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Note 8 - Segment Reporting | 6 Months Ended
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Jun. 30, 2024
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | Note 8 - 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 six months ended June 30, 2024 and 2023 is presented in the following tables (in thousands):
|  | Three Months Ended June 30, 2024 |
|  | Managed Services |  |  | Collaboration Products |  |  | Corporate |  |  | Total |
Revenue |  | $ | 508 |  |  | $ | 103 |  |  | $ | — |  |  | $ | 611 |
Cost of revenues |  |  | 331 |  |  |  | 160 |  |  |  | — |  |  |  | 491 |
Gross profit |  | $ | 177 |  |  | $ | (57 | ) |  | $ | — |  |  | $ | 120 |
Gross profit % |  |  | 35 | % |  |  | (55 | )% |  |  |  |  |  |  | 20 | %
Allocated operating expenses |  | $ | 31 |  |  | $ | 122 |  |  | $ | — |  |  | $ | 153 |
Unallocated operating expenses |  |  | — |  |  |  | — |  |  |  | 985 |  |  |  | 985 |
Total operating expenses |  | $ | 31 |  |  | $ | 122 |  |  | $ | 985 |  |  | $ | 1,138 |
Operating income (loss) |  | $ | 146 |  |  | $ | (179 | ) |  | $ | (985 | ) |  | $ | (1,018 | )
Interest income, net |  |  | (35 | ) |  |  | (9 | ) |  |  | — |  |  |  | (44 | )
Income (loss) before income taxes |  |  | 181 |  |  |  | (170 | ) |  |  | (985 | ) |  |  | (974 | )
Income tax expense |  |  | 6 |  |  |  | 3 |  |  |  | — |  |  |  | 9 |
Net income (loss) |  | $ | 175 |  |  | $ | (173 | ) |  | $ | (985 | ) |  | $ | (983 | )
|  | Three Months Ended June 30, 2023 |
|  | Managed Services |  |  | Collaboration Products |  |  | Corporate |  |  | Total |
Revenue |  | $ | 640 |  |  | $ | 316 |  |  | $ | — |  |  | $ | 956 |
Cost of revenues |  |  | 430 |  |  |  | 404 |  |  |  | — |  |  |  | 834 |
Gross profit |  | $ | 210 |  |  | $ | (88 | ) |  | $ | — |  |  | $ | 122 |
Gross profit % |  |  | 33 | % |  |  | (28 | )% |  |  |  |  |  |  | 13 | %
Allocated operating expenses |  | $ | 3 |  |  | $ | (376 | ) |  | $ | — |  |  | $ | (373 | )
Unallocated operating expenses |  |  | — |  |  |  | — |  |  | $ | 1,586 |  |  |  | 1,586 |
Total operating expenses |  | $ | 3 |  |  | $ | (376 | ) |  | $ | 1,586 |  |  | $ | 1,213 |
Operating income (loss) |  | $ | 207 |  |  | $ | 288 |  |  | $ | (1,586 | ) |  | $ | (1,091 | )
Interest income, net |  |  | (37 | ) |  |  | (5 | ) |  |  | — |  |  |  | (42 | )
Income (loss) before income taxes |  |  | 244 |  |  |  | 293 |  |  |  | (1,586 | ) |  |  | (1,049 | )
Income tax expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net income (loss) |  | $ | 244 |  |  | $ | 293 |  |  | $ | (1,586 | ) |  | $ | (1,049 | )
|  | Six Months Ended June 30, 2024 |
|  | Managed Services |  |  | Collaboration Products |  |  | Corporate |  |  | Total |
Revenue |  | $ | 1,030 |  |  | $ | 207 |  |  | $ | — |  |  | $ | 1,237 |
Cost of revenues |  |  | 700 |  |  |  | 420 |  |  |  | — |  |  |  | 1,120 |
Gross profit |  | $ | 330 |  |  | $ | (213 | ) |  | $ | — |  |  | $ | 117 |
Gross profit % |  |  | 32 | % |  |  | (103 | )% |  |  |  |  |  |  | 9 | %
Allocated operating expenses |  | $ | 62 |  |  | $ | 243 |  |  | $ | — |  |  | $ | 305 |
Unallocated operating expenses |  |  | — |  |  |  | — |  |  |  | 2,014 |  |  |  | 2,014 |
Total operating expenses |  | $ | 62 |  |  | $ | 243 |  |  | $ | 2,014 |  |  | $ | 2,319 |
Operating income (loss) |  | $ | 268 |  |  | $ | (456 | ) |  | $ | (2,014 | ) |  | $ | (2,202 | )
Interest income, net |  |  | (67 | ) |  |  | (25 | ) |  |  | — |  |  |  | (92 | )
Income (loss) before income taxes |  |  | 335 |  |  |  | (431 | ) |  |  | (2,014 | ) |  |  | (2,110 | )
Income tax expense |  |  | 6 |  |  |  | 3 |  |  |  | — |  |  |  | 9 |
Net income (loss) |  | $ | 329 |  |  | $ | (434 | ) |  | $ | (2,014 | ) |  | $ | (2,119 | )
|  | Six Months Ended June 30, 2023 |
|  | Managed Services |  |  | Collaboration Products |  |  | Corporate |  |  | Total |
Revenue |  | $ | 1,330 |  |  | $ | 664 |  |  | $ | — |  |  | $ | 1,994 |
Cost of revenues |  |  | 890 |  |  |  | 706 |  |  |  | — |  |  |  | 1,596 |
Gross profit |  | $ | 440 |  |  | $ | (42 | ) |  | $ | — |  |  | $ | 398 |
Gross profit % |  |  | 33 | % |  |  | (6 | )% |  |  |  |  |  |  | 20 | %
Allocated operating expenses |  | $ | 3 |  |  | $ | (90 | ) |  | $ | — |  |  | $ | (87 | )
Unallocated operating expenses |  |  | — |  |  |  | — |  |  |  | 2,779 |  |  |  | 2,779 |
Total operating expenses |  | $ | 3 |  |  | $ | (90 | ) |  | $ | 2,779 |  |  | $ | 2,692 |
Operating income (loss) |  | $ | 437 |  |  | $ | 48 |  |  | $ | (2,779 | ) |  | $ | (2,294 | )
Interest income, net |  |  | (34 | ) |  |  | (30 | ) |  |  | — |  |  |  | (64 | )
Income (loss) before income taxes |  |  | 471 |  |  |  | 78 |  |  |  | (2,779 | ) |  |  | (2,230 | )
Income tax expense |  |  | 7 |  |  |  | 31 |  |  |  | — |  |  |  | 38 |
Net income (loss) |  | $ | 464 |  |  | $ | 47 |  |  | $ | (2,779 | ) |  | $ | (2,268 | )
Unallocated operating expenses in Corporate include costs for the three and six months ended June 30, 2024 and 2023 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 and six months ended June 30, 2024 and 2023, there was no material revenue attributable to any individual foreign country. Revenue by geographic area is allocated as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Domestic |  | $ | 209 |  |  | $ | 437 |  |  | $ | 470 |  |  | $ | 1,000 |
Foreign |  | $ | 402 |  |  | $ | 519 |  |  |  | 767 |  |  |  | 994 |
|  | $ | 611 |  |  | $ | 956 |  |  | $ | 1,237 |  |  | $ | 1,994 |
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 June 30, |
|  | 2024 |  |  | % of Revenue |  |  | 2023 |  |  | % of Revenue |
Revenue: Managed Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Video collaboration services |  | $ | 21 |  |  |  | 3 | % |  | $ | 46 |  |  |  | 5 | %
Network services |  |  | 484 |  |  |  | 79 | % |  |  | 583 |  |  |  | 61 | %
Professional and other services |  |  | 3 |  |  |  | 0 | % |  |  | 11 |  |  |  | 1 | %
Total Managed Services revenue |  | $ | 508 |  |  |  | 83 | % |  | $ | 640 |  |  |  | 67 | %
Revenue: Collaboration Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Visual collaboration product offerings |  | $ | 103 |  |  |  | 17 | % |  | $ | 316 |  |  |  | 33 | %
Total revenue |  | $ | 611 |  |  |  | 100 | % |  | $ | 956 |  |  |  | 100 | %
|  | Six Months Ended June 30, |
|  | 2024 |  |  | % of Revenue |  |  | 2023 |  |  | % of Revenue |
Revenue: Managed Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Video collaboration services |  | $ | 35 |  |  |  | 3 | % |  | $ | 110 |  |  |  | 6 | %
Network services |  |  | 987 |  |  |  | 80 | % |  |  | 1,201 |  |  |  | 60 | %
Professional and other services |  |  | 8 |  |  |  | 1 | % |  |  | 19 |  |  |  | 1 | %
Total Managed Services revenue |  | $ | 1,030 |  |  |  | 83 | % |  | $ | 1,330 |  |  |  | 67 | %
Revenue: Collaboration Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Visual collaboration product offerings |  | $ | 207 |  |  |  | 17 | % |  | $ | 664 |  |  |  | 33 | %
Total revenue |  | $ | 1,237 |  |  |  | 100 | % |  | $ | 1,994 |  |  |  | 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 consolidated revenues was as follows:
|  |  | Three Months Ended June 30, |
|  |  | 2024 |  |  | 2023 |
| Segment |  | % of Revenue |  |  | % of Revenue |
Customer A | Managed Services |  |  | 81 | % |  |  | 56 | %
|  |  | Six Months Ended June 30, |
|  |  | 2024 |  |  | 2023 |
| Segment |  | % of Revenue |  |  | % of Revenue |
Customer A | Managed Services |  |  | 81 | % |  |  | 54 | %
Concentration of accounts receivable was as follows:
|  |  | As of June 30, 2024 |
|  |  | 2024 |  |  | 2023 |
|  |  | % of Accounts |  |  | % of Accounts |
| Segment |  | Receivable |  |  | Receivable |
Customer A | Managed Services |  |  | — | % |  |  | 58 | %
Customer B | Collaboration Products |  |  | 40 | % |  |  | — | %
Customer C | Collaboration Products |  |  | — | % |  |  | 14 | %
Customer D | Managed Services |  |  | 12 | % |  |  | 2 | %
Customer E | Collaboration Products |  |  | 12 | % |  |  | — | %
Customer F | Managed Services |  |  | — | % |  |  | 11 | %

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