Quarterly report [Sections 13 or 15(d)]

SEGMENT DISCLOSURES

v3.25.1
SEGMENT DISCLOSURES
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT DISCLOSURES SEGMENT DISCLOSURES
The Company has one reportable operating segment, IoT services. This segment sells IoT services that are grouped into two primary categories: IoT Connectivity services and IoT Solutions services (collectively, the “Services”) as well as products including IoT Connectivity (consisting of SIM cards) and IoT devices (within a comprehensive IoT solution) together referred to as “Products”.

The Company’s Chief Operating Decision Maker (“CODM”) is its President and Chief Executive Officer. The CODM uses Net Income, as reported on the Condensed Consolidated Statements of Operations and Comprehensive Loss, for the purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company derives approximately 86% and 84% of its revenues from the United States, and no other country comprises more than 10% of the remainder of the Company’s revenues for the three months ended March 31, 2025 and 2024, respectively. No single customer of the Company generated 10% or more of the Company’s total net sales for the three months ended March 31, 2025 and 2024, respectively. The measure of segment assets is reported on the Company’s Condensed Consolidated Balance Sheets as total consolidated assets. The segment’s accounting policies are the same as the accounting policies for the Company, as described in Part II, Item 8, Note 2 — Summary of Significant Accounting Policies of the Company’s Annual Report on Form 10-K.
The following table sets forth the operating financial results of the Company’s singular operating segment that are regularly reviewed by the Company’s CODM for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,
(in thousands) 2025 2024
Services revenue $ 55,431  $ 59,640 
Products revenue 16,711  16,335 
Total revenue $ 72,142  $ 75,975 
Less: expenses
Cost of revenue, Services, excluding depreciation and amortization $ 23,326  $ 23,946 
Cost of revenue, Products, excluding depreciation and amortization 9,696  10,267 
Salaries and benefits 18,502  24,590 
Depreciation and amortization 13,911  13,606 
Interest expense 12,977  12,940 
Professional services 2,689  2,602 
Channel partner commissions 2,042  967 
License, memberships and subscriptions 1,961  2,055 
Facilities and office 1,845  2,365 
Income tax expense (benefit) 1,109  (420)
Network services 1,072  398 
Travel and entertainment 576  636 
Other 276  392 
Bad debt 237  163 
Marketing, advertising and promotions 146  332 
Sales and use taxes 115  — 
Interest income (144) (300)
Foreign exchange (1,482) 1,344 
Change in fair value of warrant liabilities to affiliates (1,804) (2,321)
Segment net loss $ (14,908) $ (17,587)
Reconciliation of profit or loss:
Adjustments and reconciling items —  — 
Consolidated net loss $ (14,908) $ (17,587)