Quarterly report [Sections 13 or 15(d)]

SEGMENT DISCLOSURES

v3.25.2
SEGMENT DISCLOSURES
 6 Months Ended
Jun. 30, 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 derived approximately 84% of its revenues from the United States for each of the three months ended June 30, 2025 and 2024, and approximately 85% and 84% of its revenues from the United States for the six months ended June 30, 2025 and 2024, respectively. No single customer of the Company generated 10% or more of the Company’s total net
sales for the three and six months ended June 30, 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 and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2025 2024 2025 2024
Services revenue $ 56,348  $ 57,318  $ 111,779  $ 116,958 
Products revenue 14,902  10,550  31,613  26,885 
Total revenue $ 71,250  $ 67,868  $ 143,392  $ 143,843 
Less: expenses
Cost of revenue, Services, excluding depreciation and amortization $ 22,395  $ 22,919  $ 45,721  $ 46,865 
Cost of revenue, Products, excluding depreciation and amortization 9,515  6,326  19,211  16,593 
Salaries and benefits 20,276  23,384  38,778  47,974 
Depreciation and amortization 13,576  14,423  27,487  28,029 
Goodwill impairment —  65,864  —  65,864 
Interest expense 13,239  13,025  26,216  25,965 
Channel partner commissions 4,226  1,710  6,268  2,677 
Network services 2,443  431  3,514  829 
Facilities and office 2,254  2,229  4,099  4,594 
Professional services 2,065  2,854  4,754  5,456 
License, memberships & subscriptions 2,012  2,868  3,973  4,923 
Other selling, general, and administrative expenses (1)
1,146  628  2,220  1,759 
Interest income (166) (375) (310) (675)
Change in fair value of warrant liabilities to affiliates (192) (4,365) (1,996) (6,686)
Foreign exchange (3,524) 858  (5,006) 2,202 
Loss on sale of assets 1,115  —  1,115  — 
Income tax expense (benefit) 1,486  (1,654) 2,595  (2,074)
Other (2)
(3,738) 376  (3,461) 768 
Segment net loss $ (16,878) $ (83,633) $ (31,786) $ (101,220)
Reconciliation of profit or loss:
Adjustments and reconciling items —  —  —  — 
Consolidated net loss $ (16,878) $ (83,633) $ (31,786) $ (101,220)

(1) Certain expense line items which the Company deemed immaterial, both individually and in the aggregate, primarily comprised of travel and expense, sales and use tax, and bad debt expense, previously presented separately in the Company’s segment disclosure footnote included in its Annual Report on Form 10-K have been combined into a single line item in the current period’s segment disclosure.
(2) The “other” (income) expense included in segment net loss primarily relates to a tax credit recognized for the three and six months ended June 30, 2025, and otherwise includes immaterial items for all other periods presented.