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Segment Reporting | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting | Note 10 - Segment Reporting The Company currently operates in two segments: (1) “Managed Services”, which represents the business surrounding managed services for video collaboration and network applications; and (2) “Collaboration Products” which represents the business surrounding our Mezzanine™ product offerings. Certain information concerning the Company’s segments for the three and nine months ended September 30, 2023 and 2022 is presented in the following tables (in thousands):
| Three Months Ended September 30, 2023
| Managed Services |  | Collaboration Products |  | Corporate |  | Total
Revenue | $ | 603 |  |  | $ | 269 |  |  | $ | — |  |  | $ | 872 |
Cost of revenues | 398 |  |  | 250 |  |  | — |  |  | 648 |
Gross profit | $ | 205 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 224 |
Gross profit % | 34 | % |  | 7 | % |  |  |  | 26 | %
Allocated operating expenses | $ | — |  |  | $ | 151 |  |  | $ | — |  |  | $ | 151 |
Unallocated operating expenses | — |  |  | — |  |  | 998 |  |  | 998 |
Total operating expenses | $ | — |  |  | $ | 151 |  |  | $ | 998 |  |  | $ | 1,149 |
Income (loss) from operations | $ | 205 |  |  | $ | (132) |  |  | $ | (998) |  |  | $ | (925) |
Interest and other (income) expense, net | (35) |  |  | 5 |  |  | — |  |  | (30) |
Net income (loss) before tax | 240 |  |  | (137) |  |  | (998) |  |  | (895) |
Income tax expense | — |  |  | — |  |  | — |  |  | — |
Net income (loss) | $ | 240 |  |  | $ | (137) |  |  | $ | (998) |  |  | $ | (895) |
| Three Months Ended September 30, 2022
| Managed Services |  | Collaboration Products |  | Corporate |  | Total
Revenue | $ | 797 |  |  | $ | 388 |  |  | $ | — |  |  | $ | 1,185 |
Cost of revenues | 552 |  |  | 289 |  |  | — |  |  | 841 |
Gross profit | $ | 245 |  |  | $ | 99 |  |  | $ | — |  |  | $ | 344 |
Gross profit % | 31 | % |  | 26 | % |  |  |  | 29 | %
Allocated operating expenses | $ | — |  |  | $ | 6,425 |  |  | $ | — |  |  | $ | 6,425 |
Unallocated operating expenses | — |  |  | — |  |  | 1,079 |  |  | 1,079 |
Total operating expenses | $ | — |  |  | $ | 6,425 |  |  | $ | 1,079 |  |  | $ | 7,504 |
Income (loss) from operations | $ | 245 |  |  | $ | (6,326) |  |  | $ | (1,079) |  |  | $ | (7,160) |
Interest and other expense (income), net | 1 |  |  | (6) |  |  | — |  |  | (5) |
Income (loss) before income taxes | 244 |  |  | (6,320) |  |  | (1,079) |  |  | (7,155) |
Income tax benefit | — |  |  | (3) |  |  | — |  |  | (3) |
Net income (loss) | $ | 244 |  |  | $ | (6,317) |  |  | $ | (1,079) |  |  | $ | (7,152) |
| Nine Months Ended September 30, 2023
| Managed Services |  | Collaboration Products |  | Corporate |  | Total
Revenue | $ | 1,933 |  |  | $ | 933 |  |  | $ | — |  |  | $ | 2,866 |
Cost of revenues | 1,288 |  |  | 956 |  |  | — |  |  | 2,244 |
Gross profit (loss) | $ | 645 |  |  | $ | (23) |  |  | $ | — |  |  | $ | 622 |
Gross profit (loss)% | 33 | % |  | (2) | % |  |  |  | 22 | %
Allocated operating expenses | $ | 3 |  |  | $ | 61 |  |  | $ | — |  |  | $ | 64 |
Unallocated operating expenses | — |  |  | — |  |  | 3,777 |  |  | 3,777 |
Total operating expenses | $ | 3 |  |  | $ | 61 |  |  | $ | 3,777 |  |  | $ | 3,841 |
Income (loss) from operations | $ | 642 |  |  | $ | (84) |  |  | $ | (3,777) |  |  | $ | (3,219) |
Interest and other income, net | (69) |  |  | (25) |  |  | — |  |  | (94) |
Net income (loss) before tax | 711 |  |  | (59) |  |  | (3,777) |  |  | (3,125) |
Income tax expense | 7 |  |  | 31 |  |  | — |  |  | 38 |
Net income (loss) | $ | 704 |  |  | $ | (90) |  |  | $ | (3,777) |  |  | $ | (3,163) |
| Nine Months Ended September 30, 2022
| Managed Services |  | Collaboration Products |  | Corporate |  | Total
Revenue | $ | 2,573 |  |  | $ | 1,477 |  |  | $ | — |  |  | $ | 4,050 |
Cost of revenues | 1,722 |  |  | 1,078 |  |  | — |  |  | 2,800 |
Gross profit | $ | 851 |  |  | $ | 399 |  |  | $ | — |  |  | $ | 1,250 |
Gross profit % | 33 | % |  | 27 | % |  |  |  | 31 | %
Allocated operating expenses | $ | 57 |  |  | $ | 17,954 |  |  | $ | — |  |  | $ | 18,011 |
Unallocated operating expenses | — |  |  | — |  |  | 3,954 |  |  | 3,954 |
Total operating expenses | $ | 57 |  |  | $ | 17,954 |  |  | $ | 3,954 |  |  | $ | 21,965 |
Income (loss) from operations | $ | 794 |  |  | $ | (17,555) |  |  | $ | (3,954) |  |  | $ | (20,715) |
Interest and other expense (income), net | 7 |  |  | (6) |  |  | — |  |  | 1 |
Net income (loss) before tax | 787 |  |  | (17,549) |  |  | (3,954) |  |  | (20,716) |
Income tax expense | 8 |  |  | — |  |  | — |  |  | 8 |
Net income (loss) | $ | 779 |  |  | $ | (17,549) |  |  | $ | (3,954) |  |  | $ | (20,724) |
Unallocated operating expenses in Corporate include costs for the three and nine months ended September 30, 2023 and 2022 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. For the three months ended September 30, 2023, 11% of our revenue was attributable to the United Kingdom. For the three months ended September 30, 2022, 10% of our revenue was attributable to Singapore. For the nine months ended September 30, 2023 and 2022, there was no material revenue attributable to any individual foreign country. Revenue by geographic area is allocated as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Domestic | $ | 356 |  |  | $ | 575 |  |  | $ | 1,356 |  |  | $ | 2,120 |
Foreign | 516 |  |  | 610 |  |  | 1,510 |  |  | 1,930 |
| $ | 872 |  |  | $ | 1,185 |  |  | $ | 2,866 |  |  | $ | 4,050 |
Disaggregated information for the Company’s revenue has been recognized in the accompanying Condensed Consolidated Statements of Operations and is presented below according to contract type (in thousands):
| Three Months Ended September 30,
| 2023 |  | % of Revenue |  | 2022 |  | % of Revenue
Revenue: Managed Services |  |  |  |  |  |  |
Video collaboration services | $ | 38 |  |  | 4 | % |  | $ | 69 |  |  | 6 | %
Network services | 557 |  |  | 64 | % |  | 716 |  |  | 60 | %
Professional and other services | 8 |  |  | 1 | % |  | 12 |  |  | 1 | %
Total Managed Services revenue | $ | 603 |  |  | 69 | % |  | $ | 797 |  |  | 67 | %
Revenue: Collaboration Products |  |  |  |  |  |  |
Visual collaboration product offerings | $ | 268 |  |  | 31 | % |  | $ | 385 |  |  | 33 | %
Professional services | 1 |  |  | — | % |  | — |  |  | — | %
Licensing | — |  |  | — | % |  | 3 |  |  | — | %
Total Collaboration Products revenue | 269 |  |  | 31 | % |  | 388 |  |  | 33 | %
Total revenue | $ | 872 |  |  | 100 | % |  | $ | 1,185 |  |  | 100 | %
| Nine Months Ended September 30,
| 2023 |  | % of Revenue |  | 2022 |  | % of Revenue
Revenue: Managed Services |  |  |  |  |  |  |
Video collaboration services | $ | 148 |  |  | 5 | % |  | $ | 264 |  |  | 7 | %
Network services | 1,758 |  |  | 61 | % |  | 2,260 |  |  | 56 | %
Professional and other services | 27 |  |  | 1 | % |  | 49 |  |  | 1 | %
Total Managed Services revenue | $ | 1,933 |  |  | 67 | % |  | $ | 2,573 |  |  | 64 | %
Revenue: Collaboration Products |  |  |  |  |  |  |
Visual collaboration product offerings | $ | 932 |  |  | 33 | % |  | $ | 1,467 |  |  | 36 | %
Professional services | 1 |  |  | — | % |  | — |  |  | — | %
Licensing | — |  |  | — | % |  | 10 |  |  | — | %
Total Collaboration Products revenue | 933 |  |  | 33 | % |  | 1,477 |  |  | 36 | %
Total revenue | $ | 2,866 |  |  | 100 | % |  | $ | 4,050 |  |  | 100 | %
The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition and results of operations. Concentration of revenues was as follows:
|  |  | Three Months Ended September 30,
|  |  | 2023 |  | 2022
| Segment |  | % of Revenue |  | % of Revenue
Customer A | Managed Services |  | 60 | % |  | 53 | %
|  |  | Nine Months Ended September 30,
|  |  | 2023 |  | 2022
| Segment |  | % of Revenue |  | % of Revenue
Customer A | Managed Services |  | 56 | % |  | 48 | %
Concentration of accounts receivable was as follows:
|  |  | As of September 30, 2023
|  |  | 2023 |  | 2022
| Segment |  | % of Accounts Receivable |  | % of Accounts Receivable
Customer A | Managed Services |  | — | % |  | 52 | %
Customer B | Collaboration Products |  | 38 | % |  | — | %
Customer C | Collaboration Products |  | — | % |  | 12 | %
Customer D | Collaboration Products |  | 12 | % |  | — | %

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- 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/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 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -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 5: 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 6: 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 7: 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 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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
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