Measurement at March 31, 2025	$	90		$	11		$	101
Change in fair value	$	17		$	3		$	20
Measurement at June 30, 2025	$	107		$	14		$	121

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2023	$	334		$	263		$	597
Change in fair value	$	28		$	(214	)	$	(186	)
Measurement at March 31, 2024	$	362		$	49		$	411
Change in fair value	$	(24	)	$	(18	)	$	(42	)
Measurement at June 30, 2024	$	338		$	31		$	369

7. Goodwill and Intangible Assets

In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other, Smith Micro reviews the recoverability of the carrying value of the Company's single reporting unit goodwill at least annually or whenever events or circumstances indicate a potential impairment. The annual impairment testing date is December 31 of each year. Recoverability of goodwill is determined by comparing the estimated fair value of the reporting unit to the carrying value of the underlying net assets in the reporting unit. If the estimated fair value of a reporting unit is determined to be less than the carrying value, goodwill is deemed impaired, and an impairment loss is recognized to the extent that the carrying value of goodwill exceeds the fair value.

During the three months ended March 31, 2024, the Company performed an interim quantitative impairment test on its goodwill as of February 29, 2024 and as a result of this interim assessment, including the impact of the projections of revenue growth, earnings before interest taxes depreciation and amortization (“EBITDA”), and discount rates along with market multiples, the Company recorded a goodwill impairment charge totaling $24.0 million.

In connection with the preparation of its quarterly financial statements for the second quarter of 2025, the Company assessed changes in circumstances to determine whether it was more likely than not that the fair value of its single reporting unit was below its carrying amount. While there was no single determinative event or factor, considerations including recent financial performance compared to expected forecasts, trends in stock valuation, pricing of the most recent equity raise, and the receipt of the Nasdaq minimum bid price requirement notice on June 24, 2025 led the Company to conclude that when considering the events and factors in totality it was necessary to perform an interim quantitative valuation assessment.  The fair value of the reporting unit was determined based on a combination of the income approach using estimated discounted cash flows and a market-based valuation methodology utilizing market multiples. The assessment utilized Level 3 inputs including estimates of revenue growth, EBITDA contribution and discount rates. Based on the results of the assessment, a full goodwill impairment charge of $11.1 million was recorded. 

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The components of the Company’s intangible assets were as follows for the periods presented (unaudited, except for December 31, 2024, in thousands, except for useful life data):

	June 30, 2025
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		3	$	11,076	$	(7,227	)	$	3,849
Customer relationships		9		24,573		(9,652	)		14,921
Customer contracts		0		7,000		(6,810	)		190
Software license		4		5,419		(3,485	)		1,934
Patents		2		600		(450	)		150
Total			$	48,668	$	(27,624	)	$	21,044

	December 31, 2024
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		4	$	13,330	$	(8,762	)	$	4,568
Customer relationships		9		27,548		(11,280	)		16,268
Customer contracts		0		7,000		(6,725	)		275
Software license		4		5,419		(3,126	)		2,293
Patents		2		600		(407	)		193
Total			$	53,897	$	(30,300	)	$	23,597

The Company amortizes intangible assets over the pattern of economic benefit expected to be generated from the use of the assets, with a total weighted average amortization period of approximately seven years as of June 30, 2025 and eight years as of December 31, 2024. During the three months ended June 30, 2025 and 2024, intangible asset amortization expense was $1.3 million and $1.5 million, respectively. During the six months ended June 30, 2025 and 2024, intangible asset amortization expense was $2.6 million and $3.3 million, respectively.

As of June 30, 2025, estimated amortization expense for the remainder of 2025 and thereafter was as follows (unaudited, in thousands):

	Amortization
Year Ending December 31,	Expense
2025	$	2,552
2026		4,709
2027		3,834
2028		2,790
2029		2,095
2030 and thereafter		5,064
Total	$	21,044

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8. Earnings Per Share

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method.

The 845,000 shares of the Company's Common Stock issuable upon exercise of the Pre-Funded Warrants, described in Note 4 to these consolidated financial statements, were included in the weighted average outstanding Common Stock in the calculation of basic and diluted net loss per share from May 2024 through their exercise in August 2024, as the exercise price was non-substantive at $0.001 per share.

For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, Common Stock subject to repurchase by the Company, options, warrants (other than the Pre-Funded Warrants), and convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

The following table sets forth the details of basic and diluted earnings per share (unaudited, in thousands, except per share amounts):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Numerator:
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)
Denominator:
Weighted average shares outstanding – basic		19,417			10,567			18,820			10,016
Potential common shares – options / warrants (treasury stock method)		—			—			—			—
Weighted average shares outstanding – diluted		19,417			10,567			18,820			10,016
Shares excluded (anti-dilutive)		8,413			1,486			8,409			959
Net loss per common share:
Basic	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)
Diluted	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)

The following weighted average shares were excluded from the computation of diluted net loss per share as the impact of including those shares would be anti-dilutive (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Outstanding stock options		31		9		27		10
Outstanding warrants		8,382		1,477		8,382		949
Total anti-dilutive shares		8,413		1,486		8,409		959

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9. Stock-Based Compensation

Stock Plans

On June 18, 2024, the Company's stockholders approved the Company's Amended and Restated Omnibus Equity Incentive Plan (as currently amended, the "OEIP") which amended and restated (and renamed) the Company's 2015 Omnibus Equity Incentive Plan (as previously amended, the "2015 Plan") and increased the number of shares reserved thereunder by 3.0 million shares, and on June 3, 2025, the Company's stockholders approved an increase to the number of shares reserved thereunder by an additional 3.0 million shares. As of June 30, 2025, there were approximately 3.2 million shares available for future grants under the Company’s OEIP. References to the OEIP herein include the 2015 Plan prior to its amendment and restatement. The maximum number of shares available for issuance over the term of the OEIP may not exceed 7.2 million shares.

During the six months ended June 30, 2025, the Company granted 2.0 million shares of restricted stock and 25,000 stock options under the OEIP.

The OEIP provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and partial value awards (stock options or stock appreciation rights) to employees, non-employee members of the Company's Board of Directors and consultants. Any full value award settled in shares will be debited as 1.2 shares, and partial value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for stock option grants is not to be less than the fair market value per share of the Company’s Common Stock on the date of grant. The Compensation Committee of the Board of Directors administers the OEIP and determines the vesting schedule at the time of grant. Stock options may be exercisable immediately or in installments but generally vest over a one-year or four-year period from the date of grant. In the event the holder ceases to be employed by the Company, all unvested stock awards terminate, and all vested stock options may be exercised within a period of 90 days following termination of employment. In general, stock options expire ten years from the date of grant. Restricted stock is valued using the closing stock price on the grant date. The total value is expensed over the vesting period, which is typically up to 48 months.

Employee Stock Purchase Plan

The Company has a stockholder approved employee stock purchase plan (as amended, the “ESPP”), under which substantially all employees may purchase the Company’s Common Stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock as of the beginning and end of six-month offering periods. Payroll deductions under the ESPP are limited to 10% of the employee’s compensation and in any calendar year employees may not purchase more than the lesser of $25,000 of stock or 250 shares, as set by the Compensation Committee of the Board of Directors in accordance with the terms of the ESPP.  On June 3, 2025, the Company's stockholders approved an amendment to the ESPP to increase the aggregate number of shares of Common Stock authorized for issuance under the ESPP by 250,000 shares, therefore no more than 281,250 shares in the aggregate may be purchased under the ESPP.

Stock Compensation Expense

The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognizes compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation.

Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP are recorded in the consolidated financial statements as follows (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Sales and marketing	$	263	$	345	$	498	$	653
Research and development		204		245		418		509
General and administrative		629		548		1,267		1,110
Total non-cash stock compensation expense	$	1,096	$	1,138	$	2,183	$	2,272

As of June 30, 2025, there was approximately $2.9 million in unrecognized compensation costs related to unvested stock options and restricted stock awards granted under the OEIP.

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Stock Options

For the six months ended June 30, 2025, there were 25,000 stock option awards granted. A summary of the Company’s stock options outstanding under the OEIP as of June 30, 2025 and related activity during 2025 is as follows (unaudited, in thousands except weighted average exercise price and weighted average remaining contractual life):

					Wtd. Avg.
					Remaining		Aggregate
			Weighted Avg.		Contractual		Intrinsic
	Shares		Exercise Price		Life (Yrs)		Value
Outstanding as of December 31, 2024		5	$	27.57		4.1	$	—
Granted		25		1.26		—	$	—
Outstanding as of June 30, 2025		30	$	5.99		8.6	$	—
Vested and expected to vest at June 30, 2025		30	$	5.99		8.6	$	—
Exercisable as of June 30, 2025		5	$	27.46		3.7	$	—

Restricted Stock Awards

A summary of the Company’s restricted stock awards outstanding under the OEIP for the six months ended June 30, 2025 and the activity during the period therein are as follows (unaudited, in thousands, except weighted average grant date fair value):

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Unvested at December 31, 2024		419		$	7.85
Granted		2,006			1.17
Vested		(1,005	)		2.51
Canceled and forfeited		(16	)		2.28
Unvested at June 30, 2025		1,404		$	2.19

10. Revenues

Revenue Recognition

In accordance with FASB ASC Topic No. 606, Revenue from Contracts with Customers, the Company recognizes the sale of goods and services based on the five-step analysis of transactions as provided in Topic 606, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods and services. For all contracts with customers, the Company first identifies the contract, which usually is established when a contract is fully executed by each party and consideration is expected to be received. Next, the Company identifies the performance obligations in the contract. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company then determines the transaction price in the arrangement and allocates the transaction price, if necessary, to each performance obligation identified in the contract. The allocation of the transaction price to the performance obligations are based on the relative standalone selling prices for the goods and services contained in a particular performance obligation. The transaction price is adjusted for the Company’s estimate of variable consideration which may include certain incentives and discounts, product returns, distributor fees, and storage fees. The Company evaluates the total amount of variable consideration expected to be earned by using the expected value method, as the Company believes this method represents the most appropriate estimate for this consideration, based on historical service trends, the individual contract considerations, and its best judgment at the time. The Company includes estimates of variable consideration in revenues only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company generates the majority of its revenue on usage-based fees which are variable and depend entirely on customers’ use of perpetual licenses, transactions processed on the Company’s hosted environment and activity on the Company’s cloud-based service platform.

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The Company’s contracts with mobile network operator (“MNO”) customers include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Smith Micro’s cloud-based services include a software solution license integrated with cloud-based services. Since the Company does not allow its customers to take possession of the cloud-based elements of its software solutions, and since the utility of the license comes from the cloud-based services that the Company provides, Smith Micro considers the software license and the cloud services to be a single performance obligation. The Company recognizes revenue associated with its MNO customers based upon their active subscribers’ access and usage of Smith Micro’s software licenses and cloud-based services on Smith Micro’s platforms or satisfaction of the performance obligations as indicated in the contracts.

Smith Micro has made accounting policy elections to exclude all taxes by governmental authorities from the measurement of the transaction price, and since the Company’s standard payment terms are less than one year, the Company has elected the practical expedient not to assess whether a contract has a significant financing component.

Disaggregation of Revenues

Revenues on a disaggregated basis are as follows (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
License and service fees	$	795	$	761	$	1,590	$	1,538
Hosted environment usage fees		777		531		1,511		1,196
Cloud based usage fees		2,835		3,645		5,921		7,670
Consulting services and other		13		203		19		534
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

11. 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.

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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 June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Revenues	$	4,420		$	5,140		$	9,041		$	10,938
Less:
Adjusted cost of revenues¹		1,171			1,592			2,428			3,572
Adjusted selling and marketing²		1,402			2,044			2,811			4,337
Adjusted research and development²		2,548			3,386			5,191			7,093
Adjusted general and administrative²		1,964			2,104			4,050			4,192
Adjusted operating loss		(2,665	)		(3,986	)		(5,439	)		(8,256	)
Other segment expenses³		(78	)		(310	)		(79	)		(448	)
Stock-based compensation expense		(1,096	)		(1,138	)		(2,183	)		(2,272	)
Depreciation		(73	)		(95	)		(146	)		(194	)
Amortization		(1,276	)		(1,450	)		(2,552	)		(3,266	)
Goodwill impairment		(11,052	)		—			(11,052	)		(23,989	)
Proceeds from sale of ViewSpot, net		1,287			—			1,287			—
Total other (expenses) income, net		(109	)		50			(75	)		528
Loss before provision for income taxes		(15,062	)		(6,929	)		(20,239	)		(37,897	)
Provision for income tax expense		—			—			1			39
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)

(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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Family Safety	$	3,626	$	4,221	$	7,414	$	8,685
CommSuite		777		531		1,511		1,196
ViewSpot		17		388		116		1,057
Total Wireless revenues	$	4,420	$	5,140	$	9,041	$	10,938

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, for the three and six months ended June 30, 2025 and 2024.

During the three months ended June 30, 2025, three customers made up 61%, 21% and 18% of revenues. For the three months ended  June 30, 2024, two customers made up 59% and 20% of revenues.

During the six months ended June 30, 2025, three customers made up 61%, 20% and 17% of revenues. For the six months ended June 30, 2024, three customers made up 56%, 19% and 11% of revenues.

As of June 30, 2025, two customers accounted for 39% and 33% of accounts receivable. As of June 30, 2024, two customers accounted for 52% and 15% of accounts receivable.

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Geographical Information

During the three and six months ended June 30, 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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Americas	$	4,407	$	4,943	$	9,022	$	10,420
EMEA		13		197		19		518
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

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

12. Commitments and Contingencies

Litigation

The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows, or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows, or financial position in a particular period.

Other Contingent Contractual Obligations

During its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in connection with certain transactions. These include: indemnities to the Company’s customers pursuant to contracts for the Company’s products and services, including indemnities with respect to intellectual property, confidentiality and data privacy; indemnities to various lessors in connection with facility leases for certain claims arising from use of such facility or under such lease; indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company; indemnities involving the accuracy of representations and warranties in certain contracts; and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. In addition, the Company has made or may make contractual commitments to employees providing for severance payments upon the occurrence of certain prescribed events. The Company may also issue a guarantee in the form of a standby letter of credit as security for contingent liabilities under certain customer contracts. The duration of these indemnities, commitments, and guarantees varies, and in certain cases may be indefinite. The majority of these indemnities, commitments, and guarantees may not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets.

13. Leases

The Company leases office space and equipment. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease costs were $0.4 million for each of the three months ended June 30, 2025 and 2024. Operating lease costs were $0.8 million for each of the six months ended June 30, 2025 and 2024.

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The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):

	As of June 30, 2025
2025	$	796
2026		977
2027		377
2028		62
Total lease payments		2,212
Less imputed interest		148
Present value of lease liabilities	$	2,064

Additional information relating to the Company’s operating leases follows (unaudited):

	As of June 30, 2025
Weighted average remaining lease term (years)		1.7
Weighted average discount rate		7.8	%

14. Income Taxes

The Company accounts for income taxes as required by FASB ASC Topic No. 740, Income Taxes. The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax liabilities against gross deferred tax assets); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is given to evidence that can be objectively verified. Realization of deferred tax assets is dependent upon the generation of future taxable income. As required by ASC 740, Smith Micro has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets and determined that it was more likely than not that the Company would not realize the deferred tax assets due to the Company's cumulative losses and uncertain near-term market and economic conditions, which reduce the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets.

After a review of the four sources of taxable income as of June 30, 2025, and after consideration of the Company’s cumulative loss position as of December 31, 2024, the Company will continue to reserve its U.S.-based deferred tax amounts, which total $70.2 million as of June 30, 2025.

The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. As of June 30, 2025, there are no audits in process or pending from Federal or state tax authorities. The outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Smith Micro may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to the consolidated financial results of the Company. It is the Company’s policy to classify any interest and/or penalties in the consolidated financial statements as a component of income tax expense.

15. Subsequent Events

The Company evaluates and discloses subsequent events as required by FASB ASC Topic No. 855, Subsequent Events. The Topic establishes general standards of accounting for and disclosure of events that occur after the balance sheet date, but before the financial statements are issued or are available to be issued. Subsequent events have been evaluated as of the date of this filing and no further disclosures are required.

On July 18, 2025, the Company announced the closing of a registered direct offering of 1,612,903 of Common Stock for $0.93 per share and concurrent private placement of unregistered warrants to purchase an equal number of shares of the Company's Common Stock with certain institutional and accredited investors, which resulted in gross proceeds to the Company of approximately $1.5 million, prior to offering fees and transaction expenses. The registered offering and concurrent private placement were approved by the Company's Board of Directors and a special Pricing Committee thereof. The warrants issued to the investors in the concurrent private placement have an exercise price of $1.20 per share (subject to certain downward pricing adjustments, including anti-dilution protection), are immediately exercisable and will expire five years after issuance.  However, pursuant to the securities purchase agreement between the company and the investors relating to the registered offering and concurrent private placement dated July 17, 2025, an investor’s right to exercise the warrants, and the Company’s ability to issue shares upon exercise, is subject to certain limitations set forth in the purchase agreement pursuant to which the warrants were issued, including a limit on the number of shares that may be issued until the time, if any, that the Company’s stockholders have approved the issuance of more than 19.9% of the Company’s outstanding shares of common stock pursuant to the registered offering and concurrent private placement in accordance with Nasdaq listing standards. The Company has agreed to seek stockholder approval of these matters at a meeting to be held no later than October 17, 2025.  The Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock issuable upon exercise of the unregistered warrants issued in connection with the private placement concurrent with the registered offering.  Pursuant to the terms of an engagement letter previously entered into on June 19, 2025 by the Company with Chardan Capital Markets LLC (“Chardan”), the Company paid Chardan a cash fee equal to 6.5% of the total gross proceeds from the registered offering and concurrent private placement in connection with its service as a financial advisor to the Company for the offerings.  

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

In this document, the terms “Smith Micro,” “Company,” “we,” “us,” and “our” refer to Smith Micro Software, Inc. and, where appropriate, its subsidiaries.

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements regarding Smith Micro which include, but are not limited to, statements concerning customer concentration, projected revenues, market acceptance of products, the success and timing of new product introductions, the competitive factors affecting our business, our ability to raise additional capital, gross profit and income, our expenses, the protection of our intellectual property, and our ability to remain a going concern. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “potential,” “believes,” “seeks,” “estimates,” “should,” “may,” “will,” and variations of these words or similar expressions are intended to identify forward-looking statements. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results or performance could differ materially from those expressed or implied in any forward-looking statements as a result of various factors. Such factors include, but are not limited to, the following:

• our customer concentration, given that the majority of our sales currently depend on a few large client relationships;

• our ability to establish and maintain strategic relationships with our customers and mobile device manufacturers, their ability to attract customers, and their willingness to promote our products;

• our ability and/or customers’ ability to distribute our mobile software applications to their end users through third party mobile software application stores, which we do not control;

• our dependency upon effective operation with operating systems, devices, networks and standards that we do not control and on our continued relationships with mobile operating system providers, device manufacturers and mobile software application stores on commercially reasonable terms or at all;

• our ability to hire and retain key personnel;

• the possibility of security and privacy breaches in our systems and in the third-party software and/or systems that we use, damaging client relations and inhibiting our ability to grow;

• interruptions or delays in the services we provide from our data center hosting facilities that could harm our business;

• the existence of undetected software defects in our products and our failure to resolve detected defects in a timely manner;

• our ability to remain a going concern;

• our ability to raise additional capital and the risk of such capital not being available to us at commercially reasonable terms or at all;

• our ability to be profitable;

• changes in our operating income due to shifts in our sales mix and variability in our operating expenses;

• our current client concentration within the vertical wireless carrier market, and the potential impact to our business resulting from changes within this vertical market, or failure to penetrate new markets;

• rapid technological evolution and resulting changes in demand for our products from our key customers and their end users;

• intense competition in our industry and the core vertical markets in which we operate, and our ability to successfully compete;

• the risks inherent with international operations;

• the impact of evolving information security and data privacy laws on our business and industry;

• the impact of governmental regulations on our business and industry;

• our ability to protect our intellectual property and our ability to operate our business without infringing on the rights of others;

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• the risk of being delisted from Nasdaq if we continue to fail to meet any of its applicable listing requirements;

• our ability to assimilate acquisitions without diverting management attention and impacting current operations;

• failure to realize the expected benefits of prior acquisitions;

• the availability of third-party intellectual property and licenses needed for our operations on commercially reasonable terms, or at all;

• the difficulty of predicting our quarterly revenues and operating results and the chance of such revenues and results falling below analyst or investor expectations, which could cause the price of our Common Stock to fall; and

• those additional factors which are listed under Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 12, 2025 (the "2024 Form 10-K") under the caption “RISK FACTORS.”

The forward-looking statements contained in this Report are made on the basis of the views and assumptions of management regarding future events and business performance as of the date this Report is filed with the Securities and Exchange Commission (the “SEC”). In addition, we operate in a highly competitive and rapidly changing environment; therefore, new risk factors can arise, and it is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on our business or the extent to which any individual risk factor, or combination of risk factors, may cause results to differ materially from those contained in any forward-looking statement. We do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date this Report is filed.

Overview

Smith Micro provides software solutions that simplify and enhance the mobile experience to some of the leading wireless service providers around the globe. From enabling the Digital Family Lifestyle™ to providing powerful voice messaging capabilities, we strive to enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer Internet of Things ("IoT") devices. Our portfolio includes family safety software solutions to support families in the digital age and visual voice messaging.

We continue to innovate and evolve our business to respond to industry trends and maximize opportunities in growing and evolving markets, such as digital lifestyle services and online safety, “Big Data” analytics, automotive telematics, and the consumer IoT marketplace. The key to our longevity, however, is not simply technological innovation, but our focus on understanding our customers’ needs and delivering value.

In the second quarter of 2025, our revenues decreased by 14.0% to $4.4 million compared to the second quarter of 2024, primarily driven by a $0.6 million decrease in our Family Safety product line, coupled with a $0.4 million decrease in ViewSpot revenues. These revenue declines primarily resulted from the loss of a ViewSpot contract with a Tier 1 carrier during 2024 coupled with decreases associated with legacy Sprint Safe & Found revenue as subscribers migrate to the T-Mobile network. As a result of the decline in revenues, our gross profit during the second quarter of 2025 was $3.2 million, representing a decrease of $0.3 million as compared to the second quarter of the prior year.  In connection with the preparation of our second quarter financial statements, we evaluated our goodwill and determined that the carrying value of our single reporting unit exceeded its fair value which resulted in a non-cash pretax impairment charge of $11.1 million for the quarter. On June 3, 2025, we sold our ViewSpot product for total consideration of $1.3 million, of which $1.0 million was paid on the closing date, with the remaining amounts to be paid in two installments, the first of which was collected on July 1, 2025, and the final balance is due October 1, 2025.  Our operating expenses increased during the second quarter of 2025 compared to the second quarter of 2024 by approximately $7.7 million. This was primarily due to goodwill impairment, offset by the gain on the sale of ViewSpot of $1.3 million, and the remainder of the difference was due to quarter-over-quarter reductions in sales and marketing and research and development expenses due to cost reduction initiatives undertaken during 2025 and 2024.  The net loss for the second quarter of 2025 was $15.1 million, resulting in a net loss of $0.78 per basic and diluted share.  

We believe that we still remain strategically positioned to offer our market-leading family safety platform to the majority of U.S. mobile subscribers, as we currently provide white-label Family Safety applications to two Tier 1 wireless carriers operating in the United States. Further, a Tier 1 carrier in Europe launched a new SafePath-based family safety solution in the fourth quarter of 2024 and began conducting robust marketing activities related to that solution during the first quarter of 2025. In addition, with the recent expansion of our SafePath product line, most notably with SafePath Kids and SafePath OS, we believe that we are well-positioned to grow our Family Safety revenues more broadly with these Tier 1 carriers as well as with other operators in our industry. Further, our development of SafePath 8 is expected to launch in the near term, and we expect to launch the new features that it enables with our customers. We believe that we have an opportunity to increase the respective subscriber bases, and in turn, grow the revenues associated with these Tier 1 carriers.

Refer to the section titled "Liquidity and Capital Resources" for discussion of material changes in cash, Note 4 of our Notes to the Consolidated Financial Statements for discussion regarding the changes related to Common Stock, Note 5 for discussion regarding changes related to the warrant liabilities and Note 7 for discussion regarding changes to goodwill.

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Results of Operations

On April 3, 2024, we filed a certificate of amendment to our Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a one-for-eight (1:8) reverse stock split of the shares of the Company's Common Stock, par value $0.001 per share, with an effective time of 11:59 p.m., Eastern Time on April 10, 2024 (the "Reverse Stock Split"). At the effective time, every eight shares of our Common Stock, whether issued and outstanding or held by the Company as treasury stock were automatically combined and converted (without any further act) into one share of fully paid and nonassessable Common Stock, with any fractional shares resulting from the Reverse Stock Split rounded up to the nearest whole share. See further information in Note 1. All shares and per share amounts in this Report have been retroactively adjusted for all periods presented to give effect to the Reverse Stock Split.

The table below sets forth certain statements of operations and comprehensive loss data expressed as a percentage of revenues for the three and six months ended June 30, 2025 and 2024. Our historical results are not necessarily indicative of the operating results that may be expected in the future.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Revenues		100.0	%		100.0	%		100.0	%		100.0	%
Cost of revenues		26.5			31.3			26.9			32.9
Gross profit		73.5	%		68.7	%		73.1	%		67.1	%
Operating expenses:
Selling and marketing		37.7			49.2			36.6			47.0
Research and development		62.3			72.0			62.0			70.3
General and administrative		60.4			53.3			59.7			50.2
Depreciation and amortization		30.5			30.0			29.8			31.5
Proceeds from sale of ViewSpot, net		(29.1	)		—			(14.2	)		—
Goodwill impairment		250.0			—			122.2			219.3
Total operating expenses		411.8	%		204.5	%		296.2	%		418.4	%
Operating loss		(338.3	)		(135.8	)		(223.0	)		(351.3	)
Change in fair value of warrant liabilities		(0.5	)		0.8			1.1			2.1
Interest (expense) income, net		(0.5	)		0.5			(0.5	)		0.9
Other (expense) income, net		(1.5	)		(0.4	)		(1.4	)		1.8
Loss before provision for income tax provision		(340.8	)%		(134.8	)%		(223.9	)%		(346.5	)%
Provision for income tax expense		—			—			—			0.4
Net loss		(340.8	)%		(134.8	)%		(223.9	)%		(346.8	)%

Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

Revenues. Revenues were $4.4 million and $5.1 million for the three months ended June 30, 2025 and 2024, respectively, representing a decrease of $0.7 million, or 14.0%. This decrease was primarily related to declines associated with our Family Safety product line of $0.6 million, which was mostly driven by Sprint Safe & Found revenue declining as legacy Sprint subscribers migrated to the T-Mobile network, coupled with a decline in ViewSpot revenue of $0.4 million that was primarily due to a contract that concluded during 2024 and the sale of that product in June 2025 and partially offset by an increase in CommSuite revenues of approximately $0.2 million.

Cost of revenues. Cost of revenues were $1.2 million and $1.6 million for the three months ended June 30, 2025 and 2024, respectively. This decrease of $0.4 million was primarily due to the period-over-period decline in revenue coupled with the impact of cost reduction efforts undertaken.

Gross profit. Gross profit was $3.2 million, or 73.5% of revenues, for the three months ended June 30, 2025, compared to $3.5 million, or 68.7% of revenues, for the three months ended June 30, 2024. The decrease of $0.3 million in gross profit was driven by the period-over-period decline in revenue volume.

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Selling and marketing. Selling and marketing expenses were $1.7 million and $2.5 million for the three months ended June 30, 2025 and 2024, respectively. This decrease of approximately $0.9 million was primarily due to decreases in personnel related costs due to cost reduction activities undertaken.

Research and development. Research and development expenses were $2.8 million and $3.7 million for the three months ended June 30, 2025 and 2024, respectively. This decrease of approximately $1.0 million was primarily due to decreases in personnel related costs due to cost reduction activities undertaken.

General and administrative. General and administrative expenses were $2.7 million for each of the three months ended June 30, 2025 and 2024, respectively. 

Depreciation and amortization. Depreciation expense was $0.1 million for both the three months ended June 30, 2025 and 2024. Amortization expense was $1.3 million and $1.5 million for the three months ended June 30, 2025 and 2024, respectively. Amortization expense is recognized based on the pattern of economic benefit expected to be generated from the use of the intangible assets, and as such it decreased by approximately $0.2 million period-over-period.

Gain on Sale of ViewSpot. On June 3, 2025, we sold our ViewSpot product for total consideration of $1.3 million, of which $1.0 million was paid on the closing date, with the remaining amounts to be paid in two installments, the first of which was collected on July 1, 2025, and the final balance is due October 1, 2025.

Goodwill impairment. A goodwill impairment charge of $11.1 million was recorded for the three months ended  June 30, 2025 due to an analysis whereby we concluded that the carrying value of our single reporting unit exceeded its fair value. We did not have a similar charge for the three months ended June 30, 2024.

Change in fair value of warrant liabilities. Change in fair value of warrant liabilities was nominal for the three months ended June 30, 2025 and 2024, respectively. 

Interest (expense) income, net. Interest expense, net was nominal for each of the three months ended June 30, 2025 and 2024.

Other (expense) income, net. Other expense, net was nominal for each of the three months ended June 30, 2025 and 2024. 

Provision for income tax expense. Because of our cumulative loss position, the provision for income tax expense consists of state income taxes, foreign tax withholdings, and foreign income taxes for the three months ended June 30, 2025 and 2024. There were no material changes in the period-to-period comparison.

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Revenues. Revenues were $9.0 million and $10.9 million for the six months ended June 30, 2025 and 2024, respectively, representing a decrease of $1.9 million, or 17.3%. This decrease was primarily related to declines associated with our Family Safety product line of $1.3 million, which was mostly driven by Sprint Safe & Found revenue declining as legacy Sprint subscribers migrated to the T-Mobile network, coupled with a decline in ViewSpot revenue of $0.9 million partially offset by an increase in CommSuite revenues of $0.3 million.

Cost of revenues. Cost of revenues were $2.4 million and $3.6 million for the six months ended June 30, 2025 and 2024, respectively. This decrease of $1.2 million was primarily due to the period-over-period decline in revenue coupled with the impact of cost reduction efforts undertaken.

Gross profit. Gross profit was $6.6 million, or 73.1% of revenues, for the six months ended June 30, 2025, compared to $7.3 million, or 67.1% of revenues, for the six months ended June 30, 2024. The decrease of approximately $0.7 million in gross profit was driven by the period-over-period decline in revenue volume.

Selling and marketing. Selling and marketing expenses were $3.3 million and $5.1 million for the six months ended June 30, 2025 and 2024, respectively. This decrease of approximately $1.8 million was primarily due to decreases in personnel related costs due primarily to cost reduction activities undertaken by the Company.

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Research and development. Research and development expenses were $5.6 million and $7.7 million for the six months ended June 30, 2025 and 2024, respectively. This decrease of approximately $2.1 million was primarily due to decreases in personnel related costs due to cost reduction activities undertaken by the Company.

General and administrative. General and administrative expenses were $5.4 million and $5.5 million for the six months ended June 30, 2025 and 2024, respectively. This decrease of approximately $0.1 million was primarily related to declines in personnel related costs of approximately $0.3 million partially offset by increases in stock-based compensation of approximately $0.2 million.

Depreciation and amortization. Depreciation expense was $0.1 million and $0.2 million for the six months ended June 30, 2025 and 2024, respectively. Amortization expense was $2.6 million and $3.3 million for the six months ended June 30, 2025 and 2024, respectively. Amortization expense is recognized based on the pattern of economic benefit expected to be generated from the use of the intangible assets, and as such it decreased by approximately $0.7 million period-over-period.

Gain on Sale of ViewSpot. On June 3, 2025, we sold our ViewSpot product for total consideration of $1.3 million, of which $1.0 million was paid on the closing date, with the remaining amounts to be paid in two installments, the first of which was collected on July 1, 2025, and the final balance is due October 1, 2025. There were no such amounts for the six months ended June 30, 2024.

Goodwill impairment. A goodwill impairment charge of $11.1 million was recorded for the six months ended  June 30, 2025 due to an analysis whereby we concluded that the carrying value of our single reporting unit exceeded its fair value. A goodwill impairment charge was recorded in the amount of $24.0 million for the six months ended June 30, 2024.

Change in fair value of warrant liabilities. Change in fair value of warrant liabilities was $0.1 million and $0.2 million for the six months ended June 30, 2025 and 2024, respectively. The total decrease in income of approximately $0.1 million resulted from valuation related impacts to the warrant liabilities in the respective periods.

Interest (expense) income, net. Interest expense, net was nominal for the six months ended June 30, 2025 and interest income, net was $0.1 million for the six months ended June 30, 2024.

Other (expense) income, net. Other expense, net was $0.1 million for the six months ended June 30, 2025 and other income, net was $0.2 million for the six months ended June 30, 2024. The period over period change was primarily related to the licensing of several of our patents in February 2024.

Provision for income tax expense. Because of our cumulative loss position, the provision for income tax expense consists of state income taxes, foreign tax withholdings, and foreign income taxes for the six months ended June 30, 2025 and 2024. There were no material changes in the period-to-period comparison.

Liquidity and Capital Resources

The Company’s principal sources of liquidity are its existing cash and cash equivalents, and cash generated by operations. As of June 30, 2025, the Company's cash and cash equivalents were approximately $1.4 million. Since December 31, 2024 we have utilized cash collections, including the proceeds from the sale of our ViewSpot product and cash on hand to cover routine working capital requirements. Subsequent to June 30, 2025, we closed on a registered direct offering of Common Stock and a concurrent placement of warrants, which provided gross proceeds to the Company of approximately $1.5 million, prior to offering fees and transaction expenses, and is further discussed in Note 15. 

The timing of our anticipated revenue growth relative to the costs of operating, maintaining, innovating and evolving our business to respond to industry trends and maximize growth opportunities may result in cash and cash equivalents being insufficient to fund operations at current levels over the next twelve months and beyond. 

This adverse impact on liquidity does not trigger a violation of any covenants in our material agreements, particularly as all of our outstanding debt was retired as of December 31, 2023. The availability of sufficient funds will depend to an extent on the existence and timing of subscriber growth and the related cash generation thereof, and/or the ability to obtain the necessary capital to meet our obligations and fund our working capital requirements to maintain normal business operations. To meet future cash needs, the Company may determine to take additional actions, as noted in the Risk Factor appearing in our 2024 Form 10-K under the heading, "If we are unable to meet our obligations as they become due over the next twelve months, the Company may not be able to continue as a going concern." There can be no assurance that any such potential actions will be available or will be available on satisfactory terms. Our ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, our performance and investor sentiment with respect to us and our industry. As a result of these uncertainties, and notwithstanding management's plans and efforts to date, we have been unable to alleviate substantial doubt about our ability to continue as a going concern within one year from the date that the financial statements are issued.

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Cash Flows

Changes in cash and cash equivalents are as follows:

	For the Six Months Ended
	June 30,
(in thousands)	2025			2024
Net cash used in operating activities	$	(2,870	)	$	(5,553	)
Net cash provided by investing activities		956			187
Net cash provided by financing activities		507			3,869
Net decrease in cash and cash equivalents	$	(1,407	)	$	(1,497	)

Operating activities

Net cash used in operating activities was $2.9 million for the six months ended June 30, 2025. The primary uses of operating cash were a net loss of $20.2 million less non-cash expenses totaling $16.0 million, including a goodwill impairment charge of $11.1 million, and depreciation and amortization of $2.7 million and stock compensation expense of $2.2 million, coupled with a decrease in accounts payable and accrued liabilities of $0.3 million, primarily due to the timing and change in payments for accounts payable and payroll, partially offset by a decrease in accounts receivable of $3.1 million.

Net cash used in operating activities was $5.6 million for the six months ended June 30, 2024. The primary uses of operating cash were a net loss of $37.9 million less non-cash expenses totaling $29.3 million, driven by a goodwill impairment charge of $24.0 million, depreciation and amortization of $3.5 million and stock compensation expense of $2.3 million, and a decrease in accounts payable and accrued liabilities of $0.5 million and an increase in prepaid expenses and other assets of $0.2 million partially offset by a decrease in accounts receivable of $4.1 million.

Investing activities

Net cash provided by investing activities of $1.0 million for six months ended June 30, 2025 was primarily due to the net proceeds from the sale of ViewSpot in June 2025, offset by capital expenditures. Net cash provided by investing activities of $0.2 million for the six months ended June 30, 2024 was primarily attributable to the net proceeds from licensing several of our patents in February 2024.

Financing activities

Net cash provided by financing activities was $0.5 million for the six months ended June 30, 2025 was primarily attributable to the timing of borrowings of $0.9 million less repayments of $0.4 million from short-term insurance premium financing arrangements.

Net cash provided by financing activities of $3.9 million for the six months ended June 30, 2024 was primarily attributable to the net cash proceeds of $3.4 million from the Registered Direct Offering and Private Placement and borrowings of $1.0 million less repayments of $0.5 million from short-term insurance premium financing arrangements.

Recent Accounting Guidance

See Note 2 of our Notes to the Consolidated Financial Statements for information regarding our recent accounting guidance.

Critical Accounting Estimates

Our discussion and analysis of results of operations, financial condition, and liquidity are based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may materially differ from these estimates under different assumptions or conditions. On an ongoing basis, we review our estimates to ensure that they appropriately reflect changes in our business or new information as it becomes available. See Note 1 of our Notes to the Consolidated Financial Statements in our 2024 Form 10-K for information regarding our critical accounting estimates. There have been no material changes to the Company's critical accounting estimates since the 2024 Form 10-K.

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Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

We conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)) as of June 30, 2025. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have determined that as of June 30, 2025, our disclosure controls and procedures were effective to ensure that the information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Management’s responsibility for financial statements

Our management is responsible for the integrity and objectivity of all information presented in this Report. The consolidated financial statements were prepared in conformity with U.S. GAAP and include amounts based on management’s best estimates and judgments. Management believes the consolidated financial statements fairly reflect the form and substance of transactions and that the financial statements fairly represent the Company’s financial position and results of operations for the periods and as of the dates stated therein.

The Audit Committee of the Company’s Board of Directors, which is composed solely of independent directors, meets regularly with our independent registered public accounting firm, SingerLewak LLP, and representatives of management to review accounting, financial reporting, internal control, and audit matters, as well as the nature and extent of the audit effort. The Audit Committee is responsible for the engagement of the independent auditors. The independent auditors have free access to the Audit Committee.

Changes in internal control over financial reporting

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

28

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows, or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period.

Item 1A. Risk Factors

In addition to the other information included in this Report, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our 2024 Form 10-K, and the factors identified at the beginning of Part I, Item 2 of this Report, under the heading, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which could materially affect our business, financial condition, cash flows, or results of operations. The risks described in the 2024 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently considers immaterial also may materially adversely affect its business, financial condition, and/or operating results. Other than as set forth below in this Item 1, there have been no material changes to the risk factors included in our 2024 Form 10-K.

If we continue to fail to meet the requirements for continued listing on the Nasdaq Capital Market, our common stock could be delisted from trading on Nasdaq, which would likely reduce the liquidity of our common stock and could cause our trading price to decline.

Our common stock is currently listed for quotation on the Nasdaq Capital Market. We are required to meet specified financial requirements in order to maintain our listing on Nasdaq. We could lose our listing on Nasdaq if the closing bid price of our common stock does not increase or if in the future, we fail to meet any of the other Nasdaq listing requirements. The loss of our Nasdaq listing would in all likelihood make our common stock significantly less liquid and adversely affect its value.

As initially disclosed on our Current Report on Form 8-K filed with the SEC on June 24, 2025, we received a letter from the Listing Qualifications Department, or the Staff, of The Nasdaq Stock Market LLC, or Nasdaq, on June 23, 2025, indicating that as result of the closing bid price of the Company’s common stock for the last 30 consecutive business days having been below the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”) the Company was not in compliance with the Minimum Bid Price Requirement (the “Minimum Bid Price Notice”). The Minimum Bid Price Notice has no immediate effect on the continued listing status of the Company’s common stock on The Nasdaq Capital Market, and, therefore, the Company’s listing remains fully effective.

Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until December 22, 2025 to regain compliance with the Minimum Bid Price Requirement. If at any time before December 22, 2025, the closing bid price of the common stock is at least $1.00 per share for a minimum of ten consecutive business days, unless Nasdaq exercises its discretion to extend this ten-day period, Nasdaq will provide written confirmation stating that the Company has achieved compliance with the Minimum Bid Price Requirement. If the Company’s common stock does not regain compliance with the Minimum Bid Price Requirement during this initial 180-day compliance period, the Company may be eligible for an additional compliance period of 180 calendar days provided that (i) the Company satisfies Nasdaq’s continued listing requirement for market value of publicly held shares and all other initial listing standards, other than the Minimum Bid Price Requirement; and (ii) the Company provides written notice to Nasdaq of its intention to cure the deficiency during the second grace period.

The Company intends to monitor the closing bid price of its common stock and assess its available options in order to regain compliance with the Minimum Bid Price Requirement. If among such options the Company elects to pursue a reverse stock split to regain compliance with the Minimum Bid Price requirement, there can be no assurance that it would accomplish this objective for any meaningful period of time, or at all, or that it would result in any permanent or sustained increase in the market price of our Common Stock; and if such an event would be viewed unfavorably by the market, it could have the effect of reducing our market capitalization. Furthermore, pursuant to a recent modification to Nasdaq’s listing standards, if a company effects a reverse stock split and within one year thereafter becomes non-compliant with the Minimum Bid Price Requirement, it would immediately receive a notification letter from the Nasdaq Listing Qualifications Department commencing delisting proceedings, with no opportunity for a compliance period.

There can be no assurance that the Company will regain compliance with the Minimum Bid Price Requirement or will otherwise be in compliance with the other Nasdaq listing requirements. In the event of a delisting from the Nasdaq Capital Market, our common stock would likely be traded in the over-the-counter inter-dealer quotation system, more commonly known as the OTC. OTC transactions involve risks in addition to those associated with transactions in securities traded on the securities exchanges, such as the Nasdaq Capital Market, or, together, Exchange-listed stocks. Many OTC stocks trade less frequently and in smaller volumes than Exchange-listed stocks. Accordingly, our stock would be less liquid than it would be otherwise. Also, the prices of OTC stocks are often more volatile than Exchange-listed stocks. Additionally, institutional investors are usually prohibited from investing in OTC stocks, and it might be more challenging to raise capital when needed.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table set forth below shows all repurchases of securities by us during the three months ended June 30, 2025:

ISSUER PURCHASES OF EQUITY SECURITIES
							Maximum Number (or
							Approximate Dollar
					Total Number of Shares		Value) of Shares
					(or Units) Purchased		(or Units) that May
					as Part of Publicly		Yet Be Purchased
	Total Number of Shares		Average Price Paid		Announced Plans		Under the Plans
	(or Units) Purchased (1)		per Share (or Unit)		or Programs		or Programs
Period	(a)		(b)		(c)		(d)
April 1 - 30, 2025		44,929	$	0.81		—		—
May 1 - 31, 2025		114,098	$	0.94		—		—
June 1 - 30, 2025		40,898	$	0.95		—		—
Total		199,925	$	0.91

(1) Shares of the Company's Common Stock repurchased by the Company as payment of withholding taxes in connection with the vesting of restricted stock awards during the applicable period. All the shares were cancelled when they were acquired by the Company.

Item 5. Other Information

Trading Arrangements

During the fiscal quarter ended on June 30, 2025, none of the Company’s directors or “officers”, as defined in Rule 16a-1(f) of the Exchange Act, adopted, modified or terminated any “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation S-K.

29

Item 6. Exhibits

Exhibit	Description
4.1	Form of Common Stock Purchase Warrant issued pursuant to Securities Purchase Agreement dated July 17, 2025, incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on July 18, 2025
10.1*	Form of Securities Purchase Agreement (Registered Shelf Takedown Offering) by and among the Registrant and the Purchasers party thereto, dated July 17, 2025, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed July 18, 2025
10.2#	Offer letter between the Company and Timothy C. Huffmyer, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on May 27, 2025
10.3#	Amendment to Smith Micro Software, Inc. Amended and Restated Omnibus Equity Incentive Plan, adopted June 3, 2025, incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed on April 23, 2025
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certifications of the Chief Executive Officer and the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its Inline XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish a copy any of the omitted exhibits or schedules upon request by the SEC.

# Indicates management contract or compensatory plan.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	SMITH MICRO SOFTWARE, INC.
August 7, 2025	By /s/	William W. Smith, Jr.
	William W. Smith, Jr.
	Chairman of the Board, President and Chief Executive Officer
	(Principal Executive Officer)
August 7, 2025	By /s/	Timothy C. Huffmyer
	Timothy C. Huffmyer
	Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)

31

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, William W. Smith, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Smith Micro Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2025	/s/ William W. Smith, Jr.
	William W. Smith, Jr.
	Chairman of the Board, President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Timothy C. Huffmyer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Smith Micro Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d‑15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2025	/s/ Timothy C. Huffmyer
	Timothy C. Huffmyer
	Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350 (AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, William W. Smith Jr., the Chief Executive Officer of Smith Micro Software, Inc. (the “Company”), and Timothy C. Huffmyer, the Chief Financial Officer of the Company, hereby certify, that, to their knowledge:

1. The quarterly report on Form 10-Q for the period ended June 30, 2025 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 7, 2025	By	/s/ William W. Smith, Jr.
	William W. Smith, Jr.
	Chairman of the Board, President and Chief Executive Officer
	(Principal Executive Officer)
August 7, 2025	By	/s/ Timothy C. Huffmyer
	Timothy C. Huffmyer
	Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2025	Aug. 06, 2025
Document Information [Line Items]
Entity Central Index Key	0000948708
Entity Registrant Name	Smith Micro Software, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2025
Document Transition Report	false
Entity File Number	001-35525
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0029027
Entity Address, Address Line One	5800 Corporate Drive
Entity Address, City or Town	Pittsburgh
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15237
City Area Code	412
Local Phone Number	837-5300
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SMSI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,994,917

XML

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 1,401	$ 2,808
Accounts receivable, net of related allowances of $106 and $3 at 2025 and 2024, respectively	2,867	5,721
Prepaid expenses and other current assets	1,597	1,467
Total current assets	5,865	9,996
Equipment and improvements, net	423	538
Right-of-use assets	1,754	2,367
Other assets	496	496
Intangible assets, net	21,044	23,597
Goodwill	0	11,052
Total assets	29,582	48,046
Current liabilities:
Accounts payable	1,766	1,738
Accrued payroll and benefits	1,820	1,694
Current operating lease liabilities	1,418	1,279
Other current liabilities	1,269	940
Total current liabilities	6,273	5,651
Non-current liabilities:
Warrant liabilities	121	224
Operating lease liabilities	646	1,287
Deferred tax liabilities, net	128	128
Total non-current liabilities	895	1,639
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 19,382,014 and 17,673,404 shares issued and outstanding at 2025 and 2024, respectively	19	18
Additional paid-in capital	397,280	395,383
Accumulated comprehensive deficit	(374,885)	(354,645)
Total stockholders’ equity	22,414	40,756
Total liabilities and stockholders' equity	$ 29,582	$ 48,046

XML

Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2024
Allowance for credit loss	$ 106	$ 3
Common stock, par vlaue (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	19,382,014	17,673,404
Common stock, shares outstanding (in shares)	19,382,014	17,673,404

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Revenues	$ 4,420	$ 5,140	$ 9,041	$ 10,938
Cost of revenues (including depreciation of $0, $4, $1, and $11 in the three and six months ended June 30, 2025 and 2024, respectively)	1,171	1,607	2,429	3,595
Gross profit	3,249	3,533	6,612	7,343
Operating expenses:
Selling and marketing	1,665	2,529	3,309	5,143
Research and development	2,752	3,702	5,609	7,691
General and administrative	2,671	2,740	5,395	5,496
Depreciation and amortization	1,349	1,541	2,698	3,449
Gain on sale of ViewSpot, net	(1,287)	0	(1,287)	0
Goodwill impairment	11,052	0	11,052	23,989
Total operating expenses	18,202	10,512	26,776	45,768
Operating loss	(14,953)	(6,979)	(20,164)	(38,425)
Other income (expense):
Change in fair value of warrant liabilities	(20)	42	103	227
Interest (expense) income, net	(22)	26	(47)	100
Other (expense) income, net	(67)	(18)	(131)	201
Loss before provision for income tax provision	(15,062)	(6,929)	(20,239)	(37,897)
Provision for income tax expense	0	0	1	39
Net loss	$ (15,062)	$ (6,929)	$ (20,240)	$ (37,936)
Loss per share:
Basic (in dollars per share)	$ (0.78)	$ (0.66)	$ (1.08)	$ (3.79)
Weighted average shares outstanding:
Weighted average shares outstanding – basic (in shares)	19,417	10,567	18,820	10,016

XML

Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Cost of revenues, depreciation	$ 0	$ 4	$ 1	$ 11

XML

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Total
BALANCE (in shares) at Dec. 31, 2023	9,348
BALANCE at Dec. 31, 2023	$ 9	$ 381,329	$ (305,948)	$ 75,390
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")	$ 0	9	0	9
Restricted stock grants, net of cancellations (in shares)	266
Restricted stock grants, net of cancellations	$ 1	2,263	0	2,264
Cancellation of shares for payment of withholding tax (in shares)	(55)
Cancellation of shares for payment of withholding tax	$ 0	(178)	0	(178)
Net loss	$ 0	0	(37,936)	(37,936)
BALANCE (in shares) at Jun. 30, 2024	10,625
BALANCE at Jun. 30, 2024	$ 11	386,775	(343,884)	42,902
ESPP shares issued (in shares)	1
ESPP shares issued	$ 0	2	0	2
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs (in shares)	1,065
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs	$ 1	3,350	0	3,351
BALANCE (in shares) at Mar. 31, 2024	9,602
BALANCE at Mar. 31, 2024	$ 10	382,387	(336,955)	45,442
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")	$ 0	4	0	4
Restricted stock grants, net of cancellations (in shares)	0
Restricted stock grants, net of cancellations	$ 0	1,133	0	1,133
Cancellation of shares for payment of withholding tax (in shares)	(42)
Cancellation of shares for payment of withholding tax	$ 0	(99)	0	(99)
Net loss	$ 0	0	(6,929)	(6,929)
BALANCE (in shares) at Jun. 30, 2024	10,625
BALANCE at Jun. 30, 2024	$ 11	386,775	(343,884)	42,902
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs (in shares)	1,065
Issuance of Common Stock, Warrants, and Pre-Funded Warrants in connection with Common Stock Offering, net of issuance costs	$ 1	3,350	0	3,351
BALANCE (in shares) at Dec. 31, 2024	17,673
BALANCE at Dec. 31, 2024	$ 18	395,383	(354,645)	40,756
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")	$ 0	11	0	11
Restricted stock grants, net of cancellations (in shares)	1,991
Restricted stock grants, net of cancellations	$ 1	2,170	0	2,171
Cancellation of shares for payment of withholding tax (in shares)	(285)
Cancellation of shares for payment of withholding tax	$ 0	(286)	0	(286)
Net loss	$ 0	0	(20,240)	(20,240)
BALANCE (in shares) at Jun. 30, 2025	19,382
BALANCE at Jun. 30, 2025	$ 19	397,280	(374,885)	22,414
ESPP shares issued (in shares)	3
ESPP shares issued	$ 0	2	0	2
BALANCE (in shares) at Mar. 31, 2025	19,459
BALANCE at Mar. 31, 2025	$ 19	396,366	(359,823)	36,562
Non-cash compensation recognized on stock options and employee stock purchase plan ("ESPP")	$ 0	5	0	5
Restricted stock grants, net of cancellations (in shares)	123
Restricted stock grants, net of cancellations	$ 0	1,090	0	1,090
Cancellation of shares for payment of withholding tax (in shares)	(200)
Cancellation of shares for payment of withholding tax	$ 0	(181)	0	(181)
Net loss	$ 0	0	(15,062)	(15,062)
BALANCE (in shares) at Jun. 30, 2025	19,382
BALANCE at Jun. 30, 2025	$ 19	$ 397,280	$ (374,885)	$ 22,414

XML

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024
Operating activities:
Net loss	$ (20,240)	$ (37,936)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,698	3,460
Goodwill impairment	11,052	23,989
Non-cash lease expense	110	(224)
Change in fair value of warrant liabilities	(103)	(227)
Provision for credit losses	103	0
Stock based compensation	2,183	2,272
Gain on sale of ViewSpot, net	(1,287)	0
Gain on license of patents, net	0	(198)
Changes in operating accounts:
Accounts receivable	3,051	4,087
Prepaid expenses and other assets	(128)	(241)
Accounts payable, accrued, and other liabilities	(309)	(535)
Net cash used in operating activities	(2,870)	(5,553)
Investing activities:
Capital expenditures, net	(31)	(11)
Proceeds from sale of ViewSpot, net	987	0
Proceeds from license of patents, net	0	198
Net cash provided by investing activities	956	187
Financing activities:
Proceeds from Common Stock, Warrants, and Pre-Funded Warrants Offering, net	0	3,351
Proceeds from financing arrangements	933	1,044
Repayments of financing arrangements	(428)	(529)
Other financing activities	2	3
Net cash provided by financing activities	507	3,869
Net decrease in cash and cash equivalents	(1,407)	(1,497)
Cash and cash equivalents, beginning of period	2,808	7,125
Cash and cash equivalents, end of period	$ 1,401	$ 5,628

XML

Note 1 - The Company

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1. The Company

Smith Micro Software, Inc. (“Smith Micro” or “the Company”) develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, the Company strives to enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer Internet of Things (“IoT”) devices. Smith Micro’s portfolio includes family safety software solutions to support families in the digital age and visual voice messaging.

Smith Micro’s solution portfolio is comprised of proven products that enable its customers to provide:

• In-demand digital services that connect today’s digital lifestyle, including family location services, parental controls, and consumer IoT devices to mobile consumers worldwide; and

• Easy visual access to voice messages on mobile devices through visual voicemail and voice-to-text transcription functionality

On June 3, 2025, the Company sold its ViewSpot product for total consideration of $1.3 million, of which $1.0 million was paid on the closing date, with the remaining amounts to be paid in two installments, the first of which was collected on July 1, 2025, and the final balance is due October 1, 2025.

On April 3, 2024, the Company filed a certificate of amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a one-for-eight (1:8) reverse stock split of the shares of the Company's common stock, par value $0.001 per share (the "Common Stock"), with an effective time of 11:59 p.m., Eastern Time on April 10, 2024 (the "Reverse Stock Split"). At the effective time, every eight shares of Common Stock, whether issued and outstanding or held by the Company as treasury stock were automatically combined and converted (without any further act) into one share of fully paid and nonassessable Common Stock, with any fractional shares resulting from the Reverse Stock Split rounded up to the nearest whole share. At the effective time, the number of shares of Common Stock then outstanding was reduced from approximately 76.8 million shares to approximately 9.6 million shares due to the Reverse Stock Split.

The Reverse Stock Split did not change the Company's authorized shares of Common Stock from 100,000,000 shares or the par value of the Common Stock. Proportionate adjustments were made to the per share exercise price and/or the number of shares issuable upon the exercise of stock options and the settlement of restricted stock awards and the number of shares authorized and reserved for issuance pursuant to the Company's equity incentive plans (see Note 9). Additionally, there were adjustments to the per share exercise price and the number of shares issuable upon exercise of warrants (see Note 5).

All share and per share amounts for Common Stock (including share amounts underlying convertible securities and the applicable exercise prices of such convertible securities) in these consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to the Reverse Stock Split, including reclassifying an amount equal to the reduction in the number of shares of Common Stock at par value to additional paid-in capital.

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Note 2 - Accounting Policies

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

2. Accounting Policies

Basis of Presentation

The accompanying interim consolidated balance sheet as of June 30, 2025, and the related consolidated statements of operations and stockholders’ equity for the three and six months ended June 30, 2025 and 2024, and the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted.

In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments which are normal and recurring, and necessary to fairly state the financial position, results of operations, and cash flows of the Company. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on March 12, 2025 (the "2024 Form 10-K").

Intercompany balances and transactions have been eliminated in consolidation.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2025.

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board, ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The improved disclosure requirements apply to all public entities that are required to report segment information, including those with only reportable segment. In addition to the current requirements, the amendments require all segment profit or loss and asset disclosures to be provided on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2023 and will be effective for interim reporting periods beginning after December 15, 2024. The Company adopted ASU 2023-07 with no material effect on its consolidated financial statements other than the additional disclosure requirements, which are included in Note 11.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, and the adoption of this standard is not anticipated to have a significant impact on the Company's consolidated financial statements other than adding new disclosures, which the Company is currently evaluating.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which is intended to improve the decision-usefulness of expense information on public companies' income through disaggregation of relevant expense captions in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures.

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Note 3 - Going Concern

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

3. Going Concern

The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In connection with preparing consolidated financial statements for the three and six months ended June 30, 2025, certain conditions in the Company's evaluation, considered in the aggregate, have raised substantial doubt about the Company's ability to continue as a going concern within one year from the date that the financial statements are issued, which has not been alleviated. The evaluation considered the Company's financial condition, including its liquidity sources, funds necessary to maintain the Company's operations considering the current financial condition, obligations, and other expected cash flows, and negative financial trends of recurring operating losses and negative cash flows.

The Company has no outstanding debt and is continuing operations and generating revenues in the normal course, however the Company is dependent, to an extent, on the timing of subscriber and revenue growth for its products and the related cash generation from that growth and/or the ability to obtain the necessary capital to meet its obligations and fund its working capital requirements to maintain normal business operations. Management believes that the actions presently being taken to implement the Company's business plan to expand subscriber growth, to acquire new customers, and to expand its offerings to existing customers to generate increased revenues, and, as necessary, to raise additional capital will support the Company's operations; as such the financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. The Company believes, based on its history of being able to complete debt and equity financings, that it would be able to raise additional funds as necessary, through public or private equity offerings, including by filing one or more registration statements, through debt financings, or from a combination of these funding sources. However, it may not be able to secure such incremental capital in a timely manner or on favorable terms, if at all. To preserve liquidity, the Company may also take one or more of the following additional actions:

• Implement additional restructuring and cost reductions,

• Secure a revolving line of credit, if available,

• Dispose of one or more product lines and/or,

• Sell or license intellectual property.

While management believes that the Company’s plans for growing revenue and the other potential actions available to it would alleviate the conditions that raise substantial doubt, these strategies are not entirely within the Company’s control and cannot be assessed as being probable of occurring.

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Note 4 - Common Stock

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Equity [Text Block]

4. Common Stock

Minimum Bid Price Requirement and Reverse Stock Split

On December 27, 2023, the Company received a notice from the Nasdaq Stock Market ("Nasdaq") that the Company was not in compliance with the $1.00 minimum bid price requirement for continued listing, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"), as the closing bid price of the Company’s Common Stock had been below $1.00 per share for more than thirty (30) consecutive business days as of the date of that notice. The Company undertook the Reverse Stock Split to enable the Company to regain compliance with the Minimum Bid Price Requirement. On April 29, 2024, the Company received notice from Nasdaq that it had regained compliance with the Minimum Bid Price Requirement, and the matter is now closed.

On November 26, 2024, the Company received a notice from Nasdaq that the Company’s Common Stock did not meet the $1.00 minimum bid price requirement pursuant to the Minimum Bid Price Requirement, and in accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial compliance period of 180 calendar days, or until May 26, 2025, to regain compliance with the Minimum Bid Price Requirement. On January 8, 2025, the Company received written notification from Nasdaq indicating that the Company’s Common Stock had a closing price at or greater than $1.00 per share for the last 10 consecutive business days, from December 23, 2024 to January 7, 2025, and that, as a result, the Company has regained compliance with the Minimum Bid Price Requirement and the matter is now closed.

On June 23, 2025, the Company received a notice from Nasdaq that the Company’s Common Stock did not meet the $1.00 minimum bid price requirement pursuant to the Minimum Bid Price Requirement, and in accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial compliance period of 180 calendar days, or until December 22, 2025, to regain compliance with the Minimum Bid Price Requirement.

May 2024 Registered Direct Offering & Private Placement

On May 10, 2024, the Company entered into a securities purchase agreement (the “May 2024 Purchase Agreement”) with certain institutional and accredited investors (the “May 2024 Purchasers”) relating to the registered direct offering and sale of an aggregate of 1,065,000 shares of the Company’s Common Stock at an offering price of $2.15 per share of Common Stock and pre-funded warrants ( “May 2024 Pre-Funded Warrants”) to purchase up to 845,000 shares of Common Stock (the “May 2024 Registered Direct Offering”). The May 2024 Pre-Funded Warrants were purchased at a price of $2.149 per underlying share and had an exercise price of $0.001 per share and could be exercised at any time after their original issuance until such May 2024 Pre-Funded Warrants were exercised in full. The shares of Common Stock and May 2024 Pre-Funded Warrants (including the shares of Common Stock underlying the warrants) were offered by the Company pursuant to a prospectus supplement dated May 10, 2024, and accompanying prospectus dated May 12, 2022, in connection with a takedown from the Company’s shelf registration statement on Form S-3 (File No. 333-264667), which was declared effective by the SEC on May 12, 2022.

In a private placement on May 14, 2024, concurrent with the May 2024 Registered Direct Offering, the Company also sold to the May 2024 Purchasers unregistered warrants (the “May 2024 Common Warrants”) to purchase up to an aggregate of 1,910,000 shares of Common Stock (the “May 2024 Private Placement”). Each unregistered May 2024 Common Warrant has an exercise price of $2.34 per share, is exercisable at any time beginning November 14, 2024 and will expire November 14, 2029. Both the May 2024 Registered Direct Offering and the May 2024 Private Placement closed on May 14, 2024.

Roth Capital Partners, LLC (“Roth”) acted as the exclusive placement agent for the May 2024 Registered Direct Offering and the May 2024 Private Placement pursuant to a placement agency agreement (the “Placement Agency Agreement”) dated May 10, 2024, by and between the Company and Roth, and a related engagement letter with Roth. Pursuant to the Placement Agency Agreement, on May 14, 2024 the Company issued to Roth warrants to purchase up to 133,700 shares of Common Stock (the “May 2024 Placement Agent Warrants”), which represented 7.0% of the aggregate number of shares of Common Stock and May 2024 Pre-Funded Warrants sold in the May 2024 Registered Direct Offering. The May 2024 Placement Agent Warrants are exercisable at any time beginning November 14, 2024, have an exercise price equal to $2.86, and expire November 16, 2026.

The shares of Common Stock underlying the May 2024 Common Warrants and the May 2024 Placement Agent Warrants (collectively referred to herein as the “May 2024 Warrants”) were registered on a registration statement on Form S-1 (File No. 333-280542) filed with the SEC on June 27, 2024, which was declared effective by the SEC on July 10, 2024. Shares of Common Stock issued by the Company upon exercise of the May 2024 Warrants may be resold by the holders pursuant to the prospectus dated July 11, 2024. The filings made by the Company in connection with the potential resale of the Common Stock underlying the May 2024 Warrants were filed within the time period agreed by the parties in the Purchase Agreement.

The net cash proceeds to the Company, after deducting offering related expenses was $3.4 million. The May 2024 Pre-Funded Warrants, May 2024 Common Warrants, and May 2024 Placement Agent Warrants were all assessed and recorded as equity instruments.

During the third quarter of 2024, all 845,000 May 2024 Pre-Funded Warrants from the May 2024 Registered Direct Offering and May 2024 Private Placement were exercised on a cashless basis resulting in the issuance of 844,061 shares of Common Stock.

October 2024 Registered Direct Offering and Private Placement

On October 3, 2024, the Company announced its completion of two securities offerings raising aggregate gross proceeds of $6.9 million: a registered direct offering of 3,321,881 registered shares of Common Stock and concurrent private placement of unregistered warrants exercisable for an equal number of shares of Common Stock (collectively, the “October 2024 RDO”) for gross proceeds of approximately $3.9 million, including $0.2 million from a related party, and an unregistered private placement transaction of 2,575,107 shares of Common Stock and warrants exercisable for an equal number of shares of Common Stock with William W. Smith Jr., the Company's Chief Executive Officer, a related party, who participated in the private placement through a trust for which he serves as co-trustee (the “October 2024 Private Placement”), for gross proceeds of approximately $3.0 million. Both offerings were approved by an independent special committee of the Company's Board of Directors and were priced based on the market value of the offered securities, at a purchase price of $1.165 per share of Common Stock with a warrant exercise price of $1.04 per share of Common Stock. Each of the warrants issued in the October 2024 offerings was initially exercisable at any time beginning six months following its original issuance and expires five and one-half years from the initial issuance of the warrant. In January 2025, at the request of certain holders of the warrants issued in the October 2024 RDO, the Company provided all of the October 2024 RDO warrant holders the opportunity to amend their warrants to adjust the start of the warrant exercise period to January 9, 2025, and as a result a portion of the warrants issued in connection with the October 2024 RDO were so amended. No other terms were changed as a result of that amendment to certain of the warrants.

In addition, concurrent with the offerings, the Company issued to Roth a warrant to purchase up to 20,000 shares of the Company’s Common Stock (the “Roth Warrant”), which has substantially the same terms as the warrants issued in the registered offering, except that the Roth Warrant has an exercise price of $1.46 per share of Common Stock and will expire two-and-a-half years from the effective date of the October registered offering.

On October 21, 2024, the Company filed a definitive proxy statement for a Special Meeting of Stockholders to approve the issuance of the number of shares of the Company’s Common Stock that would cause William W. Smith, Jr. to beneficially own twenty percent or more of the Company, through the exercise of the warrants purchased in the unregistered private placement transaction. The shareholders approved this proposal on December 10, 2024.

On October 28, 2024, the Company filed a registration statement with the SEC (File No. 333-282858) registering the resale of the shares of stock issued in the October 2024 Private Placement and the shares of common stock issuable upon exercise of the warrants issued in the October 2024 RDO and the October 2024 Private Placement. This registration statement was declared effective by the SEC on November 8, 2024.

The net cash proceeds to the Company from both offerings, after deducting offering related expenses was $6.6 million. All warrants associated with these transactions were assessed and recorded as equity instruments.

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Note 5 - Warrant Liabilities

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Warrant Liabilities Disclosure [Text Block]

5. Warrant Liabilities

On August 11, 2022, the Company issued warrants (the "Notes Warrants") to purchase Common Stock in conjunction with a senior secured convertibles notes (the "Notes") and warrants offering (the "Notes and Warrants Offering"), at an initial fair value of $3.8 million. The Notes sold by the Company in the Notes and Warrants Offering were subsequently retired upon maturity at December 31, 2023. The exercise price of and number of shares underlying the Notes Warrants were immediately proportionately adjusted pursuant to the Reverse Stock Split to $26.80 and 279,851 shares, respectively, and on May 2, 2024, the exercise price for each of the Notes Warrants was further adjusted to $2.06 in accordance with their terms.

The Company issued additional warrants (the "Additional Warrants") to purchase Common Stock on August 12, 2022 in conjunction with a registered direct offering for the sale of shares of the Company's Common Stock and the Additional Warrants. The Additional Warrants do not reprice further beyond the immediate proportionate adjustments to the per share exercise price and number of shares issuable of $21.20 and 141,509 shares, respectively, that occurred upon and as a result of the Reverse Stock Split.

All changes in the fair value of the Notes Warrants and Additional Warrants liabilities are recognized in the Company's consolidated statements of operations until they are either exercised or expire. Since their issuance, none of the Notes Warrants or Additional Warrants have been exercised. The Notes Warrants and Additional Warrants are not traded in an active securities market and, as such, the estimated fair value is determined by using a Black-Scholes option pricing model which considers the likelihood of repricing adjustments and utilizes assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of valuation. Expected volatility is based on the historical volatility over the expected remaining term of the warrants. The Company has no reason to believe future volatility over the expected remaining life of the Notes Warrants and Additional Warrants is likely to differ materially from historical volatility. Expected life is based on the term of the applicable warrants. Below are the specific assumptions utilized (unaudited, except for December 31, 2024):

Notes Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.2	%
Expected dividend yield		—			—
Expected term (in years)		2.12			2.61
Expected volatility		117.3	%		105.9	%

Additional Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.3	%
Expected dividend yield		—			—
Expected term (in years)		2.62			3.12
Expected volatility		112.7	%		99.6	%

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Note 6 - Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6. Fair Value of Financial Instruments

The Company measures and discloses fair value measurements as required by FASB Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures.

Fair value is an exit price, representing the amount that would be received upon the sale of an asset or the amount that would be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

• Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.

• Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table presents information about the financial liabilities that are measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 (unaudited except for December 31, 2024, in thousands):

Level 3	June 30, 2025		December 31, 2024
Notes Warrants	$	107	$	197
Additional Warrants		14		27
Total	$	121	$	224

The following tables present the changes in the fair value (unaudited, except for December 31, 2024, in thousands):

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2024	$	197		$	27		$	224
Change in fair value	$	(107	)	$	(16	)	$	(123	)
Measurement at March 31, 2025	$	90		$	11		$	101
Change in fair value	$	17		$	3		$	20
Measurement at June 30, 2025	$	107		$	14		$	121

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2023	$	334		$	263		$	597
Change in fair value	$	28		$	(214	)	$	(186	)
Measurement at March 31, 2024	$	362		$	49		$	411
Change in fair value	$	(24	)	$	(18	)	$	(42	)
Measurement at June 30, 2024	$	338		$	31		$	369

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Note 7 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

7. Goodwill and Intangible Assets

In accordance with FASB ASC Topic No. 350, Intangibles-Goodwill and Other, Smith Micro reviews the recoverability of the carrying value of the Company's single reporting unit goodwill at least annually or whenever events or circumstances indicate a potential impairment. The annual impairment testing date is December 31 of each year. Recoverability of goodwill is determined by comparing the estimated fair value of the reporting unit to the carrying value of the underlying net assets in the reporting unit. If the estimated fair value of a reporting unit is determined to be less than the carrying value, goodwill is deemed impaired, and an impairment loss is recognized to the extent that the carrying value of goodwill exceeds the fair value.

During the three months ended March 31, 2024, the Company performed an interim quantitative impairment test on its goodwill as of February 29, 2024 and as a result of this interim assessment, including the impact of the projections of revenue growth, earnings before interest taxes depreciation and amortization (“EBITDA”), and discount rates along with market multiples, the Company recorded a goodwill impairment charge totaling $24.0 million.

In connection with the preparation of its quarterly financial statements for the second quarter of 2025, the Company assessed changes in circumstances to determine whether it was more likely than not that the fair value of its single reporting unit was below its carrying amount. While there was no single determinative event or factor, considerations including recent financial performance compared to expected forecasts, trends in stock valuation, pricing of the most recent equity raise, and the receipt of the Nasdaq minimum bid price requirement notice on June 24, 2025 led the Company to conclude that when considering the events and factors in totality it was necessary to perform an interim quantitative valuation assessment.  The fair value of the reporting unit was determined based on a combination of the income approach using estimated discounted cash flows and a market-based valuation methodology utilizing market multiples. The assessment utilized Level 3 inputs including estimates of revenue growth, EBITDA contribution and discount rates. Based on the results of the assessment, a full goodwill impairment charge of $11.1 million was recorded. 

The components of the Company’s intangible assets were as follows for the periods presented (unaudited, except for December 31, 2024, in thousands, except for useful life data):

	June 30, 2025
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		3	$	11,076	$	(7,227	)	$	3,849
Customer relationships		9		24,573		(9,652	)		14,921
Customer contracts		0		7,000		(6,810	)		190
Software license		4		5,419		(3,485	)		1,934
Patents		2		600		(450	)		150
Total			$	48,668	$	(27,624	)	$	21,044

	December 31, 2024
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		4	$	13,330	$	(8,762	)	$	4,568
Customer relationships		9		27,548		(11,280	)		16,268
Customer contracts		0		7,000		(6,725	)		275
Software license		4		5,419		(3,126	)		2,293
Patents		2		600		(407	)		193
Total			$	53,897	$	(30,300	)	$	23,597

The Company amortizes intangible assets over the pattern of economic benefit expected to be generated from the use of the assets, with a total weighted average amortization period of approximately seven years as of June 30, 2025 and eight years as of December 31, 2024. During the three months ended June 30, 2025 and 2024, intangible asset amortization expense was $1.3 million and $1.5 million, respectively. During the six months ended June 30, 2025 and 2024, intangible asset amortization expense was $2.6 million and $3.3 million, respectively.

As of June 30, 2025, estimated amortization expense for the remainder of 2025 and thereafter was as follows (unaudited, in thousands):

	Amortization
Year Ending December 31,	Expense
2025	$	2,552
2026		4,709
2027		3,834
2028		2,790
2029		2,095
2030 and thereafter		5,064
Total	$	21,044

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Note 8 - Earnings Per Share

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

8. Earnings Per Share

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method.

The 845,000 shares of the Company's Common Stock issuable upon exercise of the Pre-Funded Warrants, described in Note 4 to these consolidated financial statements, were included in the weighted average outstanding Common Stock in the calculation of basic and diluted net loss per share from May 2024 through their exercise in August 2024, as the exercise price was non-substantive at $0.001 per share.

For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, Common Stock subject to repurchase by the Company, options, warrants (other than the Pre-Funded Warrants), and convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

The following table sets forth the details of basic and diluted earnings per share (unaudited, in thousands, except per share amounts):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Numerator:
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)
Denominator:
Weighted average shares outstanding – basic		19,417			10,567			18,820			10,016
Potential common shares – options / warrants (treasury stock method)		—			—			—			—
Weighted average shares outstanding – diluted		19,417			10,567			18,820			10,016
Shares excluded (anti-dilutive)		8,413			1,486			8,409			959
Net loss per common share:
Basic	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)
Diluted	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)

The following weighted average shares were excluded from the computation of diluted net loss per share as the impact of including those shares would be anti-dilutive (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Outstanding stock options		31		9		27		10
Outstanding warrants		8,382		1,477		8,382		949
Total anti-dilutive shares		8,413		1,486		8,409		959

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Note 9 - Stock-Based Compensation

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

9. Stock-Based Compensation

Stock Plans

On June 18, 2024, the Company's stockholders approved the Company's Amended and Restated Omnibus Equity Incentive Plan (as currently amended, the "OEIP") which amended and restated (and renamed) the Company's 2015 Omnibus Equity Incentive Plan (as previously amended, the "2015 Plan") and increased the number of shares reserved thereunder by 3.0 million shares, and on June 3, 2025, the Company's stockholders approved an increase to the number of shares reserved thereunder by an additional 3.0 million shares. As of June 30, 2025, there were approximately 3.2 million shares available for future grants under the Company’s OEIP. References to the OEIP herein include the 2015 Plan prior to its amendment and restatement. The maximum number of shares available for issuance over the term of the OEIP may not exceed 7.2 million shares.

During the six months ended June 30, 2025, the Company granted 2.0 million shares of restricted stock and 25,000 stock options under the OEIP.

The OEIP provides for the issuance of full value awards (restricted stock, performance stock, dividend equivalent right or restricted stock units) and partial value awards (stock options or stock appreciation rights) to employees, non-employee members of the Company's Board of Directors and consultants. Any full value award settled in shares will be debited as 1.2 shares, and partial value awards settled in shares will be debited as 1.0 shares against the share reserve. The exercise price per share for stock option grants is not to be less than the fair market value per share of the Company’s Common Stock on the date of grant. The Compensation Committee of the Board of Directors administers the OEIP and determines the vesting schedule at the time of grant. Stock options may be exercisable immediately or in installments but generally vest over a one-year or four-year period from the date of grant. In the event the holder ceases to be employed by the Company, all unvested stock awards terminate, and all vested stock options may be exercised within a period of 90 days following termination of employment. In general, stock options expire ten years from the date of grant. Restricted stock is valued using the closing stock price on the grant date. The total value is expensed over the vesting period, which is typically up to 48 months.

Employee Stock Purchase Plan

The Company has a stockholder approved employee stock purchase plan (as amended, the “ESPP”), under which substantially all employees may purchase the Company’s Common Stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock as of the beginning and end of six-month offering periods. Payroll deductions under the ESPP are limited to 10% of the employee’s compensation and in any calendar year employees may not purchase more than the lesser of $25,000 of stock or 250 shares, as set by the Compensation Committee of the Board of Directors in accordance with the terms of the ESPP.  On June 3, 2025, the Company's stockholders approved an amendment to the ESPP to increase the aggregate number of shares of Common Stock authorized for issuance under the ESPP by 250,000 shares, therefore no more than 281,250 shares in the aggregate may be purchased under the ESPP.

Stock Compensation Expense

The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognizes compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation.

Non-cash stock-based compensation expenses related to stock options, restricted stock grants and the ESPP are recorded in the consolidated financial statements as follows (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Sales and marketing	$	263	$	345	$	498	$	653
Research and development		204		245		418		509
General and administrative		629		548		1,267		1,110
Total non-cash stock compensation expense	$	1,096	$	1,138	$	2,183	$	2,272

As of June 30, 2025, there was approximately $2.9 million in unrecognized compensation costs related to unvested stock options and restricted stock awards granted under the OEIP.

Stock Options

For the six months ended June 30, 2025, there were 25,000 stock option awards granted. A summary of the Company’s stock options outstanding under the OEIP as of June 30, 2025 and related activity during 2025 is as follows (unaudited, in thousands except weighted average exercise price and weighted average remaining contractual life):

					Wtd. Avg.
					Remaining		Aggregate
			Weighted Avg.		Contractual		Intrinsic
	Shares		Exercise Price		Life (Yrs)		Value
Outstanding as of December 31, 2024		5	$	27.57		4.1	$	—
Granted		25		1.26		—	$	—
Outstanding as of June 30, 2025		30	$	5.99		8.6	$	—
Vested and expected to vest at June 30, 2025		30	$	5.99		8.6	$	—
Exercisable as of June 30, 2025		5	$	27.46		3.7	$	—

Restricted Stock Awards

A summary of the Company’s restricted stock awards outstanding under the OEIP for the six months ended June 30, 2025 and the activity during the period therein are as follows (unaudited, in thousands, except weighted average grant date fair value):

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Unvested at December 31, 2024		419		$	7.85
Granted		2,006			1.17
Vested		(1,005	)		2.51
Canceled and forfeited		(16	)		2.28
Unvested at June 30, 2025		1,404		$	2.19

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Note 10 - Revenues

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

10. Revenues

Revenue Recognition

In accordance with FASB ASC Topic No. 606, Revenue from Contracts with Customers, the Company recognizes the sale of goods and services based on the five-step analysis of transactions as provided in Topic 606, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods and services. For all contracts with customers, the Company first identifies the contract, which usually is established when a contract is fully executed by each party and consideration is expected to be received. Next, the Company identifies the performance obligations in the contract. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company then determines the transaction price in the arrangement and allocates the transaction price, if necessary, to each performance obligation identified in the contract. The allocation of the transaction price to the performance obligations are based on the relative standalone selling prices for the goods and services contained in a particular performance obligation. The transaction price is adjusted for the Company’s estimate of variable consideration which may include certain incentives and discounts, product returns, distributor fees, and storage fees. The Company evaluates the total amount of variable consideration expected to be earned by using the expected value method, as the Company believes this method represents the most appropriate estimate for this consideration, based on historical service trends, the individual contract considerations, and its best judgment at the time. The Company includes estimates of variable consideration in revenues only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company generates the majority of its revenue on usage-based fees which are variable and depend entirely on customers’ use of perpetual licenses, transactions processed on the Company’s hosted environment and activity on the Company’s cloud-based service platform.

The Company’s contracts with mobile network operator (“MNO”) customers include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Smith Micro’s cloud-based services include a software solution license integrated with cloud-based services. Since the Company does not allow its customers to take possession of the cloud-based elements of its software solutions, and since the utility of the license comes from the cloud-based services that the Company provides, Smith Micro considers the software license and the cloud services to be a single performance obligation. The Company recognizes revenue associated with its MNO customers based upon their active subscribers’ access and usage of Smith Micro’s software licenses and cloud-based services on Smith Micro’s platforms or satisfaction of the performance obligations as indicated in the contracts.

Smith Micro has made accounting policy elections to exclude all taxes by governmental authorities from the measurement of the transaction price, and since the Company’s standard payment terms are less than one year, the Company has elected the practical expedient not to assess whether a contract has a significant financing component.

Disaggregation of Revenues

Revenues on a disaggregated basis are as follows (unaudited, in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
License and service fees	$	795	$	761	$	1,590	$	1,538
Hosted environment usage fees		777		531		1,511		1,196
Cloud based usage fees		2,835		3,645		5,921		7,670
Consulting services and other		13		203		19		534
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

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Note 11 - Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. 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 June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Revenues	$	4,420		$	5,140		$	9,041		$	10,938
Less:
Adjusted cost of revenues¹		1,171			1,592			2,428			3,572
Adjusted selling and marketing²		1,402			2,044			2,811			4,337
Adjusted research and development²		2,548			3,386			5,191			7,093
Adjusted general and administrative²		1,964			2,104			4,050			4,192
Adjusted operating loss		(2,665	)		(3,986	)		(5,439	)		(8,256	)
Other segment expenses³		(78	)		(310	)		(79	)		(448	)
Stock-based compensation expense		(1,096	)		(1,138	)		(2,183	)		(2,272	)
Depreciation		(73	)		(95	)		(146	)		(194	)
Amortization		(1,276	)		(1,450	)		(2,552	)		(3,266	)
Goodwill impairment		(11,052	)		—			(11,052	)		(23,989	)
Proceeds from sale of ViewSpot, net		1,287			—			1,287			—
Total other (expenses) income, net		(109	)		50			(75	)		528
Loss before provision for income taxes		(15,062	)		(6,929	)		(20,239	)		(37,897	)
Provision for income tax expense		—			—			1			39
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)

(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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Family Safety	$	3,626	$	4,221	$	7,414	$	8,685
CommSuite		777		531		1,511		1,196
ViewSpot		17		388		116		1,057
Total Wireless revenues	$	4,420	$	5,140	$	9,041	$	10,938

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, for the three and six months ended June 30, 2025 and 2024.

During the three months ended June 30, 2025, three customers made up 61%, 21% and 18% of revenues. For the three months ended  June 30, 2024, two customers made up 59% and 20% of revenues.

During the six months ended June 30, 2025, three customers made up 61%, 20% and 17% of revenues. For the six months ended June 30, 2024, three customers made up 56%, 19% and 11% of revenues.

As of June 30, 2025, two customers accounted for 39% and 33% of accounts receivable. As of June 30, 2024, two customers accounted for 52% and 15% of accounts receivable.

Geographical Information

During the three and six months ended June 30, 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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Americas	$	4,407	$	4,943	$	9,022	$	10,420
EMEA		13		197		19		518
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

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

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Note 12 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12. Commitments and Contingencies

Litigation

The Company may become involved in various legal proceedings arising from its business activities. While management does not believe the ultimate disposition of these matters will have a material adverse impact on the Company’s consolidated results of operations, cash flows, or financial position, litigation is inherently unpredictable, and depending on the nature and timing of these proceedings, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows, or financial position in a particular period.

Other Contingent Contractual Obligations

During its normal course of business, the Company has made certain indemnities, commitments, and guarantees under which it may be required to make payments in connection with certain transactions. These include: indemnities to the Company’s customers pursuant to contracts for the Company’s products and services, including indemnities with respect to intellectual property, confidentiality and data privacy; indemnities to various lessors in connection with facility leases for certain claims arising from use of such facility or under such lease; indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company; indemnities involving the accuracy of representations and warranties in certain contracts; and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. In addition, the Company has made or may make contractual commitments to employees providing for severance payments upon the occurrence of certain prescribed events. The Company may also issue a guarantee in the form of a standby letter of credit as security for contingent liabilities under certain customer contracts. The duration of these indemnities, commitments, and guarantees varies, and in certain cases may be indefinite. The majority of these indemnities, commitments, and guarantees may not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets.

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Note 13 - Leases

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13. Leases

The Company leases office space and equipment. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease costs were $0.4 million for each of the three months ended June 30, 2025 and 2024. Operating lease costs were $0.8 million for each of the six months ended June 30, 2025 and 2024.

The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):

	As of June 30, 2025
2025	$	796
2026		977
2027		377
2028		62
Total lease payments		2,212
Less imputed interest		148
Present value of lease liabilities	$	2,064

Additional information relating to the Company’s operating leases follows (unaudited):

	As of June 30, 2025
Weighted average remaining lease term (years)		1.7
Weighted average discount rate		7.8	%

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Note 14 - Income Taxes

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14. Income Taxes

The Company accounts for income taxes as required by FASB ASC Topic No. 740, Income Taxes. The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax liabilities against gross deferred tax assets); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

In assessing whether a valuation allowance is required, significant weight is given to evidence that can be objectively verified. Realization of deferred tax assets is dependent upon the generation of future taxable income. As required by ASC 740, Smith Micro has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets and determined that it was more likely than not that the Company would not realize the deferred tax assets due to the Company's cumulative losses and uncertain near-term market and economic conditions, which reduce the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets.

After a review of the four sources of taxable income as of June 30, 2025, and after consideration of the Company’s cumulative loss position as of December 31, 2024, the Company will continue to reserve its U.S.-based deferred tax amounts, which total $70.2 million as of June 30, 2025.

The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. As of June 30, 2025, there are no audits in process or pending from Federal or state tax authorities. The outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Smith Micro may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to the consolidated financial results of the Company. It is the Company’s policy to classify any interest and/or penalties in the consolidated financial statements as a component of income tax expense.

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Note 15 - Subsequent Events

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Subsequent Events [Text Block]

15. Subsequent Events

The Company evaluates and discloses subsequent events as required by FASB ASC Topic No. 855, Subsequent Events. The Topic establishes general standards of accounting for and disclosure of events that occur after the balance sheet date, but before the financial statements are issued or are available to be issued. Subsequent events have been evaluated as of the date of this filing and no further disclosures are required.

On July 18, 2025, the Company announced the closing of a registered direct offering of 1,612,903 of Common Stock for $0.93 per share and concurrent private placement of unregistered warrants to purchase an equal number of shares of the Company's Common Stock with certain institutional and accredited investors, which resulted in gross proceeds to the Company of approximately $1.5 million, prior to offering fees and transaction expenses. The registered offering and concurrent private placement were approved by the Company's Board of Directors and a special Pricing Committee thereof. The warrants issued to the investors in the concurrent private placement have an exercise price of $1.20 per share (subject to certain downward pricing adjustments, including anti-dilution protection), are immediately exercisable and will expire five years after issuance.  However, pursuant to the securities purchase agreement between the company and the investors relating to the registered offering and concurrent private placement dated July 17, 2025, an investor’s right to exercise the warrants, and the Company’s ability to issue shares upon exercise, is subject to certain limitations set forth in the purchase agreement pursuant to which the warrants were issued, including a limit on the number of shares that may be issued until the time, if any, that the Company’s stockholders have approved the issuance of more than 19.9% of the Company’s outstanding shares of common stock pursuant to the registered offering and concurrent private placement in accordance with Nasdaq listing standards. The Company has agreed to seek stockholder approval of these matters at a meeting to be held no later than October 17, 2025.  The Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock issuable upon exercise of the unregistered warrants issued in connection with the private placement concurrent with the registered offering.  Pursuant to the terms of an engagement letter previously entered into on June 19, 2025 by the Company with Chardan Capital Markets LLC (“Chardan”), the Company paid Chardan a cash fee equal to 6.5% of the total gross proceeds from the registered offering and concurrent private placement in connection with its service as a financial advisor to the Company for the offerings.  

 

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Insider Trading Arrangements

3 Months Ended

6 Months Ended

Jun. 30, 2025

Jun. 30, 2025

Trading Arrangements, by Individual [Table]

Material Terms of Trading Arrangement [Text Block]

Item 5. Other Information

Trading Arrangements

During the fiscal quarter ended on June 30, 2025, none of the Company’s directors or “officers”, as defined in Rule 16a-1(f) of the Exchange Act, adopted, modified or terminated any “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation S-K.

Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2025

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying interim consolidated balance sheet as of June 30, 2025, and the related consolidated statements of operations and stockholders’ equity for the three and six months ended June 30, 2025 and 2024, and the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024, are unaudited. The unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted.

In the opinion of management, the accompanying unaudited consolidated financial statements for the periods presented reflect all adjustments which are normal and recurring, and necessary to fairly state the financial position, results of operations, and cash flows of the Company. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on March 12, 2025 (the "2024 Form 10-K").

Intercompany balances and transactions have been eliminated in consolidation.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2025.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board, ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures. The amendments in this update are intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The improved disclosure requirements apply to all public entities that are required to report segment information, including those with only reportable segment. In addition to the current requirements, the amendments require all segment profit or loss and asset disclosures to be provided on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2023 and will be effective for interim reporting periods beginning after December 15, 2024. The Company adopted ASU 2023-07 with no material effect on its consolidated financial statements other than the additional disclosure requirements, which are included in Note 11.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, and the adoption of this standard is not anticipated to have a significant impact on the Company's consolidated financial statements other than adding new disclosures, which the Company is currently evaluating.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which is intended to improve the decision-usefulness of expense information on public companies' income through disaggregation of relevant expense captions in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures.

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Note 5 - Warrant Liabilities (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

Notes Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.2	%
Expected dividend yield		—			—
Expected term (in years)		2.12			2.61
Expected volatility		117.3	%		105.9	%

Additional Warrants	June 30, 2025			December 31, 2024
Common stock market price	$	0.86		$	1.31
Risk-free interest rate		3.9	%		4.3	%
Expected dividend yield		—			—
Expected term (in years)		2.62			3.12
Expected volatility		112.7	%		99.6	%

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Note 6 - Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

Level 3	June 30, 2025		December 31, 2024
Notes Warrants	$	107	$	197
Additional Warrants		14		27
Total	$	121	$	224

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2024	$	197		$	27		$	224
Change in fair value	$	(107	)	$	(16	)	$	(123	)
Measurement at March 31, 2025	$	90		$	11		$	101
Change in fair value	$	17		$	3		$	20
Measurement at June 30, 2025	$	107		$	14		$	121

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2023	$	334		$	263		$	597
Change in fair value	$	28		$	(214	)	$	(186	)
Measurement at March 31, 2024	$	362		$	49		$	411
Change in fair value	$	(24	)	$	(18	)	$	(42	)
Measurement at June 30, 2024	$	338		$	31		$	369

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Note 7 - Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	June 30, 2025
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		3	$	11,076	$	(7,227	)	$	3,849
Customer relationships		9		24,573		(9,652	)		14,921
Customer contracts		0		7,000		(6,810	)		190
Software license		4		5,419		(3,485	)		1,934
Patents		2		600		(450	)		150
Total			$	48,668	$	(27,624	)	$	21,044

	December 31, 2024
	Weighted
	Average
	Remaining		Gross
	Useful Life		Carrying		Accumulated
	(in Years)		Amount		Amortization			Net Book Value
Purchased technology		4	$	13,330	$	(8,762	)	$	4,568
Customer relationships		9		27,548		(11,280	)		16,268
Customer contracts		0		7,000		(6,725	)		275
Software license		4		5,419		(3,126	)		2,293
Patents		2		600		(407	)		193
Total			$	53,897	$	(30,300	)	$	23,597

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

	Amortization
Year Ending December 31,	Expense
2025	$	2,552
2026		4,709
2027		3,834
2028		2,790
2029		2,095
2030 and thereafter		5,064
Total	$	21,044

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Note 8 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Numerator:
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)
Denominator:
Weighted average shares outstanding – basic		19,417			10,567			18,820			10,016
Potential common shares – options / warrants (treasury stock method)		—			—			—			—
Weighted average shares outstanding – diluted		19,417			10,567			18,820			10,016
Shares excluded (anti-dilutive)		8,413			1,486			8,409			959
Net loss per common share:
Basic	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)
Diluted	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Outstanding stock options		31		9		27		10
Outstanding warrants		8,382		1,477		8,382		949
Total anti-dilutive shares		8,413		1,486		8,409		959

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Note 9 - Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Sales and marketing	$	263	$	345	$	498	$	653
Research and development		204		245		418		509
General and administrative		629		548		1,267		1,110
Total non-cash stock compensation expense	$	1,096	$	1,138	$	2,183	$	2,272

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

					Wtd. Avg.
					Remaining		Aggregate
			Weighted Avg.		Contractual		Intrinsic
	Shares		Exercise Price		Life (Yrs)		Value
Outstanding as of December 31, 2024		5	$	27.57		4.1	$	—
Granted		25		1.26		—	$	—
Outstanding as of June 30, 2025		30	$	5.99		8.6	$	—
Vested and expected to vest at June 30, 2025		30	$	5.99		8.6	$	—
Exercisable as of June 30, 2025		5	$	27.46		3.7	$	—

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Unvested at December 31, 2024		419		$	7.85
Granted		2,006			1.17
Vested		(1,005	)		2.51
Canceled and forfeited		(16	)		2.28
Unvested at June 30, 2025		1,404		$	2.19

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Note 10 - Revenues (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Disaggregation of Revenue [Table Text Block]

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
License and service fees	$	795	$	761	$	1,590	$	1,538
Hosted environment usage fees		777		531		1,511		1,196
Cloud based usage fees		2,835		3,645		5,921		7,670
Consulting services and other		13		203		19		534
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

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Note 11 - Segment, Customer Concentration and Geographical Information (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Revenues	$	4,420		$	5,140		$	9,041		$	10,938
Less:
Adjusted cost of revenues¹		1,171			1,592			2,428			3,572
Adjusted selling and marketing²		1,402			2,044			2,811			4,337
Adjusted research and development²		2,548			3,386			5,191			7,093
Adjusted general and administrative²		1,964			2,104			4,050			4,192
Adjusted operating loss		(2,665	)		(3,986	)		(5,439	)		(8,256	)
Other segment expenses³		(78	)		(310	)		(79	)		(448	)
Stock-based compensation expense		(1,096	)		(1,138	)		(2,183	)		(2,272	)
Depreciation		(73	)		(95	)		(146	)		(194	)
Amortization		(1,276	)		(1,450	)		(2,552	)		(3,266	)
Goodwill impairment		(11,052	)		—			(11,052	)		(23,989	)
Proceeds from sale of ViewSpot, net		1,287			—			1,287			—
Total other (expenses) income, net		(109	)		50			(75	)		528
Loss before provision for income taxes		(15,062	)		(6,929	)		(20,239	)		(37,897	)
Provision for income tax expense		—			—			1			39
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)

Revenue from External Customers by Products and Services [Table Text Block]

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Family Safety	$	3,626	$	4,221	$	7,414	$	8,685
CommSuite		777		531		1,511		1,196
ViewSpot		17		388		116		1,057
Total Wireless revenues	$	4,420	$	5,140	$	9,041	$	10,938

Revenue from External Customers by Geographic Areas [Table Text Block]

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Americas	$	4,407	$	4,943	$	9,022	$	10,420
EMEA		13		197		19		518
Total revenues	$	4,420	$	5,140	$	9,041	$	10,938

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Note 13 - Leases (Tables)

6 Months Ended

Jun. 30, 2025

Notes Tables

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

	As of June 30, 2025
2025	$	796
2026		977
2027		377
2028		62
Total lease payments		2,212
Less imputed interest		148
Present value of lease liabilities	$	2,064

Lease, Cost [Table Text Block]

	As of June 30, 2025
Weighted average remaining lease term (years)		1.7
Weighted average discount rate		7.8	%

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Note 1 - The Company (Details Textual) $ / shares in Units, $ in Thousands			6 Months Ended
	Jun. 03, 2025 USD ($)	Apr. 03, 2024	Jun. 30, 2025 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2024 $ / shares shares	Apr. 10, 2024 shares	Apr. 09, 2024 shares
Proceeds from Sale of Productive Assets			$ 987	$ 0
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares			$ 0.001	$ 0.001	$ 0.001
Common Stock, Shares, Outstanding (in shares) | shares			19,382,014		17,673,404	9,600,000	76,800,000
Common Stock, Shares Authorized (in shares) | shares			100,000,000	100,000,000	100,000,000
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		8
ViewSpot [Member]
Disposal Group, Including Discontinued Operation, Consideration	$ 1,300
Proceeds from Sale of Productive Assets	$ 1,000

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Note 4 - Common Stock (Details Textual) - USD ($)						3 Months Ended	6 Months Ended
	Jun. 30, 2025	Nov. 08, 2024	Oct. 03, 2024	Jul. 11, 2024	May 10, 2024	Sep. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Sep. 29, 2024	May 14, 2024
Proceeds from Issuance or Sale of Equity							$ 0	$ 3,351,000
Pre-Funded Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001						$ 0.001
Class Of Warrant Or Right, Exercised In Period (in shares)						845,000
Stock Issued During Period, Shares, Exercise of Warrants (in shares)	845,000					844,061
Roth Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)									20,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)									$ 1.46
Securities Purchase Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)					1,065,000
Shares Issued, Price Per Share (in dollars per share)					$ 2.15
Proceeds from Issuance or Sale of Equity				$ 3,400,000
Securities Purchase Agreement [Member] | Pre-Funded Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					845,000
Class of Warrant or Right, Purchase Price of Warrants (in dollars per share)					$ 2.149
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)					$ 0.001
Securities Purchase Agreement [Member] | Unregistered Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)										1,910,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)										$ 2.34
Securities Purchase Agreement [Member] | Roth Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)										133,700
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)										$ 2.86
Percent of Aggregate Share and Warrants										7.00%
Registered Direct Offering And Private Placement [Member]
Proceeds from Issuance or Sale of Equity		$ 6.6	$ 6,900,000
October 2024 Registered Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)			3,321,881
Proceeds from Issuance or Sale of Equity			$ 3,900,000
October 2024 Registered Offering [Member] | Related Party [Member]
Proceeds from Issuance or Sale of Equity			$ 200,000
October 2024 Private Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)			2,575,107
Proceeds from Issuance or Sale of Equity			$ 3,000,000
October 2024 Offerings [Member]
Shares Issued, Price Per Share (in dollars per share)			$ 1.165
October 2024 Offerings [Member] | Unregistered Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 1.04

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Note 5 - Warrant Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Millions	May 02, 2024	Apr. 03, 2023	Aug. 12, 2022	Aug. 11, 2022
Warrants and Rights Outstanding				$ 3.8
Notes Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 2.06	$ 26.8
Class of Warrant or Right, Outstanding (in shares)		279,851
Additional Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)			$ 21.2
Class of Warrant or Right, Outstanding (in shares)			141,509

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Note 5 - Warrant Liabilities - Warrant Valuation Assumptions (Details)	Jun. 30, 2025	Dec. 31, 2024
Notes Warrants [Member] | Measurement Input, Share Price [Member]
Warrants and Rights Outstanding, Measurement Input	0.86	1.31
Notes Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0.039	0.042
Notes Warrants [Member] | Measurement Input, Expected Dividend Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0	0
Notes Warrants [Member] | Measurement Input, Expected Term [Member]
Warrants and Rights Outstanding, Measurement Input	2.12	2.61
Notes Warrants [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	1.173	1.059
Additional Warrants [Member] | Measurement Input, Share Price [Member]
Warrants and Rights Outstanding, Measurement Input	0.86	1.31
Additional Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0.039	0.043
Additional Warrants [Member] | Measurement Input, Expected Dividend Rate [Member]
Warrants and Rights Outstanding, Measurement Input	0	0
Additional Warrants [Member] | Measurement Input, Expected Term [Member]
Warrants and Rights Outstanding, Measurement Input	2.62	3.12
Additional Warrants [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	1.127	0.996

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Note 6 - Fair Value of Financial Instruments - Liabilities Measure on Recurring Basis (Details) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2024
Derivative liabilities	$ 121	$ 224
Notes Warrants [Member]
Derivative liabilities	107	197
Additional Warrants [Member]
Derivative liabilities	$ 14	$ 27

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Note 6 - Fair Value of Financial Instruments - Changes in Derivative Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2024	Mar. 31, 2024
Measurement at December 31, 2024	$ 101	$ 224	$ 411	$ 597
Change in fair value	20	(123)	(42)	(186)
Measurement at March 31, 2025	121	101	369	411
Notes Warrants [Member]
Measurement at December 31, 2024	90	197	362	334
Change in fair value	17	(107)	(24)	28
Measurement at March 31, 2025	107	90	338	362
Additional Warrants [Member]
Measurement at December 31, 2024	11	27	49	263
Change in fair value	3	(16)	(18)	(214)
Measurement at March 31, 2025	$ 14	$ 11	$ 31	$ 49

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Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2025	Jun. 30, 2024	Dec. 31, 2024
Goodwill, Impairment Loss	$ 11,052	$ 0	$ 24,000	$ 11,052	$ 23,989
Finite-Lived Intangible Assets, Remaining Amortization Period (Year)	7 years			7 years		8 years
Amortization of Intangible Assets	$ 1,300	$ 1,500		$ 2,600	$ 3,300

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Note 7 - Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2024
Finite-lived intangible assets, remaining life (Year)	7 years	8 years
Finite-lived intangible assets, gross	$ 48,668	$ 53,897
Finite-lived intangible assets, amortization	(27,624)	(30,300)
Intangible assets, net	$ 21,044	$ 23,597
Technology-Based Intangible Assets [Member]
Finite-lived intangible assets, remaining life (Year)	3 years	4 years
Finite-lived intangible assets, gross	$ 11,076	$ 13,330
Finite-lived intangible assets, amortization	(7,227)	(8,762)
Intangible assets, net	$ 3,849	$ 4,568
Customer Relationships [Member]
Finite-lived intangible assets, remaining life (Year)	9 years	9 years
Finite-lived intangible assets, gross	$ 24,573	$ 27,548
Finite-lived intangible assets, amortization	(9,652)	(11,280)
Intangible assets, net	$ 14,921	$ 16,268
Customer Contracts [Member]
Finite-lived intangible assets, remaining life (Year)	0 years	0 years
Finite-lived intangible assets, gross	$ 7,000	$ 7,000
Finite-lived intangible assets, amortization	(6,810)	(6,725)
Intangible assets, net	$ 190	$ 275
Licensing Agreements [Member]
Finite-lived intangible assets, remaining life (Year)	4 years	4 years
Finite-lived intangible assets, gross	$ 5,419	$ 5,419
Finite-lived intangible assets, amortization	(3,485)	(3,126)
Intangible assets, net	$ 1,934	$ 2,293
Patents [Member]
Finite-lived intangible assets, remaining life (Year)	2 years	2 years
Finite-lived intangible assets, gross	$ 600	$ 600
Finite-lived intangible assets, amortization	(450)	(407)
Intangible assets, net	$ 150	$ 193

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Note 7 - Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2025	Dec. 31, 2024
2025	$ 2,552
2026	4,709
2027	3,834
2028	2,790
2029	2,095
2030 and thereafter	5,064
Total	$ 21,044	$ 23,597

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Note 8 - Earnings Per Share (Details Textual) - Pre-Funded Warrants [Member] - $ / shares		3 Months Ended
	Jun. 30, 2025	Sep. 30, 2024
Stock Issued During Period, Shares, Exercise of Warrants (in shares)	845,000	844,061
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001

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Note 8 - Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Net loss	$ (15,062)	$ (6,929)	$ (20,240)	$ (37,936)
Weighted average shares outstanding – basic (in shares)	19,417	10,567	18,820	10,016
Potential common shares – options / warrants (treasury stock method) (in shares)	0	0	0	0
Weighted average shares outstanding – diluted (in shares)	19,417	10,567	18,820	10,016
Shares excluded (anti-dilutive) (in shares)	8,413	1,486	8,409	959
Basic (in dollars per share)	$ (0.78)	$ (0.66)	$ (1.08)	$ (3.79)
Diluted (in dollars per share)	$ (0.78)	$ (0.66)	$ (1.08)	$ (3.79)

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Note 8 - Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Antidilutive securities (in shares)	8,413	1,486	8,409	959
Share-Based Payment Arrangement, Option [Member]
Antidilutive securities (in shares)	31	9	27	10
Warrant [Member]
Antidilutive securities (in shares)	8,382	1,477	8,382	949

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Note 9 - Stock-Based Compensation (Details Textual) - USD ($)			6 Months Ended
	Jun. 03, 2025	Jun. 18, 2024	Jun. 30, 2025
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)			25,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount			$ 2,900,000
The 2015 Omnibus Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares)	3,000,000	3,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)			3,200,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)			7,200,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)			25,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Full Value Awards (in shares)			1,200,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Partial Value Awards (in shares)			1,000,000
The 2015 Omnibus Equity Incentive Plan [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)			1 year
The 2015 Omnibus Equity Incentive Plan [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)			4 years
The 2015 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)			2,000,000
The 2015 Omnibus Equity Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)			10 years
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent			85.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Employee Contribution Limit, Percent			10.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Value, Shares Purchasable by Employees			$ 25,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Maximum Number of Shares Per Employee (in shares)			250
Share-Based Compensation Arrangement by Share-Based Payment Award, Increase in Maximum Number of Shares Purchasable (in shares)	250,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Maximum Number of Shares Purcahsable (in shares)			281,250

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Note 9 - Stock-Based Compensation - Schedule of Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
stock compensation expense	$ 1,096	$ 1,138	$ 2,183	$ 2,272
Selling and Marketing Expense [Member]
stock compensation expense	263	345	498	653
Research and Development Expense [Member]
stock compensation expense	204	245	418	509
General and Administrative Expense [Member]
stock compensation expense	$ 629	$ 548	$ 1,267	$ 1,110

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Note 9 - Stock-Based Compensation - Schedule of Stock Options (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2025	Dec. 31, 2024
Outstanding, shares (in shares)	5,000
Outstanding, weighted average exercise price (in dollars per share)	$ 27.57
Outstanding, weighted average remaining contractual term (Year)	8 years 7 months 6 days	4 years 1 month 6 days
Granted, shares (in shares)	25,000
Granted, weighted average exercise price (in dollars per share)	$ 1.26
Outstanding, shares (in shares)	30,000	5,000
Outstanding, weighted average exercise price (in dollars per share)	$ 5.99	$ 27.57
Vested and expected to vest, shares (in shares)	30,000
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 5.99
Vested and expected to vest, weighted average remaining contractual term (Year)	8 years 7 months 6 days
Exercisable, shares (in shares)	5,000
Exercisable, weighted average exercise price (in dollars per share)	$ 27.46
Exercisable, weighted average remaining contractual term (Year)	3 years 8 months 12 days

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Note 9 - Stock-Based Compensation- Restricted Stock Activity (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Jun. 30, 2025 $ / shares shares
Unvested, balance (in shares) | shares	419
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 7.85
Granted, balance (in shares) | shares	2,006
Granted, weighted average grant date fair value (in dollars per share) | $ / shares	$ 1.17
Vested, balance (in shares) | shares	(1,005)
Vested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.51
Canceled and forfeited, balance (in shares) | shares	(16)
Canceled and forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.28
Unvested, balance (in shares) | shares	1,404
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.19

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Note 10 - Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Revenue	$ 4,420	$ 5,140	$ 9,041	$ 10,938
License and Service [Member]
Revenue	795	761	1,590	1,538
Hosted Environment Usage Fees [Member]
Revenue	777	531	1,511	1,196
Cloud Based usage Fees [Member]
Revenue	2,835	3,645	5,921	7,670
Consulting Services and Other [Member]
Revenue	$ 13	$ 203	$ 19	$ 534

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Note 11 - Segment, Customer Concentration and Geographical Information (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Number of Reportable Segments			1
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Number of Customers	3	2	3	3
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk, Percentage	61.00%	59.00%	61.00%	56.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Two [Member]
Concentration Risk, Percentage	21.00%	20.00%	20.00%	19.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer Three [Member]
Concentration Risk, Percentage	18.00%		17.00%	11.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of Customers			2	2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage			39.00%	52.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk, Percentage			33.00%	15.00%

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Note 11 - Segment, Customer Concentration and Geographical Information - Schedule of Expenses (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2025	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2025	Jun. 30, 2024
Revenues		$ 4,420	$ 5,140		$ 9,041	$ 10,938
Adjusted cost of revenues¹	[1]	1,171	1,592		2,428	3,572
Adjusted selling and marketing²		1,402	2,044		2,811	4,337
Adjusted research and development²	[2]	2,548	3,386		5,191	7,093
Adjusted general and administrative²	[2]	1,964	2,104		4,050	4,192
Adjusted operating loss		(2,665)	(3,986)		(5,439)	(8,256)
Other segment expenses³	[3]	(78)	(310)		(79)	(448)
Stock-based compensation expense		(1,096)	(1,138)		(2,183)	(2,272)
Depreciation		(73)	(95)		(146)	(194)
Amortization		(1,276)	(1,450)		(2,552)	(3,266)
Goodwill impairment		(11,052)	0	$ (24,000)	(11,052)	(23,989)
Proceeds from sale of ViewSpot, net		1,287	(0)		1,287	(0)
Total other (expenses) income, net		(109)	50		(75)	528
Loss before provision for income taxes		(15,062)	(6,929)		(20,239)	(37,897)
Provision for income tax expense		0	0		1	39
Net loss		$ (15,062)	$ (6,929)		$ (20,240)	$ (37,936)

[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.

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Note 11 - Segment, Customer Concentration and Geographical Information - Schedule of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Revenues	$ 4,420	$ 5,140	$ 9,041	$ 10,938
Family Safety [Member]
Revenues	3,626	4,221	7,414	8,685
CommSuite [Member]
Revenues	777	531	1,511	1,196
ViewSpot [Member]
Revenues	$ 17	$ 388	$ 116	$ 1,057

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Note 11 - Segment, Customer Concentration and Geographical Information - Schedule of Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Revenues	$ 4,420	$ 5,140	$ 9,041	$ 10,938
Americas [Member]
Revenues	4,407	4,943	9,022	10,420
EMEA [Member]
Revenues	$ 13	$ 197	$ 19	$ 518

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Note 13 - Leases (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Operating Lease, Cost	$ 0.4	$ 0.4	$ 0.8	$ 0.8

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Note 13 - Leases - Schedule of Lease Liability Maturity (Details) $ in Thousands	Jun. 30, 2025 USD ($)
2025	$ 796
2026	977
2027	377
2028	62
Total lease payments	2,212
Less imputed interest	148
Present value of lease liabilities	$ 2,064

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Note 13 - Leases - Lease Costs (Details)	Jun. 30, 2025
Weighted average remaining lease term (years) (Year)	1 year 8 months 12 days
Weighted average discount rate	7.80%

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Note 14 - Income Taxes (Details Textual) $ in Millions	Jun. 30, 2025 USD ($)
Deferred Tax Assets, Valuation Allowance	$ 70.2

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Note 15 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Jul. 18, 2025	Jul. 11, 2024	May 10, 2024	Jun. 30, 2025	Jun. 30, 2024	May 14, 2024
Proceeds from Issuance or Sale of Equity				$ 0	$ 3,351
Securities Purchase Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)			1,065,000
Shares Issued, Price Per Share (in dollars per share)			$ 2.15
Proceeds from Issuance or Sale of Equity		$ 3,400
Securities Purchase Agreement [Member] | Unregistered Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)						$ 2.34
Securities Purchase Agreement [Member] | Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues (in shares)	1,612,903
Shares Issued, Price Per Share (in dollars per share)	$ 0.93
Sale of Stock, Ownership Limitation on Sale of Shares, Percent	19.90%
Sale of Stock, Service Fee, Percentage of Gross Proceeds	6.50%
Securities Purchase Agreement [Member] | Subsequent Event [Member] | Unregistered Warrants [Member]
Proceeds from Issuance or Sale of Equity	$ 1,500
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 1.2
Warrants and Rights Outstanding, Term (Year)	5 years