Note 11 - Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Segment Reporting [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 (“Topic 280”). The Company has one primary business unit based on how management internally evaluates separate financial information, business activities and management responsibility: Wireless. The Wireless segment includes the Family Safety (which includes SafePath), CommSuite, and ViewSpot families of products (prior to the divestiture of ViewSpot in 2025).

The Company's chief operating decision maker (“CODM”) as such term is defined in Topic 280, is its Chief Executive Officer. As infrastructure and resources are shared across the Company’s operations, the CODM manages the Company's operations based on consolidated financial information for purposes of evaluating financial performance, investment, cash flow metrics and allocating resources.

The accounting policies of the Company's single operating segment are the same as those described in the summary of significant accounting policies appearing in Note 1. Although the CODM uses other measures of operating performance, the Company concluded that consolidated net loss is the measure required to be disclosed as the segment measure of profit or loss. Adjusted operating loss and net loss are used to evaluate the effectiveness of the Company'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 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 September 30,						For the Nine Months Ended September 30,
	2026			2025			2026			2025
Revenues	$	5,017		$	4,347		$	13,580		$	13,389
Less:
Adjusted cost of revenues¹		921			1,136			2,644			3,565
Adjusted selling and marketing²		1,012			1,268			3,352			4,079
Adjusted research and development²		1,594			2,449			4,695			7,640
Adjusted general and administrative²		1,637			1,988			5,266			6,035
Adjusted operating loss		(147	)		(2,494	)		(2,377	)		(7,930	)
Other segment expenses³		—			—			(211	)		(79	)
Stock-based compensation expense		(118	)		(644	)		(875	)		(2,828	)
Depreciation		(20	)		(71	)		(209	)		(217	)
Amortization		(1,177	)		(1,276	)		(3,532	)		(3,828	)
Goodwill impairment		—			—			—			(11,052	)
Proceeds from sale of ViewSpot, net		—			—			—			1,287
Total other expenses, net		(236	)		(50	)		(1,040	)		(126	)
Loss before provision for income taxes		(1,698	)		(4,535	)		(8,244	)		(24,773	)
Provision for income tax expense		—			—			—			1
Net loss	$	(1,698	)	$	(4,535	)	$	(8,244	)	$	(24,774	)
Deemed dividend		—			(635	)		(86	)		(635	)
Net loss attributable to common stockholders	$	(1,698	)	$	(5,170	)	$	(8,330	)	$	(25,409	)

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 costs associated with the shareholder-approved reverse stock split, and other corporate non-recurring activities.

The following table presents the disaggregation of Wireless revenues by product line (unaudited, in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
Family Safety	$	4,160	$	3,529	$	11,097	$	10,944
CommSuite		857		792		2,483		2,303
ViewSpot		—		26		—		142
Total Wireless revenues	$	5,017	$	4,347	$	13,580	$	13,389

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 nine months ended September 30, 2026 and 2025.

During the three months ended  September 30, 2026, three customers made up 47%, 33% and 17% of revenues. For the three months ended  September 30, 2025, three customers made up 61%, 21% and 18% of revenues.

As of  September 30, 2026, three customers accounted for 43%, 38% and 11% of accounts receivable. As of  September 30, 2025, three customers accounted for 41% , 33%  and 11% of accounts receivable.

Geographical Information

During the three and nine months ended September 30, 2026 and 2025, 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 September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
Americas	$	4,935	$	4,331	$	13,446	$	13,354
EMEA		82		16		134		35
Total revenues	$	5,017	$	4,347	$	13,580	$	13,389

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