Crexendo (CXDO) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Entity Registrant Name	Crexendo, Inc.
Entity Central Index Key	0001075736
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		26,034,604
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-32277
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	87-0591719
Entity Address Address Line 1	1615 South 52nd Street
Entity Address City Or Town	Tempe
Entity Address State Or Province	AZ
Entity Address Postal Zip Code	85281
City Area Code	602
Local Phone Number	714-8500
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 7,737	$ 5,475
Trade receivables, net of allowance of $110 and $131, respectively	3,873	3,297
Inventories	472	679
Equipment financing receivables, net of allowance of $52 and $0, respectively	812	635
Contract costs	1,265	841
Prepaid expenses	991	431
Other current assets	468	674
Total current assets	15,618	12,032
Contract assets, net of allowance of $34 and $0, respectively	299	318
Long-term equipment financing receivables, net of allowance of $109 and $0, respectively	1,670	1,255
Property and equipment, net	756	3,315
Operating lease right-of-use assets	1,170	1,081
Intangible assets, net	24,348	26,725
Goodwill	9,454	9,454
Contract costs, net of current portion	1,874	1,304
Other long-term assets	146	150
Total Assets	55,335	55,634
Current liabilities:
Accounts payable	874	1,206
Accrued expenses	5,053	4,890
Finance leases	75	95
Notes payable	452	420
Operating lease liabilities	604	363
Income tax payable	67	79
Contract liabilities	2,971	3,338
Total current liabilities	10,096	10,391
Contract liabilities, net of current portion	205	247
Finance leases, net of current portion	42	98
Notes payable, net of current portion	708	2,605
Line of credit	0	82
Operating lease liabilities, net of current portion	597	752
Total liabilities	11,648	14,175
Stockholders' equity:
Preferred stock, par value $0.001 per share - authorized 5,000,000 shares; none issued	0	0
Common stock, par value $0.001 per share - authorized 50,000,000 shares, 26,030,104 shares issued and outstanding as of September 30, 2023 and 25,670,773 shares issued and outstanding as of December 31, 2022	26	26
Additional paid-in capital	132,003	129,192
Accumulated deficit	(88,528)	(87,946)
Accumulated other comprehensive income	186	187
Total stockholders' equity	43,687	41,459
Total Liabilities and Stockholders' Equity	$ 55,335	$ 55,634

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Allowance For Doubtful Accounts - Trade Receivables	$ 110,000	$ 131,000
Allowance For Equipment Financing Receivable	52,000	0
Allowance For Contract Assets	34,000	0
Allowance For Long Term Equipment Financing Receivable	$ 109,000	$ 0
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Authorized	50,000,000	50,000,000
Common Stock, Issued	26,030,104	25,670,773
Common Stock, Outstanding	26,030,104	25,670,773

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Operations (Unaudited)
Service revenue	$ 7,517	$ 4,473	$ 21,983	$ 13,427
Software solutions revenue	4,691	3,875	12,729	10,741
Product revenue	1,666	760	4,323	1,944
Total revenue	13,874	9,108	39,035	26,112
Operating expenses:
Cost of service revenue	3,173	1,375	9,312	4,249
Cost of software solutions revenue	1,327	1,141	3,805	3,933
Cost of product revenue	923	453	2,643	1,142
Selling and marketing	3,502	2,732	10,924	8,087
General and administrative	3,309	2,800	10,473	8,806
Research and development	1,276	1,151	3,605	2,684
Total operating expenses	13,510	9,652	40,762	28,901
Income/(loss) from operations	364	(544)	(1,727)	(2,789)
Other income/(expense):
Interest expense	(36)	(19)	(111)	(57)
Gain on sale of property and equipment	1,459	0	1,459	0
Other income/(expense), net	(50)	(165)	37	(281)
Total other income/(expense), net	1,373	(184)	1,385	(338)
Income/(loss) before income tax	1,737	(728)	(342)	(3,127)
Income tax benefit/(provision)	(33)	32	(81)	315
Net income/(loss)	$ 1,704	$ (696)	$ (423)	$ (2,812)
Earnings per common share:
Basic	$ 0.07	$ (0.03)	$ (0.02)	$ (0.13)
Diluted	$ 0.06	$ (0.03)	$ (0.02)	$ (0.13)
Weighted-average common shares outstanding:
Basic	25,995,507	22,620,703	25,901,686	22,439,575
Diluted	27,682,764	22,620,703	25,901,686	22,439,575

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income/(loss)	$ 1,704	$ (696)	$ (423)	$ (2,812)
Other comprehensive income, net of tax
Foreign currency translation gain/(loss)	23	164	(1)	246
Total other comprehensive income/(loss)	23	164	(1)	246
Comprehensive income/(loss)	$ 1,727	$ (532)	$ (424)	$ (2,566)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive Income	Accumulated Deficit
Balance, shares at Dec. 31, 2021		22,054,239
Balance, amount at Dec. 31, 2021	$ 65,933	$ 22	$ 118,432	$ 12	$ (52,533)
Share-based compensation	1,053	$ 0	1,053	0	0
Vesting of restricted stock units, shares		103,657
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	(9)	$ 0	0	(9)	0
Issuance of common stock for exercise of stock options, shares		237,581
Issuance of common stock for exercise of stock options, amount	278	$ 0	278	0	0
Taxes paid on the net settlement of stock options	(117)	0	(117)	0	0
Dividends declared	(111)	0	(111)	0	0
Net loss	(1,220)	$ 0	0	0	(1,220)
Balance, shares at Mar. 31, 2022		22,395,477
Balance, amount at Mar. 31, 2022	65,807	$ 22	119,535	3	(53,753)
Balance, shares at Dec. 31, 2021		22,054,239
Balance, amount at Dec. 31, 2021	65,933	$ 22	118,432	12	(52,533)
Foreign currency translation adjustment, net of tax	246
Net loss	(2,812)
Balance, shares at Sep. 30, 2022		22,686,911
Balance, amount at Sep. 30, 2022	66,234	$ 23	121,298	258	(55,345)
Balance, shares at Mar. 31, 2022		22,395,477
Balance, amount at Mar. 31, 2022	65,807	$ 22	119,535	3	(53,753)
Share-based compensation	858	$ 0	858	0	0
Vesting of restricted stock units, shares		8,090
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	91	$ 0	0	91	0
Issuance of common stock for exercise of stock options, shares		133,868
Issuance of common stock for exercise of stock options, amount	137	$ 1	136	0	0
Taxes paid on the net settlement of stock options	(1)	0	(1)	0	0
Dividends declared	(112)	0	(112)	0	0
Net loss	(896)	$ 0	0	0	(896)
Balance, shares at Jun. 30, 2022		22,537,435
Balance, amount at Jun. 30, 2022	65,884	$ 23	120,416	94	(54,649)
Share-based compensation	851	$ 0	851	0	0
Vesting of restricted stock units, shares		6,727
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	164	$ 0	0	164	0
Issuance of common stock for exercise of stock options, shares		142,749
Issuance of common stock for exercise of stock options, amount	161	$ 0	161	0	0
Taxes paid on the net settlement of stock options	(17)	0	(17)	0	0
Dividends declared	(113)	0	(113)	0	0
Net loss	(696)	$ 0	0	0	(696)
Balance, shares at Sep. 30, 2022		22,686,911
Balance, amount at Sep. 30, 2022	66,234	$ 23	121,298	258	(55,345)
Balance, shares at Dec. 31, 2022		25,670,773
Balance, amount at Dec. 31, 2022	41,459	$ 26	129,192	187	(87,946)
Share-based compensation	1,414	$ 0	1,414	0	0
Vesting of restricted stock units, shares		266,278
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	(21)	$ 0	0	(21)	0
Issuance of common stock for exercise of stock options, shares		35,553
Issuance of common stock for exercise of stock options, amount	40	$ 0	40	0	0
Taxes paid on the net settlement of stock options	(257)	0	(257)	0	0
Net loss	(1,582)	0	0	0	(1,582)
Cumulative effect of accounting change	(159)	$ 0	0	0	(159)
Balance, shares at Mar. 31, 2023		25,972,604
Balance, amount at Mar. 31, 2023	40,894	$ 26	130,389	166	(89,687)
Balance, shares at Dec. 31, 2022		25,670,773
Balance, amount at Dec. 31, 2022	41,459	$ 26	129,192	187	(87,946)
Foreign currency translation adjustment, net of tax	(1)
Net loss	(423)
Balance, shares at Sep. 30, 2023		26,030,104
Balance, amount at Sep. 30, 2023	43,687	$ 26	132,003	186	(88,528)
Balance, shares at Mar. 31, 2023		25,972,604
Balance, amount at Mar. 31, 2023	40,894	$ 26	130,389	166	(89,687)
Share-based compensation	855	0	855	0	0
Foreign currency translation adjustment, net of tax	(3)	$ 0	0	(3)	0
Issuance of common stock for exercise of stock options, shares		200
Issuance of common stock for exercise of stock options, amount	0	$ 0	0	0	0
Taxes paid on the net settlement of stock options	(7)	0	(7)	0	0
Dividends declared	(130)	0	(130)	0	0
Net loss	(545)	$ 0		0	(545)
Balance, shares at Jun. 30, 2023		25,972,804
Balance, amount at Jun. 30, 2023	41,064	$ 26	131,107	163	(90,232)
Share-based compensation	843	0	843	0	0
Foreign currency translation adjustment, net of tax	23	$ 0	0	23	0
Issuance of common stock for exercise of stock options, shares		57,300
Issuance of common stock for exercise of stock options, amount	53	$ 0	53	0	0
Net loss	1,704	$ 0		0	1,704
Balance, shares at Sep. 30, 2023		26,030,104
Balance, amount at Sep. 30, 2023	$ 43,687	$ 26	$ 132,003	$ 186	$ (88,528)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (423)	$ (2,812)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	2,695	1,862
Share-based compensation	3,112	2,762
Non-cash operating lease amortization	(3)	(12)
Gain on sale of property and equipment	(1,459)	0
Allowance for credit losses	44	0
Changes in assets and liabilities:
Trade receivables	(584)	(1,851)
Contract assets	2	(4)
Equipment financing receivables	(770)	(425)
Inventories	207	53
Contract costs	(994)	(524)
Prepaid expenses	(560)	(638)
Income tax receivable	0	(375)
Other assets	210	65
Accounts payable and accrued expenses	(169)	(742)
Income tax payable	(12)	(24)
Contract liabilities	(409)	0
Net cash provided by/(used in) operating activities	887	(2,665)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(92)	(192)
Proceeds from the sale of property and equipment	3,792	0
Net cash provided by/(used in) investing activities	3,700	(192)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments made on finance leases	(76)	(86)
Repayments made on notes payable	(2,143)	(55)
Proceeds from notes payable	278	0
Proceeds from exercise of options	93	576
Dividend payments	(130)	(336)
Taxes paid on the net settlement of stock options and RSUs	(264)	(135)
Borrowing on a line of credit, net	(82)	0
Net cash used in financing activities	(2,324)	(36)
Effect of exchange rate changes on cash	(1)	246
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	2,262	(2,647)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	5,475	7,468
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	7,737	4,821
Cash used during the year for:
Income taxes, net	(91)	(96)
Interest expense	$ (111)	$ (57)

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Description of Business – Basis of Presentation – Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Foreign Currency Translation - Due to changes in exchange rates between reporting periods and changes in certain account balances, the foreign currency translation adjustment will change from period to period. During the three months ended September 30, 2023 and 2022, the Company recorded foreign currency translation gains of $23, and $164, respectively, and during the nine months ended September 30, 2023 and 2022, the Company recorded foreign currency gains/(losses) of ($1) and $246, respectively, on our statements of comprehensive income/(loss). Cash and Cash Equivalents – Trade Receivables and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Trade receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our trade receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment Financing Receivables and Allowance for Credit Losses – We provide an allowance for credit losses based on historical loss experience, adverse situations that may affect a client's ability to pay, current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment financing receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our equipment financing receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. Contract Assets and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Contract assets are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our contract assets credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Contract Costs – Inventory – Property and Equipment – Building 39 years Land Not depreciated Computer and office equipment 2 to 5 years Computer software 3 years Internal-use software 3 years Furniture and fixtures 4 years Leasehold improvements 2 to 5 years Vehicles 5 years Maintenance and repairs are expensed as incurred. The cost and accumulated depreciation of property and equipment sold or otherwise retired are removed from the accounts and any related gain or loss on disposition is reflected in the statement of operations. Property and equipment, held for sale Asset Acquisitions – Business Acquisitions - Goodwill – The process of estimating the fair value of goodwill is subjective and requires the Company to make estimates that may significantly impact the outcome of the analysis. A qualitative assessment considers events and circumstances such as macroeconomic conditions, industry and market conditions, cost factors and overall financial performance, as well as company specifications. If after performing this assessment, the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then the Company must perform the quantitative test. Under the quantitative test, a goodwill impairment is identified by comparing the fair value of the reporting unit to the carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and an impairment charge is recognized in an amount equal to the excess, not to exceed the carrying amount of goodwill. Impairment assessment inherently involves management judgments regarding a number of assumptions. The reporting unit fair value also depends on the future strength of the U.S. economy. New and developing competition as well as technological change could also adversely affect future fair value estimates. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of the Company’s recorded goodwill, differences in assumptions could have a material effect on the estimated fair values. For further information, see Note 10 (Intangible Assets and Goodwill). Intangible Assets – Contract Liabilities – Use of Estimates – C ontingencies – Service, Software Solutions and Product Revenue Recognition – Cost of Service Revenue – Cost of Software Solutions Revenue – Cost of Product Revenue – Product Warranty – Contingent Consideration – Research and Development – Fair Value Measurements – Level 1 Level 2 · Quoted prices for similar assets or liabilities in active markets; · Quoted prices for identical or similar assets in non-active markets; · Inputs other than quoted prices that are observable for the asset or liability; and · Inputs that are derived principally from or corroborated by other observable market data. Level 3 Lease Obligations – ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. A lease that transfers substantially all of the benefits and risks incidental to ownership of property are accounted for as finance leases. At the inception of a finance lease, an asset and finance lease obligation is recorded at an amount equal to the lesser of the present value of the minimum lease payments and the property’s fair market value. Finance lease obligations are classified as either current or long-term based on the due dates of future minimum lease payments, net of interest. Notes Payable – Income Taxes – Interest and penalties associated with income taxes are classified as income tax expense in the consolidated statements of operations. Stock-Based Compensation – Operating Segments – Significant Customers – Recently Adopted Accounting Pronouncements – In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, Recently Issued Accounting Pronouncements –

Changes in Accounting Principle

Changes in Accounting Principles	9 Months Ended
	Sep. 30, 2023
Changes in Accounting Principles
Changes in Accounting Principles	2. Changes in Accounting Principles On January 1, 2023, the Company adopted ASC 326 Financial Instruments — Credit Losses Condensed Consolidated Balance Sheet December 31, 2022 New ASC 326 January 1, 2023 As Previously Standard As (In thousands) Reported Adjustment Adjusted Assets Trade receivables, net of allowance $ 3,297 $ (18 ) $ 3,279 Contract assets, net of allowance 318 (29 ) 289 Equipment financing receivables, net of allowance 635 (37 ) 598 Total current assets 12,032 (84 ) 11,948 Long-term equipment financing receivables, net of allowance 1,255 (75 ) 1,180 Total Assets $ 55,634 $ (159 ) $ 55,475 Liabilities and Stockholders' Equity Accumulated deficit (87,946 ) (159 ) (88,105 ) Total stockholders' equity 41,459 (159 ) 41,300 Total Liabilities and Stockholders' Equity $ 55,634 $ (159 ) $ 55,475

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
Revenue
Revenue	3. Revenue Revenue is measured based on a consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product, service, or software solution to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, see Note 18 (Segment Reporting). Cloud Telecommunications Services Segment Products and services may be sold separately or in bundled packages. The typical length of a contract for service is thirty-six to sixty months. Customers are billed for these services on a monthly basis. For bundled packages, the Company accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate products and services in a bundle based on their relative stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the desktop devices and telecommunication services. For items that are not sold separately (e.g. additional features) the Company estimates stand-alone selling prices using the adjusted market assessment approach. When we provide a free trial period, we do not begin to recognize recurring revenue until the trial period has ended and the customer has been billed for the services. Telecommunications Equipment – Equipment Financing Revenue – Cloud Telecommunications Services – Fees, Commissions, and Other, Recognized over Time – · Contracted activation and flash fees – The Company generally allocates a portion of the activation fees to the desktop devices, which is recognized at the time of the installation or customer acceptance, and a portion to the service, which is recognized over the contract term using the straight-line method. · Non-contracted carrier cost recovery fee – This fee recovers the various costs and expenses that the Company incurs in connection with complying with legal, regulatory, and other requirements, including without limitation federal, state, and local reporting and filing requirements. This fee is assessed as a set percentage of our monthly billing and is recognized monthly. · Non-contracted administrative fees – Administrative fees are recognized as revenue on a monthly basis. One-Time Fees, Commissions, and Other – · Contracted professional service revenue – Professional service revenue includes professional installation services, custom integration, and other professional services. The Company typically bills and collects professional service revenue upon entering into a contract with a customer. Professional service revenue is recognized as revenue when the performance obligations are completed. · Non-contracted cancellation fees – These cancellation fees relate to remaining contractual term buyout payments in connection with early cancellation and are billed and recognized as revenue upon receipt. · Other non-contracted fees – These fees include disconnect fees, shipping fees, restocking fees, and porting fees. Other non-contracted fees are recognized as revenue upon receipt of payment. Software Solutions Segment The Software Solutions segment derives revenues from three primary sources: software licenses, software maintenance support and professional services. Software and services may be sold separately or in bundled packages. Generally, contracts with customers contain multiple performance obligations, consisting of software and services. For bundled packages, the Company accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate products and services in a bundle based on their relative stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the software licenses and professional services. For items that are not sold separately (e.g. additional features) the Company estimates stand-alone selling prices using the adjusted market assessment approach. When we provide a free trial period, we do not begin to recognize recurring revenue until the trial period has ended and the customer has been billed for the services. Software Licenses - · SNAPsolution® · SNAPaccel – a Subscription Maintenance and Support - Professional Services and Other - Disaggregation of Revenue In the following table, revenue is disaggregated by primary major product line, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments. Three Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,666 $ - $ 1,666 Equipment financing revenue 133 - 133 Telecommunications services 6,299 - 6,299 Fees, commissions, and other, recognized over time 479 - 479 One time fees, commissions and other 606 - 606 Software licenses - 971 971 Software license and maintenance and support subscriptions - 3,490 3,490 Professional services and other - 230 230 $ 9,183 $ 4,691 $ 13,874 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,272 $ 1,201 $ 3,473 Products, services, and fees transferred over time 6,911 3,490 10,401 $ 9,183 $ 4,691 $ 13,874 Three Months Ended September 30, 2022 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 760 $ - $ 760 Equipment financing revenue 87 - 87 Telecommunications services 3,831 - 3,831 Fees, commissions, and other, recognized over time 423 - 423 One time fees, commissions and other 132 - 132 Software licenses - 985 985 Software license and maintenance and support subscriptions - 2,759 2,759 Professional services and other - 131 131 $ 5,233 $ 3,875 $ 9,108 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 892 $ 1,116 $ 2,008 Products, services, and fees transferred over time 4,341 2,759 7,100 $ 5,233 $ 3,875 $ 9,108 Nine Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 4,323 $ - $ 4,323 Equipment financing revenue 356 - 356 Telecommunications services 18,587 - 18,587 Fees, commissions, and other, recognized over time 1,392 - 1,392 One time fees, commissions and other 1,648 - 1,648 Software licenses - 2,662 2,662 Software license and maintenance and support subscriptions - 9,506 9,506 Professional services and other - 561 561 $ 26,306 $ 12,729 $ 39,035 Timing of revenue recognition Products and fees recognized at a point in time $ 5,971 $ 3,223 $ 9,194 Services and fees transferred over time 20,335 9,506 29,841 $ 26,306 $ 12,729 $ 39,035 Nine Months Ended September 30, 2022 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,944 $ - $ 1,944 Equipment financing revenue 238 - 238 Telecommunications services 11,392 - 11,392 Fees, commissions, and other, recognized over time 1,269 - 1,269 One time fees, commissions and other 528 - 528 Software licenses - 2,394 2,394 Software license and maintenance and support subscriptions - 7,950 7,950 Professional services and other - 397 397 $ 15,371 $ 10,741 $ 26,112 Timing of revenue recognition Products and fees recognized at a point in time $ 2,472 $ 2,791 $ 5,263 Services and fees transferred over time 12,899 7,950 20,849 $ 15,371 $ 10,741 $ 26,112 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: September 30, December 31, (In thousands) 2023 2022 Receivables, which are included in trade receivables, net of allowance for doubtful accounts $ 3,873 $ 3,297 Contract assets, net of allowance for credit losses 299 318 Contract liabilities 3,176 3,585 Significant changes in the contract assets and the contract liabilities balances during the period are as follows: For the Nine Months Ended For the Year Ended (In thousands) September 30, 2023 December 31, 2022 Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ - $ (3,256 ) $ - $ (3,046 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,847 - 3,603 Transferred to receivables from contract assets recognized at the beginning of the period (186 ) - (166 ) - Increase due to additional unamortized discounts 167 - 223 - Contract assets allowance for credit losses Our contract assets balance consists of the Company’s rights to consideration for work completed but not billed as of the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract assets were as follows (in thousands): September 30, December 31, 2023 2022 Gross contract assets $ 333 $ 318 Less: allowance for credit losses (34 ) - Contract assets, net of allowance for credit losses $ 299 $ 318 The allowance for credit losses was as follows (in thousands): Balance at December 31, 2022 $ - Cumulative effect of accounting change 29 Provision 2 Write-offs - Recoveries and other - Balance at March 31, 2023 $ 31 Provision (8 ) Write-offs - Recoveries and other - Balance at June 30, 2023 $ 23 Provision 11 Write-offs - Recoveries and other - Balance at September 30, 2023 $ 34 The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Based on that assessment, the allowance for credit losses as a percent of gross contract assets increased to 10.3% at September 30, 2023 from 0% at December 31, 2022. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands): 2023 2024 2025 2026 2027 and thereafter Total Desktop devices $ 271 $ 271 Telecommunications services $ 5,715 16,248 11,157 6,174 3,549 $ 42,843 Software Solutions $ 5,368 7,968 4,461 2,128 394 $ 20,319 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2023
Earnings per common share:
Earnings Per Common Share	4. Earnings Per Common Share Basic net income/(loss) per common share is computed by dividing the net income/(loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed giving effect to all dilutive common stock equivalents, consisting of common stock options. Diluted net loss per common share for the three months ended September 30, 2022 and nine months ended September 30, 2023 and 2022 is the same as basic net loss per common share because the common share equivalents were anti-dilutive due to the net loss. The following table sets forth the computation of basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income/(loss) (in thousands) (A) $ 1,704 $ (696 ) $ (423 ) $ (2,812 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 25,995,507 22,620,703 25,901,686 22,439,575 Dilutive effect of stock-based awards 1,687,258 - - - Diluted weighted-average outstanding shares of common stock (C) 27,682,765 22,620,703 25,901,686 22,439,575 Earnings per common share: Basic (A/B) $ 0.07 $ (0.03 ) $ (0.02 ) $ (0.13 ) Diluted (A/C) $ 0.06 $ (0.03 ) $ (0.02 ) $ (0.13 ) For the three and nine months ended September 30, 2023 and 2022, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net income per share because including them would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 4,708,364 3,140,362 4,582,503 2,471,886

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2023
Acquisitions
Acquisitions	5. Acquisitions Allegiant Networks, LLC Business Acquisition On October 17, 2022, the Company entered into an Acquisition Agreement with Allegiant Networks, LLC, a Kansas limited liability company (the “Allegiant Networks”) to acquire from Seller one hundred percent (100%) of the issued and outstanding shares of Allegiant Networks in exchange for (i) a cash payment at closing in the amount of $2.0 million, (ii) a three-year promissory note by the Company in favor of Seller in the amount of $1.1 million, and (iii) 2,461,538 shares of the Company’s common stock, par value $0.001 per share. Shares issued in the transaction were fully restricted for a period of 6 months from the date of issuance and subject to lock-up thereafter. Pursuant to the lock-up agreement, after 6 months, 25% of the shares were permitted to be sold, with an additional 25% permitted to be sold every 6-month period thereafter. On November 1, 2022, the Company closed the transaction, and the Company issued the seller cash consideration of $2.0 million, a three-year promissory note for $1.1 million, and 2,461,538 shares of the Company’s common stock, par value $0.001 per share valued at $2.57 per share, for an aggregate purchase price of approximately $9.4 million. (in thousands) December 31, 2022 Consideration: Cash $ 2,000 Common stock 6,326 Note Payable 1,100 Total consideration $ 9,426 The acquisition was accounted for under the acquisition method of accounting and the operating results of Allegiant Networks have been included in our consolidated financial statements as of the closing date of the acquisition. Under the acquisition method of accounting, the aggregate amount of consideration paid by us was allocated to Allegiant Networks’ net tangible assets and intangible assets based on their estimated fair values as of the acquisition closing date. The excess of the purchase price over the value of the net tangible assets and intangible assets was recorded to goodwill. The factors contributing to the recognition of goodwill were based upon our conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill, which is non-deductible for tax purposes, is primarily attributable to the customer relationships of the acquired business and expected synergies at the time of the acquisition. We retained an independent third-party valuation firm to assist management in our valuation of the acquired assets and liabilities. The following table presents the final allocation of the purchase price for Allegiant Networks as of December 31, 2022 (in thousands): Final Purchase Price Allocation Total purchase price $ 9,426 Cash 586 Accounts receivables 759 Prepaid expenses 48 Inventory 484 Other assets 12 Property, plant & equipment 319 Right to use assets 861 Intangible assets acquired (FV) 7,000 Total identifiable assets 10,069 Accounts payable 1,162 Accrued expenses 714 Contract liability 917 Operating lease liability 877 Direct financing liability 142 Buyers note 1,100 Deferred tax liability 1,922 Total liabilities assumed 6,834 Total goodwill $ 5,091 The fair values of the customer relationships was established based upon the income approach. The income approach relies on an estimation of the present value of the future monetary benefits expected to flow to the owner of an asset during its remaining economic life. This approach requires a projection of the cash flow that the asset is expected to generate in the future. The projected cash flow is discounted to its present value using a rate of return, or discount rate that accounts for the time value of money and the degree of risk inherent in the asset. The income approach may take the form of a “relief from royalty” methodology, a cost savings methodology, a “with and without” methodology, or excess earnings methodology, depending on the specific asset under consideration. The customer relationships was valued using the multi-period excess earnings method. Inherent in the multi-period excess earnings method is the recognition that, in most cases, all of the assets of the business, both tangible and intangible, contribute to the generation of the cash flow of the business and the net cash flows attributable to the subject asset must recognize the support of the other assets which contribute to the realization of the cash flows. This future cash flow was then discounted using an estimated required rate of return for the asset to determine the present value of the future cash flows attributable to the asset. The key assumptions used in valuing the customer relationships acquired are as follows: weighted average cost of capital of 16.0%, tax rate of 25.0%, and estimated economic life of 15 years. The following unaudited pro forma information presents our consolidated results of operations as if Allegiant Networks had been included in our consolidated results since January 1, 2022: For the Nine Months Ended September 30, ( Unaudited, in thousands) 2023 2022 Revenues $ 39,035 $ 34,360 Net loss (423 ) (2,580 ) Earnings per share $ (0.02 ) $ (0.10 ) The unaudited pro forma financial information is presented for informational purposes only and may not necessarily reflect the Company’s future results of operations or what the results of operations would have been had the Company owned and operated Allegiant Networks as of January 1, 2022. Acquisition related expenses incurred by us in connection with the Allegiant Networks acquisition totaled $0 for the three months ended September 30, 2023 and 2022, and $1 and $0 for the nine months ended September 30, 2023 and 2022, respectively, and are recorded within general and administrative expenses in our consolidated statements of operations.

Trade Receivables and Allowance

Trade Receivables and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2023
Trade Receivables and Allowance for Credit Losses
Trade Receivables and Allowance for Credit Losses	6. Trade Receivables and Allowance for Credit Losses Our trade receivables balance consists of traditional trade receivables. Trade receivables were as follows (in thousands): September 30, December 31, 2023 2022 Gross trade receivables $ 3,983 $ 3,428 Less: allowance for credit losses (110 ) (131 ) Trade receivables, net $ 3,873 $ 3,297 Current trade receivables, net $ 3,873 $ 3,297 Long-term trade receivables, net - - Trade receivables, net $ 3,873 $ 3,297 The allowance for credit losses was as follows (in thousands): Balance at December 31, 2022 $ 131 Cumulative effect of accounting change 18 Provision 45 Write-offs (7 ) Recoveries and other - Balance at March 31, 2023 $ 187 Provision 68 Write-offs (111 ) Recoveries and other - Balance at June 30, 2023 $ 144 Provision (30 ) Write-offs (4 ) Recoveries and other - Balance at September 30, 2023 $ 110 The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Based on that assessment, the allowance for credit losses as a percent of gross accounts receivable decreased to 2.8% at September 30, 2023 from 3.8% at December 31, 2022.

Equipment Financing Receivables

Equipment Financing Receivables and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Equipment Financing Receivables and Allowance for Credit Losses	7. Equipment Financing Receivables and Allowance for Credit Losses Our equipment financing receivables balance consists of sales-type leases arising from lease financing of cloud telecommunication equipment (IP or cloud telephone desktop devices) bundled and sold with our cloud telecommunications services. The majority of our leases that qualify as sales-type leases are non-cancelable and include cancellation penalties approximately equal to the full value of the lease receivables. Revenue from sales-type leases is recognized upon installation and the interest portion is deferred and recognized as earned. These receivables are typically collateralized by a security interest in the underlying equipment. Equipment financing receivables were as follows (in thousands): September 30, December 31, 2023 2022 Gross equipment financing receivables $ 3,746 $ 2,666 Less: unearned income (1,103 ) (776 ) Less: allowance for credit losses (161 ) - Equipment financing receivables, net $ 2,482 $ 1,890 Current equipment financing receivables, net $ 812 $ 635 Long-term equipment financing receivables, net 1,670 1,255 Equipment financing receivables, net $ 2,482 $ 1,890 A summary of our gross equipment financing receivables’ future contractual maturities, is as follows (in thousands): Year ending December 31, 2023 remaining $ 358 2024 1,287 2025 965 2026 626 2027 410 2028 and thereafter 100 Total $ 3,746 Allowance for Credit Losses The allowance for credit losses was as follows (in thousands): Balance at December 31, 2022 $ - Cumulative effect of accounting change 112 Provision 19 Write-offs (4 ) Recoveries and other - Balance at March 31, 2023 $ 127 Provision 23 Write-offs (5 ) Recoveries and other - Balance at June 30, 2023 $ 145 Provision 23 Write-offs (7 ) Recoveries and other - Balance at September 30, 2023 $ 161 Aging of Receivables The aging of gross equipment financing receivables was as follows (in thousands): September 30, December 31, 2023 2022 Past due amounts 0 - 90 days $ 2,480 $ 1,888 Past due amounts > 90 days 2 2 Total $ 2,482 $ 1,890 Our equipment financing receivable portfolio is primarily in the United States. Consistent with our adoption of ASC 326, effective January 1, 2023 (see Note 1 – Recently Adopted Accounting Pronouncements), the allowance for credit losses is determined principally based on an assessment of origination year and past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, the allowance for credit losses increased to 6.1% of gross equipment financing receivables (net of unearned income) at September 30, 2023 from 0% at December 31, 2022. The allowance for credit losses represents an estimate of the losses expected to be incurred from the Company's equipment financing receivable portfolio. The projected loss rates are primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current and future economic conditions as well as delinquency trends, resolution rates, and the aging of receivables. The allowance for credit losses for equipment finance receivables is inherently more difficult to estimate than the allowance for trade receivables because the underlying lease portfolio has an average maturity, at any time, of approximately three to five years and contains unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for credit losses. We believe our estimates, including any qualitative adjustments, are reasonable and have considered all reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. The identification of account-specific exposure is not a significant factor in establishing the allowance for credit losses for equipment finance receivables. We continue to monitor developments in future economic conditions and trends, and as a result, our reserve may need to be updated in future periods. The table below shows gross equipment financing receivables and current period gross write offs by year of origination (in thousands): September 30, 2023 December 31, 2022 2023 2022 2021 2020 2019 Prior Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 1,261 849 247 200 85 1 $ 2,643 $ 1,890 Current period gross write offs $ 7 5 1 2 1 - $ 16 $ 20

Prepaid Expenses

Prepaid Expenses	9 Months Ended
	Sep. 30, 2023
Prepaid Expenses
Prepaid Expenses	8. Prepaid Expenses Prepaid expenses consisted of the following (in thousands): September 30, December 31, 2023 2022 Prepaid corporate insurance $ 127 $ 117 Prepaid software services and support 368 122 Prepaid employee insurance premiums 179 30 Prepaid Nasdaq listing fee 15 15 User group meeting 174 - Other prepaid expenses 128 147 Total prepaid expenses $ 991 $ 431

Property and Equipment and Prop

Property and Equipment and Property and Equipment Held for Sale	9 Months Ended
	Sep. 30, 2023
Property and Equipment and Property and Equipment Held for Sale
Property and Equipment and Property and Equipment, Held for Sale	9. Property and Equipment and Property and Equipment, Held for Sale Property and equipment consisted of the following (in thousands): September 30, December 31, 2023 2022 Building $ - $ 2,000 Land - 500 Computer and office equipment 2,735 2,726 Computer software 647 576 Internal-use software 14 14 Furniture and fixtures 74 75 Vehicles 143 130 Leasehold improvements 15 15 Less: accumulated depreciation (2,872 ) (2,721 ) Total property and equipment, net $ 756 $ 3,315 Property and equipment, held for sale In March 2023, the Company’s committed to and commenced a plan to sell our corporate headquarters land and building located in Tempe, Arizona. On May 16, 2023, the Company entered into a Purchase and Sale Agreement with Nectar Equities, LLC, an independent third-party, for the sale of our corporate headquarters land and building. The Company classified the corporate headquarters land and building as property and equipment, held for sale on the condensed consolidated balance sheet as of June 30, 2023. The sale closed on August 9, 2023, for a purchase price of $4.0 million. The proceeds from the sale were used to repay the outstanding note payable with Bank of America, N.A. of $1.8 million, closing costs and commissions of approximately $208, generating approximately $2.0 million in net proceeds from the sale. In connection with the sale of the land and building, we entered into a lease agreement to leaseback the property for an initial term of eighteen full calendar months, see Note 16 – Leases for additional details of the leaseback agreement. Depreciation and amortization expense is included in general and administrative expenses and totaled $94 and $74 for the three months ended September 30, 2023 and 2022, respectively, and $318 and $213 for the nine months ended September 30, 2023 and 2022, respectively. In connection with the sale of our corporate headquarters, accumulated amortization of $167 was removed.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2023
Intangible Assets and Goodwill
Intangible Assets And Goodwill	10. Intangible Assets and Goodwill Acquired intangible assets subject to amortization consist of the following (in thousands): September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (4,708 ) $ 21,365 $ 26,073 $ (3,052 ) $ 23,021 Developed technologies 4,900 (2,055 ) 2,845 4,900 (1,410 ) 3,490 Trademark and trade names 400 (262 ) 138 400 (186 ) 214 Total acquired intangible assets $ 31,373 $ (7,025 ) $ 24,348 $ 31,373 $ (4,648 ) $ 26,725 As of September 30, 2023, the weighted average remaining useful life for customer relationships was 13.6 years, developed technologies was 3.9 years, and trademarks and trade names was 1.9 years. Amortization expense for customer relationships intangible assets is included in sales and marketing expenses and totaled $552 and $299 for the three months ended September 30, 2023 and 2022, respectively and $1,630 and $896 for the nine months ended September 30, 2023 and 2022, respectively. Amortization expense for developed technologies intangible assets is included in cost of software solutions revenue and totaled $215 and $221 for the three months ended September 30, 2023 and 2022, respectively and $645 and $662 for the nine months ended September 30, 2023 and 2022, respectively. Amortization expense for trademark and trade name intangible assets is included in general and administrative expenses and totaled $25 and $31 for the three months ended September 30, 2023 and 2022, respectively and $102 and $91 for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, annual amortization of definite lived intangible assets, based on existing intangible assets and current useful lives, is estimated to be the following (in thousands): Year ending December 31, 2023 remaining $ 793 2024 3,028 2025 2,770 2026 2,457 2027 2,202 Thereafter 13,098 Total $ 24,348 The following table provides a summary of changes in the carrying amounts of goodwill (in thousands): Goodwill Balance at January 1, 2022 $ 36,972 Allegiant Networks business acquisition 5,091 Impairment (32,609 ) Balance at December 31, 2022 $ 9,454 Additions - Balance at September 30, 2023 $ 9,454 On December 31, 2022, the Company determined there was a triggering event, primarily caused by a sustained decrease in the Company's stock price and we retained an independent third-party valuation firm to assist management in performing the quantitative impairment tests. The results of the goodwill and intangible asset impairment tests indicated that the carrying value of goodwill exceeded the estimated fair value and no impairment was required for intangible assets. At December 31, 2022, the Company recorded an impairment of $32.6 million related to its goodwill book value for the software solutions operating segment.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2023
Accrued Expenses
Accrued Expenses	11. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, December 31, 2023 2022 Accrued wages and benefits $ 1,963 $ 2,427 Accrued accounts payable 1,261 987 Accrued sales and telecommunications taxes 1,144 846 Product warranty liability 77 55 Credit cards 278 259 Other 330 316 Total accrued expenses $ 5,053 $ 4,890 The changes in aggregate product warranty liabilities for the year ended December 31, 2022 and the nine months ended September 30, 2023 were as follows (in thousands): Warranty Liabilities Balance at January 1, 2022 $ 50 Accrual for warranties 55 Adjustments related to pre-existing warranties (26 ) Warranty settlements (24 ) Balance at December 31, 2022 55 Accrual for warranties 38 Warranty settlements (16 ) Balance at September 30, 2023 $ 77 Product warranty expense is included in cost of product revenue expense and totaled $11 and $15 for the three months ended September 30, 2023 and 2022, respectively and $38 and $43 for the nine months ended September 30, 2023 and 2022, respectively.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2023
Notes Payable
Notes Payable	12. Notes Payable Notes payable consists of a short and long-term financing arrangements: September 30, December 31, 2023 2022 Notes payable $ 1,160 $ 3,025 Less: current notes payable (452 ) (420 ) Notes payable, net of current portion $ 708 $ 2,605 On February 27, 2023, we entered into a promissory note with CrossFirst Bank in the amount of $278. The promissory note has a term of three (3) years with monthly payments of Eight Thousand Five Hundred Forty-Three and 12/100 Dollars ($8,543.12), including interest of 6.58%, beginning on March 27, 2023. Additionally, the promissory note is subject to certain financial covenants. On November 1, 2022, as part of the acquisition of Allegiant Networks, we entered into a promissory note with the seller in the amount of $1.1 million. The loan agreement has a term of three (3) years with quarterly payments of Ninety-Eight Thousand Three Hundred Eighty and 54/100 Dollars ($98,380.54), including interest at 4.00%, beginning on April 1, 2023. As part of the November 1, 2022 acquisition of Allegiant Networks, we assumed two promissory notes with CrossFirst Bank. One loan agreement for $125 has a term of three (3) years with monthly payments of Three Thousand Seven Hundred Seven and 62/100 Dollars ($3,707.62), including interest of 4.25%, beginning on October 30, 2020. On February 27, 2023, the balance of this note was paid off and added to the promissory note with CrossFirst Bank. The second loan agreement for $150 has a term of three (3) years with monthly payments of Four Thousand Four Hundred Sixty-Six and 08/100 Dollars ($4,466.08), including interest of 4.50%, beginning on September 1, 2021. On February 27, 2023, the balance of this note was paid off and added to the promissory note with CrossFirst Bank. On January 27, 2020, we entered into a Fixed Rate Term Loan Agreement with Bank of America, N.A. to finance $2.0 million to purchase our corporate office building. The Loan Agreement had a term of seven (7) years with monthly payments of Eleven Thousand Eight Hundred Forty-One and 15/100 Dollars ($11,841.15), including interest of 3.67%, beginning on March 1, 2020, secured by the office building. On August 9, 2023, the Company entered into a sale leaseback agreement and used a portion of the proceed to repay the note payable in full. As of September 30, 2023, future principal payments are scheduled as follows (in thousands): Year ending December 31, 2023 remaining $ 111 2024 457 2025 478 2026 114 2027 - 2028 and thereafter - Total $ 1,160

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 2023
Line of Credit
Line of Credit	13. Line of Credit The Company maintains a line of credit with a maximum principal amount of $700, payable upon demand. The line of credit expires on February 27, 2024. The line of credit bears interest at 0.50% over the Wall Street Journal Prime Rate. As of September 30, 2023, there was an outstanding balance of $0, and $700 remained available for borrowing. The line of credit is collateralized by all Company assets and subject to certain financial covenants.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Measurements
Fair Value Measurements	14. Fair Value Measurements We have financial instruments as of September 30, 2023 and December 31, 2022 for which the fair value is summarized below (in thousands): September 30, 2023 December 31, 2022 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 3,873 $ 3,873 $ 3,297 $ 3,297 Equipment financing receivables 2,482 2,482 1,890 1,890 Liabilities: Finance lease obligations $ 117 $ 117 $ 193 $ 193 Notes payable 1,160 1,114 3,025 2,724 We have no liabilities for which fair value is recognized in the balance sheet on a recurring basis as of September 30, 2023 and December 31, 2022.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Taxes
Income Taxes	15. Income Taxes Our effective tax rate for the three months ended September 30, 2023 and 2022 was 1.9% and (4.4%), respectively, which resulted in an income tax benefit/(provision) of $(33) and $32, respectively. Our effective tax rate for the nine months ended September 30, 2023 and 2022 was (23.7%) and (10.1%), respectively, which resulted in an income tax benefit/(provision) of $(81) and $315, respectively. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the evidence available, it is more-likely-than-not that such assets will not be realized. In making the assessment under the more-likely-than-not standard, appropriate consideration must be given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods by jurisdiction, unitary versus stand-alone state tax filings, our experience with loss carryforwards expiring unutilized, and all tax planning alternatives that may be available. As of December 31, 2022, management reviewed the weight of all the positive and negative evidence available. Management reviewed negative evidence such as three years of cumulative pretax loss in the U.S. federal tax jurisdiction, and positive evidence such as projections of future pretax income and the duration of statutory carry-forward periods. As of December 31, 2022, the Company had a cumulative pretax loss for the three-year lookback, which is considered significant objectively verifiable negative evidence. Management also evaluated projections of future pretax income and the duration of statutory carry-forward periods to determine if the net operating loss carryforwards could be utilized in whole or in part before they expire unutilized. Forecasts and projections of future income are inherently subjective and therefore generally are given less weight, based on the extent to which the assumptions can be objectively verified based on historical experience. Although historical trends utilized in our projections are objectively verifiable we assigned less weight to this positive evidence given the subjective nature of assumptions in projections. Management reviewed negative evidence related to experience of credits and loss carryforwards expiring unutilized, and determined that although negative evidence exists, it was not significant evidence, as the current loss carryforwards do not begin to expire until 2032 and therefore risk is minimal. After reviewing the weight of the positive and negative evidence, management determined that the positive evidence was not sufficient enough to overcome the negative evidence of cumulative pretax losses for the three year lookback to conclude that it is more likely than not that deferred tax assets of $3,179 are realizable. Therefore, a valuation allowance of $3,179 was recorded against our gross deferred tax asset balance as of September 30, 2023 and December 31, 2022.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases
Leases	16. Leases Lessee Accounting We determine if an agreement is a lease at inception. We lease office space, data center colocation space, other assets, and office equipment under operating leases. We lease data center equipment, including maintenance contracts and vehicles under finance leases. Operating leases are recorded as “ROU” assets and lease liabilities on the balance sheet, excluding leases that are less than 12 months. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or any restrictive covenants. Our lease terms may include options, at our sole discretion, to extend or terminate the lease. Lease expense is recognized on a straight-line basis over the lease term. We currently lease office space in Tempe, Arizona under a non-cancelable operating lease agreement that expires in 2025. On August 9, 2023, in connection with the sale of our corporate office building and land, we entered into a lease agreement to leaseback the property. The operating lease agreement has an initial term of eighteen full calendar months, with an option to terminate the lease on the last day of the twelfth full calendar month with a sixty-day notice. The operating lease agreement includes fixed fees for property tax, insurance, and common area maintenance (CAM). We account for the lease components and non-lease components such as fixed fee property tax and insurance charges as a single lease component. The CAM charges are considered a separate non-lease component of the lease agreement and are excluded from the measurement of the lease liability. We currently lease office space in Reston, Virginia under a non-cancelable operating lease agreement that expires in 2025. The operating lease contains customary escalation clauses. Rental expense for the three months ended September 30, 2023 and 2022 was approximately $13 and for the nine months ended September 30, 2023 and 2022 was $26 and $37, respectively. We leased office space in La Jolla, California under a non-cancelable operating lease agreement that expired on December 31, 2022. The operating lease contained customary escalation clauses. Rental expense for the three months ended September 30, 2023 and 2022 was approximately $0 and $90, respectively and for the nine months ended September 30, 2023 and 2022 was $0 and $269, respectively. We currently lease office space in San Diego, California under a non-cancelable operating lease agreement that expires in 2023. Rental expense for the three months ended September 30, 2023 and 2022 was approximately $21 and $0, respectively and for the nine months ended September 30, 2023 and 2022 was $63 and $0, respectively. We currently lease office space in Overland Park, Kansas under a non-cancelable operating lease agreement that expires in 2027. The operating lease contains customary escalation clauses. Rental expense for the three months ended September 30, 2023 and 2022 was approximately $55 and $0, respectively and for the nine months ended September 30, 2023 and 2022 was $144 and $0, respectively. We currently lease other assets under multiple operating leases. The leases expire on various dates through 2027 and the interest rates range from 3% to 15.74%. The expense is included in cost of product expenses and totaled approximately $23 and $21 for the three months ended September 30, 2023 and 2022, respectively and for the nine months ended September 30, 2023 and 2022 was $64 and $58, respectively. We currently lease data center colocation space in Grand Rapids, Michigan, Las Vegas, Nevada, Dallas, Texas and Lenexa, Kansas, under non-cancelable operating lease agreements that expire in 2024. Rental expense for the three months ended September 30, 2023 and 2022 was approximately $83 and $36, respectively and for the nine months ended September 30, 2023 and 2022 was $257 and $107, respectively. We have lease agreements with lease and non-lease components, and we account for the lease and non-lease components as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company leases equipment and support under finance lease agreements which extends through 2026. The Company also leases two vehicles under financing agreements that ended in 2022. The outstanding balance for finance leases was $117 and $193 as of September 30, 2023 and December 31, 2022, respectively. The Company recorded assets classified as property and equipment under finance lease obligations of $486 as of September 30, 2023 and December 31, 2022. Related accumulated depreciation totaled $319 and $190 as of September 30, 2023 and December 31, 2022, respectively. The $40 in support contracts were classified as a prepaid expense and are being amortized over the service period of three years. One support contract expired in January 2021 and the other expires in June 2024. Amortization expense is included in general and administrative expenses and totaled $1 for the three months ended September 30, 2023 and 2022, and for the nine months ended September 30, 2023 and 2022 was $4. The interest rates on the finance lease obligations range from 1.37% and 15.74% and interest expense was $1 and $2 for the three months ended September 30, 2023 and 2022, respectively and for the nine months ended September 30, 2023 and 2022 was $3 and $6, respectively. The maturity of operating leases and finance lease liabilities as of September 30, 2023, are as follows: Year ending December 31, Operating Leases Finance Leases 2023 remaining $ 201 $ 19 2024 601 77 2025 205 21 2026 179 3 2027 134 - Total minimum lease payments 1,320 120 Less: amount representing interest (78 ) (3 ) Present value of minimum lease payments $ 1,242 $ 117 Lease term and discount rate September 30, 2023 Weighted-average remaining lease term (years) Operating leases 2.7 Finance leases 1.6 Weighted-average discount rate Operating leases 4.8 % Finance leases 2.3 % Nine Months Ended September 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 470 Operating cash flows from finance leases 5 Financing cash flows from finance leases (2,143 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Commitments And Contingencies	17. Commitments and Contingencies Annual Employee Bonus Plan Accrual We utilize incentive bonuses to reward performance achievements, which provides potential annual cash bonus awards to Company employees, including Named Executive Officers (“NEOs”). Under the Bonus Plan, the Compensation Committee of the Board of Directors of the Company (the “Board”) has established a bonus pool of $800, for our NEOs and executive management team for the year ending December 31, 2023. The Board established a bonus pool of $240 for our non-executive employees, for the year ending December 31, 2023. Participants will be eligible to receive cash bonus awards based upon annual performance targets established by the Compensation Committee for the year ending December 31, 2023, relating to one or more of the following performance targets; annual revenue, Adjusted EBITDA, cash balance and our stock price measured at the end of the Company’s fiscal year. Awards will be paid on a tiered scale based upon actual performance as a percentage of the performance targets with a floor and cap. Payments for individual performance targets met or exceeded are payable, whether or not all performance targets are met, consistent with the weighted amounts for each performance target within the bonus pools. Bonus awards for NEOs and executive management will be weighted 30% on annual revenue, 30% on Adjusted EBITDA, 30% on cash balance, and 10% on the Company’s stock price. No bonus will be awarded for any performance target for which actual performance is less than 90% of target. At 90% or greater actual performance relative to the target, 50% of the weighted bonus amount apportioned for the performance target is payable. From 90% to 100% actual performance relative to the target, the remaining 50% of the weighted bonus amount is awarded pro rata with the percentage of actual performance exceeding 90% of target (i.e., each 1% excess over 90% of performance target equals 5% of the weighted bonus amount payable). If actual performance reaches 110% of performance target or greater for any individual performance target, then an additional 10% of the amount apportioned to that performance target will be payable as an additional bonus. Based on our financial performance as of September 30, 2023, management determined that the achievement of 90% of the annual revenue, Adjusted EBITDA and cash balance performance targets are probable at this time. Based on management’s estimate, the Company recorded a $488 employee bonus plan accrual, which is included in accrued expenses in the accompanying consolidated balance sheet at September 30, 2023. It is reasonably possible that one or multiple of the performance targets may be achieved at higher than 90% and additional accruals may be necessary. Legal Proceedings In the ordinary course of business, the Company may be involved in a variety of claims, lawsuits, investigations, and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters, and contractual disputes, that can arise in the normal course of the Company's operations. The Company recognizes a provision when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts the amount of the provision to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. As of September 30, 2023, the Company does not have a recorded liability for estimated losses. Legal costs are expensed as incurred.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2023
Segment Reporting
Segment Reporting	18. Segment Reporting Our chief operating decision maker (who is our Chief Executive Officer) reviews our financial information presented on an operating segment basis for purposes of allocating resources and evaluating our financial performance. Following the merger with NetSapiens, Inc., the Company reorganized into two operating segments, a software solutions operating segment and a cloud telecommunications services operating segment. The cloud telecommunications services segment generates revenue from selling cloud telecommunication services, products, and other internet services. The software solutions segment generates revenue from selling perpetual software licenses and software subscriptions, subscription maintenance and support, and professional services. The Company has two reportable operating segments, which consist of cloud telecommunications services and software solutions. Segment revenue, income/(loss) from operations, other income/(expense) and income/(loss) before income tax provision are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Cloud telecommunications services $ 9,183 $ 5,233 $ 26,306 $ 15,371 Software solutions 4,691 3,875 12,729 10,741 Consolidated revenue 13,874 9,108 39,035 26,112 Income/(loss) from operations: Cloud telecommunications services 73 (639 ) (1,312 ) (2,236 ) Software solutions 291 95 (415 ) (553 ) Total operating income/(loss) 364 (544 ) (1,727 ) (2,789 ) Other income/(expense), net: Cloud telecommunications services 1,425 (17 ) 1,360 (52 ) Software solutions (52 ) (167 ) 25 (286 ) Total other income/(expense), net 1,373 (184 ) 1,385 (338 ) Income/(loss) before income tax provision: Cloud telecommunications services 1,498 (656 ) 48 (2,288 ) Software solutions 239 (72 ) (390 ) (839 ) Income/(loss) before income tax provision $ 1,737 $ (728 ) $ (342 ) $ (3,127 ) Depreciation and amortization for the cloud telecommunications services segment was $381 and $115 for the three months ended September 30, 2023 and 2022, respectively and $1,176 and $344 for the nine months ended September 30, 2023 and 2022, respectively. Depreciation and amortization for the software solutions segment was $506 and $509 for the three months ended September 30, 2023 and 2022, respectively and $1,520 and $1,518 for the nine months ended September 30, 2023 and 2022, respectively. Interest income for the cloud telecommunications services segment was $0 for the three and nine months ended September 30, 2023 and 2022. Interest income for the software solutions segment was $0 for the three and nine months ended September 30, 2023 and 2022. Interest expense for the cloud telecommunications services segment was $36 and $19 for the three months ended September 30, 2023 and 2022, respectively and $111 and $57 for the nine months ended September 30, 2023 and 2022, respectively. Interest expense for the software solutions segment was $0 for the three and nine months ended September 30, 2023 and 2022. The Company operates in two geographic areas, the United States and international. Revenue by geography is based on the location of the customer from which the revenue is earned. Revenue by geographic location is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 12,862 $ 8,661 $ 36,984 $ 25,116 International 1,012 447 2,051 996 Total revenue $ 13,874 $ 9,108 $ 39,035 $ 26,112

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Significant Accounting Policies
Description Of Business	Description of Business –
Basis Of Presentation	Basis of Presentation – Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.
Foreign Currency Translation	Foreign Currency Translation - Due to changes in exchange rates between reporting periods and changes in certain account balances, the foreign currency translation adjustment will change from period to period. During the three months ended September 30, 2023 and 2022, the Company recorded foreign currency translation gains of $23, and $164, respectively, and during the nine months ended September 30, 2023 and 2022, the Company recorded foreign currency gains/(losses) of ($1) and $246, respectively, on our statements of comprehensive income/(loss).
Cash And Cash Equivalents	Cash and Cash Equivalents –
Trade Receivables and Allowance for Credit Losses	Trade Receivables and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Trade receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our trade receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.
Equipment Financing Receivables and Allowance for Credit Losses	Equipment Financing Receivables and Allowance for Credit Losses – We provide an allowance for credit losses based on historical loss experience, adverse situations that may affect a client's ability to pay, current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment financing receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our equipment financing receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.
Contract Assets and Allowance for Credit Losses	Contract Assets and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Contract assets are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our contract assets credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.
Contract Costs	Contract Costs –
Inventory	Inventory –
Property And Equipment	Property and Equipment – Building 39 years Land Not depreciated Computer and office equipment 2 to 5 years Computer software 3 years Internal-use software 3 years Furniture and fixtures 4 years Leasehold improvements 2 to 5 years Vehicles 5 years Maintenance and repairs are expensed as incurred. The cost and accumulated depreciation of property and equipment sold or otherwise retired are removed from the accounts and any related gain or loss on disposition is reflected in the statement of operations.
Property and equipment, held for sale	Property and equipment, held for sale
Asset Acquisitions	Asset Acquisitions –
Business Acquisition	Business Acquisitions -
Goodwill	Goodwill – The process of estimating the fair value of goodwill is subjective and requires the Company to make estimates that may significantly impact the outcome of the analysis. A qualitative assessment considers events and circumstances such as macroeconomic conditions, industry and market conditions, cost factors and overall financial performance, as well as company specifications. If after performing this assessment, the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then the Company must perform the quantitative test. Under the quantitative test, a goodwill impairment is identified by comparing the fair value of the reporting unit to the carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and an impairment charge is recognized in an amount equal to the excess, not to exceed the carrying amount of goodwill. Impairment assessment inherently involves management judgments regarding a number of assumptions. The reporting unit fair value also depends on the future strength of the U.S. economy. New and developing competition as well as technological change could also adversely affect future fair value estimates. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of the Company’s recorded goodwill, differences in assumptions could have a material effect on the estimated fair values. For further information, see Note 10 (Intangible Assets and Goodwill).
Intangible Assets	Intangible Assets –
Contract Liabilities	Contract Liabilities –
Use Of Estimates	Use of Estimates –
Contingencies	C ontingencies –
Service, Software Solutions And Product Revenue Recognition	Service, Software Solutions and Product Revenue Recognition –
Cost Of Service Revenue	Cost of Service Revenue –
Cost Of Software Solutions Revenue	Cost of Software Solutions Revenue –
Cost Of Product Revenue	Cost of Product Revenue –
Product Warranty	Product Warranty –
Contingent Consideration	Contingent Consideration –
Research And Development	Research and Development –
Fair Value Measurements	Fair Value Measurements – Level 1 Level 2 · Quoted prices for similar assets or liabilities in active markets; · Quoted prices for identical or similar assets in non-active markets; · Inputs other than quoted prices that are observable for the asset or liability; and · Inputs that are derived principally from or corroborated by other observable market data. Level 3
Lease Obligations	Lease Obligations – ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. A lease that transfers substantially all of the benefits and risks incidental to ownership of property are accounted for as finance leases. At the inception of a finance lease, an asset and finance lease obligation is recorded at an amount equal to the lesser of the present value of the minimum lease payments and the property’s fair market value. Finance lease obligations are classified as either current or long-term based on the due dates of future minimum lease payments, net of interest.
Notes Payable	Notes Payable –
Income Taxes	Income Taxes – Interest and penalties associated with income taxes are classified as income tax expense in the consolidated statements of operations.
Stock-based Compensation	Stock-Based Compensation –
Operating Segments	Operating Segments –
Significant Customers	Significant Customers –
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements – In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses,
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements –

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
Significant Accounting Policies
Schedule of Estimated Useful Life Property And Equipment	Building 39 years Land Not depreciated Computer and office equipment 2 to 5 years Computer software 3 years Internal-use software 3 years Furniture and fixtures 4 years Leasehold improvements 2 to 5 years Vehicles 5 years

Changes in Accounting Princip_2

Changes in Accounting Principles (Tables)	9 Months Ended
	Sep. 30, 2023
Changes in Accounting Principles
Schedule of Condensed Consolidated Balance Sheet	Condensed Consolidated Balance Sheet December 31, 2022 New ASC 326 January 1, 2023 As Previously Standard As (In thousands) Reported Adjustment Adjusted Assets Trade receivables, net of allowance $ 3,297 $ (18 ) $ 3,279 Contract assets, net of allowance 318 (29 ) 289 Equipment financing receivables, net of allowance 635 (37 ) 598 Total current assets 12,032 (84 ) 11,948 Long-term equipment financing receivables, net of allowance 1,255 (75 ) 1,180 Total Assets $ 55,634 $ (159 ) $ 55,475 Liabilities and Stockholders' Equity Accumulated deficit (87,946 ) (159 ) (88,105 ) Total stockholders' equity 41,459 (159 ) 41,300 Total Liabilities and Stockholders' Equity $ 55,634 $ (159 ) $ 55,475

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue
Disaggregation Of Revenue	Three Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,666 $ - $ 1,666 Equipment financing revenue 133 - 133 Telecommunications services 6,299 - 6,299 Fees, commissions, and other, recognized over time 479 - 479 One time fees, commissions and other 606 - 606 Software licenses - 971 971 Software license and maintenance and support subscriptions - 3,490 3,490 Professional services and other - 230 230 $ 9,183 $ 4,691 $ 13,874 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,272 $ 1,201 $ 3,473 Products, services, and fees transferred over time 6,911 3,490 10,401 $ 9,183 $ 4,691 $ 13,874 Three Months Ended September 30, 2022 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 760 $ - $ 760 Equipment financing revenue 87 - 87 Telecommunications services 3,831 - 3,831 Fees, commissions, and other, recognized over time 423 - 423 One time fees, commissions and other 132 - 132 Software licenses - 985 985 Software license and maintenance and support subscriptions - 2,759 2,759 Professional services and other - 131 131 $ 5,233 $ 3,875 $ 9,108 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 892 $ 1,116 $ 2,008 Products, services, and fees transferred over time 4,341 2,759 7,100 $ 5,233 $ 3,875 $ 9,108 Nine Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 4,323 $ - $ 4,323 Equipment financing revenue 356 - 356 Telecommunications services 18,587 - 18,587 Fees, commissions, and other, recognized over time 1,392 - 1,392 One time fees, commissions and other 1,648 - 1,648 Software licenses - 2,662 2,662 Software license and maintenance and support subscriptions - 9,506 9,506 Professional services and other - 561 561 $ 26,306 $ 12,729 $ 39,035 Timing of revenue recognition Products and fees recognized at a point in time $ 5,971 $ 3,223 $ 9,194 Services and fees transferred over time 20,335 9,506 29,841 $ 26,306 $ 12,729 $ 39,035 Nine Months Ended September 30, 2022 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,944 $ - $ 1,944 Equipment financing revenue 238 - 238 Telecommunications services 11,392 - 11,392 Fees, commissions, and other, recognized over time 1,269 - 1,269 One time fees, commissions and other 528 - 528 Software licenses - 2,394 2,394 Software license and maintenance and support subscriptions - 7,950 7,950 Professional services and other - 397 397 $ 15,371 $ 10,741 $ 26,112 Timing of revenue recognition Products and fees recognized at a point in time $ 2,472 $ 2,791 $ 5,263 Services and fees transferred over time 12,899 7,950 20,849 $ 15,371 $ 10,741 $ 26,112
Contract Balances	September 30, December 31, (In thousands) 2023 2022 Receivables, which are included in trade receivables, net of allowance for doubtful accounts $ 3,873 $ 3,297 Contract assets, net of allowance for credit losses 299 318 Contract liabilities 3,176 3,585
Significant Changes In The Contract Assets And Liabilities	For the Nine Months Ended For the Year Ended (In thousands) September 30, 2023 December 31, 2022 Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ - $ (3,256 ) $ - $ (3,046 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,847 - 3,603 Transferred to receivables from contract assets recognized at the beginning of the period (186 ) - (166 ) - Increase due to additional unamortized discounts 167 - 223 -
Contract assets allowance for credit losses	September 30, December 31, 2023 2022 Gross contract assets $ 333 $ 318 Less: allowance for credit losses (34 ) - Contract assets, net of allowance for credit losses $ 299 $ 318
Schedule of allowance for credit losses	Balance at December 31, 2022 $ - Cumulative effect of accounting change 29 Provision 2 Write-offs - Recoveries and other - Balance at March 31, 2023 $ 31 Provision (8 ) Write-offs - Recoveries and other - Balance at June 30, 2023 $ 23 Provision 11 Write-offs - Recoveries and other - Balance at September 30, 2023 $ 34
Performance Obligations	2023 2024 2025 2026 2027 and thereafter Total Desktop devices $ 271 $ 271 Telecommunications services $ 5,715 16,248 11,157 6,174 3,549 $ 42,843 Software Solutions $ 5,368 7,968 4,461 2,128 394 $ 20,319 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings per common share:
Basic And Diluted Net Income Per Common Share	Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income/(loss) (in thousands) (A) $ 1,704 $ (696 ) $ (423 ) $ (2,812 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 25,995,507 22,620,703 25,901,686 22,439,575 Dilutive effect of stock-based awards 1,687,258 - - - Diluted weighted-average outstanding shares of common stock (C) 27,682,765 22,620,703 25,901,686 22,439,575 Earnings per common share: Basic (A/B) $ 0.07 $ (0.03 ) $ (0.02 ) $ (0.13 ) Diluted (A/C) $ 0.06 $ (0.03 ) $ (0.02 ) $ (0.13 )
Schedule of potentially dilutive common stock	Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 4,708,364 3,140,362 4,582,503 2,471,886

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2023
Acquisitions
Cost Of Acquisition	(in thousands) December 31, 2022 Consideration: Cash $ 2,000 Common stock 6,326 Note Payable 1,100 Total consideration $ 9,426
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed	Final Purchase Price Allocation Total purchase price $ 9,426 Cash 586 Accounts receivables 759 Prepaid expenses 48 Inventory 484 Other assets 12 Property, plant & equipment 319 Right to use assets 861 Intangible assets acquired (FV) 7,000 Total identifiable assets 10,069 Accounts payable 1,162 Accrued expenses 714 Contract liability 917 Operating lease liability 877 Direct financing liability 142 Buyers note 1,100 Deferred tax liability 1,922 Total liabilities assumed 6,834 Total goodwill $ 5,091
Pro Forma Information	For the Nine Months Ended September 30, ( Unaudited, in thousands) 2023 2022 Revenues $ 39,035 $ 34,360 Net loss (423 ) (2,580 ) Earnings per share $ (0.02 ) $ (0.10 )

Trade Receivables and Allowan_2

Trade Receivables and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2023
Trade Receivables and Allowance for Credit Losses
Schedule of trade receivables balance consists of traditional trade receivables	September 30, December 31, 2023 2022 Gross trade receivables $ 3,983 $ 3,428 Less: allowance for credit losses (110 ) (131 ) Trade receivables, net $ 3,873 $ 3,297 Current trade receivables, net $ 3,873 $ 3,297 Long-term trade receivables, net - - Trade receivables, net $ 3,873 $ 3,297
Schedule of allowance for credit losses	Balance at December 31, 2022 $ 131 Cumulative effect of accounting change 18 Provision 45 Write-offs (7 ) Recoveries and other - Balance at March 31, 2023 $ 187 Provision 68 Write-offs (111 ) Recoveries and other - Balance at June 30, 2023 $ 144 Provision (30 ) Write-offs (4 ) Recoveries and other - Balance at September 30, 2023 $ 110

Equipment Financing Receivabl_2

Equipment Financing Receivables and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Schedule of financing receivables	September 30, December 31, 2023 2022 Gross equipment financing receivables $ 3,746 $ 2,666 Less: unearned income (1,103 ) (776 ) Less: allowance for credit losses (161 ) - Equipment financing receivables, net $ 2,482 $ 1,890 Current equipment financing receivables, net $ 812 $ 635 Long-term equipment financing receivables, net 1,670 1,255 Equipment financing receivables, net $ 2,482 $ 1,890
Schedule of financing receivables future contractual maturities	Year ending December 31, 2023 remaining $ 358 2024 1,287 2025 965 2026 626 2027 410 2028 and thereafter 100 Total $ 3,746
Schedule of financing receivables Allowance for Credit Losses	Balance at December 31, 2022 $ - Cumulative effect of accounting change 112 Provision 19 Write-offs (4 ) Recoveries and other - Balance at March 31, 2023 $ 127 Provision 23 Write-offs (5 ) Recoveries and other - Balance at June 30, 2023 $ 145 Provision 23 Write-offs (7 ) Recoveries and other - Balance at September 30, 2023 $ 161
Schedule of Aging of Receivables	September 30, December 31, 2023 2022 Past due amounts 0 - 90 days $ 2,480 $ 1,888 Past due amounts > 90 days 2 2 Total $ 2,482 $ 1,890
Schedule of financing receivables and current period gross write offs	September 30, 2023 December 31, 2022 2023 2022 2021 2020 2019 Prior Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 1,261 849 247 200 85 1 $ 2,643 $ 1,890 Current period gross write offs $ 7 5 1 2 1 - $ 16 $ 20

Prepaid Expenses (Tables)

Prepaid Expenses (Tables)	9 Months Ended
	Sep. 30, 2023
Prepaid Expenses
Schedule Prepaid Expenses	September 30, December 31, 2023 2022 Prepaid corporate insurance $ 127 $ 117 Prepaid software services and support 368 122 Prepaid employee insurance premiums 179 30 Prepaid Nasdaq listing fee 15 15 User group meeting 174 - Other prepaid expenses 128 147 Total prepaid expenses $ 991 $ 431

Property and Equipment and Pr_2

Property and Equipment and Property and Equipment Held for Sale (Tables)	9 Months Ended
	Sep. 30, 2023
Property and Equipment and Property and Equipment Held for Sale
Property And Equipment	September 30, December 31, 2023 2022 Building $ - $ 2,000 Land - 500 Computer and office equipment 2,735 2,726 Computer software 647 576 Internal-use software 14 14 Furniture and fixtures 74 75 Vehicles 143 130 Leasehold improvements 15 15 Less: accumulated depreciation (2,872 ) (2,721 ) Total property and equipment, net $ 756 $ 3,315

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2023
Intangible Assets and Goodwill
Intangible Assets	September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (4,708 ) $ 21,365 $ 26,073 $ (3,052 ) $ 23,021 Developed technologies 4,900 (2,055 ) 2,845 4,900 (1,410 ) 3,490 Trademark and trade names 400 (262 ) 138 400 (186 ) 214 Total acquired intangible assets $ 31,373 $ (7,025 ) $ 24,348 $ 31,373 $ (4,648 ) $ 26,725
Amortization Of Intangible Assets	Year ending December 31, 2023 remaining $ 793 2024 3,028 2025 2,770 2026 2,457 2027 2,202 Thereafter 13,098 Total $ 24,348
Goodwill Carrying Amount	Goodwill Balance at January 1, 2022 $ 36,972 Allegiant Networks business acquisition 5,091 Impairment (32,609 ) Balance at December 31, 2022 $ 9,454 Additions - Balance at September 30, 2023 $ 9,454

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2023
Accrued Expenses
Accrued Expenses	September 30, December 31, 2023 2022 Accrued wages and benefits $ 1,963 $ 2,427 Accrued accounts payable 1,261 987 Accrued sales and telecommunications taxes 1,144 846 Product warranty liability 77 55 Credit cards 278 259 Other 330 316 Total accrued expenses $ 5,053 $ 4,890
Product Warranty Liabilities	Warranty Liabilities Balance at January 1, 2022 $ 50 Accrual for warranties 55 Adjustments related to pre-existing warranties (26 ) Warranty settlements (24 ) Balance at December 31, 2022 55 Accrual for warranties 38 Warranty settlements (16 ) Balance at September 30, 2023 $ 77

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Payable
Notes Payable	September 30, December 31, 2023 2022 Notes payable $ 1,160 $ 3,025 Less: current notes payable (452 ) (420 ) Notes payable, net of current portion $ 708 $ 2,605
Principal Payments Of Notes Payable	Year ending December 31, 2023 remaining $ 111 2024 457 2025 478 2026 114 2027 - 2028 and thereafter - Total $ 1,160

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Measurements
Fair value of financial instruments	September 30, 2023 December 31, 2022 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 3,873 $ 3,873 $ 3,297 $ 3,297 Equipment financing receivables 2,482 2,482 1,890 1,890 Liabilities: Finance lease obligations $ 117 $ 117 $ 193 $ 193 Notes payable 1,160 1,114 3,025 2,724

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases
Maturity Of Operating Lease and Finance Lease Liabilities	Year ending December 31, Operating Leases Finance Leases 2023 remaining $ 201 $ 19 2024 601 77 2025 205 21 2026 179 3 2027 134 - Total minimum lease payments 1,320 120 Less: amount representing interest (78 ) (3 ) Present value of minimum lease payments $ 1,242 $ 117
Schedule Of Lease Term And Discount	Lease term and discount rate September 30, 2023 Weighted-average remaining lease term (years) Operating leases 2.7 Finance leases 1.6 Weighted-average discount rate Operating leases 4.8 % Finance leases 2.3 %
Schedule Of Cash Paid For Amounts Included In The Measurement Of Lease Liabilities	Nine Months Ended September 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 470 Operating cash flows from finance leases 5 Financing cash flows from finance leases (2,143 )

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting
Information On Reportable Segments And Reconciliation To Condensed Consolidated Net (loss) Income	Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Cloud telecommunications services $ 9,183 $ 5,233 $ 26,306 $ 15,371 Software solutions 4,691 3,875 12,729 10,741 Consolidated revenue 13,874 9,108 39,035 26,112 Income/(loss) from operations: Cloud telecommunications services 73 (639 ) (1,312 ) (2,236 ) Software solutions 291 95 (415 ) (553 ) Total operating income/(loss) 364 (544 ) (1,727 ) (2,789 ) Other income/(expense), net: Cloud telecommunications services 1,425 (17 ) 1,360 (52 ) Software solutions (52 ) (167 ) 25 (286 ) Total other income/(expense), net 1,373 (184 ) 1,385 (338 ) Income/(loss) before income tax provision: Cloud telecommunications services 1,498 (656 ) 48 (2,288 ) Software solutions 239 (72 ) (390 ) (839 ) Income/(loss) before income tax provision $ 1,737 $ (728 ) $ (342 ) $ (3,127 )
Schedule of Revenue by geography	Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 12,862 $ 8,661 $ 36,984 $ 25,116 International 1,012 447 2,051 996 Total revenue $ 13,874 $ 9,108 $ 39,035 $ 26,112

Significant Accounting Polici_4

Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2023
Building [Member]
Depreciable lives	39 years
Land [Member]
Depreciable lives	Not depreciated
Computer and Office Equipment [Member]
Depreciable lives	2 to 5 years
Computer Software [Member]
Depreciable lives	3 years
Internal-use Software [Member]
Depreciable lives	3 years
Furniture and Fixtures [Member]
Depreciable lives	4 years
Leasehold Improvements [Member]
Depreciable lives	2 to 5 years
Vehicles
Depreciable lives	5 years

Significant Accounting Polici_5

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Foreign currency translation gains/(losses)	$ 23,000	$ 164,000	$ 1,000	$ 246,000
Federally insured limits	7,358,000		7,358,000		$ 4,750,000
Capitalized contract costs	3,139,000		3,139,000		2,145,000
Amortization in relation to costs capitalized	$ 402,000	$ 391,000	1,194,000	$ 939,000
Change in the valuation allowance for net deferred income tax assets			$ 3,179,000		$ 3,179,000
Revenue [Member] | Customer [Member]
Significant Customers, Percentage			10%	10%

Changes in Accounting Princip_3

Changes in Accounting Principles (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Trade receivables, net of allowance	$ 3,873			$ 3,297
Total current assets	15,618			12,032
Long-term equipment Financing Receivables net of allowance	0			0
Total assets	55,335			55,634
Accumulated deficit	(88,528)			(87,946)
Total stockholders' equity	43,687	$ 41,064	$ 40,894	41,459	$ 66,234	$ 65,884	$ 65,807	$ 65,933
Total Liabilities and Stockholders' Equity	55,335			55,634
Trade receivables, net of allowance	(3,873)			(3,297)
Total current assets	(15,618)			(12,032)
Long-term equipment Financing Receivables net of allowance	0			0
Total assets	(55,335)			(55,634)
Total Liabilities and Stockholders' Equity	(55,335)			$ (55,634)
As Previously Reported [Member]
Trade receivables, net of allowance	3,297
Contract assets, net of allowance	318
Equipment Financing Receivables net of allowance	635
Total current assets	12,032
Long-term equipment Financing Receivables net of allowance	1,255
Total assets	55,634
Accumulated deficit	(87,946)
Total stockholders' equity	41,459
Total Liabilities and Stockholders' Equity	55,634
Trade receivables, net of allowance	(3,297)
Total current assets	(12,032)
Long-term equipment Financing Receivables net of allowance	(1,255)
Total assets	(55,634)
Total Liabilities and Stockholders' Equity	(55,634)
New ASC 326 Standard Adjustment [Member]
Trade receivables, net of allowance	18
Contract assets, net of allowance	(29)
Equipment Financing Receivables net of allowance	(37)
Total current assets	84
Long-term equipment Financing Receivables net of allowance	75
Total assets	159
Accumulated deficit	(159)
Total stockholders' equity	(159)
Total Liabilities and Stockholders' Equity	159
Trade receivables, net of allowance	(18)
Total current assets	(84)
Long-term equipment Financing Receivables net of allowance	(75)
Total assets	(159)
Total Liabilities and Stockholders' Equity	(159)
As Adjusted [Member]
Trade receivables, net of allowance	3,279
Contract assets, net of allowance	289
Equipment Financing Receivables net of allowance	598
Total current assets	11,948
Long-term equipment Financing Receivables net of allowance	1,180
Total assets	55,475
Accumulated deficit	(88,105)
Total stockholders' equity	41,300
Total Liabilities and Stockholders' Equity	55,475
Trade receivables, net of allowance	(3,279)
Total current assets	(11,948)
Long-term equipment Financing Receivables net of allowance	(1,180)
Total assets	(55,475)
Total Liabilities and Stockholders' Equity	$ (55,475)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Telecommunications equipment	$ 1,666	$ 760	$ 4,323	$ 1,944
Equipment Financing Revenue	133	87	356	238
Telecommunications Services	6,299	3,831	18,587	11,392
Fees, Commissions And Other Recognized Over Time	479	423	1,392	1,269
One time fees commissions and other	606	132	1,648	528
Software Licenses	971	985	2,662	2,394
Software Licenses Subscription Maintenance And Support	3,490	2,759	9,506	7,950
Professional Servicing And Other	230	131	561	397
Revenue	13,874	9,108	39,035	26,112
Products Services And Fees Recognized At a Point In Time	3,473	2,008	9,194	5,263
Products Services And Fees Transferred Over Time	10,401	7,100	29,841	20,849
Service Lines	13,874	9,108	39,035	26,112
Cloud Telecommunications Service
Telecommunications equipment	1,666	760	4,323	1,944
Equipment Financing Revenue	133	87	356	238
Telecommunications Services	6,299	3,831	18,587	11,392
Fees, Commissions And Other Recognized Over Time	479	423	1,392	1,269
One time fees commissions and other	606	132	1,648	528
Software Licenses	0	0	0	0
Software Licenses Subscription Maintenance And Support	0	0	0	0
Professional Servicing And Other	0	0	0	0
Revenue	9,183	5,233	26,306	15,371
Products Services And Fees Recognized At a Point In Time	2,272	892	5,971	2,472
Products Services And Fees Transferred Over Time	6,911	4,341	20,335	12,899
Service Lines	9,183	5,233	26,306	15,371
Software Solution Segment
Telecommunications equipment	0	0	0	0
Equipment Financing Revenue	0	0	0	0
Telecommunications Services	0	0	0	0
Fees, Commissions And Other Recognized Over Time	0	0	0	0
One time fees commissions and other	0	0	0	0
Software Licenses	971	985	2,662	2,394
Software Licenses Subscription Maintenance And Support	3,490	2,759	9,506	7,950
Professional Servicing And Other	230	131	561	397
Revenue	4,691	3,875	12,729	10,741
Products Services And Fees Recognized At a Point In Time	1,201	1,116	3,223	2,791
Products Services And Fees Transferred Over Time	3,490	2,759	9,506	7,950
Service Lines	$ 4,691	$ 3,875	$ 12,729	$ 10,741

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue
Receivables, Which Are Included In Trade Receivables, Net Of Allowance For Doubtful Accounts	$ 3,873	$ 3,297
Contract Assets	299	318
Contract Liabilities	$ 3,176	$ 3,585

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Contract Assets
Revenue Recognized That Was Included In The Contract Liability Balance At The Beginning Of The Period	$ 0	$ 0
Increase Due To Cash Received, Excluding Amounts Recognized As Revenue During The Period	0	0
Transferred To Receivables From Contract Assets Recognized At The Beginning Of The Period	(186)	(166)
Increase Due To Additional Unamortized Discounts	167	223
Contract Liabilities
Revenue Recognized That Was Included In The Contract Liability Balance At The Beginning Of The Period	(3,256)	(3,046)
Increase Due To Cash Received, Excluding Amounts Recognized As Revenue During The Period	2,847	3,603
Transferred To Receivables From Contract Assets Recognized At The Beginning Of The Period	0	0
Increase Due To Additional Unamortized Discounts	$ 0	$ 0

Revenue (Details 3)

Revenue (Details 3) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue
Gross contract assets	$ 333	$ 318
Less: allowance for credit losses	(34)	0
Contract assets, net of allowance for credit losses	$ 299	$ 318

Revenue (Details 4)

Revenue (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Revenue
Opening balance	$ 23	$ 31	$ 0
Cumulative effect of accounting change			29
Provision	11	(8)	2
Write- offs	0	0	0
Recoveries and others	0	0	0
Closing balance	$ 34	$ 23	$ 31

Revenue (Details 5)

Revenue (Details 5) $ in Thousands	Sep. 30, 2023 USD ($)
Total	$ 4,000
Software Solutions [Member]
2023	5,368
Total	20,319
2024	7,968
2025	4,461
2026	2,128
2027 And Thereafter	394
Desktop Devices
2023	271
Total	271
Telecommunications Services
2023	5,715
Total	42,843
2024	16,248
2025	11,157
2026	6,174
2027 And Thereafter	$ 3,549

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings per common share:
Net loss	$ 1,704	$ (545)	$ (1,582)	$ (696)	$ (896)	$ (1,220)	$ (423)	$ (2,812)
Weighted-average share reconciliation:
Weighted-average basic shares outstanding (B)	25,995,507,000			22,620,703,000			25,901,686,000	22,439,575,000
Dilutive effect of stock-based awards	1,687,258,000			0			0	0
Diluted weighted-average outstanding shares of common stock (C)	27,682,765,000			22,620,703,000			25,901,686,000	22,439,575,000
Earnings per common share:
Basic (A/B)	$ 0.07			$ (0.03)			$ (0.02)	$ (0.13)
Diluted (A/C)	$ 0.06			$ (0.03)			$ (0.02)	$ (0.13)

Earnings Per Common Share (De_2

Earnings Per Common Share (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock Options
Securities excluded from earnings	4,708,364	3,140,362	4,582,503	2,471,886

Acquisitions (Details)

Acquisitions (Details) - Allegiant Networks, LLC Business Acquisition $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Cash	$ 2,000
Common Stock	6,326
Note payable	1,100
Total consideration	$ 9,426

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, plant & equipment	$ 486,000	$ 486,000
Allegiant Networks, LLC Business Acquisition
Total purchase price		9,426,000
Cash		586,000
Accounts receivables		759,000
Prepaid expenses		48,000
Inventory		484,000
Other assets		12,000
Property, plant & equipment		319,000
Right to use assets		861,000
Intangible assets acquired (FV)		7,000,000
Total identifiable assets		10,069,000
Accounts payable		1,162,000
Accrued expenses		714,000
Contract liability		917,000
Operating lease liability		877,000
Direct Financing Liability		142,000
Buyers note		1,100,000
Deferred tax liability		1,922,000
Total liabilities assumed		6,834,000
Total goodwill		$ 5,091,000

Acquisitions (Details 2)

Acquisitions (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 13,874			$ 9,108			$ 39,035	$ 26,112
Net loss	$ 1,704	$ (545)	$ (1,582)	$ (696)	$ (896)	$ (1,220)	(423)	(2,812)
Allegiant Networks, LLC Business Acquisition
Revenues							39,035	34,360
Net loss							$ (423)	$ (2,580)
Earnings per share							$ (0.02)	$ (0.10)

Acquisitions (Details Narrative

Acquisitions (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 01, 2022	Oct. 17, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Description of key assumptions used in valuing the developed technology					The key assumptions used in valuing the customer relationships acquired are as follows: weighted average cost of capital of 16.0%, tax rate of 25.0%, and estimated economic life of 15 years
Common stock, par value			$ 0.001		$ 0.001		$ 0.001
Allegiant Networks business acquisition [Member]
Acquire, Percentage		100%
Description of Acquisition Agreement		(i) a cash payment at closing in the amount of $2.0 million, (ii) a three-year promissory note by the Company in favor of Seller in the amount of $1.1 million, and (iii) 2,461,538 shares of the Company’s common stock, par value $0.001 per share
Discription of lock-up agreement		after 6 months, 25% of the shares were permitted to be sold, with an additional 25% permitted to be sold every 6-month period thereafter
Cash consideration	$ 2,000,000
Promissory note	$ 1,100,000
Common stock, issued	2,461,538
Common stock, par value	$ 0.001
Common stock issued, value	$ 25,700
Aggregate purchase price		$ 9,400,000
Acquisition related expenses incurred			$ 0	$ 0	$ 1,000	$ 0

Trade Receivables and Allowan_3

Trade Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Trade Receivables and Allowance for Credit Losses
Gross Trade Receivables	$ 3,983	$ 3,428
Less Allowance For Doubtful Accounts	(110)	(131)
Trade Receivables, Net	3,873	3,297
Current Trade Receivables, Net	3,873	3,297
Long-term Trade Receivables, Net	0	0
Trade Receivables	$ 3,873	$ 3,297

Trade Receivables and Allowan_4

Trade Receivables and Allowance for Credit Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Trade Receivables and Allowance for Credit Losses
Begaining balance	$ 110	$ 187	$ 131
Cumulative effect of accounting charges			18
Allowance for credit losses provisions	68	30	45
Write-offs	(111)	(4)	(7)
Recoveries and others	0	0	0
Ending balance	$ 144	$ 110	$ 187

Trade Receivables and Allowan_5

Trade Receivables and Allowance for Credit Losses (Details Narrative)	Sep. 30, 2023	Dec. 31, 2022
Trade Receivables and Allowance for Credit Losses
Percent of gross accounts receivable	2.80%	3.80%

Equipment Financing Receivabl_3

Equipment Financing Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Equipment Financing Receivables and Allowance for Credit Losses
Gross Equipment Financing Receivables	$ 3,746	$ 2,666
Less Unearned Income	(1,103)	(776)
Less: allowance for credit losses	(161)	0
Equipment Financing Receivables, Net	2,482	1,890
Current Equipment Financing Receivables, Net	812	635
Long-term Equipment Financing Receivables, Net	1,670	1,255
Equipment Financing Receivables, Net	$ 2,482	$ 1,890

Equipment Financing Receivabl_4

Equipment Financing Receivables and Allowance for Credit Losses (Details 1) $ in Thousands	Sep. 30, 2023 USD ($)
Equipment Financing Receivables and Allowance for Credit Losses
2023 remaining	$ 358
2024	1,287
2025	965
2026	626
2027	410
2028 and thereafter	100
Total	$ 3,746

Equipment Financing Receivabl_5

Equipment Financing Receivables and Allowance for Credit Losses (Details 2) - USD ($)	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Opening balance			$ 0
Provision	$ 68,000	$ 30,000	45,000
Write- offs	0	0	0
Recoveries and others	0	0	0
Closing balance	34,000
Allowance for Credit Losses
Opening balance	145,000	127,000	0
Cumulative effect of accounting change		0	112,000
Provision	23,000	23,000	19,000
Write- offs	(7,000)	(5,000)	(4,000)
Recoveries and others	0	0	0
Closing balance	$ 161,000	$ 145,000	$ 127,000

Equipment Financing Receivabl_6

Equipment Financing Receivables and Allowance for Credit Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Aging of receivables dues	$ 2,482	$ 1,890
Past due amounts 0-90 days
Aging of receivables dues	2,480	1,888
Past due amounts >90 days
Aging of receivables dues	$ 2	$ 2

Equipment Financing Receivabl_7

Equipment Financing Receivables and Allowance for Credit Losses (Details 4) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Total equipment financing receivables	$ 2,643	$ 1,890
Current period gross write offs equipment financing receivables	16	$ 20
2021 [Member]
Current period gross write offs equipment financing receivables	1
2020 [Member]
Current period gross write offs equipment financing receivables	2
2019 [Member]
Current period gross write offs equipment financing receivables	1
Prior [Member]
Current period gross write offs equipment financing receivables	0
2023 [Member]
Current period gross write offs equipment financing receivables	7
2022 [Member]
Current period gross write offs equipment financing receivables	5
UNITED STATES
Total equipment financing receivables	849
UNITED STATES | 2021 [Member]
Total equipment financing receivables	247
UNITED STATES | 2020 [Member]
Total equipment financing receivables	200
UNITED STATES | 2019 [Member]
Total equipment financing receivables	85
UNITED STATES | Prior [Member]
Total equipment financing receivables	1
UNITED STATES | 2023 [Member]
Total equipment financing receivables	$ 1,261

Equipment Financing Receivabl_8

Equipment Financing Receivables and Allowance for Credit Losses (Details Narrative)	Sep. 30, 2023	Dec. 31, 2022
Equipment Financing Receivables and Allowance for Credit Losses
Allowance for credit losses	6.10%	0%

Prepaid Expenses (Details)

Prepaid Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Prepaid Expenses
Prepaid Corporate Insurance	$ 127	$ 117
Prepaid Software Services And Support	368	122
Prepaid Employee Insurance Premiums	179	30
Prepaid Nasdaq Listing Fee	15	15
User group meeting	174	0
Other Prepaid Expenses	128	147
Total Prepaid Assets	$ 991	$ 431

Property and Equipment and Pr_3

Property and Equipment and Property and Equipment, Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Less: Accumulated Depreciation	$ (2,872)	$ (2,721)
Total Property And Equipment, Net	756	3,315
Land [Member]
Property And Equipment, Gross	0	500
Computer and Office Equipment [Member]
Property And Equipment, Gross	2,735	2,726
Computer Software [Member]
Property And Equipment, Gross	647	576
Internal-use Software [Member]
Property And Equipment, Gross	14	14
Furniture and Fixtures [Member]
Property And Equipment, Gross	74	75
Leasehold Improvements [Member]
Property And Equipment, Gross	15	15
Vehicles
Property And Equipment, Gross	143	130
Building [Member]
Property And Equipment, Gross	$ 0	$ 2,000

Property and Equipment and Pr_4

Property and Equipment and Property and Equipment, Held for Sale (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property and Equipment and Property and Equipment, Held for Sale (Details)
Accumulated amortization	$ 167		$ 167
Purchase price	4,000,000		4,000,000
Depreciation And Amortization Expense	94,000	$ 74,000	318,000	$ 213,000
Note payable	180,000		180,000
Closing costs	$ 208		208
Net proceeds			$ 2

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Carrying Amount Of Intangible, Net	$ 24,348,000
Customer Relationships
Carrying Amount Of Intangible, Gross	26,073,000	$ 26,073,000
Less: Accumulated Amortization	(4,708,000)	(3,052,000)
Carrying Amount Of Intangible, Net	21,365,000	23,021,000
Developed Technologies
Carrying Amount Of Intangible, Gross	4,900,000	4,900,000
Less: Accumulated Amortization	(2,055,000)	(1,410,000)
Carrying Amount Of Intangible, Net	2,845,000	3,490,000
Trademark and trade names [Member]
Carrying Amount Of Intangible, Gross	400,000	400,000
Less: Accumulated Amortization	(262,000)	(186,000)
Carrying Amount Of Intangible, Net	138,000	214,000
Net acquired intangible assets [Member]
Carrying Amount Of Intangible, Gross	31,373,000	31,373,000
Less: Accumulated Amortization	(7,025,000)	(4,648,000)
Carrying Amount Of Intangible, Net	$ 24,348,000	$ 26,725,000

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 1) $ in Thousands	Sep. 30, 2023 USD ($)
Intangible Assets and Goodwill
2023 remaining	$ 793
2024	3,028
2025	2,770
2026	2,457
2027	2,202
2027 and thereafter	13,098
Total	$ 24,348

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Intangible Assets and Goodwill
Goodwill, beginning balance	$ 9,454	$ 36,972
Allegaint networks business acquisitions		5,091
Impairment		(32,609)
Additions	0
Goodwill, ending balance	$ 9,454	$ 9,454

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Intangible Assets and Goodwill
Developed Technologies			3 years 10 months 24 days
Trademarks And Trade Names			1 year 10 months 24 days
Sales And Marketing Expenses	$ 552	$ 299	$ 1,630	$ 896
Weighted Average Remaining Useful Life For Customer Relationships			13 years 7 months 6 days
Software Solution Revenue	215	221	$ 645	662
General And Administrative Expenses	$ 25	$ 31	$ 102	$ 91
Impairment					$ 32,600

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued Expenses
Accrued Wages And Benefits	$ 1,963	$ 2,427
Accrued Accounts Payable	1,261	987
Accrued Sales And Telecommunications Taxes	1,144	846
Product Warranty Liability	77	55
Credit cards	278	259
Other	330	316
Total Accrued Expenses	$ 5,053	$ 4,890

Accrued Expenses (Details 1)

Accrued Expenses (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Accrued Expenses
Beginning Balance	$ 55	$ 50
Accrual For Warranties	38	55
Adjustments Related To Pre-existing Warranties		(26)
Warranty Settlements	(16)	(24)
Ending Balance	$ 77	$ 55

Accrued Expenses (Details Narra

Accrued Expenses (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accrued Expenses
Product Warranty Expense	$ 11	$ 15	$ 38	$ 43

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Notes Payable
Notes Payable	$ 1,160	$ 3,025
Less: Current Notes Payable	(452)	(420)
Notes Payable, Net Of Current Portion	$ 708	$ 2,605

Notes Payable (Details 1)

Notes Payable (Details 1) $ in Thousands	Sep. 30, 2023 USD ($)
Notes Payable
2023 remaining	$ 111
2024	457
2025	478
2026	114
2027	0
2028 and thereafter	0
Total	$ 1,160

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)		1 Months Ended
	Nov. 01, 2022	Feb. 27, 2023	Jan. 27, 2020
Agreement Term		3 years	7 years
Promissory note		$ 278
Purchase Of Building			$ 2,000
Interest Rate		6.58%	3.67%
Monthly Payment		$ 85,430	$ 118,410
Allegiant Networks business acquisition [Member]
Agreement Term	3 years
Promissory note	$ 1,100,000
Interest Rate	4%
Monthly Payment	$ 983,800
Allegiant Networks Business Acquisition 1 [Member] | CrossFirst Bank [Member]
Agreement Term	3 years
Promissory note	$ 125
Interest Rate	4.25%
Monthly Payment	$ 37,070
Allegiant Networks Business Acquisition 1 [Member] | CrossFirst Bank Second [Member]
Agreement Term	3 years
Promissory note	$ 150
Interest Rate	4.50%
Monthly Payment	$ 44,660

Line of Credit (Details Narrati

Line of Credit (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Line of Credit
Outstanding balance	$ 0
Line of credit with a maximum principal amount	$ 700
Line of credit expiry term	Feb. 27, 2024
Line of credit bears interest rate	0.50%
Remaining available for borrowing	$ 700

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Carrying Value
Trade Receivables, Net	$ 3,873	$ 3,297
Equipment Financing Receivables	2,482	1,890
Finance lease obligations	117	193
Notes Payable	1,160	3,025
Estimated Fair Value
Trade Receivables, Net	3,873	3,297
Equipment Financing Receivables	2,482	1,890
Finance lease obligations	117	193
Notes Payable	$ 1,114	$ 2,724

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Taxes
U.S. federal statutory tax rate	(1.90%)	(4.40%)	(23.70%)	(10.10%)
Valuation allowance	$ 3,179,000		$ 3,179,000		$ 3,179,000
Deferred taxes, realizable amount	3,179,000		3,179,000
Income tax (provision)/benefit	$ 33,000	$ (32,000)	$ 81,000	$ (315,000)

Leases (Details)

Leases (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Operating Leases
2023 remaining	$ 201,000
2024	601,000
2025	205,000
2026	179,000
2027	134,000
Total Minimum Lease Payment	1,320,000
Less: Amount Representing Interest	(78,000)
Present Value Of Minimum Lease Payments	1,242,000
Finance Leases
2023 remaining	19,000
2024	77,000
2025	21,000
2026	3,000
2027	0
Total Minimum Lease Payment	120,000
Less: Amount Representing Interest	(3,000)
Present Value Of Minimum Lease Payments	$ 117,000	$ 193,000

Leases (Details 1)

Leases (Details 1)	9 Months Ended
	Sep. 30, 2023
Leases
Weighted-average Remaining Lease Term - Operating Leases	2 years 8 months 12 days
Weighted-average Remaining Lease Term - Finance Leases	1 year 7 months 6 days
Weighted-average Discount Rate - Operating Leases	4.80%
Weighted-average Discount Rate- Finance Leases	2.30%

Leases (Details 2)

Leases (Details 2) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Leases
Operating Cash Flows From Operating Leases	$ 470
Operating Cash Flows From Finance Leases	5
Financing Cash Flows From Finance Leases	$ (2,143)

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Finance lease	$ 117,000		$ 117,000		$ 193,000
Assets classified as property and equipment under finance lease obligations	486,000		486,000		486,000
Related accumulated depreciation	319,000		319,000		$ 190,000
Amortized Expenses			40,000
Amortization Expense Included In General And Administrative Expenses	1,000	$ 1,000	4,000	$ 1,000
Interest Expense	4,000	2,000	$ 3,000	6,000
Other Operating Leases [Member]
Description Of lease Expiry Date			leases expire on various dates through 2027 and the interest rates range from 3% to 15.74%
Cost of product	23,000	21,000	$ 64,000	58,000
Michigan Las Vegas Member
Rental Expense Incurred On Operating Leases	83,000	36,000	$ 257,000	107,000
Description Of lease Expiry Date			lease agreements that expire in 2024
Tempe Arizona Member
Rental Expense Incurred On Operating Leases	40,000	0	$ 40,000	0
Incremental borrowing rate			6.58%
Reston, Virginia [Member]
Rental Expense Incurred On Operating Leases	13,000	13,000	$ 26,000	37,000
Description Of lease Expiry Date			lease agreement that expires in 2025
La Jolla, California [Member]
Rental Expense Incurred On Operating Leases	0	90,000	$ 0	269,000
Lease Expiry Date			lease agreement that expired on December 31, 2022
San Diego, California [Member]
Rental Expense Incurred On Operating Leases	21,000	0	$ 63,000	0
Description Of lease Expiry Date			lease agreement that expires in 2023
Overland Park, Kansas [Member]
Rental Expense Incurred On Operating Leases	$ 55,000	$ 0	$ 144,000	$ 0
Description Of lease Expiry Date			lease agreement that expires in 2027
Minimum Member
Interest Rate- Finance Leases			15.74%
Minimum Member | Other Operating Leases [Member]
Interest Rate- Finance Leases			3%
Maximum Member
Interest Rate- Finance Leases			1.37%
Maximum Member | Other Operating Leases [Member]
Interest Rate- Finance Leases			15.74%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Bonus Plan [Member] - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2023
Bonus for Executives		$ 800
Annual revenue		90%
Bonus for Non-Executives		$ 240
Bonus awards on annual revenue	30%
Bonus awards on Adjusted EBITDA	30%
Bonus awards on cash balance	30%
Bonus awards on Company stock price	10%
Description of additional bonus	No bonus will be awarded for any performance target for which actual performance is less than 90% of target. At 90% or greater actual performance relative to the target, 50% of the weighted bonus amount apportioned for the performance target is payable. From 90% to 100% actual performance relative to the target, the remaining 50% of the weighted bonus amount is awarded pro rata with the percentage of actual performance exceeding 90% of target (i.e., each 1% excess over 90% of performance target equals 5% of the weighted bonus amount payable). If actual performance reaches 110% of performance target or greater for any individual performance target, then an additional 10% of the amount apportioned to that performance target will be payable as an additional bonus
Accrued employee bonus plan	$ 488

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total other income expense net	$ 1,373	$ (184)	$ 1,385	$ (338)
Cloud Telecommunications Service
Cloud telecommunications services	9,183	5,233	26,306	15,371
Software solutions	4,691	3,875	12,729	10,741
Consolidated revenue	13,874	9,108	39,035	26,112
Cloud Telecommunications Service 1
Cloud telecommunications services	73	(639)	(1,312)	(2,236)
Software solutions	291	95	(415)	(553)
Total operating income loss	364	(544)	(1,727)	(2,789)
Cloud Telecommunications Service 2
Cloud telecommunications services	1,425	(17)	1,360	(52)
Software solutions	(52)	(167)	25	(286)
Total other income expense net	1,373	(184)	1,385	(338)
Cloud Telecommunications Service 3
Cloud telecommunications services	1,498	(656)	48	(2,288)
Software solutions	239	(72)	(390)	(839)
Loss before income tax provision	$ 1,737	$ (728)	$ (342)	$ (3,127)

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 13,874	$ 9,108	$ 39,035	$ 26,112
UNITED STATES [Member]
Revenues	12,862	8,661	36,984	25,116
International [Member]
Revenues	$ 1,012	$ 447	$ 2,051	$ 996

Segments Reporting (Details Nar

Segments Reporting (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Depreciation and amortization	$ 94,000	$ 74,000	$ 318,000	$ 213,000
Interest expense	36,000	19,000	111,000	57,000
Software Solution Segment
Depreciation and amortization	506,000	509,000	1,520,000	1,518,000
Interest expense	0	0	0	0
Interest income	0	0	0	0
Cloud Telecommunications Service Segment
Depreciation and amortization	381,000	115,000	1,176,000	344,000
Interest expense	36,000	19,000	111,000	57,000
Interest income	$ 0	$ 0	$ 0	$ 0