XML 36 R24.htm IDEA: XBRL DOCUMENT v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting  
Segment Reporting

17. Segment Reporting

 

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 tax 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 income tax 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 three and six months ended June 30, 2025 and 2024 are as follows (in thousands):

 

Three Months Ended June 30, 2025

 

Cloud

 

 

Software

 

 

 

 

(In thousands)

 

Telecommunications

 

 

Solutions

 

 

Total

 

 

 

Segment

 

 

Segment

 

 

Consolidated

 

Service revenue

 

$8,374

 

 

$-

 

 

$8,374

 

Software solutions revenue

 

 

-

 

 

 

6,975

 

 

 

6,975

 

Product revenue

 

 

1,203

 

 

 

-

 

 

 

1,203

 

Consolidated revenue

 

 

9,577

 

 

 

6,975

 

 

 

16,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: significant and other segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Employee expenses

 

 

3,931

 

 

 

3,214

 

 

 

7,145

 

Commissions

 

 

1,416

 

 

 

317

 

 

 

1,733

 

Contractor expense

 

 

471

 

 

 

554

 

 

 

1,025

 

Depreciation and amortization

 

 

349

 

 

 

509

 

 

 

858

 

Other segment items (1)

 

 

3,230

 

 

 

1,458

 

 

 

4,688

 

Total operating expense

 

 

9,397

 

 

 

6,052

 

 

 

15,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income/(loss) from operations

 

 

180

 

 

 

923

 

 

 

1,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: other segment income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

126

 

 

 

-

 

 

 

126

 

Interest expense

 

 

(6)

 

 

-

 

 

 

(6)

Other income/(expense)

 

 

3

 

 

 

54

 

 

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income tax

 

$303

 

 

$977

 

 

$1,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(provision)

 

 

 

 

 

 

 

 

 

 

(48)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

 

 

 

 

 

 

 

 

$1,232

 

 

———————

(1)

Other segment items primarily includes third-party telecommunication charges, cost of product revenue, software costs, data center costs, and other overhead expenses.

Three Months Ended June 30, 2024

 

Cloud

 

 

Software

 

 

 

 

(In thousands)

 

Telecommunications

 

 

Solutions

 

 

Total

 

 

 

Segment

 

 

Segment

 

 

Consolidated

 

Service revenue

 

$8,067

 

 

$-

 

 

$8,067

 

Software solutions revenue

 

 

-

 

 

 

5,325

 

 

 

5,325

 

Product revenue

 

 

1,293

 

 

 

-

 

 

 

1,293

 

Consolidated revenue

 

 

9,360

 

 

 

5,325

 

 

 

14,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: significant and other segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Employee expenses

 

 

4,070

 

 

 

2,440

 

 

 

6,510

 

Commissions

 

 

1,237

 

 

 

191

 

 

 

1,428

 

Contractor expense

 

 

500

 

 

 

396

 

 

 

896

 

Depreciation and amortization

 

 

354

 

 

 

482

 

 

 

836

 

Other segment items (1)

 

 

3,079

 

 

 

1,356

 

 

 

4,435

 

Total operating expense

 

 

9,240

 

 

 

4,865

 

 

 

14,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income/(loss) from operations

 

 

120

 

 

 

460

 

 

 

580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: other segment income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

53

 

 

 

-

 

 

 

53

 

Interest expense

 

 

(11)

 

 

-

 

 

 

(11)

Other income/(expense)

 

 

3

 

 

 

(10)

 

 

(7)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income tax

 

$165

 

 

$450

 

 

$615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(provision)

 

 

 

 

 

 

 

 

 

 

(27)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

 

 

 

 

 

 

 

 

$588

 

 

———————

(1)

Other segment items primarily includes third-party telecommunication charges, cost of product revenue, software costs, data center costs, and other overhead expenses.

Six Months Ended June 30, 2025

 

Cloud

 

 

Software

 

 

 

 

(In thousands)

 

Telecommunications

 

 

Solutions

 

 

Total

 

 

 

Segment

 

 

Segment

 

 

Consolidated

 

Service revenue

 

$16,556

 

 

$-

 

 

$16,556

 

Software solutions revenue

 

 

-

 

 

 

13,843

 

 

 

13,843

 

Product revenue

 

 

2,210

 

 

 

-

 

 

 

2,210

 

Consolidated revenue

 

 

18,766

 

 

 

13,843

 

 

 

32,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: significant and other segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Employee expenses

 

 

7,857

 

 

 

6,459

 

 

 

14,316

 

Commissions

 

 

2,758

 

 

 

689

 

 

 

3,447

 

Contractor expense

 

 

916

 

 

 

939

 

 

 

1,855

 

Depreciation and amortization

 

 

653

 

 

 

974

 

 

 

1,627

 

Other segment items (1)

 

 

6,221

 

 

 

2,890

 

 

 

9,111

 

Total operating expense

 

 

18,405

 

 

 

11,951

 

 

 

30,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income/(loss) from operations

 

 

361

 

 

 

1,892

 

 

 

2,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: other segment income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

210

 

 

 

-

 

 

 

210

 

Interest expense

 

 

(15)

 

 

-

 

 

 

(15)

Other income/(expense)

 

 

9

 

 

 

38

 

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income tax

 

$565

 

 

$1,930

 

 

$2,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(provision)

 

 

 

 

 

 

 

 

 

 

(92)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

 

 

 

 

 

 

 

 

$2,403

 

———————

(1)

Other segment items primarily includes third-party telecommunication charges, cost of product revenue, software costs, data center costs, and other overhead expenses.

Six Months Ended June 30, 2024

 

Cloud

 

 

Software

 

 

 

 

(In thousands)

 

Telecommunications

 

 

Solutions

 

 

Total

 

 

 

Segment

 

 

Segment

 

 

Consolidated

 

Service revenue

 

$15,912

 

 

$-

 

 

$15,912

 

Software solutions revenue

 

 

-

 

 

 

10,471

 

 

 

10,471

 

Product revenue

 

 

2,588

 

 

 

-

 

 

 

2,588

 

Consolidated revenue

 

 

18,500

 

 

 

10,471

 

 

 

28,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: significant and other segment expenses

 

 

 

 

 

 

 

 

 

 

 

 

Employee expenses

 

 

8,220

 

 

 

4,929

 

 

 

13,149

 

Commissions

 

 

2,418

 

 

 

387

 

 

 

2,805

 

Contractor expense

 

 

919

 

 

 

794

 

 

 

1,713

 

Depreciation and amortization

 

 

711

 

 

 

965

 

 

 

1,676

 

Other segment items (1)

 

 

6,034

 

 

 

2,531

 

 

 

8,565

 

Total operating expense

 

 

18,302

 

 

 

9,606

 

 

 

27,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income/(loss) from operations

 

 

198

 

 

 

865

 

 

 

1,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: other segment income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

58

 

 

 

-

 

 

 

58

 

Interest expense

 

 

(24)

 

 

-

 

 

 

(24)

Other income/(expense)

 

 

6

 

 

 

(27)

 

 

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income tax

 

$238

 

 

$838

 

 

$1,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit/(provision)

 

 

 

 

 

 

 

 

 

 

(54)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

 

 

 

 

 

 

 

 

$1,022

 

———————

(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):

 

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

United States

$15,040$13,780$30,394$27,211

International

1,5129052,2151,760

Total revenue

$16,552$14,685$32,609$28,971