XML 42 R27.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Segment | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment |
Segment | 19. Segments The Company has two reportable operating segments, which consist of cloud telecommunications services and software solutions and uses segment income/(loss) from operations to assess performance against forecasted results and allocate resources to its segments. Segment income/(loss) from operations is determined on the same basis as consolidated income/(loss) from operations presented in the Company’s consolidated statements of operations. The cloud telecommunications services segment generates revenue from selling cloud telecommunication services, products, and other internet services. The software solutions segment generates revenue from selling perpetual software licenses and software subscriptions, subscription maintenance and support, and professional services. Our chief operating decision maker (CODM) is our Chief Executive Officer, Jeffrey G. Korn. The CODM uses segment income/(loss) from operations before income taxes for purposes of allocating resources and evaluating financial performance predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis using the segment income/(loss) before taxes measure when making decisions about allocating capital and personnel to the segments. The CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented. Segment revenue, significant segment expenses, income/(loss) from operations, other income/(expense) and income/(loss) before income tax for the years ended December 31, 2024 and 2023 are as follows (in thousands):
Year Ended December 31, 2024 |  | Cloud |  |  | Software |  |  |  |
(In thousands) |  | Telecommunications |  |  | Solutions |  |  | Total |
|  | Segment |  |  | Segment |  |  | Consolidated |
Service revenue |  | $ | 31,849 |  |  | $ | - |  |  | $ | 31,849 |
Software solutions revenue |  |  | - |  |  |  | 23,374 |  |  |  | 23,374 |
Product revenue |  |  | 5,615 |  |  |  | - |  |  |  | 5,615 |
Consolidated revenue |  |  | 37,464 |  |  |  | 23,374 |  |  |  | 60,838 |
Less: significant and other segment expenses |  |  |  |  |  |  |  |  |  |  |  |
Employee expenses |  |  | 16,173 |  |  |  | 11,038 |  |  |  | 27,211 |
Commissions |  |  | 5,151 |  |  |  | 996 |  |  |  | 6,147 |
Contractor expense |  |  | 1,722 |  |  |  | 1,674 |  |  |  | 3,396 |
Depreciation and amortization |  |  | 1,402 |  |  |  | 1,928 |  |  |  | 3,330 |
Other segment items(1) |  |  | 12,762 |  |  |  | 6,168 |  |  |  | 18,930 |
Total operating expense |  |  | 37,210 |  |  |  | 21,804 |  |  |  | 59,014 |
Segment income/(loss) from operations |  |  | 254 |  |  |  | 1,570 |  |  |  | 1,824 |
Less: other segment income/(expense) |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 191 |  |  |  | - |  |  |  | 191 |
Interest expense |  |  | (42 | ) |  |  | - |  |  |  | (42 | )
Other income/(expense) |  |  | 10 |  |  |  | (94 | ) |  |  | (84 | )
Income/(loss) before income tax |  | $ | 413 |  |  | $ | 1,476 |  |  | $ | 1,889 |
Income tax benefit/(provision) |  |  |  |  |  |  |  |  |  |  | (212 | )
Net income/(loss) |  |  |  |  |  |  |  |  |  | $ | 1,677 |
______________________
(1) | Other segment items primarily includes third-party telecommunication charges, cost of product revenue, software costs, data center costs, and other overhead expenses.
Year Ended December 31, 2023 |  | Cloud |  |  | Software |  |  |  |
(In thousands) |  | Telecommunications |  |  | Solutions |  |  | Total |
|  | Segment |  |  | Segment |  |  | Consolidated |
Service revenue |  | $ | 29,668 |  |  | $ | - |  |  | $ | 29,668 |
Software solutions revenue |  |  | - |  |  |  | 18,047 |  |  |  | 18,047 |
Product revenue |  |  | 5,484 |  |  |  | - |  |  |  | 5,484 |
Consolidated revenue |  |  | 35,152 |  |  |  | 18,047 |  |  |  | 53,199 |
Less: significant and other segment expenses |  |  |  |  |  |  |  |  |  |  |  |
Employee expenses |  |  | 17,301 |  |  |  | 9,509 |  |  |  | 26,810 |
Commissions |  |  | 3,950 |  |  |  | 560 |  |  |  | 4,510 |
Contractor expense |  |  | 1,462 |  |  |  | 1,661 |  |  |  | 3,123 |
Depreciation and amortization |  |  | 1,553 |  |  |  | 2,020 |  |  |  | 3,573 |
Other segment items(1) |  |  | 12,369 |  |  |  | 4,503 |  |  |  | 16,872 |
Total operating expense |  |  | 36,635 |  |  |  | 18,253 |  |  |  | 54,888 |
Segment income/(loss) from operations |  |  | (1,483 | ) |  |  | (206 | ) |  |  | (1,689 | )
Less: other segment income/(expense) |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 2 |  |  |  | - |  |  |  | 2 |
Interest expense |  |  | (115 | ) |  |  | - |  |  |  | (115 | )
Gain on sale of property and equipment |  |  | 1,459 |  |  |  | - |  |  |  | 1,459 |
Other income/(expense) |  |  | 13 |  |  |  | 66 |  |  |  | 79 |
Income/(loss) before income tax |  | $ | (124 | ) |  | $ | (140 | ) |  | $ | (264 | )
Income tax benefit/(provision) |  |  |  |  |  |  |  |  |  |  | (98 | )
Net income/(loss) |  |  |  |  |  |  |  |  |  | $ | (362 | )
______________________
(1) | Other segment items primarily includes third-party telecommunication charges, cost of product revenue, software costs, data center costs, and other overhead expenses.
The Company operates in two geographic areas, the United States and international. Revenue by geography is based on the location of the customer from which the revenue is earned. Revenue by geographic location is as follows (in thousands):
|  | Year Ended |
|  | 2024 |  |  | 2023 |
United States |  | $ | 57,318 |  |  | $ | 50,662 |
International |  |  | 3,520 |  |  |  | 2,537 |
Total revenue |  | $ | 60,838 |  |  | $ | 53,199 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration