Crexendo (CXDO) 10-Q 7 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
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	Mar. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		26,628,022
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 Address Line 2	Tempe
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
Security 12b Title	Common Stock, par value $0.001 per share
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 11,041	$ 10,347
Trade receivables, net of allowance of $125 and $116, respectively	4,216	3,476
Inventories	381	382
Equipment financing receivables, net of allowance of $58 and $56, respectively	884	856
Contract costs	1,601	1,345
Prepaid expenses	899	508
Other current assets	23	35
Total current assets	19,045	16,949
Contract assets, net of allowance of $82 and $85, respectively	320	342
Long-term equipment financing receivables, net of allowance of $122 and $115, respectively	1,869	1,768
Property and equipment, net	590	670
Operating lease right-of-use assets	860	1,009
Intangible assets, net	22,796	23,556
Goodwill	9,454	9,454
Contract costs, net of current portion	2,396	2,273
Other long-term assets	137	139
Total Assets	57,467	56,160
Current liabilities:
Accounts payable	619	769
Accrued expenses	5,002	5,951
Finance leases	76	75
Notes payable	462	457
Operating lease liabilities	476	566
Income tax payable	80	53
Contract liabilities	2,898	2,390
Total current liabilities	9,613	10,261
Contract liabilities, net of current portion	198	198
Finance leases, net of current portion	4	23
Notes payable, net of current portion	475	592
Operating lease liabilities, net of current portion	412	473
Total liabilities	10,702	11,547
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, 26,628,022 shares issued and outstanding as of March 31, 2024 and 26,130,218 shares issued and outstanding as of December 31, 2023	27	26
Additional paid-in capital	134,604	132,888
Accumulated deficit	(88,033)	(88,467)
Accumulated other comprehensive income	167	166
Total stockholders' equity	46,765	44,613
Total Liabilities and Stockholders' Equity	$ 57,467	$ 56,160

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Allowance For Doubtful Accounts - Trade Receivables	$ 125	$ 116
Allowance For Equipment Financing Receivable	58	56
Allowance For Contract Assets	82	85
Allowance For Long Term Equipment Financing Receivable	$ 122	$ 115
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	26,628,022	26,130,218
Common Stock, Outstanding	26,628,022	26,130,218

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Operations (Unaudited)
Service revenue	$ 7,845	$ 7,158
Software solutions revenue	5,146	4,108
Product revenue	1,295	1,225
Total revenue	14,286	12,491
Operating expenses:
Cost of service revenue	3,109	3,044
Cost of software solutions revenue	1,392	1,185
Cost of product revenue	730	839
Selling and marketing	4,027	3,809
General and administrative	3,296	3,997
Research and development	1,249	1,191
Total operating expenses	13,803	14,065
Income/(loss) from operations	483	(1,574)
Other income/(expense):
Interest expense	(13)	(42)
Other income/(expense), net	(9)	58
Total other income/(expense), net	(22)	16
Income/(loss) before income tax	461	(1,558)
Income tax (provision)/benefit	(27)	(24)
Net income/(loss)	$ 434	$ (1,582)
Earnings per common share:
Basic	$ 0.02	$ (0.06)
Diluted	$ 0.01	$ (0.06)
Weighted-average common shares outstanding:
Basic	26,314,903	25,734,049
Diluted	30,142,100	25,734,049

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Net income/(loss)	$ 434	$ (1,582)
Foreign currency translation gain/(loss)	1	(21)
Total other comprehensive income/(loss)	1	(21)
Comprehensive income/(loss)	$ 435	$ (1,603)

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, 2022		25,670,773
Balance, amount at Dec. 31, 2022	$ 41,459	$ 26	$ 129,192	$ 187	$ (87,946)
Cumulative effect of accounting change	(159)	0	0	0	(159)
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 and RSUs	(257)	0	(257)	0	0
Net income/(loss)	(1,582)	$ 0	0	0	(1,582)
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, 2023		26,130,218
Balance, amount at Dec. 31, 2023	44,613	$ 26	132,888	166	(88,467)
Share-based compensation	728	0	728	0	0
Foreign currency translation adjustment, net of tax	1	$ 0	0	1	0
Issuance of common stock for exercise of stock options, shares		497,804
Issuance of common stock for exercise of stock options, amount	1,049	$ 1	1,048	0	0
Taxes paid on the net settlement of stock options and RSUs	(60)	0	(60)	0	0
Net income/(loss)	434	$ 0	0	0	434
Balance, shares at Mar. 31, 2024		26,628,022
Balance, amount at Mar. 31, 2024	$ 46,765	$ 27	$ 134,604	$ 167	$ (88,033)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)	$ 434	$ (1,582)
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities:
Depreciation and amortization	840	908
Allowance for credit losses	14	55
Share-based compensation	728	1,414
Non-cash operating lease amortization	(2)	0
Changes in assets and liabilities:
Trade receivables	(749)	(548)
Contract assets	25	(5)
Equipment financing receivables	(137)	(239)
Inventories	1	40
Contract costs	(379)	(268)
Prepaid expenses	(391)	(190)
Other assets	14	163
Accounts payable and accrued expenses	(1,099)	(1,110)
Income tax payable	27	23
Contract liabilities	508	(215)
Net cash provided by/(used for) operating activities	(166)	(1,554)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	0	(9)
Net cash provided by/(used for) investing activities	0	(9)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	0	278
Borrowing on line of credit, net	0	(82)
Repayments made on finance leases	(18)	(30)
Repayments made on notes payable	(112)	(152)
Proceeds from exercise of options	1,049	40
Taxes paid on the net settlement of stock options and RSUs	(60)	(257)
Net cash provided by/(used for) financing activities	859	(203)
Effect of exchange rate changes on cash	1	(21)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	694	(1,787)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	10,347	5,475
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	11,041	3,688
Cash used during the year for:
Interest expense	(13)	(24)
Supplemental disclosure of non-cash investing and financing information:
Transfer of property and equipment, net to property and equipment, held for sale	$ 0	$ 2,333

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and 2023, we recorded foreign currency translation gains/(losses) of $1, and $(21), respectively, in 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 – 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. 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 8 (Intangible Assets and Goodwill). Intangible Assets – Amortizable intangible assets are amortized over the estimated useful lives as follows: Customer relationships 6 to 16 years Developed technologies 2 to 6 years Trademark and trade names 4 years 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, Contract Assets and Allowance for Credit Losses Recently Issued Accounting Pronouncements – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue
Revenue	2. 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 16. 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. Desktop Devices – 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 March 31, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,295 $ - $ 1,295 Equipment financing revenue 152 - 152 Telecommunications services 6,627 - 6,627 Fees, commissions, and other, recognized over time 500 - 500 One time fees, commissions and other 566 - 566 Software licenses - 947 891 Subscription maintenance and support - 3,911 3,967 Professional services and other - 288 288 $ 9,140 $ 5,146 $ 14,286 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 1,861 $ 1,235 $ 3,040 Products, services, and fees transferred over time 7,279 3,911 11,246 $ 9,140 $ 5,146 $ 14,286 Three Months Ended March 31, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,225 $ - $ 1,225 Equipment financing revenue 105 - 105 Telecommunications services 6,056 - 6,056 Fees, commissions, and other, recognized over time 436 - 436 One time fees, commissions and other 561 - 561 Software licenses - 1,033 1,033 Subscription maintenance and support - 2,966 2,966 Professional services and other - 109 109 $ 8,383 $ 4,108 $ 12,491 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 1,786 $ 1,142 $ 2,928 Products, services, and fees transferred over time 6,597 2,966 9,563 $ 8,383 $ 4,108 $ 12,491 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: March 31, December 31, (In thousands) 2024 2023 Receivables, which are included in trade receivables, net of allowance for credit losses $ 4,216 $ 3,476 Contract assets, net of allowance for credit losses 320 342 Contract liabilities 3,096 2,588 Significant changes in the contract assets and the contract liabilities balances during the period are as follows: Three Months Ended For the Year Ended (In thousands) March 31, 2024 December 31, 2023 Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ - $ (2,070 ) $ - $ (3,393 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,578 - 2,396 Transferred to receivables from contract assets recognized at the beginning of the period, net of allowance for credit losses (113 ) - (192 ) - Increase due to additional unamortized discounts 91 - 216 - Contract assets and 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): March 31, December 31, 2024 2023 Gross contract assets $ 402 $ 427 Less: allowance for credit losses (82 ) (85 ) Contract assets, net of allowance for credit losses $ 320 $ 342 The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $ 85 Provision 1 Write-offs (4 ) Recoveries and other - Balance at March 31, 2024 $ 82 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 20.5% at March 31, 2024 from 20.0% at December 31, 2023. 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 from the cloud telecommunications services segment (in thousands): 2024 2025 2026 2027 2028 and thereafter Total Desktop devices $ 1,512 $ - $ - $ - $ - $ 1,512 Telecommunications services 15,627 14,476 9,156 5,482 1,828 46,569 Software Solutions 9,160 5,578 3,176 1,187 194 19,295 Total 26,299 20,054 12,332 6,669 2,022 67,376 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2024
Earnings per common share:
Earnings Per Common Share	3. Earnings Per Common Share Basic net income/(loss) per common share is computed by dividing the net income 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 March 31, 2023 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 March 31, 2024 2023 Net income/(loss) (in thousands) (A) $ 434 $ (1,582 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 26,314,903 25,734,049 Dilutive effect of stock-based awards 3,827,197 - Diluted weighted-average outstanding shares of common stock (C) 30,142,100 25,734,049 Earnings per common share: Basic (A/B) $ 0.02 $ (0.06 ) Diluted (A/C) $ 0.01 $ (0.06 ) For the three months ended March 31, 2024 and 2023, 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 March 31, 2024 2023 Stock options 1,317,937 4,196,055

Trade Receivables and Allowance

Trade Receivables and Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2024
Trade Receivables and Allowance for Credit Losses
Trade Receivables and Allowance for Credit Losses	4. Trade Receivables and Allowance for Credit Losses Our trade receivables balance consists of traditional trade receivables. Trade receivables were as follows (in thousands): March 31, December 31, 2024 2023 Gross trade receivables $ 4,341 $ 3,592 Less: allowance for credit losses (125 ) (116 ) Trade receivables, net $ 4,216 $ 3,476 Current trade receivables, net $ 4,216 $ 3,476 Long-term trade receivables, net - - Trade receivables, net $ 4,216 $ 3,476 The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $ 116 Provision 57 Write-offs (48 ) Recoveries and other - Balance at March 31, 2024 $ 125 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 2.9% at March 31, 2024 from 3.2% at December 31, 2023.

Equipment Financing Receivables

Equipment Financing Receivables and Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2024
Equipment Financing Receivables and Allowance for Credit Losses
Equipment Financing Receivables and Allowance for Credit Losses	5. 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): March 31, December 31, 2024 2023 Gross equipment financing receivables $ 4,215 $ 3,888 Less: unearned income (1,282 ) (1,093 ) Less: allowance for credit losses (180 ) (171 ) Equipment financing receivables, net $ 2,753 $ 2,624 Current equipment financing receivables, net $ 884 $ 856 Long-term equipment financing receivables, net 1,869 1,768 Equipment financing receivables, net $ 2,753 $ 2,624 A summary of our gross equipment financing receivables’ future contractual maturities, is as follows (in thousands): Year ending December 31, 2024 remaining $ 1,157 2025 1,261 2026 904 2027 610 2028 283 2029 and thereafter - Total $ 4,215 Allowance for Credit Losses The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $ 171 Provision 21 Write-offs (13 ) Recoveries and other - Balance at March 31, 2024 $ 179 Aging of Receivables The aging of gross equipment financing receivables was as follows (in thousands): March 31, December 31, 2024 2023 Past due amounts 0 - 90 days $ 2,749 $ 2,623 Past due amounts > 90 days 4 1 Total $ 2,753 $ 2,624 Our equipment financing receivable portfolio is primarily in the United States. 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 was 6.1% of gross equipment financing receivables (net of unearned income) at March 31, 2024 and December 31, 2023. 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): March 31, 2024 December 31, 2023 2024 2023 2022 2021 2020 Prior Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 426 1,447 704 173 146 36 $ 2,932 $ 2,795 Current period gross write offs $ - 8 3 1 - 1 $ 13 $ 33

Prepaid Expenses

Prepaid Expenses	3 Months Ended
	Mar. 31, 2024
Prepaid Expenses
Prepaid Expenses	6. Prepaid Expenses Prepaid expenses consisted of the following (in thousands): March 31, December 31, 2024 2023 Prepaid corporate insurance $ 21 $ 68 Prepaid software services and support 395 245 Prepaid employee insurance premiums 180 - Prepaid Nasdaq listing fee 49 - User group meeting 92 84 Other prepaid expenses 162 111 Total prepaid expenses $ 899 $ 508

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property and Equipment
Property and Equipment	7. Property and Equipment Property and equipment consisted of the following (in thousands): March 31, December 31, 2024 2023 Computer and office equipment 2,700 2,700 Computer software 625 625 Internal-use software 14 14 Furniture and fixtures 64 64 Vehicles 143 143 Leasehold improvements 15 15 Less: accumulated depreciation (2,971 ) (2,891 ) Total property and equipment, net $ 590 $ 670 Depreciation and amortization expense is included in general and administrative expenses and totaled $110 and $107 for the three months ended March 31, 2024 and 2023, respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2024
Intangible Assets and Goodwill
Intangible Assets And Goodwill	8. Intangible Assets and Goodwill Acquired intangible assets subject to amortization consist of the following (in thousands): March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (5,798 ) $ 20,275 $ 26,073 $ (5,260 ) $ 20,813 Developed technologies 4,900 (2,473 ) 2,427 4,900 (2,269 ) 2,631 Trademark and trade names 400 (306 ) 94 400 (288 ) 112 Total acquired intangible assets $ 31,373 $ (8,577 ) $ 22,796 $ 31,373 $ (7,817 ) $ 23,556 As of March 31, 2024, the weighted average remaining useful life for customer relationships was 13.1 years, developed technologies was 3.4 years, and trademarks and trade names was 1.4 years. Amortization expense for customer relationships intangible assets is included in sales and marketing expenses and totaled $527 and $539 for the three months ended March 31, 2024 and 2023, respectively. Amortization expense for developed technologies intangible assets is included in cost of software solutions revenue and totaled $203 and $215 for the three months ended March 31, 2024 and 2023, respectively. Amortization expense for trademark and trade name intangible assets is included in general and administrative expenses and totaled $30 and $38 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, 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, 2024 remaining $ 2,269 2025 2,770 2026 2,457 2027 2,202 2028 1,637 2029 and thereafter 11,461 Total $ 22,796 The following table provides a summary of changes in the carrying amounts of goodwill (in thousands): Goodwill Balance at January 1, 2023 $ 9,454 Additions - Balance at December 31, 2023 $ 9,454 Additions - Balance at March 31, 2024 $ 9,454

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Accrued Expenses
Accrued Expenses	9. Accrued Expenses Accrued expenses consisted of the following (in thousands): March 31, December 31, 2024 2023 Accrued wages and benefits $ 1,598 $ 2,884 Accrued accounts payable 1,329 1,297 Accrued sales and telecommunications taxes 1,456 1,234 Product warranty liability 23 25 Credit cards 187 113 Other 409 398 Total accrued expenses $ 5,002 $ 5,951 The changes in aggregate product warranty liabilities for the three months ended March 31, 2024 and the year ended December 31, 2023 were as follows (in thousands): Warranty Liabilities Balance at January 1, 2023 $ 55 Accrual for warranties 25 Adjustments related to pre-existing warranties (32 ) Warranty settlements (23 ) Balance at December 31, 2023 25 Accrual for warranties 7 Warranty settlements (9 ) Balance at March 31, 2024 $ 23 Product warranty expense is included in cost of product revenue expense and totaled $7 and $14 for the three months ended March 31, 2024 and 2023, respectively.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2024
Notes Payable
Notes Payable	10. Notes Payable Notes payable consists of a short and long-term financing arrangements: March 31, December 31, 2024 2023 Related party note payable $ 753 $ 843 Other notes payable 184 206 Total notes payable $ 937 $ 1,049 Less: current notes payable (462 ) (457 ) Notes payable, net of current portion $ 475 $ 592 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 ($8,543), 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-One ($98,381), including interest at 4.00%, beginning on April 1, 2023. As of March 31, 2024 and December 31, 2023, the outstanding balance of the related party note payable was $753 and $843, respectively. During the three months ended March 31, 2024 and 2023, the Company paid principal of $90 and $0, respectively and interest of $8 and $0, respectively. As of March 31, 2024, future principal payments are scheduled as follows (in thousands): Year ending December 31, 2024 remaining $ 345 2025 478 2026 114 2027 - 2027 - Total $ 937

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2024
Line of Credit
Line of Credit	11. 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, 2025. The line of credit bears interest at 0.50% over the Wall Street Journal Prime Rate. As of March 31, 2024, there was an outstanding balance of $0 and $700 remained available for borrowing. The line of credit is collateralized by all company assets. Additionally, the line of credit is subject to certain financial covenants.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Measurements
Fair Value Measurements	12. Fair Value Measurements We have financial instruments as of March 31, 2024 and December 31, 2023 for which the fair value is summarized below (in thousands): March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 4,216 $ 4,216 $ 3,476 $ 3,476 Equipment financing receivables 2,753 2,753 2,624 2,624 Liabilities: Finance lease obligations $ 80 $ 80 $ 98 $ 98 Notes payable 937 909 1,049 1,012 We have no liabilities for which fair value is recognized in the balance sheet on a recurring basis as of March 31, 2024 and December 31, 2023.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes
Income Taxes	13. Income Taxes Our effective tax rate for the three months ended March 31, 2024 and 2023 was 5.8% and 1.5%, respectively, which resulted in an income tax benefit/(provision) of $(27) and $(24), 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, 2023, 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, 2023 the Company has a cumulative pretax loss for the three year lookback excluding the gain on the sale of property and equipment, 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 NOL 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 $4,782 are realizable. Therefore, a valuation allowance of $4,782 was recorded against our gross deferred tax asset balance as of March 31, 2024 and December 31, 2023.

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases
Leases	14. 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 right-of-use (“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. 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 March 31, 2024 and 2023 was approximately $13 and $3, respectively. We currently lease office space in San Diego, California under a non-cancelable operating lease agreement that expires in 2024. Rental expense for the three months ended March 31, 2024 and 2023 was approximately $22 and $21, 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 March 31, 2024 and 2023 was approximately $51 and $45, respectively. We currently lease other assets under multiple operating leases. The leases expire on various dates through 2027 and the interest rates range from 3.00% to 15.74%. The expense is included in cost of product expenses and totaled approximately $21 and $21 for the three months ended March 31, 2024 and 2023, 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 March 31, 2024 and 2023 was approximately $144 and $62 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 one vehicle under a financing agreement. The outstanding balance for finance leases was $80 and $98 as of March 31, 2024 and December 31, 2023, respectively. The Company recorded assets classified as property and equipment under finance lease obligations of $486 and $486 as of March 31, 2024 and December 31, 2023, respectively. Related accumulated depreciation totaled $353 and $337 as of March 31, 2024 and December 31, 2023, respectively. The $40 in support contracts were classified as a prepaid expense and are being amortized over the service period of three years. The support contracts expire in June 2024. Amortization expense is included in general and administrative expenses and totaled $1 and $1 for the three months ended March 31, 2024 and 2023, respectively. The interest rates on the finance lease obligations range from 1.37% and 15.74% and interest expense was $1 and $1 for the three months ended March 31, 2024 and 2023, respectively. The maturity of operating leases and finance lease liabilities as of March 31, 2024 are as follows: Year ending December 31, Operating Leases Finance Leases 2024 remaining $ 519 $ 57 2025 205 21 2026 179 3 2027 134 - 2028 - - Total minimum lease payments 1,037 81 Less: amount representing interest (52 ) (1 ) Present value of minimum lease payments $ 985 $ 80 Lease term and discount rate March 31, 2024 Weighted-average remaining lease term (years) Operating leases 2.5 Finance leases 1.1 Weighted-average discount rate Operating leases 4.7 % Finance leases 2.5 % Three Months Ended March 31, 2024 Three Months Ended March 31, 2 023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 213 $ 140 Operating cash flows from finance leases 1 2 Financing cash flows from finance leases (18 ) (30 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies
Commitments And Contingencies	Purchase Obligations In February 2024, the Company entered into a $5.0 million noncancellable five-year hosting service contract with Oracle, a third-party network service provider. The contract includes minimum quarterly commitments and the requirements to maintain the service level for the entire contract period. Under this agreement, $200 remains due during fiscal year 2024, $700 will be due during fiscal 2025, $1.1 million will be due during fiscal 2026, $1.2 million will be due during fiscal 2027, $1.4 million will be due during fiscal 2028, and $400 will be due during fiscal 2029. 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 March 31, 2024, the Company does not have a recorded liability for estimated losses. Legal costs are expensed as incurred.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2024
Segment Reporting
Segment Reporting	16. 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 March 31, 2024 2023 Revenue: Cloud telecommunications services $ 9,140 $ 8,383 Software solutions 5,146 4,108 Consolidated revenue 14,286 12,491 Operating income/(loss) from operations: Cloud telecommunications services 78 (1,179 ) Software solutions 405 (395 ) Total operating income/(loss) 483 (1,574 ) Other income/(expense), net: Cloud telecommunications services (5 ) (39 ) Software solutions (17 ) 55 Total other income/(expense) (22 ) 16 Income/(loss) before income tax provision: Cloud telecommunications services 73 (1,218 ) Software solutions 388 (340 ) Income/(loss) before income tax provision $ 461 $ (1,558 ) Depreciation and amortization was $356 and $401 for the cloud telecommunications services segment for the three months ended March 31, 2024 and 2023, respectively. Depreciation and amortization was $484 and $507 for the software solutions segment for the three months ended March 31, 2024 and 2023, respectively. Interest income was $5 and $0 for the cloud telecommunications services segment for the three months ended March 31, 2024 and 2023, respectively. Interest income was $0 and $0 for the software solutions segment for the three months ended March 31, 2024 and 2023, respectively. Interest expense was $13 and $42 for the cloud telecommunications services segment for the three months ended March 31, 2024 and 2023, respectively. Interest expense was $0 and $0 for the software solutions segment for the three months ended March 31, 2024 and 2023, respectively. 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 March 31, 2024 2023 United States $ 13,431 $ 11,834 International 855 657 Total revenue $ 14,286 $ 12,491

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and 2023, we recorded foreign currency translation gains/(losses) of $1, and $(21), respectively, in 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 – 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.
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 8 (Intangible Assets and Goodwill).
Intangible Assets	Intangible Assets – Amortizable intangible assets are amortized over the estimated useful lives as follows: Customer relationships 6 to 16 years Developed technologies 2 to 6 years Trademark and trade names 4 years
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, Contract Assets and Allowance for Credit Losses
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Significant Accounting Policies
Schedule of Estimated Useful Life Property And Equipment	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
Schedule of estimated useful lives of amortizable intangible assets	Customer relationships 6 to 16 years Developed technologies 2 to 6 years Trademark and trade names 4 years

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue
Schedule of disaggregation Of Revenue	Three Months Ended March 31, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,295 $ - $ 1,295 Equipment financing revenue 152 - 152 Telecommunications services 6,627 - 6,627 Fees, commissions, and other, recognized over time 500 - 500 One time fees, commissions and other 566 - 566 Software licenses - 947 891 Subscription maintenance and support - 3,911 3,967 Professional services and other - 288 288 $ 9,140 $ 5,146 $ 14,286 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 1,861 $ 1,235 $ 3,040 Products, services, and fees transferred over time 7,279 3,911 11,246 $ 9,140 $ 5,146 $ 14,286 Three Months Ended March 31, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,225 $ - $ 1,225 Equipment financing revenue 105 - 105 Telecommunications services 6,056 - 6,056 Fees, commissions, and other, recognized over time 436 - 436 One time fees, commissions and other 561 - 561 Software licenses - 1,033 1,033 Subscription maintenance and support - 2,966 2,966 Professional services and other - 109 109 $ 8,383 $ 4,108 $ 12,491 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 1,786 $ 1,142 $ 2,928 Products, services, and fees transferred over time 6,597 2,966 9,563 $ 8,383 $ 4,108 $ 12,491
Schedule of Contract Balances	March 31, December 31, (In thousands) 2024 2023 Receivables, which are included in trade receivables, net of allowance for credit losses $ 4,216 $ 3,476 Contract assets, net of allowance for credit losses 320 342 Contract liabilities 3,096 2,588
Significant Changes In The Contract Assets And Liabilities	Three Months Ended For the Year Ended (In thousands) March 31, 2024 December 31, 2023 Contract Assets Contract Liabilities Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ - $ (2,070 ) $ - $ (3,393 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,578 - 2,396 Transferred to receivables from contract assets recognized at the beginning of the period, net of allowance for credit losses (113 ) - (192 ) - Increase due to additional unamortized discounts 91 - 216 -
Contract assets allowance for credit losses	March 31, December 31, 2024 2023 Gross contract assets $ 402 $ 427 Less: allowance for credit losses (82 ) (85 ) Contract assets, net of allowance for credit losses $ 320 $ 342
Schedule of allowance for credit losses	Balance at December 31, 2023 $ 85 Provision 1 Write-offs (4 ) Recoveries and other - Balance at March 31, 2024 $ 82
Schedule of Performance Obligations	2024 2025 2026 2027 2028 and thereafter Total Desktop devices $ 1,512 $ - $ - $ - $ - $ 1,512 Telecommunications services 15,627 14,476 9,156 5,482 1,828 46,569 Software Solutions 9,160 5,578 3,176 1,187 194 19,295 Total 26,299 20,054 12,332 6,669 2,022 67,376 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings per common share:
Basic And Diluted Net Income Per Common Share	Three Months Ended March 31, 2024 2023 Net income/(loss) (in thousands) (A) $ 434 $ (1,582 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 26,314,903 25,734,049 Dilutive effect of stock-based awards 3,827,197 - Diluted weighted-average outstanding shares of common stock (C) 30,142,100 25,734,049 Earnings per common share: Basic (A/B) $ 0.02 $ (0.06 ) Diluted (A/C) $ 0.01 $ (0.06 )
Schedule of potentially dilutive common stock	Three Months Ended March 31, 2024 2023 Stock options 1,317,937 4,196,055

Trade Receivables and Allowan_2

Trade Receivables and Allowance for Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2024
Trade Receivables and Allowance for Credit Losses
Schedule of trade receivables balance consists of traditional trade receivables	March 31, December 31, 2024 2023 Gross trade receivables $ 4,341 $ 3,592 Less: allowance for credit losses (125 ) (116 ) Trade receivables, net $ 4,216 $ 3,476 Current trade receivables, net $ 4,216 $ 3,476 Long-term trade receivables, net - - Trade receivables, net $ 4,216 $ 3,476
Schedule of allowance for credit losses	Balance at December 31, 2023 $ 116 Provision 57 Write-offs (48 ) Recoveries and other - Balance at March 31, 2024 $ 125

Equipment Financing Receivabl_2

Equipment Financing Receivables and Allowance for Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2024
Equipment Financing Receivables and Allowance for Credit Losses
Schedule of financing receivables	March 31, December 31, 2024 2023 Gross equipment financing receivables $ 4,215 $ 3,888 Less: unearned income (1,282 ) (1,093 ) Less: allowance for credit losses (180 ) (171 ) Equipment financing receivables, net $ 2,753 $ 2,624 Current equipment financing receivables, net $ 884 $ 856 Long-term equipment financing receivables, net 1,869 1,768 Equipment financing receivables, net $ 2,753 $ 2,624
Schedule of financing receivables future contractual maturities	Year ending December 31, 2024 remaining $ 1,157 2025 1,261 2026 904 2027 610 2028 283 2029 and thereafter - Total $ 4,215
Schedule of financing receivables Allowance for Credit Losses	Balance at December 31, 2023 $ 171 Provision 21 Write-offs (13 ) Recoveries and other - Balance at March 31, 2024 $ 179
Schedule of Aging of Receivables	March 31, December 31, 2024 2023 Past due amounts 0 - 90 days $ 2,749 $ 2,623 Past due amounts > 90 days 4 1 Total $ 2,753 $ 2,624
Schedule of financing receivables and current period gross write offs	March 31, 2024 December 31, 2023 2024 2023 2022 2021 2020 Prior Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 426 1,447 704 173 146 36 $ 2,932 $ 2,795 Current period gross write offs $ - 8 3 1 - 1 $ 13 $ 33

Prepaid Expenses (Tables)

Prepaid Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Prepaid Expenses
Schedule Prepaid Expenses	March 31, December 31, 2024 2023 Prepaid corporate insurance $ 21 $ 68 Prepaid software services and support 395 245 Prepaid employee insurance premiums 180 - Prepaid Nasdaq listing fee 49 - User group meeting 92 84 Other prepaid expenses 162 111 Total prepaid expenses $ 899 $ 508

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property and Equipment
Property and Equipment	March 31, December 31, 2024 2023 Computer and office equipment 2,700 2,700 Computer software 625 625 Internal-use software 14 14 Furniture and fixtures 64 64 Vehicles 143 143 Leasehold improvements 15 15 Less: accumulated depreciation (2,971 ) (2,891 ) Total property and equipment, net $ 590 $ 670

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2024
Intangible Assets and Goodwill
Schedule of Intangible Assets	March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (5,798 ) $ 20,275 $ 26,073 $ (5,260 ) $ 20,813 Developed technologies 4,900 (2,473 ) 2,427 4,900 (2,269 ) 2,631 Trademark and trade names 400 (306 ) 94 400 (288 ) 112 Total acquired intangible assets $ 31,373 $ (8,577 ) $ 22,796 $ 31,373 $ (7,817 ) $ 23,556
Schedule of Amortization Of Intangible Assets	Year ending December 31, 2024 remaining $ 2,269 2025 2,770 2026 2,457 2027 2,202 2028 1,637 2029 and thereafter 11,461 Total $ 22,796
Changes in the carrying amount of Goodwill	Goodwill Balance at January 1, 2023 $ 9,454 Additions - Balance at December 31, 2023 $ 9,454 Additions - Balance at March 31, 2024 $ 9,454

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Accrued Expenses
Schedule of Accrued Expenses	March 31, December 31, 2024 2023 Accrued wages and benefits $ 1,598 $ 2,884 Accrued accounts payable 1,329 1,297 Accrued sales and telecommunications taxes 1,456 1,234 Product warranty liability 23 25 Credit cards 187 113 Other 409 398 Total accrued expenses $ 5,002 $ 5,951
Schedule of Product Warranty Liabilities	Warranty Liabilities Balance at January 1, 2023 $ 55 Accrual for warranties 25 Adjustments related to pre-existing warranties (32 ) Warranty settlements (23 ) Balance at December 31, 2023 25 Accrual for warranties 7 Warranty settlements (9 ) Balance at March 31, 2024 $ 23

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2024
Notes Payable
Schedule of Notes Payable	March 31, December 31, 2024 2023 Related party note payable $ 753 $ 843 Other notes payable 184 206 Total notes payable $ 937 $ 1,049 Less: current notes payable (462 ) (457 ) Notes payable, net of current portion $ 475 $ 592
Schedule of future Principal Payments Of Notes Payable	Year ending December 31, 2024 remaining $ 345 2025 478 2026 114 2027 - 2027 - Total $ 937

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Measurements
Schedule of Fair value of financial instruments	March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 4,216 $ 4,216 $ 3,476 $ 3,476 Equipment financing receivables 2,753 2,753 2,624 2,624 Liabilities: Finance lease obligations $ 80 $ 80 $ 98 $ 98 Notes payable 937 909 1,049 1,012

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases
Maturity Of Operating Lease and Finance Lease Liabilities	Year ending December 31, Operating Leases Finance Leases 2024 remaining $ 519 $ 57 2025 205 21 2026 179 3 2027 134 - 2028 - - Total minimum lease payments 1,037 81 Less: amount representing interest (52 ) (1 ) Present value of minimum lease payments $ 985 $ 80
Schedule Of Lease Term And Discount	Lease term and discount rate March 31, 2024 Weighted-average remaining lease term (years) Operating leases 2.5 Finance leases 1.1 Weighted-average discount rate Operating leases 4.7 % Finance leases 2.5 %
Schedule Of Cash Paid For Amounts Included In The Measurement Of Lease Liabilities	Three Months Ended March 31, 2024 Three Months Ended March 31, 2 023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 213 $ 140 Operating cash flows from finance leases 1 2 Financing cash flows from finance leases (18 ) (30 )

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting
Information On Reportable Segments And Reconciliation To Condensed Consolidated Net (loss) Income	Three Months Ended March 31, 2024 2023 Revenue: Cloud telecommunications services $ 9,140 $ 8,383 Software solutions 5,146 4,108 Consolidated revenue 14,286 12,491 Operating income/(loss) from operations: Cloud telecommunications services 78 (1,179 ) Software solutions 405 (395 ) Total operating income/(loss) 483 (1,574 ) Other income/(expense), net: Cloud telecommunications services (5 ) (39 ) Software solutions (17 ) 55 Total other income/(expense) (22 ) 16 Income/(loss) before income tax provision: Cloud telecommunications services 73 (1,218 ) Software solutions 388 (340 ) Income/(loss) before income tax provision $ 461 $ (1,558 )
Schedule of Revenue by geography	Three Months Ended March 31, 2024 2023 United States $ 13,431 $ 11,834 International 855 657 Total revenue $ 14,286 $ 12,491

Significant Accounting Polici_4

Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2024
Computer Software
Depreciable lives	3 years
Internal-use Software
Depreciable lives	3 years
Furniture and Fixtures
Depreciable lives	4 years
Vehicles
Depreciable lives	5 years
Computer and Office Equipment | Minimum [Member]
Depreciable lives	2 years
Computer and Office Equipment | Maximum [Member]
Depreciable lives	5 years
Leasehold Improvements | Minimum [Member]
Depreciable lives	2 years
Leasehold Improvements | Maximum [Member]
Depreciable lives	5 years

Significant Accounting Polici_5

Significant Accounting Policies (Details 1)	3 Months Ended
	Mar. 31, 2024
Customer Relationship [Member] | Minimum [Member]
Estimated useful lives	6 years
Customer Relationship [Member] | Maximum [Member]
Estimated useful lives	16 years
Developed Technologies [Member] | Minimum [Member]
Estimated useful lives	2 years
Developed Technologies [Member] | Maximum [Member]
Estimated useful lives	6 years
Trademark and trade names [Member]
Estimated useful lives	4 years

Significant Accounting Polici_6

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Significant Accounting Policies
Foreign currency translation gains/(losses)	$ 1	$ (21)
Cash federally insured limits	10,478		$ 9,035
Capitalized contract costs	3,997		3,618
Amortization in relation to costs capitalized	500	$ 388
Change in the valuation allowance for net deferred income tax assets	$ 4,782		$ 4,782
Revenue percentage generated from customers	10%	10%

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Desktop Services	$ 1,295	$ 1,225
Equipment Financing Revenue	152	105
Telecommunications Services	6,627	6,056
Fees, Commissions And Other Recognized Over Time	500	436
One time fees commissions and other	566	561
Software Licenses	891	1,033
Subscription Maintenance And Support	3,967	2,966
Professional Servicing And Other	288	109
Revenue	14,286	12,491
Products Services And Fees Recognized At a Point In Time	3,040	2,928
Products Services And Fees Transferred Over Time	11,246	9,563
Service Lines	14,286	12,491
Cloud Telecommunications Segment
Desktop Services	1,295	1,225
Equipment Financing Revenue	152	105
Telecommunications Services	6,627	6,056
Fees, Commissions And Other Recognized Over Time	500	436
One time fees commissions and other	566	561
Software Licenses	0	0
Subscription Maintenance And Support	0	0
Professional Servicing And Other	0	0
Revenue	9,140	8,383
Products Services And Fees Recognized At a Point In Time	1,861	1,786
Products Services And Fees Transferred Over Time	7,279	6,597
Service Lines	9,140	8,383
Software Solutions Segment [Member]
Desktop Services	0	0
Equipment Financing Revenue	0	0
Telecommunications Services	0	0
Fees, Commissions And Other Recognized Over Time	0	0
One time fees commissions and other	0	0
Software Licenses	947	1,033
Subscription Maintenance And Support	3,911	2,966
Professional Servicing And Other	288	109
Revenue	5,146	4,108
Products Services And Fees Recognized At a Point In Time	1,235	1,142
Products Services And Fees Transferred Over Time	3,911	2,966
Service Lines	$ 5,146	$ 4,108

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue
Receivables, Which Are Included In Trade Receivables, Net Of Allowance For Doubtful Accounts	$ 4,216	$ 3,476
Contract Assets	320	342
Contract Liabilities	$ 3,096	$ 2,588

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
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	(113)	(192)
Increase Due To Additional Unamortized Discounts	91	216
Contract Liabilities
Revenue Recognized That Was Included In The Contract Liability Balance At The Beginning Of The Period	(2,070)	(3,393)
Increase Due To Cash Received, Excluding Amounts Recognized As Revenue During The Period	2,578	2,396
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	Mar. 31, 2024	Dec. 31, 2023
Revenue
Gross contract assets	$ 402	$ 427
Less: allowance for credit losses	(82)	(85)
Contract assets, net of allowance for credit losses	$ 320	$ 342

Revenue (Details 4)

Revenue (Details 4) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Revenue
Opening balance	$ 85
Provision	1
Write- offs	(4)
Recoveries and others	0
Closing balance	$ 82

Revenue (Details 5)

Revenue (Details 5) $ in Thousands	Mar. 31, 2024 USD ($)
2024	$ 26,299
2025	20,054
2026	12,332
2027	6,669
2028 And Thereafter	2,022
Total	67,376
Software Solutions [Member]
2024	9,160
2025	5,578
2026	3,176
2027	1,187
2028 And Thereafter	194
Total	19,295
Desktop Devices
2024	1,512
2025	0
2026	0
2027	0
2028 And Thereafter	0
Total	1,512
Telecommunications Services
2024	15,627
2025	14,476
2026	9,156
2027	5,482
2028 And Thereafter	1,828
Total	$ 46,569

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings per common share:
Net income/(loss)	$ 434	$ (1,582)
Weighted-average share reconciliation:
Weighted-average basic shares outstanding (B)	26,314,903	25,734,049
Dilutive effect of stock-based awards	3,827,197	0
Diluted weighted-average outstanding shares of common stock (C)	30,142,100	25,734,049
Earnings per common share:
Basic (A/B)	$ 0.02	$ (0.06)
Diluted (A/C)	$ 0.01	$ (0.06)

Earnings Per Common Share (De_2

Earnings Per Common Share (Details 1) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Options
Securities excluded from earnings	1,317,937	4,196,055

Trade Receivables and Allowan_3

Trade Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Gross trade receivables	$ 4,341	$ 3,592
Less allowance for credit losses	(125)	(116)
Trade receivables, net	4,216	3,476
Current trade receivables, net	4,216	3,476
Long-term trade receivables, net	0	0
Accounts Receivable [Member]
Trade receivables, net	$ 4,216	$ 3,476

Trade Receivables and Allowan_4

Trade Receivables and Allowance for Credit Losses (Details 1) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Trade Receivables and Allowance for Credit Losses
Begaining balance	$ 116
Provision	57
Write-offs	(48)
Recoveries and others	0
Ending balance	$ 125

Trade Receivables and Allowan_5

Trade Receivables and Allowance for Credit Losses (Details Narrative)	Mar. 31, 2024	Dec. 31, 2023
Trade Receivables and Allowance for Credit Losses
Percent of gross accounts receivable	2.90%	3.20%

Equipment Financing Receivabl_3

Equipment Financing Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Gross Equipment Financing Receivables	$ 4,215	$ 3,888
Less Unearned Income	(1,282)	(1,093)
Less: allowance for credit losses	(180)	(171)
Equipment Financing Receivables, Net	2,753	2,624
Current Equipment Financing Receivables, Net	884	856
Long-term Equipment Financing Receivables, Net	1,869	1,768
Equipment Financing Receivables, Net	$ 2,753	$ 2,624

Equipment Financing Receivabl_4

Equipment Financing Receivables and Allowance for Credit Losses (Details 1) $ in Thousands	Mar. 31, 2024 USD ($)
Equipment Financing Receivables and Allowance for Credit Losses
2024 remaining	$ 1,157
2025	1,261
2026	904
2027	610
2028	283
2029 and thereafter	0
Total	$ 4,215

Equipment Financing Receivabl_5

Equipment Financing Receivables and Allowance for Credit Losses (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Opening balance	$ 85
Provision	57
Write- offs	(4)
Recoveries and others	0
Closing balance	82
Allowance for Credit Losses
Opening balance	171
Provision	21
Write- offs	(13)
Recoveries and others	0
Closing balance	$ 179

Equipment Financing Receivabl_6

Equipment Financing Receivables and Allowance for Credit Losses (Details 3) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Aging of receivables dues	$ 2,753	$ 2,624
Past due amounts 0-90 days
Aging of receivables dues	2,749	2,623
Past due amounts >90 days
Aging of receivables dues	$ 4	$ 1

Equipment Financing Receivabl_7

Equipment Financing Receivables and Allowance for Credit Losses (Details 4) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Total equipment financing receivables	$ 2,932	$ 2,795
Current period gross write offs equipment financing receivables	13	$ 33
2023 [Member]
Current period gross write offs equipment financing receivables	8
2023 [Member] | Financing Receivables United States
Total equipment financing receivables	1,447
2022 [Member]
Current period gross write offs equipment financing receivables	3
2022 [Member] | Financing Receivables United States
Total equipment financing receivables	704
2021 [Member]
Current period gross write offs equipment financing receivables	1
2021 [Member] | Financing Receivables United States
Total equipment financing receivables	173
2020 [Member]
Current period gross write offs equipment financing receivables	0
2020 [Member] | Financing Receivables United States
Total equipment financing receivables	146
Prior [Member]
Current period gross write offs equipment financing receivables	1
Prior [Member] | Financing Receivables United States
Total equipment financing receivables	36
2024 [Member]
Current period gross write offs equipment financing receivables	0
2024 [Member] | Financing Receivables United States
Total equipment financing receivables	$ 426

Equipment Financing Receivabl_8

Equipment Financing Receivables and Allowance for Credit Losses (Details Narrative)	Mar. 31, 2024	Dec. 31, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Allowance for credit losses	6.10%	6.10%

Prepaid Expenses (Details)

Prepaid Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Prepaid Expenses
Prepaid corporate insurance	$ 21	$ 68
Prepaid software services and support	395	245
Prepaid employee insurance premiums	180	0
Prepaid Nasdaq listing fee	49	0
User group meeting	92	84
Other prepaid expenses	162	111
Total Prepaid expenses	$ 899	$ 508

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Less: Accumulated Depreciation	$ (2,971)	$ (2,891)
Total Property And Equipment, Net	590	670
Computer Software
Property And Equipment, Gross	625	625
Internal-use Software
Property And Equipment, Gross	14	14
Furniture and Fixtures
Property And Equipment, Gross	64	64
Vehicles
Property And Equipment, Gross	143	143
Computer and Office Equipment
Property And Equipment, Gross	2,700	2,700
Leasehold Improvements
Property And Equipment, Gross	$ 15	$ 15

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property and Equipment
Depreciation And Amortization Expense	$ 110	$ 107

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Amount Of Intangible, Net	$ 22,796
Customer Relationships
Carrying Amount Of Intangible, Gross	26,073	$ 26,073
Less: Accumulated Amortization	(5,798)	(5,260)
Carrying Amount Of Intangible, Net	20,275	20,813
Developed Technologies
Carrying Amount Of Intangible, Gross	4,900	4,900
Less: Accumulated Amortization	(2,473)	(2,269)
Carrying Amount Of Intangible, Net	2,427	2,631
Trademark and trade names [Member]
Carrying Amount Of Intangible, Gross	400	400
Less: Accumulated Amortization	(306)	(288)
Carrying Amount Of Intangible, Net	94	112
Total acquired intangible assets [Member]
Carrying Amount Of Intangible, Gross	31,373	31,373
Less: Accumulated Amortization	(8,577)	(7,817)
Carrying Amount Of Intangible, Net	$ 22,796	$ 23,556

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 1) $ in Thousands	Mar. 31, 2024 USD ($)
Intangible Assets and Goodwill
2024	$ 2,269
2025	2,770
2026	2,457
2027	2,202
2028	1,637
2029 and thereafter	11,461
Total	$ 22,796

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Intangible Assets and Goodwill
Goodwill, beginning balance	$ 9,454	$ 9,454
Additions	0	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
	Mar. 31, 2024	Mar. 31, 2023
Sales and marketing expenses	$ 4,027	$ 3,809
General and administrative expenses	3,296	3,997
Customer Relationship [Member]
Sales and marketing expenses	$ 527	539
Weighted Average Remaining Useful Life	13 years 1 month 6 days
Developed Technologies
Software Solution Revenue	$ 203	215
Weighted Average Remaining Useful Life	3 years 4 months 24 days
Trademarks and trade names [Member]
Weighted Average Remaining Useful Life	1 year 4 months 24 days
General and administrative expenses	$ 30	$ 38

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accrued Expenses
Accrued Wages And Benefits	$ 1,598	$ 2,884
Accrued Accounts Payable	1,329	1,297
Accrued Sales And Telecommunications Taxes	1,456	1,234
Product Warranty Liability	23	25
Credit cards	187	113
Other	409	398
Total Accrued Expenses	$ 5,002	$ 5,951

Accrued Expenses (Details 1)

Accrued Expenses (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Accrued Expenses
Products warranty liabilities Beginning Balance	$ 25,000	$ 55,000
Accrual For Warranties	7,000	25,000
Adjustments Related To Pre-existing Warranties		(32,000)
Warranty Settlements	(9,000)	(23,000)
Products warranty liabilities Ending Balance	$ 23,000	$ 25,000

Accrued Expenses (Details Narra

Accrued Expenses (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accrued Expenses
Product Warranty Expense	$ 7	$ 14

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes Payable
Related party note payable	$ 753	$ 843
Other note payable	184	206
Notes Payable	937	1,049
Less: Current Notes Payable	(462)	(457)
Notes Payable, Net Of Current Portion	$ 475	$ 592

Notes Payable (Details 1)

Notes Payable (Details 1) $ in Thousands	Mar. 31, 2024 USD ($)
Notes Payable
2024 remaining	$ 345
2025	478
2026	114
2027	0
2028	0
Total	$ 937

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)		3 Months Ended
	Nov. 01, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Related party note payable		$ 753,000		$ 843,000
On February 27, 2023
Agreement Term		3 years
Promissory note		$ 278,000
Interest Rate		6.58%
Quartely Payment		$ 85,430
Allegiant Networks business acquisition [Member]
Related party note payable		753,000			$ 843,000
Agreement Term	3 years
Promissory note	$ 1,100,000
Interest Rate	4%
Quartely Payment	$ 983,810
Principal amount paid		900	$ 0
Interest paid		$ 80	$ 0

Line of Credit (Details Narrati

Line of Credit (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Line of Credit
Outstanding balance	$ 0
Line of credit with a maximum principal amount	$ 700
Line of credit expiry term	Feb. 27, 2025
Line of credit bears interest rate	0.50%
Remaining available for borrowing	$ 700

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Value
Trade Receivables, Net	$ 4,216	$ 3,476
Equipment Financing Receivables	2,753	2,624
Finance lease obligations	80	98
Notes Payable	937	1,049
Estimated Fair Value
Trade Receivables, Net	4,216	3,476
Equipment Financing Receivables	2,753	2,624
Finance lease obligations	80	98
Notes Payable	$ 909	$ 1,012

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Taxes
Effective Income Tax Rate Reconciliation	5.80%	1.50%
Valuation allowance	$ 4,782,000		$ 4,782,000
Deferred taxes, realizable amount	4,782,000
Income tax benefit/(provision)	$ (27,000)	$ (24,000)

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
2024	$ 519
2025	205
2026	179
2027	134
2028	0
Total Minimum Lease Payment	1,037
Less: Amount Representing Interest	(52)
Present Value Of Minimum Lease Payments	985
Finance Leases
2024	57
2025	21
2026	3
2027	0
2028	0
Total Minimum Lease Payment	81
Less: Amount Representing Interest	(1)
Present Value Of Minimum Lease Payments	$ 80	$ 98

Leases (Details 1)

Leases (Details 1)	3 Months Ended
	Mar. 31, 2024
Leases
Weighted-average Remaining Lease Term - Operating Leases	2 years 6 months
Weighted-average Remaining Lease Term - Finance Leases	1 year 1 month 6 days
Weighted-average Discount Rate - Operating Leases	4.70%
Weighted-average Discount Rate- Finance Leases	2.50%

Leases (Details 2)

Leases (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases
Operating Cash Flows From Operating Leases	$ 213	$ 140
Operating Cash Flows From Finance Leases	1	2
Financing Cash Flows From Finance Leases	$ (18)	$ (30)

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finance lease	$ 80		$ 98
Assets classified as property and equipment under finance lease obligations	486		486
Related accumulated depreciation	353		$ 337
Prepaid expense	40
Amortization Expense Included In General And Administrative Expenses	1	$ 1
Interest Expense	1	1
Reston, Virginia [Member]
Rental Expense Incurred On Operating Leases	$ 13	3
Description Of lease Expiry Date	lease agreement that expires in 2025
Tempe Arizona Member
Rental Expense Incurred On Operating Leases	$ 78	0
Description Of lease Expiry Date	lease agreement that expires in 2025
Incremental borrowing rate	6.58%
San Diego, California [Member]
Rental Expense Incurred On Operating Leases	$ 22	21
Description Of lease Expiry Date	lease agreement that expires in 2024
Overland Park, Kansas [Member]
Rental Expense Incurred On Operating Leases	$ 51	45
Description Of lease Expiry Date	lease agreement that expires in 2027
Michigan Las Vegas Member
Rental Expense Incurred On Operating Leases	$ 144	62
Description Of lease Expiry Date	lease agreements that expire in 2024
Other Operating Leases [Member]
Description Of lease Expiry Date	The leases expire on various dates through 2027 and the interest rates range from 3.00% to 15.74%
Cost of product	$ 21	$ 21
Maximum [Member]
Interest Rate- Finance Leases	1.37%
Minimum [Member]
Interest Rate- Finance Leases	15.74%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Oracle [Member] $ in Millions	1 Months Ended
	Feb. 29, 2024 USD ($)
Non cancellable service contract amount	$ 5
Description related to noncancellable service contract	Under this agreement, $200 remains due during fiscal year 2024, $700 will be due during fiscal 2025, $1.1 million will be due during fiscal 2026, $1.2 million will be due during fiscal 2027, $1.4 million will be due during fiscal 2028, and $400 will be due during fiscal 2029

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total revenue	$ 14,286	$ 12,491
Gain/(loss) from operations	483	(1,574)
Total other income/(expense), net	(22)	16
Total other income/(expense), net	(9)	58
Income/(loss) before income tax	461	(1,558)
Cloud Telecommunications Service Segment
Total revenue	9,140	8,383
Gain/(loss) from operations	78	(1,179)
Total other income/(expense), net	(5)	(39)
Income/(loss) before income tax	73	(1,218)
Software Solution Segment
Total revenue	5,146	4,108
Gain/(loss) from operations	405	(395)
Total other income/(expense), net	(17)	55
Income/(loss) before income tax	$ 388	$ (340)

Segment (Details 1)

Segment (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total revenue	$ 14,286	$ 12,491
International [Member]
Total revenue	855	657
United States [Member]
Total revenue	$ 13,431	$ 11,834

Segments (Details Narrative)

Segments (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Depreciation and amortization	$ 110	$ 107
Interest expense	13	42
Cloud Telecommunications Service Segment
Depreciation and amortization	356	401
Interest expense	13	42
Interest income	5	0
Software Solution Segment
Depreciation and amortization	484	507
Interest expense	0	0
Interest income	$ 0	$ 0