Crexendo (CXDO) 10-Q 6 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 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	Sep. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		27,101,648
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 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
Entity Address Address Line 1	1225 West Washington Street
Entity Address Address Line 2	Suite 213

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 15,451	$ 10,347
Trade receivables, net of allowance of $72 and $116, respectively	3,753	3,476
Inventories	518	382
Equipment financing receivables, net of allowance of $66 and $56, respectively	981	856
Contract costs	1,746	1,345
Prepaid expenses	1,327	508
Income tax receivable	53	0
Other current assets	35	35
Total current assets	23,864	16,949
Contract assets, net of allowance of $111 and $85, respectively	362	342
Long-term equipment financing receivables, net of allowance of $149 and $115, respectively	2,228	1,768
Property and equipment, net	438	670
Operating lease right-of-use assets	1,676	1,009
Intangible assets, net	21,283	23,556
Goodwill	9,454	9,454
Contract costs, net of current portion	2,739	2,273
Other long-term assets	208	139
Total Assets	62,252	56,160
Current liabilities:
Accounts payable	746	769
Accrued expenses	6,669	5,951
Finance leases	39	75
Notes payable	473	457
Operating lease liabilities	555	566
Income tax payable	0	53
Contract liabilities	2,668	2,390
Total current liabilities	11,150	10,261
Contract liabilities, net of current portion	255	198
Finance leases, net of current portion	3	23
Notes payable, net of current portion	236	592
Operating lease liabilities, net of current portion	1,139	473
Total liabilities	12,783	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, 27,031,433 shares issued and outstanding as of September 30, 2024 and 26,130,218 shares issued and outstanding as of December 31, 2023	27	26
Additional paid-in capital	136,587	132,888
Accumulated deficit	(87,297)	(88,467)
Accumulated other comprehensive income	152	166
Total stockholders' equity	49,469	44,613
Total Liabilities and Stockholders' Equity	$ 62,252	$ 56,160

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Allowance For Doubtful Accounts - Trade Receivables	$ 72	$ 116
Allowance For Equipment Financing Receivable	66	56
Allowance For Contract Assets	111	85
Allowance For Long Term Equipment Financing Receivable	$ 149	$ 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	27,031,433	26,130,218
Common Stock, Outstanding	27,031,433	26,130,218

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Operations (Unaudited)
Service revenue	$ 7,953	$ 7,517	$ 23,865	$ 21,983
Software solutions revenue	5,860	4,691	16,331	12,729
Product revenue	1,814	1,666	4,402	4,323
Total revenue	15,627	13,874	44,598	39,035
Operating expenses:
Cost of service revenue	3,336	3,173	9,691	9,312
Cost of software solutions revenue	1,686	1,327	4,523	3,805
Cost of product revenue	1,081	923	2,507	2,643
Selling and marketing	4,221	3,502	12,206	10,924
General and administrative	3,695	3,309	10,423	10,473
Research and development	1,473	1,276	4,050	3,605
Total operating expenses	15,492	13,510	43,400	40,762
Income/(loss) from operations	135	364	1,198	(1,727)
Other income/(expense):
Interest expense	(7)	(36)	(31)	(111)
Gain on sale of property and equipment	0	1,459	0	1,459
Other income/(expense), net	66	(50)	103	37
Total other income/(expense), net	59	1,373	72	1,385
Income/(loss) before income tax	194	1,737	1,270	(342)
Income tax (provision)/benefit	(46)	(33)	(100)	(81)
Net income/(loss)	$ 148	$ 1,704	$ 1,170	$ (423)
Earnings per common share:
Basic	$ 0.01	$ 0.07	$ 0.04	$ (0.02)
Diluted	$ 0	$ 0.06	$ 0.04	$ (0.02)
Weighted-average common shares outstanding:
Weighted-average common shares outstanding: Basic	26,848,644	25,995,507	26,610,130	25,901,686
Weighted-average common shares outstanding: Diluted	29,857,261	27,682,764	29,827,531	25,901,686

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Net income/(loss)	$ 148	$ 1,704	$ 1,170	$ (423)
Other comprehensive income, net of tax
Foreign currency translation gain/(loss)	(14)	23	(14)	(1)
Total other comprehensive income/(loss)	(14)	23	(14)	(1)
Comprehensive income/(loss)	$ 134	$ 1,727	$ 1,156	$ (424)

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 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, 2022		25,670,773
Balance, amount at Dec. 31, 2022	41,459	$ 26	129,192	187	(87,946)
Share-based compensation	3,112
Taxes paid on the net settlement of stock options and RSUs	264
Net loss	(423)
Balance, shares at Sep. 30, 2023		26,030,104
Balance, amount at Sep. 30, 2023	43,687	$ 26	132,003	186	(88,528)
Balance, shares at Mar. 31, 2023		25,972,604
Balance, amount at Mar. 31, 2023	40,894	$ 26	130,389	166	(89,687)
Share-based compensation	855	0	855	0	0
Foreign currency translation adjustment, net of tax	(3)	$ 0	0	(3)	0
Issuance of common stock for exercise of stock options, shares		200
Issuance of common stock for exercise of stock options, amount	0	$ 0	0	0	0
Taxes paid on the net settlement of stock options and RSUs	(7)	0	(7)	0	0
Net loss	(545)	0		0	(545)
Dividends declared	(130)	$ 0	(130)	0	0
Balance, shares at Jun. 30, 2023		25,972,804
Balance, amount at Jun. 30, 2023	41,064	$ 26	131,107	163	(90,232)
Share-based compensation	843	0	843	0	0
Foreign currency translation adjustment, net of tax	23	$ 0	0	23	0
Issuance of common stock for exercise of stock options, shares		57,300
Issuance of common stock for exercise of stock options, amount	53	$ 0	53	0	0
Net loss	1,704	$ 0		0	1,704
Balance, shares at Sep. 30, 2023		26,030,104
Balance, amount at Sep. 30, 2023	43,687	$ 26	132,003	186	(88,528)
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
Vesting of restricted stock units, amount	0	0	0	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 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)
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	2,293
Taxes paid on the net settlement of stock options and RSUs	166
Net loss	1,170
Balance, shares at Sep. 30, 2024		27,031,433
Balance, amount at Sep. 30, 2024	49,469	$ 27	136,587	152	(87,297)
Balance, shares at Mar. 31, 2024		26,628,022
Balance, amount at Mar. 31, 2024	46,765	$ 27	134,604	167	(88,033)
Share-based compensation	784	$ 0	784	0	0
Vesting of restricted stock units, shares		23,579
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	(1)	$ 0	0	(1)	0
Issuance of common stock for exercise of stock options, shares		61,084
Issuance of common stock for exercise of stock options, amount	84	$ 0	84	0	0
Taxes paid on the net settlement of stock options and RSUs	(32)	0	(32)	0	0
Net loss	588	$ 0		0	588
Balance, shares at Jun. 30, 2024		26,712,685
Balance, amount at Jun. 30, 2024	48,188	$ 27	135,440	166	(87,445)
Share-based compensation	781	$ 0	781	0	0
Vesting of restricted stock units, shares		24,856
Vesting of restricted stock units, amount	0	$ 0	0	0	0
Foreign currency translation adjustment, net of tax	(14)	$ 0	0	(14)	0
Issuance of common stock for exercise of stock options, shares		293,892
Issuance of common stock for exercise of stock options, amount	440	$ 0	440	0	0
Taxes paid on the net settlement of stock options and RSUs	(74)	0	(74)	0	0
Net loss	148	$ 0		0	148
Balance, shares at Sep. 30, 2024		27,031,433
Balance, amount at Sep. 30, 2024	$ 49,469	$ 27	$ 136,587	$ 152	$ (87,297)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)	$ 1,170	$ (423)
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities:
Depreciation and amortization	2,505	2,695
Allowance for credit losses	8	44
Share-based compensation	2,293	3,112
Non-cash operating lease amortization	(12)	(3)
Gain on sale of property and equipment	0	(1,459)
Changes in assets and liabilities:
Trade receivables	(247)	(584)
Contract assets	(35)	2
Equipment financing receivables	(608)	(770)
Inventories	(136)	207
Contract costs	(867)	(994)
Prepaid expenses	(819)	(560)
Income tax receivable	(53)	0
Other assets	(69)	210
Accounts payable and accrued expenses	695	(169)
Income tax payable	(53)	(12)
Contract liabilities	335	(409)
Net cash provided by/(used for) operating activities	4,107	887
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	0	(92)
Proceeds from the sale of property and equipment	0	3,792
Net cash provided by/(used for) investing activities	0	3,700
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing on line of credit, net	0	(82)
Repayments made on finance leases	(56)	(76)
Proceeds from notes payable	0	278
Repayments made on notes payable	(340)	(2,143)
Proceeds from exercise of options	1,573	93
Dividend payments	0	(130)
Taxes paid on the net settlement of stock options and RSUs	(166)	(264)
Net cash provided by/(used for) financing activities	1,011	(2,324)
Effect of exchange rate changes on cash	(14)	(1)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	5,104	2,262
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	10,347	5,475
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	15,451	7,737
Cash used during the year for:
Income taxes, net	(205)	(91)
Interest expense	$ (25)	$ (111)

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Description of Business – Basis of Presentation – Foreign Currency Translation - Due to changes in exchange rates between reporting periods and changes in certain account balances, the foreign currency translation adjustment will change from period to period. During the three months ended September 30, 2024 and 2023, the Company recorded foreign currency translation gains/(losses) of ($14) and $23, respectively, and during the nine months ended September 30, 2024 and 2023, the Company recorded foreign currency gains/(losses) of ($14) and ($1), respectively, on our statements of comprehensive income (loss). Cash and Cash Equivalents – Trade Receivables and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Trade receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our trade receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment Financing Receivables and Allowance for Credit Losses – We provide an allowance for credit losses based on historical loss experience, adverse situations that may affect a client's ability to pay, current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment financing receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our equipment financing receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. Contract Assets and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Contract assets are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our contract assets credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Contract Costs – Inventory – Property and Equipment – 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 condensed consolidated statements of operations. Stock-Based Compensation – Operating Segments – Significant Customers – Recently Adopted Accounting Pronouncements – 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	9 Months Ended
	Sep. 30, 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-nine to ninety 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 September 30, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,814 $ - $ 1,814 Equipment financing revenue 173 - 173 Telecommunications services 6,752 - 6,752 Fees, commissions, and other, recognized over time 578 - 578 One time fees, commissions and other 450 - 450 Software licenses - 1,466 1,466 Software license and maintenance and support subscriptions - 4,102 4,102 Professional services and other - 292 292 $ 9,767 $ 5,860 $ 15,627 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,264 $ 1,758 $ 4,022 Products, services, and fees transferred over time 7,503 4,102 11,605 $ 9,767 $ 5,860 $ 15,627 Three Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,666 $ - $ 1,666 Equipment financing revenue 133 - 133 Telecommunications services 6,299 - 6,299 Fees, commissions, and other, recognized over time 479 - 479 One time fees, commissions and other 606 - 606 Software licenses - 971 971 Software license and maintenance and support subscriptions - 3,490 3,490 Professional services and other - 230 230 $ 9,183 $ 4,691 $ 13,874 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,272 $ 1,201 $ 3,473 Products, services, and fees transferred over time 6,911 3,490 10,401 $ 9,183 $ 4,691 $ 13,874 Nine Months Ended September 30, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 4,402 $ - $ 4,402 Equipment financing revenue 487 - 487 Telecommunications services 20,128 - 20,128 Fees, commissions, and other, recognized over time 1,597 - 1,597 One time fees, commissions and other 1,653 - 1,653 Software licenses - 3,559 3,559 Software license and maintenance and support subscriptions - 11,940 11,940 Professional services and other - 832 832 $ 28,267 $ 16,331 $ 44,598 Timing of revenue recognition Products and fees recognized at a point in time $ 6,055 $ 4,391 $ 10,446 Services and fees transferred over time 22,212 11,940 34,152 $ 28,267 $ 16,331 $ 44,598 Nine Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 4,323 $ - $ 4,323 Equipment financing revenue 356 - 356 Telecommunications services 18,587 - 18,587 Fees, commissions, and other, recognized over time 1,392 - 1,392 One time fees, commissions and other 1,648 - 1,648 Software licenses - 2,662 2,662 Software license and maintenance and support subscriptions - 9,506 9,506 Professional services and other - 561 561 $ 26,306 $ 12,729 $ 39,035 Timing of revenue recognition Products and fees recognized at a point in time $ 5,971 $ 3,223 $ 9,194 Services and fees transferred over time 20,335 9,506 29,841 $ 26,306 $ 12,729 $ 39,035 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: September 30, December 31, (In thousands) 2024 2023 Receivables, which are included in trade receivables, net of allowance for credit losses $ 3,753 $ 3,476 Contract assets, net of allowance for credit losses 362 342 Contract liabilities 2,923 2,588 Significant changes in the contract assets and the contract liabilities balances during the period are as follows: For the Nine Months Ended For the Year Ended (In thousands) September 30, 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 $ - $ (2,528 ) $ - $ (3,393 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,863 - 2,396 Transferred to receivables from contract assets recognized at the beginning of the period, net of allowance for credit losses (227 ) - (192 ) - Increase due to additional unamortized discounts 247 - 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): September 30, December 31, 2024 2023 Gross contract assets $ 473 $ 427 Less: allowance for credit losses (111 ) (85 ) Contract assets, net of allowance for credit losses $ 362 $ 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 Provision 18 Write-offs - Recoveries and other - Balance at June 30, 2024 $ 100 Provision 11 Write-offs - Recoveries and other - Balance at September 30, 2024 $ 111 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 23.4% at September 30, 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 (in thousands): 2024 2025 2026 2027 2028 and thereafter Total Desktop devices $ 1,067 $ - $ - $ - $ - $ 1,067 Telecommunications services 7,445 19,462 12,782 8,081 4,126 51,896 Software Solutions 5,022 9,804 5,556 3,054 972 24,408 Total 13,534 29,266 18,338 11,135 5,098 77,371 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 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/(loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed giving effect to all dilutive common stock equivalents, consisting of common stock options. Diluted net loss per common share for the nine months ended September 30, 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/(loss) per common share: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income/(loss) (in thousands) (A) $ 148 $ 1,704 $ 1,170 $ (423 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 26,848,644 25,995,507 26,610,130 25,901,686 Dilutive effect of stock-based awards 3,008,617 1,687,258 3,217,402 - Diluted weighted-average outstanding shares of common stock (C) 29,857,261 27,682,765 29,827,532 25,901,686 Earnings per common share: Basic (A/B) $ 0.01 $ 0.07 $ 0.04 $ (0.02 ) Diluted (A/C) $ 0.00 $ 0.06 $ 0.04 $ (0.02 ) For the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Stock options 2,871,939 4,708,364 2,775,229 4,582,503

Trade Receivables and Allowance

Trade Receivables and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 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): September 30, December 31, 2024 2023 Gross trade receivables $ 3,825 $ 3,592 Less: allowance for credit losses (72 ) (116 ) Trade receivables, net $ 3,753 $ 3,476 Current trade receivables, net $ 3,753 $ 3,476 Long-term trade receivables, net - - Trade receivables, net $ 3,753 $ 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 Provision 18 Write-offs (18 ) Recoveries and other (39 ) Balance at June 30, 2024 $ 86 Provision 14 Write-offs (11 ) Recoveries and other (17 ) Balance at September 30, 2024 $ 72 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 trade receivables decreased to 1.9% at September 30, 2024 from 3.2% at December 31, 2023.

Equipment Financing Receivables

Equipment Financing Receivables and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 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): September 30, December 31, 2024 2023 Gross equipment financing receivables $ 4,916 $ 3,888 Less: unearned income (1,492 ) (1,093 ) Less: allowance for credit losses (215 ) (171 ) Equipment financing receivables, net $ 3,209 $ 2,624 Current equipment financing receivables, net $ 981 $ 856 Long-term equipment financing receivables, net 2,228 1,768 Equipment financing receivables, net $ 3,209 $ 2,624 A summary of our gross equipment financing receivables’ future contractual maturities, is as follows (in thousands): Year ending December 31 2024 remaining $ 467 2025 1,608 2026 1,247 2027 899 2028 533 2029 and thereafter 162 Total $ 4,916 Allowance for Credit Losses The allowance for credit losses was as follows (in thousands): Balance at December 31, 2023 $ 171 Provision 22 Write-offs (13 ) Recoveries and other - Balance at March 31, 2024 $ 180 Provision 23 Write-offs (9 ) Recoveries and other - Balance at June 30, 2024 $ 194 Provision 27 Write-offs (6 ) Recoveries and other - Balance at September 30, 2024 $ 215 Aging of Receivables The aging of gross equipment financing receivables was as follows (in thousands): September 30, December 31, 2024 2023 Past due amounts 0 - 90 days $ 3,209 $ 2,623 Past due amounts > 90 days - 1 Total $ 3,209 $ 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 as a percent of gross equipment financing receivables (net of unearned income) increased to 6.3% at September 30, 2024 from 6.1% at 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): September 30, 2024 December 31, 2023 2024 2023 2022 2021 2020 2019 Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 1,378 1,267 571 113 92 3 $ 3,424 $ 2,795 Current period gross write offs $ - 6 - - - - $ 6 $ 33

Prepaid Expenses

Prepaid Expenses	9 Months Ended
	Sep. 30, 2024
Prepaid Expenses
Prepaid Expenses	6. Prepaid Expenses Prepaid expenses consisted of the following (in thousands): September 30, December 31, 2024 2023 Prepaid corporate insurance $ 155 $ 68 Prepaid software services and support 345 245 Prepaid employee insurance premiums 172 - Prepaid Nasdaq listing fee 16 - User group meeting fees 376 84 Prepaid rent 180 - Other prepaid expenses 83 111 Total prepaid expenses $ 1,327 $ 508

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2024
Property and Equipment
Property and Equipment	7. Property and Equipment Property and equipment consisted of the following (in thousands): September 30, 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 (3,123 ) (2,891 ) Total property and equipment, net $ 438 $ 670 Depreciation expense is included in general and administrative expenses and totaled $74 and $94 for the three months ended September 30, 2024 and 2023, respectively, and $232 and $318 for the nine months ended September 30, 2024 and 2023, respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 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): September 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (6,869 ) $ 19,204 $ 26,073 $ (5,260 ) $ 20,813 Developed technologies 4,900 (2,878 ) 2,022 4,900 (2,269 ) 2,631 Trademark and trade names 400 (343 ) 57 400 (288 ) 112 Total acquired intangible assets $ 31,373 $ (10,090 ) $ 21,283 $ 31,373 $ (7,817 ) $ 23,556 As of September 30, 2024, the weighted average remaining useful life for customer relationships was 12.6 years and developed technologies was 2.7 years and trademarks and trade names was 0.7 years. Amortization expense for customer relationships intangible assets is included in selling and marketing expenses and totaled $526 and $552 for the three months ended September 30, 2024 and 2023, respectively, and $1,579 and $1,630 for the nine months ended September 30, 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 September 30, 2024 and 2023, respectively, and $609 and $662 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense for trademark and trade name intangible assets is included in general and administrative expenses and totaled $26 and $25 for the three months ended September 30, 2024 and 2023, respectively, and $85 and $102 for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 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 $ 755 2025 2,770 2026 2,457 2027 2,202 2028 1,637 2029 and thereafter 11,462 Total $ 21,283 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 September 30, 2024 $ 9,454

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2024
Accrued Expenses
Accrued Expenses	9. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, December 31, 2024 2023 Accrued wages and benefits $ 2,251 $ 2,884 Accrued accounts payable 1,779 1,297 Accrued sales and telecommunications taxes 1,800 1,234 Product warranty liability 32 25 Cloud computing arrangements 279 - Credit cards 176 113 Other 352 398 Total accrued expenses $ 6,669 $ 5,951 The changes in aggregate product warranty liabilities for the year ended December 31, 2023 and the nine months ended September 30, 2024 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 24 Warranty settlements (17 ) Balance at September 30, 2024 $ 32 Product warranty expense is included in cost of product revenue expense and totaled $9 and $11 for the three months ended September 30, 2024 and 2023, respectively, and $24 and $38 for the nine months ended September 30, 2024 and 2023, respectively.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2024
Notes Payable
Notes Payable	10. Notes Payable Notes payable consists of short and long-term financing arrangements: September 30, December 31, 2024 2023 Related party note payable $ 570 $ 843 Other notes payable 139 206 Total notes payable $ 709 $ 1,049 Less: current notes payable (473 ) (457 ) Notes payable, net of current portion $ 236 $ 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 September 30, 2024 and December 31, 2023, the outstanding balance of the related party note payable was $570 and $843, respectively. During the three months ended September 30, 2024 and 2023, the Company paid principal of $92 and $80, respectively, and interest of $6 and $18, respectively. During the nine months ended September 30, 2024 and 2023, the Company paid principal of $272 and $257, respectively, and interest of $22 and $37, respectively. As of September 30, 2024, future principal payments are scheduled as follows (in thousands): Year ending December 31, 2024 remaining $ 116 2025 478 2026 115 2027 - 2028 and thereafter - Total $ 709

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 2024
Fair Value Measurements
Fair Value Measurements	12. Fair Value Measurements We have financial instruments as of September 30, 2024 and December 31, 2023 for which the fair value is summarized below (in thousands): September 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 3,753 $ 3,753 $ 3,476 $ 3,476 Equipment financing receivables 3,209 3,209 2,624 2,624 Liabilities: Finance lease obligations $ 42 $ 42 $ 98 $ 98 Notes payable 709 697 1,049 1,012 We have no liabilities for which fair value is recognized in the balance sheet on a recurring basis as of September 30, 2024 and December 31, 2023.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Taxes
Income Taxes	13. Income Taxes Our effective tax rate for the three months ended September 30, 2024 and 2023 was 23.7% and 1.9%, respectively, which resulted in an income tax benefit/(provision) of $(46) and $(33), respectively. Our effective tax rate for the nine months ended September 30, 2024 and 2023 was 7.9% and (23.7%), respectively, which resulted in an income tax benefit/(provision) of $(100) and $(81), 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 September 30, 2024 and December 31, 2023.

Leases

Leases	9 Months Ended
	Sep. 30, 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 ninety-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. On July 19, 2024, we entered into a non-cancelable commercial sublease operating agreement to sublease office space in Tempe Arizona, which will be the headquarters for the Company. This sublease commences on October 1, 2024, and continues for thirty-seven (37) months through October 31, 2027. The base monthly rent is as follows: October 1, 2024 – September 30, 2025, $28; October 1, 2025 – September 30, 2026, $29, and October 1, 2026 – October 31, 2027, $30. The Company is entitled to three months of rent abatement, which will be January 2025, January 2026, and January 2027. The location is fully furnished and ready for immediate occupancy. If Operating Costs exceed $20 in a calendar year, then the Company shall be responsible for fifty (50%) percent of the amount exceeding $20. We currently lease office space in Reston, Virginia under a non-cancelable operating lease agreement that expires in 2024. The operating lease contains customary escalation clauses. Rental expense for the three months ended September 30, 2024 and 2023 was approximately $14 and $13, respectively, and for the nine months ended September 30, 2024 and 2023 was $40 and $26, 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 September 30, 2024 and 2023 was approximately $22 and $21, respectively, and for the nine months ended September 30, 2024 and 2023 was $65 and $63, respectively. We currently lease office space in Overland Park, Kansas under a non-cancelable operating lease agreement that expires in 2027. The operating lease contains customary escalation clauses. Rental expense for the three months ended September 30, 2024 and 2023 was approximately $27 and $55, respectively, and for the nine months ended September 30, 2024 and 2023 was $129 and $144, 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 $20 and $23 for the three months ended September 30, 2024 and 2023, respectively, and for the nine months ended September 30, 2024 and 2023 was $62 and $64, 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 2029. Rental expense for the three months ended September 30, 2024 and 2023 was approximately $82 and $83, respectively, and for the nine months ended September 30, 2024 and 2023 was $354 and $257, 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 2029. The Company also leases one vehicle under a financing agreement. The outstanding balance for finance leases was $42 and $98 as of September 30, 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 September 30, 2024 and December 31, 2023, respectively. Related accumulated depreciation totaled $387 and $319 as of September 30, 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 expired in September 2024. Amortization expense is included in general and administrative expenses and totaled $0 and $1 for the three months ended September 30, 2024 and 2023, respectively, and for the nine months ended September 30, 2024 and 2023 was $2 and $4, respectively. The interest rates on the finance lease obligations range from 1.37% and 15.74% and interest expense was $0 and $1 for the three months ended September 30, 2024 and 2023, respectively, and for the nine months ended September 30, 2024 and 2023 was $2 and $3, respectively. The maturity of operating leases and finance lease liabilities as of September 30, 2024 are as follows: Year ending December 31, Operating Leases Finance Leases 2024 remaining $ 175 $ 19 2025 492 21 2026 562 3 2027 467 - 2028 62 - 2029 41 - Total minimum lease payments 1,799 43 Less: amount representing interest (94 ) (1 ) Present value of minimum lease payments $ 1,705 $ 42 Lease term and discount rate September 30, 2024 Weighted-average remaining lease term (years) Operating leases 3.2 Finance leases 0.7 Weighted-average discount rate Operating leases 7.4 % Finance leases 3.2 % Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 839 $ 470 Operating cash flows from finance leases 1 5 Financing cash flows from finance leases (56 ) (76 ) Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities $ 1,334 $ 349 New finance lease liabilities - -

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies
Commitments And Contingencies	15. Commitments and Contingencies Annual Employee Bonus Plan Accrual We utilize incentive bonuses to reward performance achievements, which provides potential annual cash bonus awards to Company employees, including Named Executive Officers (“NEOs”). Under the Bonus Plan, the Compensation Committee of the Board of Directors of the Company (the “Board”) has established a bonus pool of $896, for our NEOs and executive management team for the year ending December 31, 2024. The Board established a bonus pool of $272 for our non-executive employees, for the year ending December 31, 2024. Participants will be eligible to receive cash bonus awards based upon annual performance targets established by the Compensation Committee for the year ending December 31, 2024, relating to annual revenue and adjusted EBITDA. Awards will be paid on a tiered scale based upon actual performance as a percentage of the performance targets with a floor and cap. Payments for individual performance targets met or exceeded are payable, whether or not all performance targets are met, consistent with the weighted amounts for each performance target within the bonus pools. Bonus awards for NEOs and executive management will be weighted 50% on annual revenue and 50% on Adjusted EBITDA. No bonus will be awarded for any performance target for which actual performance is less than 90% of target. At 90% or greater actual performance relative to the target, 50% of the weighted bonus amount for the performance target is payable. From 90% to 100% actual performance relative to the target, the remaining 50% of the weighted bonus amount is awarded pro rata with the percentage of actual performance exceeding 90% of target (i.e., each 1% excess over 90% of performance target equals 5% of the weighted bonus amount payable). If actual performance reaches 110% of performance target or greater for any individual performance target, then an additional 10% of the amount apportioned to that performance target will be payable as an additional bonus. Based on our financial performance as of September 30, 2024, management determined that the achievement of 90% of the annual revenue and Adjusted EBITDA performance targets are probable at this time. Based on management’s estimate, the Company recorded a $584 employee bonus plan accrual, which is included in accrued expense in the accompanying consolidated balance sheet at September 30, 2024. It is reasonably possible that one or multiple of the performance targets may be achieved at higher than 90% and additional accruals may be necessary. Purchase Obligations In February 2024, the Company entered into a $5.4 million non-cancellable 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, $216 remains due during fiscal year 2024, $757 will be due during fiscal 2025, $1.2 million will be due during fiscal 2026, $1.3 million will be due during fiscal 2027, $1.5 million will be due during fiscal 2028, and $405 will be due during fiscal 2029. During the three and nine months ended September 30, 2024, the Company has expensed $145 and $270, respectively, of the purchase obligation and $221 is included in accrued expenses at September 30, 2024. Legal Proceedings In the ordinary course of business, the Company may be involved in a variety of claims, lawsuits, investigations, and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters, and contractual disputes, that can arise in the normal course of the Company's operations. The Company recognizes a provision when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts the amount of the provision to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. As of September 30, 2024, the Company does not have a recorded liability for estimated losses. Legal costs are expensed as incurred.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue: Cloud telecommunications services $ 9,767 $ 9,183 $ 28,267 $ 26,306 Software solutions 5,860 4,691 16,331 12,729 Consolidated revenue 15,627 13,874 44,598 39,035 Operating income/(loss) from operations Cloud telecommunications services (38 ) 73 160 (1,312 ) Software solutions 173 291 1,038 (415 ) Total operating income/(loss) 135 364 1,198 (1,727 ) Other income/(expense), net: Cloud telecommunications services 64 1,425 104 1,360 Software solutions (5 ) (52 ) (32 ) 25 Total other income/(expense), net 59 1,373 72 1,385 Income/(loss) before income tax provision: Cloud telecommunications services 26 1,498 264 48 Software solutions 168 239 1,006 (390 ) Income/(loss) before income tax provision $ 194 $ 1,737 $ 1,270 $ (342 ) Depreciation and amortization for the cloud telecommunications services segment was $349 and $381 for the three months ended September 30, 2024 and 2023, respectively, and $1,058 and $1,176 for the nine months ended September 30, 2024 and 2023, respectively. Depreciation and amortization for the software solutions segment was $480 and $506 for the three months ended September 30, 2024 and 2023, respectively, and $1,447 and $1,519 for the nine months ended September 30, 2024 and 2023, respectively. Interest income for the cloud telecommunications services segment was $69 and $0 for the three months ended September 30, 2024 and 2023, respectively, and $127 and $0 for the nine months ended September 30, 2024 and 2023, respectively. Interest income for the software solutions segment was $0 for the three and nine months ended September 30, 2024 and 2023, respectively. Interest expense for the cloud telecommunications services segment was $7 and $36 for the three months ended September 30, 2024 and 2023, respectively, and $31 and $111 for the nine months ended September 30, 2024 and 2023, respectively. Interest expense for the software solutions segment was $0 for the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 United States $ 14,962 $ 12,862 $ 41,934 $ 36,984 International 665 1,012 2,664 2,051 Total revenue $ 15,627 $ 13,874 $ 44,598 $ 39,035

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Significant Accounting Policies
Description Of Business	Description of Business –
Basis Of Presentation	Basis of Presentation –
Foreign Currency Translation	Foreign Currency Translation - Due to changes in exchange rates between reporting periods and changes in certain account balances, the foreign currency translation adjustment will change from period to period. During the three months ended September 30, 2024 and 2023, the Company recorded foreign currency translation gains/(losses) of ($14) and $23, respectively, and during the nine months ended September 30, 2024 and 2023, the Company recorded foreign currency gains/(losses) of ($14) and ($1), respectively, on our statements of comprehensive income (loss).
Cash And Cash Equivalents	Cash and Cash Equivalents –
Trade Receivables and Allowance for Credit Losses	Trade Receivables and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the aging schedule method as well as consideration of current and future economic conditions. Trade receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our trade receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.
Equipment Financing Receivables and Allowance for Credit Losses	Equipment Financing Receivables and Allowance for Credit Losses – We provide an allowance for credit losses based on historical loss experience, adverse situations that may affect a client's ability to pay, current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. Equipment financing receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our equipment financing receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.
Contract Assets and Allowance for Credit Losses	Contract Assets and Allowance for Credit Losses – The allowance for credit losses is determined based on an assessment of historical collection experience using the loss-rate method as well as consideration of current and future economic conditions and changes in our loss-rate trends. We utilize a five-year lookback period to establish our estimate of expected credit losses, as our contractual terms range from three to five years. Contract assets are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our contract assets credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary.
Contract Costs	Contract Costs –
Inventory	Inventory –
Property And Equipment	Property and Equipment – 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 condensed 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 – 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)	9 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 2024
Revenue
Schedule of disaggregation Of Revenue	Three Months Ended September 30, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 1,814 $ - $ 1,814 Equipment financing revenue 173 - 173 Telecommunications services 6,752 - 6,752 Fees, commissions, and other, recognized over time 578 - 578 One time fees, commissions and other 450 - 450 Software licenses - 1,466 1,466 Software license and maintenance and support subscriptions - 4,102 4,102 Professional services and other - 292 292 $ 9,767 $ 5,860 $ 15,627 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,264 $ 1,758 $ 4,022 Products, services, and fees transferred over time 7,503 4,102 11,605 $ 9,767 $ 5,860 $ 15,627 Three Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 1,666 $ - $ 1,666 Equipment financing revenue 133 - 133 Telecommunications services 6,299 - 6,299 Fees, commissions, and other, recognized over time 479 - 479 One time fees, commissions and other 606 - 606 Software licenses - 971 971 Software license and maintenance and support subscriptions - 3,490 3,490 Professional services and other - 230 230 $ 9,183 $ 4,691 $ 13,874 Timing of revenue recognition Products, services, and fees recognized at a point in time $ 2,272 $ 1,201 $ 3,473 Products, services, and fees transferred over time 6,911 3,490 10,401 $ 9,183 $ 4,691 $ 13,874 Nine Months Ended September 30, 2024 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Desktop devices $ 4,402 $ - $ 4,402 Equipment financing revenue 487 - 487 Telecommunications services 20,128 - 20,128 Fees, commissions, and other, recognized over time 1,597 - 1,597 One time fees, commissions and other 1,653 - 1,653 Software licenses - 3,559 3,559 Software license and maintenance and support subscriptions - 11,940 11,940 Professional services and other - 832 832 $ 28,267 $ 16,331 $ 44,598 Timing of revenue recognition Products and fees recognized at a point in time $ 6,055 $ 4,391 $ 10,446 Services and fees transferred over time 22,212 11,940 34,152 $ 28,267 $ 16,331 $ 44,598 Nine Months Ended September 30, 2023 Cloud Software Total (In thousands) Telecommunications Solutions Reportable Segment Segment Segments Major products/services lines Telecommunications equipment $ 4,323 $ - $ 4,323 Equipment financing revenue 356 - 356 Telecommunications services 18,587 - 18,587 Fees, commissions, and other, recognized over time 1,392 - 1,392 One time fees, commissions and other 1,648 - 1,648 Software licenses - 2,662 2,662 Software license and maintenance and support subscriptions - 9,506 9,506 Professional services and other - 561 561 $ 26,306 $ 12,729 $ 39,035 Timing of revenue recognition Products and fees recognized at a point in time $ 5,971 $ 3,223 $ 9,194 Services and fees transferred over time 20,335 9,506 29,841 $ 26,306 $ 12,729 $ 39,035
Schedule of Contract Balances	September 30, December 31, (In thousands) 2024 2023 Receivables, which are included in trade receivables, net of allowance for credit losses $ 3,753 $ 3,476 Contract assets, net of allowance for credit losses 362 342 Contract liabilities 2,923 2,588
Significant Changes In The Contract Assets And Liabilities	For the Nine Months Ended For the Year Ended (In thousands) September 30, 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 $ - $ (2,528 ) $ - $ (3,393 ) Increase due to cash received, excluding amounts recognized as revenue during the period - 2,863 - 2,396 Transferred to receivables from contract assets recognized at the beginning of the period, net of allowance for credit losses (227 ) - (192 ) - Increase due to additional unamortized discounts 247 - 216 -
Contract assets allowance for credit losses	September 30, December 31, 2024 2023 Gross contract assets $ 473 $ 427 Less: allowance for credit losses (111 ) (85 ) Contract assets, net of allowance for credit losses $ 362 $ 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 Provision 18 Write-offs - Recoveries and other - Balance at June 30, 2024 $ 100 Provision 11 Write-offs - Recoveries and other - Balance at September 30, 2024 $ 111
Schedule of Performance Obligations	2024 2025 2026 2027 2028 and thereafter Total Desktop devices $ 1,067 $ - $ - $ - $ - $ 1,067 Telecommunications services 7,445 19,462 12,782 8,081 4,126 51,896 Software Solutions 5,022 9,804 5,556 3,054 972 24,408 Total 13,534 29,266 18,338 11,135 5,098 77,371 All consideration from contracts with customers is included in the amounts presented above

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings per common share:
Basic And Diluted Net Income Per Common Share	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income/(loss) (in thousands) (A) $ 148 $ 1,704 $ 1,170 $ (423 ) Weighted-average share reconciliation: Weighted-average basic shares outstanding (B) 26,848,644 25,995,507 26,610,130 25,901,686 Dilutive effect of stock-based awards 3,008,617 1,687,258 3,217,402 - Diluted weighted-average outstanding shares of common stock (C) 29,857,261 27,682,765 29,827,532 25,901,686 Earnings per common share: Basic (A/B) $ 0.01 $ 0.07 $ 0.04 $ (0.02 ) Diluted (A/C) $ 0.00 $ 0.06 $ 0.04 $ (0.02 )
Schedule of potentially dilutive common stock	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Stock options 2,871,939 4,708,364 2,775,229 4,582,503

Trade Receivables and Allowan_2

Trade Receivables and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2024
Trade Receivables and Allowance for Credit Losses
Schedule of trade receivables balance consists of traditional trade receivables	September 30, December 31, 2024 2023 Gross trade receivables $ 3,825 $ 3,592 Less: allowance for credit losses (72 ) (116 ) Trade receivables, net $ 3,753 $ 3,476 Current trade receivables, net $ 3,753 $ 3,476 Long-term trade receivables, net - - Trade receivables, net $ 3,753 $ 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 Provision 18 Write-offs (18 ) Recoveries and other (39 ) Balance at June 30, 2024 $ 86 Provision 14 Write-offs (11 ) Recoveries and other (17 ) Balance at September 30, 2024 $ 72

Equipment Financing Receivabl_2

Equipment Financing Receivables and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2024
Equipment Financing Receivables and Allowance for Credit Losses
Schedule of financing receivables	September 30, December 31, 2024 2023 Gross equipment financing receivables $ 4,916 $ 3,888 Less: unearned income (1,492 ) (1,093 ) Less: allowance for credit losses (215 ) (171 ) Equipment financing receivables, net $ 3,209 $ 2,624 Current equipment financing receivables, net $ 981 $ 856 Long-term equipment financing receivables, net 2,228 1,768 Equipment financing receivables, net $ 3,209 $ 2,624
Schedule of financing receivables future contractual maturities	Year ending December 31 2024 remaining $ 467 2025 1,608 2026 1,247 2027 899 2028 533 2029 and thereafter 162 Total $ 4,916
Schedule of financing receivables Allowance for Credit Losses	Balance at December 31, 2023 $ 171 Provision 22 Write-offs (13 ) Recoveries and other - Balance at March 31, 2024 $ 180 Provision 23 Write-offs (9 ) Recoveries and other - Balance at June 30, 2024 $ 194 Provision 27 Write-offs (6 ) Recoveries and other - Balance at September 30, 2024 $ 215
Schedule of Aging of Receivables	September 30, December 31, 2024 2023 Past due amounts 0 - 90 days $ 3,209 $ 2,623 Past due amounts > 90 days - 1 Total $ 3,209 $ 2,624
Schedule of financing receivables and current period gross write offs	September 30, 2024 December 31, 2023 2024 2023 2022 2021 2020 2019 Total Equipment Financing Receivables Total Equipment Financing Receivables United States $ 1,378 1,267 571 113 92 3 $ 3,424 $ 2,795 Current period gross write offs $ - 6 - - - - $ 6 $ 33

Prepaid Expenses (Tables)

Prepaid Expenses (Tables)	9 Months Ended
	Sep. 30, 2024
Prepaid Expenses
Schedule of Prepaid Expenses	September 30, December 31, 2024 2023 Prepaid corporate insurance $ 155 $ 68 Prepaid software services and support 345 245 Prepaid employee insurance premiums 172 - Prepaid Nasdaq listing fee 16 - User group meeting fees 376 84 Prepaid rent 180 - Other prepaid expenses 83 111 Total prepaid expenses $ 1,327 $ 508

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2024
Property and Equipment
Schedule of Property and Equipment	September 30, 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 (3,123 ) (2,891 ) Total property and equipment, net $ 438 $ 670

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2024
Intangible Assets and Goodwill
Schedule of Intangible Assets	September 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 26,073 $ (6,869 ) $ 19,204 $ 26,073 $ (5,260 ) $ 20,813 Developed technologies 4,900 (2,878 ) 2,022 4,900 (2,269 ) 2,631 Trademark and trade names 400 (343 ) 57 400 (288 ) 112 Total acquired intangible assets $ 31,373 $ (10,090 ) $ 21,283 $ 31,373 $ (7,817 ) $ 23,556
Schedule of Amortization Of Intangible Assets	Year ending December 31, 2024 remaining $ 755 2025 2,770 2026 2,457 2027 2,202 2028 1,637 2029 and thereafter 11,462 Total $ 21,283
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 September 30, 2024 $ 9,454

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2024
Accrued Expenses
Schedule of Accrued Expenses	September 30, December 31, 2024 2023 Accrued wages and benefits $ 2,251 $ 2,884 Accrued accounts payable 1,779 1,297 Accrued sales and telecommunications taxes 1,800 1,234 Product warranty liability 32 25 Cloud computing arrangements 279 - Credit cards 176 113 Other 352 398 Total accrued expenses $ 6,669 $ 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 24 Warranty settlements (17 ) Balance at September 30, 2024 $ 32

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Payable
Schedule of Notes Payable	September 30, December 31, 2024 2023 Related party note payable $ 570 $ 843 Other notes payable 139 206 Total notes payable $ 709 $ 1,049 Less: current notes payable (473 ) (457 ) Notes payable, net of current portion $ 236 $ 592
Schedule of future Principal Payments Of Notes Payable	Year ending December 31, 2024 remaining $ 116 2025 478 2026 115 2027 - 2028 and thereafter - Total $ 709

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Measurements
Schedule of Fair value of financial instruments	September 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Assets: Trade receivables, net $ 3,753 $ 3,753 $ 3,476 $ 3,476 Equipment financing receivables 3,209 3,209 2,624 2,624 Liabilities: Finance lease obligations $ 42 $ 42 $ 98 $ 98 Notes payable 709 697 1,049 1,012

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases
Maturity Of Operating Lease and Finance Lease Liabilities	Year ending December 31, Operating Leases Finance Leases 2024 remaining $ 175 $ 19 2025 492 21 2026 562 3 2027 467 - 2028 62 - 2029 41 - Total minimum lease payments 1,799 43 Less: amount representing interest (94 ) (1 ) Present value of minimum lease payments $ 1,705 $ 42
Schedule Of Lease Term And Discount	Lease term and discount rate September 30, 2024 Weighted-average remaining lease term (years) Operating leases 3.2 Finance leases 0.7 Weighted-average discount rate Operating leases 7.4 % Finance leases 3.2 %
Schedule Of Cash Paid For Amounts Included In The Measurement Of Lease Liabilities	Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 839 $ 470 Operating cash flows from finance leases 1 5 Financing cash flows from finance leases (56 ) (76 ) Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities $ 1,334 $ 349 New finance lease liabilities - -

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting
Information On Reportable Segments And Reconciliation To Condensed Consolidated Net (loss) Income	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue: Cloud telecommunications services $ 9,767 $ 9,183 $ 28,267 $ 26,306 Software solutions 5,860 4,691 16,331 12,729 Consolidated revenue 15,627 13,874 44,598 39,035 Operating income/(loss) from operations Cloud telecommunications services (38 ) 73 160 (1,312 ) Software solutions 173 291 1,038 (415 ) Total operating income/(loss) 135 364 1,198 (1,727 ) Other income/(expense), net: Cloud telecommunications services 64 1,425 104 1,360 Software solutions (5 ) (52 ) (32 ) 25 Total other income/(expense), net 59 1,373 72 1,385 Income/(loss) before income tax provision: Cloud telecommunications services 26 1,498 264 48 Software solutions 168 239 1,006 (390 ) Income/(loss) before income tax provision $ 194 $ 1,737 $ 1,270 $ (342 )
Schedule of Revenue by geography	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 United States $ 14,962 $ 12,862 $ 41,934 $ 36,984 International 665 1,012 2,664 2,051 Total revenue $ 15,627 $ 13,874 $ 44,598 $ 39,035

Significant Accounting Polici_4

Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 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 | Maximum [Member]
Depreciable lives	5 years
Computer and Office Equipment | Minimum [Member]
Depreciable lives	2 years
Leasehold Improvements | Maximum [Member]
Depreciable lives	5 years
Leasehold Improvements | Minimum [Member]
Depreciable lives	2 years

Significant Accounting Polici_5

Significant Accounting Policies (Details 1)	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Significant Accounting Policies
Foreign currency translation gains/(losses)	$ (14)	$ 23	$ (14)	$ (1)
Cash federally insured limits	14,620		14,620		$ 9,035
Capitalized contract costs	4,485		4,485		3,618
Amortization in relation to costs capitalized	697	$ 402	1,744	$ 1,194
Change in the valuation allowance for net deferred income tax assets	$ 4,782		$ 4,782		$ 4,782
Revenue percentage generated from customers	10%	10%	10%	10%

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Desktop Services	$ 1,814		$ 4,402
Equipment Financing Revenue	173	$ 133	487	$ 356
Telecommunications equipment		1,666		4,323
Telecommunications Services	6,752	6,299	20,128	18,587
Fees, Commissions And Other Recognized Over Time	578	479	1,597	1,392
One time fees commissions and other	450	606	1,653	1,648
Software Licenses	1,466	971	3,559	2,662
Software license and maintenance and support subscriptions	4,102	3,490	11,940	9,506
Professional Servicing And Other	292	230	832	561
Revenue	15,627	13,874	44,598	39,035
Products Services And Fees Recognized At a Point In Time	4,022	3,473	10,446	9,194
Products Services And Fees Transferred Over Time	11,605	10,401	34,152	29,841
Service Lines	15,627	13,874	44,598	39,035
Software Solutions Segment [Member]
Desktop Services	0		0
Equipment Financing Revenue	0	0	0	0
Telecommunications equipment		0		0
Telecommunications Services	0	0	0	0
Fees, Commissions And Other Recognized Over Time	0	0	0	0
One time fees commissions and other	0	0	0	0
Software Licenses	1,466	971	3,559	2,662
Software license and maintenance and support subscriptions	4,102	3,490	11,940	9,506
Professional Servicing And Other	292	230	832	561
Revenue	5,860	4,691	16,331	12,729
Products Services And Fees Recognized At a Point In Time	1,758	1,201	4,391	3,223
Products Services And Fees Transferred Over Time	4,102	3,490	11,940	9,506
Service Lines	5,860	4,691	16,331	12,729
Cloud Telecommunications Segment [Member]
Desktop Services	1,814		4,402
Equipment Financing Revenue	173	133	487	356
Telecommunications equipment		1,666		4,323
Telecommunications Services	6,752	6,299	20,128	18,587
Fees, Commissions And Other Recognized Over Time	578	479	1,597	1,392
One time fees commissions and other	450	606	1,653	1,648
Software Licenses	0	0	0	0
Software license and maintenance and support subscriptions	0	0	0	0
Professional Servicing And Other	0	0	0	0
Revenue	9,767	9,183	28,267	26,306
Products Services And Fees Recognized At a Point In Time	2,264	2,272	6,055	5,971
Products Services And Fees Transferred Over Time	7,503	6,911	22,212	20,335
Service Lines	$ 9,767	$ 9,183	$ 28,267	$ 26,306

Revenue (Details 1)

Revenue (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue
Receivables, Which Are Included In Trade Receivables, Net Of Allowance For Doubtful Accounts	$ 3,753	$ 3,476
Contract Assets	362	342
Contract Liabilities	$ 2,923	$ 2,588

Revenue (Details 2)

Revenue (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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	(227)	(192)
Increase Due To Additional Unamortized Discounts	247	216
Contract Liabilities
Revenue Recognized That Was Included In The Contract Liability Balance At The Beginning Of The Period	(2,528)	(3,393)
Increase Due To Cash Received, Excluding Amounts Recognized As Revenue During The Period	2,863	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	Sep. 30, 2024	Dec. 31, 2023
Revenue
Gross contract assets	$ 473	$ 427
Less: allowance for credit losses	(111)	(85)
Contract assets, net of allowance for credit losses	$ 362	$ 342

Revenue (Details 4)

Revenue (Details 4) - USD ($)	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Revenue
Opening balance	$ 100,000	$ 82,000	$ 85,000
Provision	11,000	18,000	1,000
Write- offs	0	0	(4,000)
Recoveries and others	0	0	0
Closing balance	$ 111,000	$ 100,000	$ 82,000

Revenue (Details 5)

Revenue (Details 5) $ in Thousands	Sep. 30, 2024 USD ($)
2024	$ 13,534
2025	29,266
2026	18,338
2027	11,135
2028 And Thereafter	5,098
Total	77,371
Software Solutions [Member]
2024	5,022
2025	9,804
2026	5,556
2027	3,054
2028 And Thereafter	972
Total	24,408
Desktop Devices
2024	1,067
2025	0
2026	0
2027	0
2028 And Thereafter	0
Total	1,067
Telecommunications Services
2024	7,445
2025	19,462
2026	12,782
2027	8,081
2028 And Thereafter	4,126
Total	$ 51,896

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings per common share:
Net loss	$ 148	$ 588	$ 434	$ 1,704	$ (545)	$ (1,582)	$ 1,170	$ (423)
Weighted-average share reconciliation:
Weighted-average basic shares outstanding	26,848,644,000			25,995,507,000			26,610,130,000	25,901,686,000
Dilutive effect of stock-based awards	3,008,617,000			1,687,258,000			3,217,402,000	0
Diluted weighted-average outstanding shares of common stock	29,857,261,000			27,682,765,000			29,827,532,000	25,901,686,000
Earnings per common share:
Basic	$ 0.01			$ 0.07			$ 0.04	$ (0.02)
Diluted	$ 0			$ 0.06			$ 0.04	$ (0.02)

Earnings Per Common Share (De_2

Earnings Per Common Share (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock Options
Securities excluded from earnings	2,871,939	4,708,364	2,775,229	4,582,503

Trade Receivables and Allowan_3

Trade Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Gross trade receivables	$ 3,825	$ 3,592
Less allowance for credit losses	(72)	(116)
Trade receivables, net	3,753	3,476
Current trade receivables, net	3,753	3,476
Long-term trade receivables, net	0	0
Accounts Receivable [Member]
Trade receivables, net	$ 3,753	$ 3,476

Trade Receivables and Allowan_4

Trade Receivables and Allowance for Credit Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Trade Receivables and Allowance for Credit Losses
Begaining balance	$ 86	$ 125	$ 116
Provision	14	18	57
Write-offs	(11)	(18)	(48)
Recoveries and others	(17)	(39)	0
Ending balance	$ 72	$ 86	$ 125

Trade Receivables and Allowan_5

Trade Receivables and Allowance for Credit Losses (Details Narrative)	Sep. 30, 2024	Dec. 31, 2023
Trade Receivables and Allowance for Credit Losses
Percent of gross accounts receivable	1.90%	3.20%

Equipment Financing Receivabl_3

Equipment Financing Receivables and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Gross Equipment Financing Receivables	$ 4,916	$ 3,888
Less Unearned Income	(1,492)	(1,093)
Less: allowance for credit losses	(215)	(171)
Equipment Financing Receivables, Net	3,209	2,624
Current Equipment Financing Receivables, Net	981	856
Long-term Equipment Financing Receivables, Net	2,228	1,768
Equipment Financing Receivables, Net	$ 3,209	$ 2,624

Equipment Financing Receivabl_4

Equipment Financing Receivables and Allowance for Credit Losses (Details 1) $ in Thousands	Sep. 30, 2024 USD ($)
Equipment Financing Receivables and Allowance for Credit Losses
2024 remaining	$ 467
2025	1,608
2026	1,247
2027	899
2028	533
2029 and thereafter	162
Total	$ 4,916

Equipment Financing Receivabl_5

Equipment Financing Receivables and Allowance for Credit Losses (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Opening balance			$ 85
Provision	$ 14	$ 18	57
Write- offs	0	0	(4)
Recoveries and others	0	0	0
Closing balance	111
Allowance for Credit Losses
Opening balance	194	180	171
Provision	27	23	22
Write- offs	(6)	(9)	(13)
Recoveries and others	0	0	0
Closing balance	$ 215	$ 194	$ 180

Equipment Financing Receivabl_6

Equipment Financing Receivables and Allowance for Credit Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Aging of receivables dues	$ 3,209	$ 2,624
Past due amounts 0-90 days
Aging of receivables dues	3,209	2,623
Past due amounts >90 days
Aging of receivables dues	$ 0	$ 1

Equipment Financing Receivabl_7

Equipment Financing Receivables and Allowance for Credit Losses (Details 4) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Total equipment financing receivables	$ 3,424,000	$ 2,795,000
Current period gross write offs equipment financing receivables	6,000	$ 33,000
2024 [Member]
Current period gross write offs equipment financing receivables	0
2023 [Member]
Current period gross write offs equipment financing receivables	6,000
2022 [Member]
Current period gross write offs equipment financing receivables	0
2021 [Member]
Current period gross write offs equipment financing receivables	0
2020 [Member]
Current period gross write offs equipment financing receivables	0
Prior [Member]
Current period gross write offs equipment financing receivables	0
Financing Receivables United States | 2024 [Member]
Total equipment financing receivables	1,378,000
Financing Receivables United States | 2023 [Member]
Total equipment financing receivables	1,267,000
Financing Receivables United States | 2022 [Member]
Total equipment financing receivables	571,000
Financing Receivables United States | 2021 [Member]
Total equipment financing receivables	113,000
Financing Receivables United States | 2020 [Member]
Total equipment financing receivables	92,000
Financing Receivables United States | Prior [Member]
Total equipment financing receivables	$ 3,000

Equipment Financing Receivabl_8

Equipment Financing Receivables and Allowance for Credit Losses (Details Narrative)	Sep. 30, 2024	Dec. 31, 2023
Equipment Financing Receivables and Allowance for Credit Losses
Allowance for credit losses	6.30%	6.10%

Prepaid Expenses (Details)

Prepaid Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expenses
Prepaid corporate insurance	$ 155	$ 68
Prepaid software services and support	345	245
Prepaid employee insurance premiums	172	0
Prepaid Nasdaq listing fee	16	0
User group meeting	376	84
Other prepaid expenses	83	111
Prepaid rent	180	0
Total Prepaid expenses	$ 1,327	$ 508

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Less: Accumulated Depreciation	$ (3,123)	$ (2,891)
Total Property And Equipment, Net	438	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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property and Equipment
Depreciation And Amortization Expense	$ 74	$ 94	$ 232	$ 318

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying Amount Of Intangible, Gross	$ 31,373	$ 31,373
Less: Accumulated Amortization	(10,090)	(7,817)
Carrying Amount Of Intangible, Net	21,283	23,556
Customer Relationships
Carrying Amount Of Intangible, Gross	26,073	26,073
Less: Accumulated Amortization	(6,869)	(5,260)
Carrying Amount Of Intangible, Net	19,204	20,813
Developed Technologies
Carrying Amount Of Intangible, Gross	4,900	4,900
Less: Accumulated Amortization	(2,878)	(2,269)
Carrying Amount Of Intangible, Net	2,022	2,631
Trademark and trade names [Member]
Carrying Amount Of Intangible, Gross	400	400
Less: Accumulated Amortization	(343)	(288)
Carrying Amount Of Intangible, Net	$ 57	$ 112

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Intangible Assets and Goodwill
2024 remaining	$ 755
2025	2,770
2026	2,457
2027	2,202
2028	1,637
2029 and thereafter	11,462
Total	$ 21,283	$ 23,556

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Sales and marketing expenses	$ 4,221	$ 3,502	$ 12,206	$ 10,924
General and administrative expenses	3,695	3,309	$ 10,423	10,473
Customer Relationship [Member]
Weighted Average Remaining Useful Life			12 years 7 months 6 days
Sales and marketing expenses	526	552	$ 1,579	1,630
Developed Technologies
Weighted Average Remaining Useful Life			2 years 8 months 12 days
Software Solution Revenue	203	215	$ 609	662
Trademarks and trade names [Member]
Weighted Average Remaining Useful Life			8 months 12 days
General and administrative expenses	$ 26	$ 25	$ 85	$ 102

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Expenses
Accrued Wages And Benefits	$ 2,251	$ 2,884
Accrued Accounts Payable	1,779	1,297
Accrued Sales And Telecommunications Taxes	1,800	1,234
Product Warranty Liability	32	25
Cloud computing arrangements	279	0
Credit cards	176	113
Other	352	398
Total Accrued Expenses	$ 6,669	$ 5,951

Accrued Expenses (Details 1)

Accrued Expenses (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accrued Expenses
Products warranty liabilities Beginning Balance	$ 25,000	$ 55,000
Accrual For Warranties	24,000	25,000
Adjustments Related To Pre-existing Warranties		(32,000)
Warranty Settlements	(17,000)	(23,000)
Products warranty liabilities Ending Balance	$ 32,000	$ 25,000

Accrued Expenses (Details Narra

Accrued Expenses (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accrued Expenses
Product Warranty Expense	$ 9	$ 11	$ 24	$ 38

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Notes Payable
Related party note payable	$ 570	$ 843
Other note payable	139	206
Notes Payable	709	1,049
Less: Current Notes Payable	(473)	(457)
Notes Payable, Net Of Current Portion	$ 236	$ 592

Notes Payable (Details 1)

Notes Payable (Details 1) $ in Thousands	Sep. 30, 2024 USD ($)
Notes Payable
2024 remaining	$ 116
2025	478
2026	115
2027	0
2028	0
Total	$ 709

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended	9 Months Ended
	Nov. 01, 2022	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Dec. 31, 2023
Related party note payable		$ 570			$ 570	$ 843
On February 27, 2023
Agreement Term					3 years
Promissory note		278			$ 278
Interest Rate					6.58%
Quartely Payment					$ 8,543
Allegiant Networks business acquisition [Member]
Related party note payable		570			570	$ 843
Agreement Term	3 years
Promissory note	$ 1,100
Interest Rate	4%
Quartely Payment	$ 98,381
Principal amount paid		92	$ 80	$ 257	272
Interest paid		$ 6	$ 18	$ 37	$ 22

Line of Credit (Details Narrati

Line of Credit (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Sep. 30, 2024
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	Sep. 30, 2024	Dec. 31, 2023
Carrying Value
Trade Receivables, Net	$ 3,753	$ 3,476
Equipment Financing Receivables	3,209	2,624
Finance lease obligations	42	98
Notes Payable	709	1,049
Estimated Fair Value
Trade Receivables, Net	3,753	3,476
Equipment Financing Receivables	3,209	2,624
Finance lease obligations	42	98
Notes Payable	$ 697	$ 1,012

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Taxes
Effective Income Tax Rate Reconciliation	23.70%	1.90%	7.90%	23.70%
Deferred taxes, realizable amount	$ 4,782		$ 4,782
Income tax (provision)/benefit	(46)	$ (33)	(100)	$ (81)
Change in the valuation allowance for net deferred income tax assets	$ 4,782		$ 4,782		$ 4,782

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating Leases
2024	$ 175
2025	492
2026	562
2027	467
2028	62
2029	41
Total Minimum Lease Payment	1,799
Less: Amount Representing Interest	(94)
Present Value Of Minimum Lease Payments	1,705
Finance Leases
2024	19
2025	21
2026	3
2027	0
2028	0
2029	0
Total Minimum Lease Payment	43
Less: Amount Representing Interest	(1)
Present Value Of Minimum Lease Payments	$ 42	$ 98

Leases (Details 1)

Leases (Details 1)	9 Months Ended
	Sep. 30, 2024
Leases
Weighted-average Remaining Lease Term - Operating Leases	3 years 2 months 12 days
Weighted-average Remaining Lease Term - Finance Leases	8 months 12 days
Weighted-average Discount Rate - Operating Leases	7.40%
Weighted-average Discount Rate- Finance Leases	3.20%

Leases (Details 2)

Leases (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Leases
Operating Cash Flows From Operating Leases	$ 839	$ 470
Operating Cash Flows From Finance Leases	1	5
Financing Cash Flows From Finance Leases	(56)	(76)
Additions to ROU assets obtained from New operating lease liabilities	1,334	349
Additions to ROU assets obtained from New finance lease liabilities	$ 0	$ 0

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 19, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finance lease		$ 42		$ 42		$ 98
Assets classified as property and equipment under finance lease obligations		486		486		486
Related accumulated depreciation		387		387		$ 319
Amortization Expense Included In General And Administrative Expenses		0	$ 1	2	$ 4
Prepaid expense				$ 40
Interest Rate- Finance Leases, Minimum				1.37%
Interest Rate- Finance Leases Maximum				15.74%
Interest Expense		0	1	$ 2	3
July 19 2024 [Member]
Operating Costs description	Operating Costs exceed $20 in a calendar year, then the Company shall be responsible for fifty (50%) percent of the amount exceeding $20
Monthly rent description	The base monthly rent is as follows: October 1, 2024 – September 30, 2025, $28; October 1, 2025 – September 30, 2026, $29, and October 1, 2026 – October 31, 2027, $30
Reston, Virginia [Member]
Rental Expense Incurred On Operating Leases		14	13	$ 40	26
Description Of lease Expiry Date				lease agreement that expires in 2024
Tempe Arizona [Member]
Rental Expense Incurred On Operating Leases		78	40	$ 229	40
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	$ 65	63
Description Of lease Expiry Date				lease agreement that expires in 2024
Overland Park, Kansas [Member]
Rental Expense Incurred On Operating Leases		27	55	$ 129	144
Description Of lease Expiry Date				lease agreement that expires in 2027
Michigan Las Vegas [Member]
Rental Expense Incurred On Operating Leases		82	83	$ 354	257
Description Of lease Expiry Date				lease agreements that expire in 2029
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		$ 20	$ 23	$ 62	$ 64

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Feb. 29, 2024	Sep. 30, 2024	Sep. 30, 2024
Purchase obligation		$ 77,371	$ 77,371
Oracle [Member]
Purchase obligation		221	221
Non cancellable service contract amount	$ 5,400
Accrued expenses		$ 145	$ 270
Description related to noncancellable service contract	Under this agreement, $216 remains due during fiscal year 2024, $757 will be due during fiscal 2025, $1.2 million will be due during fiscal 2026, $1.3 million will be due during fiscal 2027, $1.5 million will be due during fiscal 2028, and $405 will be due during fiscal 2029
Board Of Directors [Member] | December 31 2024 [Member] | Bonus Plan [Member]
Bonus description			the Compensation Committee of the Board of Directors of the Company (the “Board”) has established a bonus pool of $896, for our NEOs and executive management team for the year ending December 31, 2024. The Board established a bonus pool of $272 for our non-executive employees, for the year ending December 31, 2024
Bonus Award Description			Bonus awards for NEOs and executive management will be weighted 50% on annual revenue and 50% on Adjusted EBITDA. No bonus will be awarded for any performance target for which actual performance is less than 90% of target. At 90% or greater actual performance relative to the target, 50% of the weighted bonus amount for the performance target is payable. From 90% to 100% actual performance relative to the target, the remaining 50% of the weighted bonus amount is awarded pro rata with the percentage of actual performance exceeding 90% of target (i.e., each 1% excess over 90% of performance target equals 5% of the weighted bonus amount payable). If actual performance reaches 110% of performance target or greater for any individual performance target,
Accrued expenses			$ 584

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenue	$ 15,627	$ 13,874	$ 44,598	$ 39,035
Total operating income/(loss)	135	364	1,198	(1,727)
Total other income/(expense), net	59	1,373	72	1,385
Income/(loss) before income tax provision	194	1,737	1,270	(342)
Total other income/(expense), net	66	(50)	103	37
Cloud Telecommunications Service Segment
Total revenue	9,767	9,183	28,267	26,306
Total operating income/(loss)	(38)	73	160	(1,312)
Income/(loss) before income tax provision	26	1,498	264	48
Total other income/(expense), net	64	1,425	104	1,360
Software Solution Segment
Total revenue	5,860	4,691	16,331	12,729
Total operating income/(loss)	173	291	1,038	(415)
Income/(loss) before income tax provision	168	239	1,006	(390)
Total other income/(expense), net	$ (5)	$ (52)	$ (32)	$ 25

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenue	$ 15,627	$ 13,874	$ 44,598	$ 39,035
International [Member]
Total revenue	665	1,012	2,664	2,051
United States [Member]
Total revenue	$ 14,962	$ 12,862	$ 41,934	$ 36,984

Segment Reporting (Details Narr

Segment Reporting (Details Narrative) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Depreciation and amortization	$ 74,000		$ 94,000		$ 232,000	$ 318,000
Interest expense	$ 7,000		$ 36,000		31,000	111,000
Cloud Telecommunications Service Segment
Depreciation and amortization		$ 349,000		$ 381,000	1,058,000	1,176,000
Interest expense		7,000		36,000	31,000	111,000
Interest income		69,000		0	127,000	0
Software Solution Segment
Depreciation and amortization		480,000		506,000	1,447,000	1,519,000
Interest expense		0		0	0	0
Interest income		$ 0		$ 0	$ 0	$ 0