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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Schedule of reconciliation of segment information to the totals reported in the accompanying consolidated financial statements | The tables below set forth information about the Company’s reportable operating segments for the three and nine months ended September 30, 2024 and 2023, along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands, except percentages) | 2024 |  | 2023 |  | 2024 |  | 2023
Digital Agreements |  |  |  |  |  |  |
Revenue | $ | 15,405 |  |  | $ | 13,012 |  |  | $ | 45,280 |  |  | $ | 36,426 |
Gross profit (1) | $ | 11,031 |  |  | $ | 9,808 |  |  | $ | 30,664 |  |  | $ | 26,839 |
Gross margin | 72 | % |  | 75 | % |  | 68 | % |  | 74 | %
Operating income (loss) (2) | $ | 3,419 |  |  | $ | (4,666) |  |  | $ | 3,000 |  |  | $ | (17,820) |
Security Solutions |  |  |  |  |  |  |
Revenue | $ | 40,837 |  |  | $ | 45,826 |  |  | $ | 136,728 |  |  | $ | 135,752 |
Gross profit (3) | $ | 30,517 |  |  | $ | 30,861 |  |  | $ | 98,620 |  |  | $ | 87,410 |
Gross margin | 75 | % |  | 67 | % |  | 72 | % |  | 64 | %
Operating income (4) | $ | 20,200 |  |  | $ | 15,673 |  |  | $ | 66,770 |  |  | $ | 39,827 |
Total Company: |  |  |  |  |  |  |
Revenue | $ | 56,242 |  |  | $ | 58,838 |  |  | $ | 182,008 |  |  | $ | 172,178 |
Gross profit | $ | 41,548 |  |  | $ | 40,669 |  |  | $ | 129,284 |  |  | $ | 114,249 |
Gross margin | 74 | % |  | 69 | % |  | 71 | % |  | 66 | %
Statements of Operations reconciliation: |  |  |  |  |  |  |
Segment operating income | $ | 23,619 |  |  | $ | 11,007 |  |  | $ | 69,770 |  |  | $ | 22,007 |
Corporate operating expenses not allocated at the segment level | 12,367 |  |  | 15,801 |  |  | 36,771 |  |  | 52,695 |
Operating income (loss) | $ | 11,252 |  |  | $ | (4,794) |  |  | $ | 32,999 |  |  | $ | (30,688) |
Interest income, net | 624 |  |  | 587 |  |  | 1,246 |  |  | 1,675 |
Other income (expense), net | (1,915) |  |  | 353 |  |  | (1,293) |  |  | 342 |
Income (loss) before income taxes | $ | 9,961 |  |  | $ | (3,854) |  |  | $ | 32,952 |  |  | $ | (28,671) |
(1) Digital Agreements gross profit includes intangible asset write-off of $0.8 million and internal capitalized software write-off of $0.7 million (see Note 7, Intangible Assets and Note 8, Property and Equipment, net ) for the nine months ended September 30, 2024. (2) Digital Agreements operating income (loss) includ es $0.6 million and $1.9 million of amortization of intangible assets expense for the three and nine months ended September 30, 2024, respectively, and $0.6 million and $1.7 million of amortization of intangible assets expense for the three and nine months ended September 30, 2023, respectively. (3) Security Solutions gross profit includes $1.6 million of inventory impairments related to discontinuation of investments in our Digipass CX product for the nine months ended September 30, 2023 (see Note 5, Inventories, net). (4) Security Solutions operating income includes $1.6 million of inventory impairments and $1.4 million of capitalized software write-offs related to discontinuation of investments in our Digipass CX product for the nine months ended September 30, 2023 (see Note 5, Inventories, net and Note 8, Property and Equipment, net).
Schedule of reconciliation of the disaggregated revenues to revenues from our two operating segments | The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company’s two reportable operating segments for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30,
| 2024 |  | 2023
(In thousands) | Digital Agreements |  | Security Solutions |  | Digital Agreements |  | Security Solutions
Subscription | $ | 15,045 |  |  | $ | 18,603 |  |  | $ | 11,807 |  |  | $ | 14,378 |
Maintenance and support | 327 |  |  | 9,317 |  |  | 995 |  |  | 11,276 |
Professional services and other (1) | 33 |  |  | 820 |  |  | 210 |  |  | 1,333 |
Hardware products | — |  |  | 12,097 |  |  | — |  |  | 18,839 |
Total Revenue | $ | 15,405 |  |  | $ | 40,837 |  |  | $ | 13,012 |  |  | $ | 45,826 |
| Nine Months Ended September 30,
| 2024 |  | 2023
(In thousands) | Digital Agreements |  | Security Solutions |  | Digital Agreements |  | Security Solutions
Subscription | $ | 43,641 |  |  | $ | 59,642 |  |  | $ | 32,641 |  |  | $ | 46,485 |
Maintenance and support | 1,321 |  |  | 29,125 |  |  | 3,121 |  |  | 31,914 |
Professional services and other (1) | 318 |  |  | 3,548 |  |  | 664 |  |  | 4,002 |
Hardware products | — |  |  | 44,413 |  |  | — |  |  | 53,351 |
Total Revenue | $ | 45,280 |  |  | $ | 136,728 |  |  | $ | 36,426 |  |  | $ | 135,752 |
(1) Professional services and other includes perpetual software licenses revenue, which was less than 1% of total revenue for both the three and nine months ended September 30, 2024 and approximately 1% of total revenue for both the three and nine months ended September 30, 2023.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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