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Note 11 - Segment, Customer Concentration and Geographical Information | 9 Months Ended
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Sep. 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 September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Revenues |  | $ | 4,347 |  |  | $ | 4,648 |  |  | $ | 13,389 |  |  | $ | 15,585 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of revenues¹ |  |  | 1,136 |  |  |  | 1,318 |  |  |  | 3,565 |  |  |  | 4,889 |
Adjusted selling and marketing² |  |  | 1,268 |  |  |  | 1,725 |  |  |  | 4,079 |  |  |  | 6,060 |
Adjusted research and development² |  |  | 2,449 |  |  |  | 3,086 |  |  |  | 7,640 |  |  |  | 10,180 |
Adjusted general and administrative² |  |  | 1,988 |  |  |  | 2,004 |  |  |  | 6,035 |  |  |  | 6,197 |
Adjusted operating loss |  |  | (2,494 | ) |  |  | (3,485 | ) |  |  | (7,930 | ) |  |  | (11,741 | )
Other segment expenses³ |  |  | — |  |  |  | (348 | ) |  |  | (79 | ) |  |  | (798 | )
Stock-based compensation expense |  |  | (644 | ) |  |  | (1,249 | ) |  |  | (2,828 | ) |  |  | (3,520 | )
Depreciation |  |  | (71 | ) |  |  | (91 | ) |  |  | (217 | ) |  |  | (285 | )
Amortization |  |  | (1,276 | ) |  |  | (1,334 | ) |  |  | (3,828 | ) |  |  | (4,601 | )
Goodwill impairment |  |  | — |  |  |  | — |  |  |  | (11,052 | ) |  |  | (23,989 | )
Proceeds from sale of ViewSpot, net |  |  | — |  |  |  | — |  |  |  | 1,287 |  |  |  | — |
Total other (expenses) income, net |  |  | (50 | ) |  |  | 138 |  |  |  | (126 | ) |  |  | 667 |
Loss before provision for income taxes |  |  | (4,535 | ) |  |  | (6,369 | ) |  |  | (24,773 | ) |  |  | (44,267 | )
Provision for income tax expense |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 39 |
Net loss |  | $ | (4,535 | ) |  | $ | (6,369 | ) |  | $ | (24,774 | ) |  | $ | (44,306 | )
Deemed dividend |  |  | (635 | ) |  |  | — |  |  |  | (635 | ) |  |  | — |
Net loss attributable to common stockholders |  | $ | (5,170 | ) |  | $ | (6,369 | ) |  | $ | (25,409 | ) |  | $ | (44,306 | )
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 September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Family Safety |  | $ | 3,529 |  |  | $ | 3,939 |  |  | $ | 10,944 |  |  | $ | 12,623 |
CommSuite |  |  | 792 |  |  |  | 644 |  |  |  | 2,303 |  |  |  | 1,840 |
ViewSpot |  |  | 26 |  |  |  | 65 |  |  |  | 142 |  |  |  | 1,122 |
Total Wireless revenues |  | $ | 4,347 |  |  | $ | 4,648 |  |  | $ | 13,389 |  |  | $ | 15,585 |
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, 2025 and 2024. During the three months ended September 30, 2025, three customers made up 61%, 21% and 18% of revenues. For the three months ended September 30, 2024, three customers made up 63% , 21% and 14% of revenues. During the nine months ended September 30, 2025, three customers made up 61%, 20% and 17% of revenues. For the nine months ended September 30, 2024, three customers made up 58%, 20% and 12% of revenues. As of September 30, 2025, three customers accounted for 41% , 33% and 11% of accounts receivable. As of September 30, 2024, two customers accounted for 53% and 25% of accounts receivable. Geographical Information During the three and nine months ended September 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 September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Americas |  | $ | 4,331 |  |  | $ | 4,628 |  |  | $ | 13,354 |  |  | $ | 15,047 |
EMEA |  |  | 16 |  |  |  | 20 |  |  |  | 35 |  |  |  | 538 |
Total revenues |  | $ | 4,347 |  |  | $ | 4,648 |  |  | $ | 13,389 |  |  | $ | 15,585 |
The Company does not separately allocate specific assets to these geographic locations.

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- Definition The entire disclosure for reporting segments including data and tables. 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