| 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 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.
|