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