Quarterly report [Sections 13 or 15(d)]

SEGMENT DISCLOSURES

v3.25.3
SEGMENT DISCLOSURES
 9 Months Ended
Sep. 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 (Loss), 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 September 30, 2025 and 2024, and approximately 85% and 84% of its revenues from the United States for the nine months ended September 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 nine months ended September 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 nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2025 2024 2025 2024
Services revenue $ 57,068  $ 58,204  $ 168,847  $ 175,162 
Products revenue 11,624  10,716  43,237  37,601 
Total revenue $ 68,692  $ 68,920  $ 212,084  $ 212,763 
Less: expenses
Cost of revenue, Services, excluding depreciation and amortization $ 22,601  $ 22,951  $ 68,322  $ 69,816 
Cost of revenue, Products, excluding depreciation and amortization 8,142  7,768  27,353  24,361 
Salaries and benefits 17,991  21,721  56,769  69,695 
Depreciation and amortization 13,700  14,214  41,187  42,243 
Goodwill impairment —  —  —  65,864 
Interest expense 13,541  13,271  39,757  39,236 
Professional services 2,930  1,869  7,684  7,325 
Facilities and office 2,320  2,145  6,419  6,739 
License, Memberships & Subscriptions 1,815  1,921  5,789  6,844 
Channel partner commissions 1,524  1,181  7,793  3,858 
Network services 1,170  617  4,685  1,446 
Selling, general, and administrative expenses (1)
594  1,104  2,813  2,863 
Foreign exchange 194  (1,003) (4,812) 1,199 
Change in fair value of warrant liabilities to affiliates 72  337  (1,924) (6,349)
Loss on sale of assets —  —  1,115  — 
Interest income (159) (212) (469) (887)
Income tax benefit (4,589) (412) (1,994) (2,486)
Other (2)
(447) 856  (3,910) 1,624 
Segment net loss $ (12,707) $ (19,408) $ (44,493) $ (120,628)
Reconciliation of profit or loss:
Adjustments and reconciling items —  —  —  — 
Consolidated net loss $ (12,707) $ (19,408) $ (44,493) $ (120,628)

(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) Included in "Other" for the nine months ended September 30, 2025 is $3.4 million related to a tax credit recovery, as described in Note 5 — Condensed Consolidated Financial Statement Details.