Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35376 | |
Entity Registrant Name | OBLONG, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0312442 | |
Entity Address, Address Line One | 25587 Conifer Road | |
Entity Address, Address Line Two | Suite 105-231 | |
Entity Address, City or Town | Conifer | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80433 | |
City Area Code | 303 | |
Local Phone Number | 640-3838 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | OBLG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,816,048 | |
Entity Central Index Key | 0000746210 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 4,143,000 | $ 8,939,000 |
Restricted cash | 0 | 61,000 |
Accounts receivable, net | 357,000 | 849,000 |
Inventory | 1,027,000 | 1,821,000 |
Prepaid expenses and other current assets | 868,000 | 1,081,000 |
Total current assets | 6,395,000 | 12,751,000 |
Property and equipment, net | 25,000 | 159,000 |
Goodwill | 0 | 7,367,000 |
Intangibles, net | 690,000 | 7,562,000 |
Operating lease - right of use asset, net | 201,000 | 659,000 |
Other assets | 53,000 | 109,000 |
Total assets | 7,364,000 | 28,607,000 |
Current liabilities: | ||
Accounts payable | 401,000 | 259,000 |
Accrued expenses and other current liabilities | 1,088,000 | 959,000 |
Current portion of deferred revenue | 571,000 | 783,000 |
Current portion of operating lease liabilities | 306,000 | 492,000 |
Total current liabilities | 2,366,000 | 2,493,000 |
Long-term liabilities: | ||
Operating lease liabilities, net of current portion | 43,000 | 236,000 |
Deferred revenue, net of current portion | 152,000 | 381,000 |
Total long-term liabilities | 195,000 | 617,000 |
Total liabilities | 2,561,000 | 3,110,000 |
Commitments and contingencies (see Note 11) | ||
Stockholders’ equity: | ||
Common stock, $.0001 par value; 150,000,000 shares authorized; 30,929,331 shares issued and 30,816,048 outstanding at September 30, 2022 and December 31, 2021 | 3,000 | 3,000 |
Treasury stock, 113,283 shares of common stock at September 30, 2022 and December 31, 2021 | (181,000) | (181,000) |
Additional paid-in capital | 227,611,000 | 227,581,000 |
Accumulated deficit | (222,630,000) | (201,906,000) |
Total stockholders' equity | 4,803,000 | 25,497,000 |
Total liabilities and stockholders’ equity | $ 7,364,000 | $ 28,607,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 30,929,331 | 30,929,331 |
Common stock, shares outstanding (in shares) | 30,816,048 | 30,816,048 |
Treasury stock, shares (in shares) | 113,283 | 113,283 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,185 | $ 1,799 | $ 4,050 | $ 5,766 |
Cost of revenue (exclusive of depreciation and amortization and casualty loss) | 841 | 1,228 | 2,800 | 3,767 |
Gross profit | 344 | 571 | 1,250 | 1,999 |
Operating expenses: | ||||
Research and development | 232 | 693 | 1,634 | 1,984 |
Sales and marketing | 282 | 438 | 1,161 | 1,537 |
General and administrative | 1,229 | 1,628 | 4,104 | 5,078 |
Impairment charges | 5,169 | 254 | 12,715 | 302 |
Casualty loss | 0 | 0 | 533 | 0 |
Depreciation and amortization | 592 | 669 | 1,818 | 2,098 |
Total operating expenses | 7,504 | 3,682 | 21,965 | 10,999 |
Loss from operations | (7,160) | (3,111) | (20,715) | (9,000) |
Interest and other expense (income), net | (5) | (2,449) | 1 | (2,659) |
Loss before income taxes | (7,155) | (662) | (20,716) | (6,341) |
Income tax expense (benefit) | (3) | 0 | 8 | 0 |
Net loss | (7,152) | (662) | (20,724) | (6,341) |
Preferred stock dividends | 0 | 0 | 0 | 1 |
Undeclared dividends | 0 | 0 | 0 | 366 |
Induced conversion of Series A-2 Preferred Stock | 0 | 0 | 0 | 300 |
Net loss attributable to common stockholders | $ (7,152) | $ (662) | $ (20,724) | $ (7,008) |
Net loss attributable to common stockholders per share: | ||||
Basic net loss per share (in dollars per share) | $ (0.23) | $ (0.02) | $ (0.67) | $ (0.28) |
Diluted net loss per share (in dollars per share) | $ (0.23) | $ (0.02) | $ (0.67) | $ (0.28) |
Weighted-average number of shares of common stock: | ||||
Basic (in shares) | 30,816 | 30,739 | 30,816 | 25,121 |
Diluted (in shares) | 30,816 | 30,739 | 30,816 | 25,121 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Series D and E Preferred Stock | Preferred Stock Series A-2 Preferred Stock | Preferred Stock Series D Preferred Stock | Preferred Stock Series E Preferred Stock | Common Stock | Common Stock Series D and E Preferred Stock | Treasury Stock | Additional Paid-In Capital | Additional Paid-In Capital Series D and E Preferred Stock | Accumulated Deficit |
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 45 | 1,697,958 | 131,579 | ||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2020 | 7,861,912 | ||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 113,283 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 22,057 | $ 0 | $ 0 | $ 0 | $ 1 | $ (181) | $ 215,092 | $ (192,855) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (3,433) | (3,433) | |||||||||
Stock-based compensation | 33 | 33 | |||||||||
Preferred stock conversion (in shares) | (45) | (1,697,022) | (131,579) | 84,292 | 18,762,119 | ||||||
Conversion of Series D and E Preferred Stock | $ 0 | $ 2 | $ (2) | ||||||||
Issuance of stock for services (in shares) | 21,008 | ||||||||||
Issuance of stock for services | 274 | 274 | |||||||||
Forfeitures of restricted stock (in shares) | (81) | ||||||||||
Series D preferred shares to pay withholding taxes (in shares) | (855) | ||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2021 | 0 | 0 | 0 | ||||||||
Common stock, ending balance (in shares) at Mar. 31, 2021 | 26,729,331 | ||||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2021 | 113,283 | ||||||||||
Ending balance at Mar. 31, 2021 | 18,931 | $ 0 | $ 0 | $ 0 | $ 3 | $ (181) | 215,397 | (196,288) | |||
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 45 | 1,697,958 | 131,579 | ||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2020 | 7,861,912 | ||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 113,283 | ||||||||||
Beginning balance at Dec. 31, 2020 | 22,057 | $ 0 | $ 0 | $ 0 | $ 1 | $ (181) | 215,092 | (192,855) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (6,341) | ||||||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | 0 | 0 | 0 | ||||||||
Common stock, ending balance (in shares) at Sep. 30, 2021 | 30,929,331 | ||||||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2021 | 113,283 | ||||||||||
Ending balance at Sep. 30, 2021 | 28,145 | $ 0 | $ 0 | $ 0 | $ 3 | $ (181) | 227,519 | (199,196) | |||
Preferred stock, beginning balance (in shares) at Mar. 31, 2021 | 0 | 0 | 0 | ||||||||
Common stock, beginning balance (in shares) at Mar. 31, 2021 | 26,729,331 | ||||||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2021 | 113,283 | ||||||||||
Beginning balance at Mar. 31, 2021 | 18,931 | $ 0 | $ 0 | $ 0 | $ 3 | $ (181) | 215,397 | (196,288) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (2,246) | (2,246) | |||||||||
Issuance of stock for services | 116 | 116 | |||||||||
Issuance of stock from financing, net of issuance costs (in shares) | 4,000,000 | ||||||||||
Issuance of stock from financing, net of issuance costs | 11,504 | 11,504 | |||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2021 | 0 | 0 | 0 | ||||||||
Common stock, ending balance (in shares) at Jun. 30, 2021 | 30,729,331 | ||||||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2021 | 113,283 | ||||||||||
Ending balance at Jun. 30, 2021 | 28,305 | $ 0 | $ 0 | $ 0 | $ 3 | $ (181) | 227,017 | (198,534) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (662) | (662) | |||||||||
Stock-based compensation | 502 | 502 | |||||||||
Issuance of stock on vested restricted stock units (in shares) | 200,000 | ||||||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | 0 | 0 | 0 | ||||||||
Common stock, ending balance (in shares) at Sep. 30, 2021 | 30,929,331 | ||||||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2021 | 113,283 | ||||||||||
Ending balance at Sep. 30, 2021 | $ 28,145 | $ 0 | $ 0 | $ 0 | $ 3 | $ (181) | 227,519 | (199,196) | |||
Common stock, beginning balance (in shares) at Dec. 31, 2021 | 30,816,048 | 30,929,331 | |||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 113,283 | 113,283 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 25,497 | $ 3 | $ (181) | 227,581 | (201,906) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (4,539) | (4,539) | |||||||||
Stock-based compensation | 52 | 52 | |||||||||
Forfeiture of unvested stock options | (84) | (84) | |||||||||
Common stock, ending balance (in shares) at Mar. 31, 2022 | 30,929,331 | ||||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | 113,283 | ||||||||||
Ending balance at Mar. 31, 2022 | $ 20,926 | $ 3 | $ (181) | 227,549 | (206,445) | ||||||
Common stock, beginning balance (in shares) at Dec. 31, 2021 | 30,816,048 | 30,929,331 | |||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 113,283 | 113,283 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 25,497 | $ 3 | $ (181) | 227,581 | (201,906) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | $ (20,724) | ||||||||||
Forfeitures of restricted stock (in shares) | (150,000) | ||||||||||
Common stock, ending balance (in shares) at Sep. 30, 2022 | 30,816,048 | 30,929,331 | |||||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | 113,283 | 113,283 | |||||||||
Ending balance at Sep. 30, 2022 | $ 4,803 | $ 3 | $ (181) | 227,611 | (222,630) | ||||||
Common stock, beginning balance (in shares) at Mar. 31, 2022 | 30,929,331 | ||||||||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | 113,283 | ||||||||||
Beginning balance at Mar. 31, 2022 | 20,926 | $ 3 | $ (181) | 227,549 | (206,445) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (9,033) | (9,033) | |||||||||
Stock-based compensation | 31 | 31 | |||||||||
Common stock, ending balance (in shares) at Jun. 30, 2022 | 30,929,331 | ||||||||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | 113,283 | ||||||||||
Ending balance at Jun. 30, 2022 | 11,924 | $ 3 | $ (181) | 227,580 | (215,478) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (7,152) | (7,152) | |||||||||
Stock-based compensation | $ 31 | 31 | |||||||||
Common stock, ending balance (in shares) at Sep. 30, 2022 | 30,816,048 | 30,929,331 | |||||||||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | 113,283 | 113,283 | |||||||||
Ending balance at Sep. 30, 2022 | $ 4,803 | $ 3 | $ (181) | $ 227,611 | $ (222,630) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (20,724) | $ (6,341) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,818 | 2,098 |
Bad debt expense | 114 | 280 |
Stock-based compensation | 114 | 535 |
Stock-based expense for services | 0 | 390 |
Forfeiture of unvested stock options | (84) | 0 |
Gain on extinguishment of liabilities | 0 | (2,675) |
Casualty loss on inventory | 533 | 0 |
Impairment charges - property and equipment | 37 | 98 |
Impairment charges - intangible assets | 5,132 | 207 |
Impairment charges - right of use asset | 179 | 0 |
Impairment charges - goodwill | 7,367 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 378 | 1,610 |
Inventory | 261 | (936) |
Prepaid expenses and other current assets | 213 | (751) |
Right of use asset | 290 | 372 |
Other assets | 56 | 15 |
Accounts payable | 142 | 225 |
Accrued expenses and other current liabilities | 129 | 11 |
Deferred revenue | (441) | (355) |
Lease liabilities | (390) | (739) |
Net cash used in operating activities | (4,876) | (5,956) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (11) | (30) |
Proceeds from sale of equipment | 30 | 0 |
Net cash provided by (used in) investing activities | 19 | (30) |
Cash flows from financing activities: | ||
Proceeds from stock issuance, net of issuance costs | 0 | 11,504 |
Net cash provided by financing activities | 0 | 11,504 |
(Decrease) increase in cash and restricted cash | (4,857) | 5,518 |
Cash and restricted cash at beginning of period | 9,000 | 5,277 |
Cash and restricted cash at end of period | 4,143 | 10,795 |
Reconciliation of cash and restricted cash | ||
Cash | 4,143 | 10,734 |
Restricted cash | 0 | 61 |
Total cash and restricted cash | 4,143 | 10,795 |
Cash paid during the period for interest | 7 | 2 |
Non-cash investing and financing activities: | ||
Accrued preferred stock dividends | 0 | 1 |
Inducement to convert Series A-2 Preferred Stock to common | 0 | 300 |
Common stock issued for conversion of Preferred Stock | 0 | 3 |
Lease liability and right of use asset | $ 11 | $ 0 |
Business Description and Signif
Business Description and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Business Description and Significant Accounting Policies | Note 1 - Business Description and Significant Accounting Policies Business Description Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and is a provider of patented multi-stream collaboration technologies and managed services for video collaboration and network applications. Prior to March 6, 2020, Oblong, Inc. was named Glowpoint, Inc. (“Glowpoint”). On March 6, 2020, Glowpoint changed its name to Oblong, Inc. Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2021. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2021 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. The condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2021 and notes thereto included in the Company's fiscal 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2022 (the “2021 10-K”). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) Oblong Europe Limited, a subsidiary of Oblong Industries. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. Segments The Company currently operates in two segments: (1) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings and (2) “Managed Services” which represents the Oblong (formerly Glowpoint) business surrounding managed services for video collaboration and network solutions. See Note 10 - Segment Reporting for further discussion. Use of Estimates Preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowance for doubtful accounts, the estimated lives and recoverability of property and equipment and intangible assets, the inputs used in the valuation of goodwill and intangible assets in connection with our impairment tests, and the inputs used in the fair value of equity-based awards. Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2021 10-K, and there have been no changes to the Company’s significant accounting policies during the nine months ended September 30, 2022. Recently Issued Accounting Pronouncements In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 as amended, “Financial Instruments - Credit Losses (Topic 326).” Topic 326 introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g., accounts receivable, loans and held-to-maturity securities), including certain off-balance sheet financial instruments (e.g., loan commitments). The expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has evaluated the impact the new guidance will have on its consolidated financial statements and does not expect the impact to be material. In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The FASB is issuing this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring after the effective date of the amendments. The Company has adopted this standard, effective January 1, 2022, and it did not have a material effect on our financial statements. Casualty Loss In June 2022, the Company discovered that $533,000 of inventory was stolen from the Company’s warehouse in City of Industry, California. This theft has been recorded as a casualty loss of $533,000 during the nine months ended September 30, 2022 on the Company’s condensed consolidated Statements of Operations. The theft is being investigated further by the Los Angeles, CA Sheriff’s Department and a claim has been filed with the Company’s insurance company. We are seeking to recover the majority of the loss through our insurance policies, and we will offset the casualty loss with the recognition of a gain of any proceeds should we subsequently receive them from our insurance company. No assurances can be provided that we will be successful in recovering any or all of the casualty loss. |
Liquidity and Going Concern Unc
Liquidity and Going Concern Uncertainty | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern Uncertainty | Note 2 - Liquidity and Going Concern Uncertainty As of September 30, 2022, we had $4,143,000 in cash and working capital of $4,029,000. For the nine months ended September 30, 2022, we incurred a net loss of $20,724,000 and used $4,876,000 of net cash in operating activities. Future Capital Requirements and Going Concern Our capital requirements in the future will continue to depend on numerous factors, including the timing and amount of revenue for the Company, customer renewal rates and the timing of collection of outstanding accounts receivable, in each case particularly as it relates to the Company’s major customers, the expense to deliver services, expense for sales and marketing, expense for research and development, and capital expenditures. We expect to continue to invest in product development and sales and marketing expenses with the goal of growing the Company’s revenue in the future. The Company believes that, based on its current projection of revenue, expenses, capital expenditures, and cash flows, it will not have sufficient resources to fund its operations for the next twelve months following the filing of this Report. We believe additional capital will be required to fund operations and provide growth capital including investments in technology, product development and sales and marketing. To access capital to fund operations or provide growth capital, we will need to raise capital in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising necessary capital or that any such offering will be on terms acceptable to the Company. If we are unable to raise additional capital that may be needed on terms acceptable to us, it |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 3 - Goodwill As of September 30, 2022 and December 31, 2021, goodwill was zero and $7,367,000, respectively, the goodwill was recorded in connection with the October 1, 2019 acquisition of Oblong Industries (our Collaboration Products reporting unit). We tested goodwill for impairment on an annual basis on September 30 of each year, or more frequently if events occurred or circumstances changed indicating that the fair value of the goodwill may be below its carrying amount. To determine the fair value of the reporting unit for the goodwill impairment test, we used a weighted average of the discounted cash flow method and market-based method. We considered the sustained decline in our stock price to be a triggering event for an interim goodwill impairment test, as of both March 31, 2022 and June 30, 2022, and we recorded impairment charges against the carrying value of Goodwill of $7,367,000 during the first half of 2022 as the carrying amount of the Collaboration Products reporting unit exceeded its fair value on the test dates. These charges are recognized as “Impairment Charges” on our condensed consolidated Statements of Operations. Following these impairment charges, our goodwill value was reduced to zero as of June 30, 2022. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4 - Intangible Assets The following table presents the components of net intangible assets for our Collaboration Products reporting segment (in thousands): As of September 30, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Impairment Charges Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 10,060 $ (6,049) $ (3,525) $ 486 $ 10,060 $ (4,537) $ 5,523 Trade names 2,410 (723) (1,483) 204 2,410 (542) 1,868 Distributor relationships 310 (186) (124) — 310 (139) 171 Total $ 12,780 $ (6,958) $ (5,132) $ 690 $ 12,780 $ (5,218) $ 7,562 At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three and nine months ended September 30, 2022, we considered the declines in revenue for the Collaboration Products reporting segment and the decline in the Company’s market capitalization to be triggering events for an impairment test of intangible assets for this reporting unit. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability test consisted of comparing the estimated undiscounted cash flows expected to be generated by those assets to the respective carrying amounts, and involves significant judgements and assumptions, related primarily to the future revenue and profitability of the assets. Based on the fair value of the asset group, which was determined using a market approach, we recorded impairment charges of $5,132,000 for the three and nine months ended September 30, 2022. Additionally, we re-evaluated the remaining useful lives of our amortizing intangible assets and, based on our current plan, we adjusted its remaining useful life to 2 years. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets. Related amortization expense was $580,000, $1,740,000, $597,000, and $1,791,000 for the three and nine months ended September 30, 2022 and 2021, respectively. Amortization expense for each of the next five succeeding years will be as follows (in thousands): Remainder of 2022 $ 86 2023 345 2024 259 Total $ 690 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 5 - Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued compensation costs $ 780 $ 551 Accrued professional fees — 69 Accrued taxes and regulatory fees 80 92 Customer deposits 120 145 Other accrued expenses and liabilities 108 102 Accrued expenses and other liabilities $ 1,088 $ 959 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 6 - Leases We lease three facilities in Los Angeles, California and one facility in Austin, Texas, each providing office space. We also lease a facility in City of Industry, California, providing warehouse space, and a short-term residential property in Los Angeles, California. These leases expire through 2024. We currently occupy the warehouse space in City of Industry, and the office facility in Austin, Texas, and we have a sublease in place for one of the Los Angeles, California office spaces. With the exception of these spaces described above, we currently operate out of remote employment sites with a remote office located at 25587 Conifer Road, Suite 105-231, Conifer, Colorado 80433. Lease expenses, including common charges and net of sublet proceeds, for the three and nine months ended September 30, 2022 and 2021 were $92,000, $307,000, $175,000, and $602,000, respectively. The following provides balance sheet information related to leases as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Assets Operating lease, right-of-use asset, net $ 201 $ 659 Liabilities Current portion of operating lease liabilities $ 306 $ 492 Operating lease liabilities, net of current portion 43 236 Total operating lease liabilities $ 349 $ 728 During the three and nine months ended September 30, 2022 and 2021, payments of $110,000, $408,000, $189,000, and $640,000 were made on leases, respectively. The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Remaining Lease Payments 2022 $ 110 2023 225 2024 17 Total lease payments 352 Effect of discounting (3) Total lease liability $ 349 During the three and nine months ended September 30, 2022, we entered into a six-month residential lease in Los Angeles, CA. During the nine months ended September 30, 2022, we exited our Boston, Massachusetts and our Dallas, Texas leases upon expiration, and we vacated two of the properties in Los Angeles, California. The properties we vacated in Los Angeles, California are under leases until May 2023 and management does not expect to be able to sublet the properties given the limited time remaining on the leases. Therefore, due to not utilizing the asset, management believes that the right-of-use assets attached to these leases have lost their value. An impairment charge of $179,000 was recorded for these assets in June 2022. During the year ended December 31, 2021, we entered into one new operating lease, modified one operating lease, and terminated two operating leases. The following table provides a reconciliation of activity for our right-of-use (“ROU”) assets and lease liabilities (in thousands): Right-of-Use Asset Operating Lease Liabilities Balance at December 31, 2020 $ 903 $ 1,432 Additions 60 60 Terminations and Modifications 192 156 Amortization and Payments (496) (920) Balance at December 31, 2021 $ 659 $ 728 Additions 11 11 Amortization and Payments (290) (390) Impairment Charges (179) — Balance at September 30, 2022 $ 201 $ 349 |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Capital Stock | Note 7 - Capital Stock Common Stock The Company’s common stock, par value $0.0001 per share (the “Common Stock”), is listed on The Nasdaq Capital Market (“Nasdaq”), under the ticker symbol “OBLG”. As of September 30, 2022, we had 150,000,000 shares of our Common Stock authorized, with 30,929,331 and 30,816,048 shares issued and outstanding, respectively. The Company did not issue any shares of Common Stock during the three and nine months ended September 30, 2022. Warrants Warrants outstanding as of September 30, 2022 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date October 21, 2020 521,500 $ 4.08 April 22, 2023 December 6, 2020 625,000 5.49 June 7, 2023 June 30, 2021 - Series A (1) 1,000,000 4.00 January 4, 2023 June 30, 2021 - Series B 3,000,000 4.40 June 30, 2024 5,146,500 (1) Series A Warrants shown as amended on December 31, 2021 Warrant activity for the year ended December 31, 2021 is presented below. There was no warrant activity for the three or nine months ended September 30, 2022. Outstanding Number of Warrants (in thousands) Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2020 1,146,500 $ 4.85 Granted 4,000,000 4.30 Warrants outstanding and exercisable, December 31, 2021 5,146,500 4.42 Warrants outstanding and exercisable, September 30, 2022 5,146,500 $ 4.42 Treasury Shares The Company maintains treasury stock for the Common Stock shares bought back by the Company when withholding shares to cover taxes on transactions related to equity awards. There were no treasury stock transactions during the nine months ended September 30, 2022 or the year ended December 31, 2021. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 8 - Stock Based Compensation 2019 Equity Incentive Plan On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. As of September 30, 2022, the share pool available for new grants under the 2019 Plan is 2,663,500. Stock Options For the nine months ended September 30, 2022 no stock options were granted, 50,000 stock options vested, 7,500 vested stock options expired, and 150,000 unvested stock options were forfeited. In accordance with the 2019 Plan, these cancelled unvested options were added back into the share pool. For the nine months ended September 30, 2021, 300,000 stock options were granted. A summary of stock options granted, expired, and forfeited under our plans, and options outstanding as of, and changes made during the nine months ended September 30, 2022 and the year ended December 31, 2021 is presented below: Outstanding Exercisable Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Options outstanding and exercisable, December 31, 2020 107,500 $ 19.64 107,500 $ 19.64 Granted 300,000 3.25 — — Options outstanding and exercisable, December 31, 2021 407,500 7.57 107,500 19.64 Vested — — 50,000 3.25 Expired (7,500) 27.40 (7,500) 27.40 Forfeited (150,000) 3.25 — — Options outstanding and exercisable, September 30, 2022 250,000 $ 9.57 150,000 $ 12.98 Additional information as of September 30, 2022 is as follows: Outstanding Exercisable Range of price Number Weighted Weighted Number Weighted $0.00 – $10.00 152,500 8.63 $ 3.34 52,500 $ 1.20 $10.01 – $20.00 97,500 0.31 19.32 97,500 19.32 250,000 5.38 $ 9.57 150,000 $ 12.98 The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. Net stock compensation expense, related to stock options, for the nine months ended September 30, 2022 was $30,000 made up of $114,000 in expense offset by $84,000 related to forfeiture credits. Stock compensation expense, related to stock options, was $64,000 for the nine months ended September 30, 2021. The remaining unrecognized stock-based compensation expense for options as of September 30, 2022 is $216,000, which will be recognized over a weighted average period of 1.75 years. Restricted Stock Awards As of September 30, 2022 and 2021, there were 627 unvested restricted stock awards outstanding, with a weighted average grant date price of $15.80. The awards were issued in 2014 and vest over the lesser of ten years, a change in control, or separation from the company. Due to the variability of the vesting, the expense was amortized over an average service period of five years, therefore, there is no unrecognized stock-based compensation expense for restricted stock awards as of September 30, 2022. Restricted Stock Units As of September 30, 2022 and 2021, there were no unvested restricted stock units (“RSUs”) outstanding. As of September 30, 2022, 28,904 vested RSUs remain outstanding as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSUs. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 9 - Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at September 30, 2022 and 2021, is considered contingently returnable until the restrictions lapse and will not be included in the basic net loss per share calculation until the shares are vested. Unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at time of grant. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock, to the extent they are dilutive. For the three and nine months ended September 30, 2022 and 2021, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss). The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net loss $ (7,152) $ (662) $ (20,724) $ (6,341) Less: preferred stock dividends — — — (1) Less: undeclared dividends — — — (366) Less: loss on induced conversion of Series A-2 Preferred Stock — — — (300) Net loss attributable to common stockholders $ (7,152) $ (662) $ (20,724) $ (7,008) Denominator: Weighted-average number of shares of common stock 30,816 30,739 30,816 25,121 Basic and diluted net loss per share $ (0.23) $ (0.02) $ (0.67) $ (0.28) The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss): Three and Nine Months Ended September 30, 2022 2021 Unvested restricted stock awards 627 627 Outstanding stock options 250,000 407,500 Warrants 5,146,500 5,146,500 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 10 - Segment Reporting The Company currently operates in two segments: (1) “Managed Services”, which represents the Oblong (former Glowpoint) business surrounding managed services for video collaboration and network applications; and (2) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings. Certain information concerning the Company’s segments for the three and nine months ended September 30, 2022 and 2021 is presented in the following tables (in thousands): Three Months Ended September 30, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 797 $ 388 $ — $ 1,185 Cost of revenues 552 289 — 841 Gross profit $ 245 $ 99 $ — $ 344 Gross profit % 31 % 26 % 29 % Allocated operating expenses $ — $ 6,275 $ — $ 6,275 Unallocated operating expenses — — 1,229 1,229 Total operating expenses $ — $ 6,275 $ 1,229 $ 7,504 Income (loss) from operations $ 245 $ (6,176) $ (1,229) $ (7,160) Interest and other expense (income), net 1 (6) — (5) Net income (loss) before tax 246 (6,170) (1,229) (7,155) Income tax benefit — (3) — (3) Net income (loss) $ 246 $ (6,167) $ (1,229) $ (7,152) Nine Months Ended September 30, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 2,573 $ 1,477 $ — $ 4,050 Cost of revenues 1,722 1,078 — 2,800 Gross profit $ 851 $ 399 $ — $ 1,250 Gross profit % 33 % 27 % 31 % Allocated operating expenses $ 57 $ 17,804 $ — $ 17,861 Unallocated operating expenses — — 4,104 4,104 Total operating expenses $ 57 $ 17,804 $ 4,104 $ 21,965 Income (loss) from operations $ 794 $ (17,405) $ (4,104) $ (20,715) Interest and other expense (income), net 7 (6) — 1 Net income (loss) before tax 787 (17,399) (4,104) (20,716) Income tax expense 8 — — 8 Net income (loss) $ 779 $ (17,399) $ (4,104) $ (20,724) Three Months Ended September 30, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 1,006 $ 793 $ — $ 1,799 Cost of revenues 721 507 — 1,228 Gross profit $ 285 $ 286 $ — $ 571 Gross profit % 28 % 36 % 32 % Allocated operating expenses $ 337 $ 1,717 $ — $ 2,054 Unallocated operating expenses — — 1,628 1,628 Total operating expenses $ 337 $ 1,717 $ 1,628 $ 3,682 Loss from operations $ (52) $ (1,431) $ (1,628) $ (3,111) Interest and other expense (income), net 2 (3) (2,448) (2,449) Income (loss) before income taxes (54) (1,428) 820 (662) Income tax expense — — — — Net income (loss) $ (54) $ (1,428) $ 820 $ (662) Nine Months Ended September 30, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 3,279 $ 2,487 $ — $ 5,766 Cost of revenues 2,293 1,474 — 3,767 Gross profit $ 986 $ 1,013 $ — $ 1,999 Gross profit % 30 % 41 % 35 % Allocated operating expenses $ 527 $ 5,394 $ — $ 5,921 Unallocated operating expenses — — 5,078 5,078 Total operating expenses $ 527 $ 5,394 $ 5,078 $ 10,999 Income (loss) from operations $ 459 $ (4,381) $ (5,078) $ (9,000) Interest and other expense (income), net 16 (227) (2,448) (2,659) Net income (loss) before tax 443 (4,154) (2,630) (6,341) Income tax expense — — — — Net income (loss) $ 443 $ (4,154) $ (2,630) $ (6,341) Unallocated operating expenses in Corporate include costs for the three and nine months ended September 30, 2022 and 2021 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. For the three months ended September 30, 2022, approximately 10% of our revenue was attributable to customers in Singapore. For the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, there was no material revenue attributable to any individual foreign country. Revenue by geographic area is allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Domestic $ 575 $ 1,035 $ 2,120 $ 3,277 Foreign 610 764 1,930 2,489 $ 1,185 $ 1,799 $ 4,050 $ 5,766 Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated Statements of Operations and is presented below according to contract type (in thousands): Three Months Ended September 30, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 69 6 % $ 179 10 % Network services 716 60 % 813 45 % Professional and other services 12 1 % 14 1 % Total Managed Services revenue $ 797 67 % $ 1,006 56 % Revenue: Collaboration Products Visual collaboration product offerings $ 385 33 % $ 771 43 % Licensing 3 — % 22 1 % Total Collaboration Products revenue 388 33 % 793 44 % Total revenue $ 1,185 100 % $ 1,799 100 % Nine Months Ended September 30, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 264 7 % $ 700 21 % Network services 2,260 56 % 2,524 77 % Professional and other services 49 1 % 55 2 % Total Managed Services revenue $ 2,573 64 % $ 3,279 57 % Revenue: Collaboration Products Visual collaboration product offerings $ 1,467 36 % $ 2,406 42 % Licensing 10 — % 81 1 % Total Collaboration Products revenue 1,477 36 % 2,487 43 % Total revenue $ 4,050 100 % $ 5,766 100 % The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition and results of operations. Concentration of revenues was as follows: Three Months Ended September 30, 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 53 % 37 % Nine Months Ended September 30, 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 48 % 35 % Concentration of accounts receivable was as follows: As of September 30, 2022 2022 2021 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 52 % 17 % Customer B Collaboration Products 12 % — % Customer C Collaboration Products — % 12 % Customer D Collaboration Products — % 11 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 - Commitments and Contingencies From time to time, we are subject to various legal proceedings arising in the ordinary course of business, including proceedings for which we have insurance coverage. As of the date hereof, we are not party to any legal proceedings that we currently believe will have a material adverse effect on our business, financial position, results of operations or liquidity. COVID-19 |
Business Description and Sign_2
Business Description and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended December 31, 2021. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2021 year-end condensed consolidated balance sheet data in this document was derived from audited consolidated financial statements. The condensed consolidated financial statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2021 and notes thereto included in the Company's fiscal 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 29, 2022 (the “2021 10-K”). |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Oblong and our 100%-owned subsidiaries, (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, (ii) Oblong Industries, and (iii) Oblong Europe Limited, a subsidiary of Oblong Industries. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. |
Segments | Segments The Company currently operates in two segments: (1) “Collaboration Products” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings and (2) “Managed Services” which represents the Oblong (formerly Glowpoint) business surrounding managed services for video collaboration and network solutions. See Note 10 - Segment Reporting for further discussion. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our consolidated financial statements for reasonableness. Appropriate |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 as amended, “Financial Instruments - Credit Losses (Topic 326).” Topic 326 introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g., accounts receivable, loans and held-to-maturity securities), including certain off-balance sheet financial instruments (e.g., loan commitments). The expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has evaluated the impact the new guidance will have on its consolidated financial statements and does not expect the impact to be material. In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The FASB is issuing this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring after the effective date of the amendments. The Company has adopted this standard, effective January 1, 2022, and it did not have a material effect on our financial statements. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table presents the components of net intangible assets for our Collaboration Products reporting segment (in thousands): As of September 30, 2022 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Impairment Charges Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 10,060 $ (6,049) $ (3,525) $ 486 $ 10,060 $ (4,537) $ 5,523 Trade names 2,410 (723) (1,483) 204 2,410 (542) 1,868 Distributor relationships 310 (186) (124) — 310 (139) 171 Total $ 12,780 $ (6,958) $ (5,132) $ 690 $ 12,780 $ (5,218) $ 7,562 |
Schedule of Future Amortization Expense | Amortization expense for each of the next five succeeding years will be as follows (in thousands): Remainder of 2022 $ 86 2023 345 2024 259 Total $ 690 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued compensation costs $ 780 $ 551 Accrued professional fees — 69 Accrued taxes and regulatory fees 80 92 Customer deposits 120 145 Other accrued expenses and liabilities 108 102 Accrued expenses and other liabilities $ 1,088 $ 959 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information | The following provides balance sheet information related to leases as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Assets Operating lease, right-of-use asset, net $ 201 $ 659 Liabilities Current portion of operating lease liabilities $ 306 $ 492 Operating lease liabilities, net of current portion 43 236 Total operating lease liabilities $ 349 $ 728 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Remaining Lease Payments 2022 $ 110 2023 225 2024 17 Total lease payments 352 Effect of discounting (3) Total lease liability $ 349 |
Schedule Of Operating Lease Liability and Right Of Use Assets | The following table provides a reconciliation of activity for our right-of-use (“ROU”) assets and lease liabilities (in thousands): Right-of-Use Asset Operating Lease Liabilities Balance at December 31, 2020 $ 903 $ 1,432 Additions 60 60 Terminations and Modifications 192 156 Amortization and Payments (496) (920) Balance at December 31, 2021 $ 659 $ 728 Additions 11 11 Amortization and Payments (290) (390) Impairment Charges (179) — Balance at September 30, 2022 $ 201 $ 349 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Warrants Activity | Warrants outstanding as of September 30, 2022 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date October 21, 2020 521,500 $ 4.08 April 22, 2023 December 6, 2020 625,000 5.49 June 7, 2023 June 30, 2021 - Series A (1) 1,000,000 4.00 January 4, 2023 June 30, 2021 - Series B 3,000,000 4.40 June 30, 2024 5,146,500 (1) Series A Warrants shown as amended on December 31, 2021 Warrant activity for the year ended December 31, 2021 is presented below. There was no warrant activity for the three or nine months ended September 30, 2022. Outstanding Number of Warrants (in thousands) Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2020 1,146,500 $ 4.85 Granted 4,000,000 4.30 Warrants outstanding and exercisable, December 31, 2021 5,146,500 4.42 Warrants outstanding and exercisable, September 30, 2022 5,146,500 $ 4.42 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Options Granted, Exercised, Expired and Forfeited | A summary of stock options granted, expired, and forfeited under our plans, and options outstanding as of, and changes made during the nine months ended September 30, 2022 and the year ended December 31, 2021 is presented below: Outstanding Exercisable Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Options outstanding and exercisable, December 31, 2020 107,500 $ 19.64 107,500 $ 19.64 Granted 300,000 3.25 — — Options outstanding and exercisable, December 31, 2021 407,500 7.57 107,500 19.64 Vested — — 50,000 3.25 Expired (7,500) 27.40 (7,500) 27.40 Forfeited (150,000) 3.25 — — Options outstanding and exercisable, September 30, 2022 250,000 $ 9.57 150,000 $ 12.98 |
Schedule of Shares Outstanding and Exercisable, By Exercise Price Range | Additional information as of September 30, 2022 is as follows: Outstanding Exercisable Range of price Number Weighted Weighted Number Weighted $0.00 – $10.00 152,500 8.63 $ 3.34 52,500 $ 1.20 $10.01 – $20.00 97,500 0.31 19.32 97,500 19.32 250,000 5.38 $ 9.57 150,000 $ 12.98 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net loss $ (7,152) $ (662) $ (20,724) $ (6,341) Less: preferred stock dividends — — — (1) Less: undeclared dividends — — — (366) Less: loss on induced conversion of Series A-2 Preferred Stock — — — (300) Net loss attributable to common stockholders $ (7,152) $ (662) $ (20,724) $ (7,008) Denominator: Weighted-average number of shares of common stock 30,816 30,739 30,816 25,121 Basic and diluted net loss per share $ (0.23) $ (0.02) $ (0.67) $ (0.28) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss): Three and Nine Months Ended September 30, 2022 2021 Unvested restricted stock awards 627 627 Outstanding stock options 250,000 407,500 Warrants 5,146,500 5,146,500 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Certain information concerning the Company’s segments for the three and nine months ended September 30, 2022 and 2021 is presented in the following tables (in thousands): Three Months Ended September 30, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 797 $ 388 $ — $ 1,185 Cost of revenues 552 289 — 841 Gross profit $ 245 $ 99 $ — $ 344 Gross profit % 31 % 26 % 29 % Allocated operating expenses $ — $ 6,275 $ — $ 6,275 Unallocated operating expenses — — 1,229 1,229 Total operating expenses $ — $ 6,275 $ 1,229 $ 7,504 Income (loss) from operations $ 245 $ (6,176) $ (1,229) $ (7,160) Interest and other expense (income), net 1 (6) — (5) Net income (loss) before tax 246 (6,170) (1,229) (7,155) Income tax benefit — (3) — (3) Net income (loss) $ 246 $ (6,167) $ (1,229) $ (7,152) Nine Months Ended September 30, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 2,573 $ 1,477 $ — $ 4,050 Cost of revenues 1,722 1,078 — 2,800 Gross profit $ 851 $ 399 $ — $ 1,250 Gross profit % 33 % 27 % 31 % Allocated operating expenses $ 57 $ 17,804 $ — $ 17,861 Unallocated operating expenses — — 4,104 4,104 Total operating expenses $ 57 $ 17,804 $ 4,104 $ 21,965 Income (loss) from operations $ 794 $ (17,405) $ (4,104) $ (20,715) Interest and other expense (income), net 7 (6) — 1 Net income (loss) before tax 787 (17,399) (4,104) (20,716) Income tax expense 8 — — 8 Net income (loss) $ 779 $ (17,399) $ (4,104) $ (20,724) Three Months Ended September 30, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 1,006 $ 793 $ — $ 1,799 Cost of revenues 721 507 — 1,228 Gross profit $ 285 $ 286 $ — $ 571 Gross profit % 28 % 36 % 32 % Allocated operating expenses $ 337 $ 1,717 $ — $ 2,054 Unallocated operating expenses — — 1,628 1,628 Total operating expenses $ 337 $ 1,717 $ 1,628 $ 3,682 Loss from operations $ (52) $ (1,431) $ (1,628) $ (3,111) Interest and other expense (income), net 2 (3) (2,448) (2,449) Income (loss) before income taxes (54) (1,428) 820 (662) Income tax expense — — — — Net income (loss) $ (54) $ (1,428) $ 820 $ (662) Nine Months Ended September 30, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 3,279 $ 2,487 $ — $ 5,766 Cost of revenues 2,293 1,474 — 3,767 Gross profit $ 986 $ 1,013 $ — $ 1,999 Gross profit % 30 % 41 % 35 % Allocated operating expenses $ 527 $ 5,394 $ — $ 5,921 Unallocated operating expenses — — 5,078 5,078 Total operating expenses $ 527 $ 5,394 $ 5,078 $ 10,999 Income (loss) from operations $ 459 $ (4,381) $ (5,078) $ (9,000) Interest and other expense (income), net 16 (227) (2,448) (2,659) Net income (loss) before tax 443 (4,154) (2,630) (6,341) Income tax expense — — — — Net income (loss) $ 443 $ (4,154) $ (2,630) $ (6,341) Concentration of revenues was as follows: Three Months Ended September 30, 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 53 % 37 % Nine Months Ended September 30, 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 48 % 35 % Concentration of accounts receivable was as follows: As of September 30, 2022 2022 2021 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 52 % 17 % Customer B Collaboration Products 12 % — % Customer C Collaboration Products — % 12 % Customer D Collaboration Products — % 11 % |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by geographic area is allocated as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Domestic $ 575 $ 1,035 $ 2,120 $ 3,277 Foreign 610 764 1,930 2,489 $ 1,185 $ 1,799 $ 4,050 $ 5,766 |
Schedule of Disaggregated Revenue Information | Disaggregated information for the Company’s revenue has been recognized in the accompanying condensed consolidated Statements of Operations and is presented below according to contract type (in thousands): Three Months Ended September 30, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 69 6 % $ 179 10 % Network services 716 60 % 813 45 % Professional and other services 12 1 % 14 1 % Total Managed Services revenue $ 797 67 % $ 1,006 56 % Revenue: Collaboration Products Visual collaboration product offerings $ 385 33 % $ 771 43 % Licensing 3 — % 22 1 % Total Collaboration Products revenue 388 33 % 793 44 % Total revenue $ 1,185 100 % $ 1,799 100 % Nine Months Ended September 30, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 264 7 % $ 700 21 % Network services 2,260 56 % 2,524 77 % Professional and other services 49 1 % 55 2 % Total Managed Services revenue $ 2,573 64 % $ 3,279 57 % Revenue: Collaboration Products Visual collaboration product offerings $ 1,467 36 % $ 2,406 42 % Licensing 10 — % 81 1 % Total Collaboration Products revenue 1,477 36 % 2,487 43 % Total revenue $ 4,050 100 % $ 5,766 100 % |
Business Description and Sign_3
Business Description and Significant Accounting Policies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Accounting Policies [Abstract] | |||||
Number of operating segments | segment | 2 | ||||
Casualty loss | $ | $ 533 | $ 0 | $ 0 | $ 533 | $ 0 |
Liquidity and Going Concern U_2
Liquidity and Going Concern Uncertainty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Cash | $ 4,143 | $ 10,795 | $ 4,143 | $ 10,795 | $ 9,000 | $ 5,277 | ||||
Working capital | 4,029 | 4,029 | ||||||||
Net loss | $ 7,152 | $ 9,033 | $ 4,539 | $ 662 | $ 2,246 | $ 3,433 | 20,724 | 6,341 | ||
Net cash used in operating activities | $ 4,876 | $ 5,956 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 0 | $ 7,367,000 | ||
Impairment charges - goodwill | $ 7,367,000 | $ 7,367,000 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Gross Carrying Amount | $ 12,780 | $ 12,780 | $ 12,780 |
Accumulated Amortization | (6,958) | (6,958) | |
Impairment Charges | (5,132) | (5,132) | (5,218) |
Net Carrying Amount | 690 | 690 | 7,562 |
Developed technology | |||
Business Acquisition [Line Items] | |||
Gross Carrying Amount | 10,060 | 10,060 | 10,060 |
Accumulated Amortization | (6,049) | (6,049) | |
Impairment Charges | (3,525) | (4,537) | |
Net Carrying Amount | 486 | 486 | 5,523 |
Trade names | |||
Business Acquisition [Line Items] | |||
Gross Carrying Amount | 2,410 | 2,410 | 2,410 |
Accumulated Amortization | (723) | (723) | |
Impairment Charges | (1,483) | (542) | |
Net Carrying Amount | 204 | $ 204 | 1,868 |
Finite-lived intangible asset, useful life | 2 years | ||
Distributor relationships | |||
Business Acquisition [Line Items] | |||
Gross Carrying Amount | 310 | $ 310 | 310 |
Accumulated Amortization | (186) | (186) | |
Impairment Charges | (124) | (139) | |
Net Carrying Amount | $ 0 | $ 0 | $ 171 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment charges | $ 5,169 | $ 254 | $ 12,715 | $ 302 |
Amortization expense | $ 580 | $ 597 | $ 1,740 | $ 1,791 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 86 | |
2023 | 345 | |
2024 | 259 | |
Net Carrying Amount | $ 690 | $ 7,562 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation costs | $ 780 | $ 551 |
Accrued professional fees | 0 | 69 |
Accrued taxes and regulatory fees | 80 | 92 |
Customer deposits | 120 | 145 |
Other accrued expenses and liabilities | 108 | 102 |
Accrued expenses and other liabilities | $ 1,088 | $ 959 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) facility | Sep. 30, 2021 USD ($) | Dec. 31, 2021 lease | |
Lessee, Lease, Description [Line Items] | ||||||
Non-cash lease expense | $ | $ 92 | $ 175 | $ 307 | $ 602 | ||
Operating lease, payments | $ | $ 110 | $ 189 | 408 | 640 | ||
Impairment charges - right of use asset | $ | $ 179 | $ 179 | $ 0 | |||
Number of leases entered | lease | 1 | |||||
Number of lease modified | lease | 1 | |||||
Number of leases exited | lease | 2 | |||||
Los Angeles, California | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Number of facilities | facility | 3 | |||||
Austin, Texas | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Number of facilities | facility | 1 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating lease - right of use asset, net | $ 201 | $ 659 | $ 903 |
Current portion of operating lease liabilities | 306 | 492 | |
Operating lease liabilities, net of current portion | 43 | 236 | |
Total operating lease liabilities | $ 349 | $ 728 | $ 1,432 |
Leases - Table Operating Lease
Leases - Table Operating Lease Future Minimum Rental Commitment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
2022 | $ 110 | ||
2023 | 225 | ||
2024 | 17 | ||
Total lease payments | 352 | ||
Effect of discounting | (3) | ||
Total lease liability | $ 349 | $ 728 | $ 1,432 |
Leases - Summary of Activity fo
Leases - Summary of Activity for Our Right of Use Assets And Lease Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Right-of-Use Asset | ||||
Beginning balance | $ 659 | $ 903 | $ 903 | |
Additions | 11 | 60 | ||
Terminations and Modifications | 192 | |||
Amortization and Payments | (290) | (496) | ||
Impairment Charges | $ (179) | (179) | 0 | |
Ending balance | 201 | 659 | ||
Operating Lease Liabilities | ||||
Beginning balance | 728 | $ 1,432 | 1,432 | |
Additions | 11 | 60 | ||
Terminations and Modifications | 156 | |||
Amortization and Payments | (390) | (920) | ||
Impairment Charges | 0 | |||
Ending balance | $ 349 | $ 728 |
Capital Stock - Common Stock -
Capital Stock - Common Stock - Additional Information (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 30,929,331 | 30,929,331 |
Common stock, shares outstanding (in shares) | 30,816,048 | 30,816,048 |
Capital Stock - Warrants Outsta
Capital Stock - Warrants Outstanding (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 06, 2020 | Oct. 21, 2020 |
Class of Warrant or Right [Line Items] | ||||||
Warrants issued (in shares) | 5,146,500 | 625,000 | 521,500 | |||
Exercise price (in dollars per share) | $ 4.42 | $ 4.42 | $ 4.85 | $ 5.49 | $ 4.08 | |
Series A Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants issued (in shares) | 1,000,000 | |||||
Exercise price (in dollars per share) | $ 4 | |||||
Series B Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants issued (in shares) | 3,000,000 | |||||
Exercise price (in dollars per share) | $ 4.40 |
Capital Stock - Warrants Activi
Capital Stock - Warrants Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2022 | Dec. 06, 2020 | Oct. 21, 2020 | |
Number of Warrants (in thousands) | ||||
Warrants outstanding and exercisable, beginning (in shares) | 1,146,500 | |||
Granted (in shares) | 4,000,000 | |||
Warrants outstanding and exercisable, ending (in shares) | 5,146,500 | |||
Warrants outstanding and exercisable, ending (in shares) | 5,146,500 | 5,146,500 | ||
Weighted Average Exercise Price | ||||
Warrants outstanding and exercisable, beginning (in dollars per share) | $ 4.85 | |||
Granted (in dollars per share) | 4.30 | |||
Warrants outstanding and exercisable, ending (in dollars per share) | 4.42 | |||
Warrants outstanding and exercisable, ending (in dollars per share) | $ 4.42 | $ 4.42 | $ 5.49 | $ 4.08 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted (in shares) | 300,000 | 0 | 300,000 | |||
Vested (in shares) | 50,000 | 50,000 | ||||
Vested stock options expired (in shares) | 7,500 | |||||
Forfeited restricted stock (in shares) | 150,000 | |||||
Options, intrinsic value, vested | $ 0 | $ 0 | ||||
Unrecognized stock-based compensation expense for stock options | $ 216,000 | 216,000 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option compensation expense | 30,000 | $ 64,000 | ||||
Stock option compensation expense, gross | 114,000 | |||||
Forfeiture credits | $ (84,000) | |||||
Cost not yet recognized, period for recognition | 1 year 9 months | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested restricted shares outstanding (in shares) | 627 | 627 | 627 | 627 | ||
Weighted average price of shares (in dollars per share) | $ 15.80 | $ 15.80 | ||||
Vesting period | 10 years | |||||
Award service period | 5 years | |||||
Unrecognized stock-based compensation expense for other than options | $ 0 | $ 0 | ||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option compensation expense | $ 0 | $ 438,000 | $ 0 | $ 438,000 | ||
Unvested restricted shares outstanding (in shares) | 0 | 0 | 0 | 0 | ||
Unrecognized stock-based compensation expense for other than options | $ 0 | $ 0 | ||||
Stock-based compensation arrangement, vested in period, remain outstanding (in shares) | 28,904 | |||||
2019 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | 2,663,500 | 2,663,500 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Outstanding (Details) - $ / shares | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Number of Options | |||
Outstanding number of options, beginning (in shares) | 107,500 | 407,500 | 107,500 |
Granted (in shares) | 300,000 | 0 | 300,000 |
Vested (in shares) | 0 | ||
Expired (in shares) | (7,500) | ||
Forfeited (in shares) | (150,000) | ||
Outstanding and exercisable number of options, ending (in shares) | 250,000 | 407,500 | |
Weighted Average Exercise Price | |||
Outstanding weighted average exercise price, beginning (in dollars per share) | $ 19.64 | $ 7.57 | $ 19.64 |
Granted (in dollars per share) | 3.25 | ||
Vested (in dollars per share) | 0 | ||
Expired (in dollars per share) | 27.40 | ||
Forfeited (in dollars per share) | 3.25 | ||
Outstanding and exercisable weighted average exercise price, ending (in dollars per share) | $ 9.57 | $ 7.57 | |
Exercisable | |||
Exercisable number of options, beginning (in shares) | 107,500 | 107,500 | 107,500 |
Vested (in shares) | 50,000 | ||
Expired (in shares) | (7,500) | ||
Exercisable number of options, ending (in shares) | 150,000 | 107,500 | |
Exercisable weighted average exercise price, beginning (in dollars per share) | $ 19.64 | $ 19.64 | $ 19.64 |
Exercisable vested, weighted average exercise price (in dollars per share) | 3.25 | ||
Exercisable expired, weighted average exercise price (in dollars per share) | 27.40 | ||
Exercisable weighted average exercise price, ending (in dollars per share) | $ 12.98 | $ 19.64 |
Stock Based Compensation - Exer
Stock Based Compensation - Exercise Price Range (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of options, outstanding (in shares) | 250,000 | 407,500 | 107,500 |
Weighted Average Remaining Contractual Life (In Years) | 5 years 4 months 17 days | ||
Weighted average exercise price, outstanding (in dollars per share) | $ 9.57 | $ 7.57 | $ 19.64 |
Number of options, exercisable (in shares) | 150,000 | 107,500 | 107,500 |
Exercisable weighted average exercise price (in dollars per share) | $ 12.98 | $ 19.64 | $ 19.64 |
$0.00 – $10.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 0 | ||
Range of price, upper range limit (in dollars per share) | $ 10 | ||
Number of options, outstanding (in shares) | 152,500 | ||
Weighted Average Remaining Contractual Life (In Years) | 8 years 7 months 17 days | ||
Weighted average exercise price, outstanding (in dollars per share) | $ 3.34 | ||
Number of options, exercisable (in shares) | 52,500 | ||
Exercisable weighted average exercise price (in dollars per share) | $ 1.20 | ||
$10.01 – $20.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 10.01 | ||
Range of price, upper range limit (in dollars per share) | $ 20 | ||
Number of options, outstanding (in shares) | 97,500 | ||
Weighted Average Remaining Contractual Life (In Years) | 3 months 21 days | ||
Weighted average exercise price, outstanding (in dollars per share) | $ 19.32 | ||
Number of options, exercisable (in shares) | 97,500 | ||
Exercisable weighted average exercise price (in dollars per share) | $ 19.32 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Earnings Per Share [Abstract] | |
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares) | 0 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net loss | $ (7,152) | $ (9,033) | $ (4,539) | $ (662) | $ (2,246) | $ (3,433) | $ (20,724) | $ (6,341) |
Less: preferred stock dividends | 0 | 0 | 0 | (1) | ||||
Less: undeclared dividends | 0 | 0 | 0 | (366) | ||||
Less: loss on induced conversion of Series A-2 Preferred Stock | 0 | 0 | 0 | (300) | ||||
Net loss attributable to common stockholders | $ (7,152) | $ (662) | $ (20,724) | $ (7,008) | ||||
Denominator: | ||||||||
Weighted-average number of shares of common stock - basic (in shares) | 30,816 | 30,739 | 30,816 | 25,121 | ||||
Weighted-average number of shares of common stock - diluted (in shares) | 30,816 | 30,739 | 30,816 | 25,121 | ||||
Basic net loss per share (in dollars per share) | $ (0.23) | $ (0.02) | $ (0.67) | $ (0.28) | ||||
Diluted net loss per share (in dollars per share) | $ (0.23) | $ (0.02) | $ (0.67) | $ (0.28) |
Net Loss Per Share - Effect of
Net Loss Per Share - Effect of Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unvested restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 627 | 627 | 627 | 627 |
Outstanding stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 250,000 | 407,500 | 250,000 | 407,500 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 5,146,500 | 5,146,500 | 5,146,500 | 5,146,500 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||||
Number of operating segments | segment | 2 | |||||||
Revenue | $ 1,185 | $ 1,799 | $ 4,050 | $ 5,766 | ||||
Cost of revenues | 841 | 1,228 | 2,800 | 3,767 | ||||
Gross profit | $ 344 | $ 571 | $ 1,250 | $ 1,999 | ||||
Gross profit % | 29% | 32% | 31% | 35% | ||||
Total operating expenses | $ 7,504 | $ 3,682 | $ 21,965 | $ 10,999 | ||||
Loss from operations | (7,160) | (3,111) | (20,715) | (9,000) | ||||
Interest and other expense (income), net | (5) | (2,449) | 1 | (2,659) | ||||
Loss before income taxes | (7,155) | (662) | (20,716) | (6,341) | ||||
Income tax expense (benefit) | (3) | 0 | 8 | 0 | ||||
Net loss | (7,152) | $ (9,033) | $ (4,539) | (662) | $ (2,246) | $ (3,433) | (20,724) | (6,341) |
Domestic | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 575 | 1,035 | 2,120 | 3,277 | ||||
Foreign | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 610 | 764 | 1,930 | 2,489 | ||||
Allocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 6,275 | 2,054 | 17,861 | 5,921 | ||||
Unallocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 1,229 | 1,628 | 4,104 | 5,078 | ||||
Unallocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 0 | 0 | 0 | 0 | ||||
Cost of revenues | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Total operating expenses | 1,229 | 1,628 | 4,104 | 5,078 | ||||
Loss from operations | (1,229) | (1,628) | (4,104) | (5,078) | ||||
Interest and other expense (income), net | 0 | (2,448) | 0 | (2,448) | ||||
Loss before income taxes | (1,229) | 820 | (4,104) | (2,630) | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||||
Net loss | (1,229) | 820 | (4,104) | (2,630) | ||||
Unallocated operating expenses | Allocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 0 | 0 | 0 | 0 | ||||
Unallocated operating expenses | Unallocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 1,229 | 1,628 | 4,104 | 5,078 | ||||
Managed Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 797 | 1,006 | 2,573 | 3,279 | ||||
Managed Services | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 797 | 1,006 | 2,573 | 3,279 | ||||
Cost of revenues | 552 | 721 | 1,722 | 2,293 | ||||
Gross profit | $ 245 | $ 285 | $ 851 | $ 986 | ||||
Gross profit % | 31% | 28% | 33% | 30% | ||||
Total operating expenses | $ 0 | $ 337 | $ 57 | $ 527 | ||||
Loss from operations | 245 | (52) | 794 | 459 | ||||
Interest and other expense (income), net | (1) | 2 | 7 | 16 | ||||
Loss before income taxes | 246 | (54) | 787 | 443 | ||||
Income tax expense (benefit) | 0 | 0 | 8 | 0 | ||||
Net loss | 246 | (54) | 779 | 443 | ||||
Managed Services | Operating Segments | Allocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 0 | 337 | 57 | 527 | ||||
Managed Services | Operating Segments | Unallocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 0 | 0 | 0 | 0 | ||||
Collaboration Products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 388 | 793 | 1,477 | 2,487 | ||||
Collaboration Products | Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 388 | 793 | 1,477 | 2,487 | ||||
Cost of revenues | 289 | 507 | 1,078 | 1,474 | ||||
Gross profit | $ 99 | $ 286 | $ 399 | $ 1,013 | ||||
Gross profit % | 26% | 36% | 27% | 41% | ||||
Total operating expenses | $ 6,275 | $ 1,717 | $ 17,804 | $ 5,394 | ||||
Loss from operations | (6,176) | (1,431) | (17,405) | (4,381) | ||||
Interest and other expense (income), net | (6) | (3) | (6) | (227) | ||||
Loss before income taxes | (6,170) | (1,428) | (17,399) | (4,154) | ||||
Income tax expense (benefit) | (3) | 0 | 0 | 0 | ||||
Net loss | (6,167) | (1,428) | (17,399) | (4,154) | ||||
Collaboration Products | Operating Segments | Allocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | 6,275 | 1,717 | 17,804 | 5,394 | ||||
Collaboration Products | Operating Segments | Unallocated operating expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating expenses | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Disaggregat
Segment Reporting - Disaggregation of Revenue and Total Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,185 | $ 1,799 | $ 4,050 | $ 5,766 |
Managed Services And Collaboration Products | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 100% | 100% | 100% | 100% |
Managed Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 797 | $ 1,006 | $ 2,573 | $ 3,279 |
Managed Services | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 67% | 56% | 64% | 57% |
Managed Services | Video collaboration services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 69 | $ 179 | $ 264 | $ 700 |
Managed Services | Video collaboration services | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 6% | 10% | 7% | 21% |
Managed Services | Network services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 716 | $ 813 | $ 2,260 | $ 2,524 |
Managed Services | Network services | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 60% | 45% | 56% | 77% |
Managed Services | Professional and other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 12 | $ 14 | $ 49 | $ 55 |
Managed Services | Professional and other services | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 1% | 1% | 1% | 2% |
Collaboration Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 388 | $ 793 | $ 1,477 | $ 2,487 |
Collaboration Products | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 33% | 44% | 36% | 43% |
Collaboration Products | Video collaboration services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 385 | $ 771 | $ 1,467 | $ 2,406 |
Collaboration Products | Video collaboration services | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 33% | 43% | 36% | 42% |
Collaboration Products | Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3 | $ 22 | $ 10 | $ 81 |
Collaboration Products | Licensing | Revenue | Product Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue | 0% | 1% | 0% | 1% |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 575 | $ 1,035 | $ 2,120 | $ 3,277 |
Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 610 | $ 764 | $ 1,930 | $ 2,489 |
Segment Reporting - Concentrati
Segment Reporting - Concentration Percentage (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Customer A | Managed Services | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 53% | 37% | 48% | 35% |
Customer A | Managed Services | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 52% | 17% | ||
Customer B | Collaboration Products | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12% | 0% | ||
Customer C | Collaboration Products | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 0% | 12% | ||
Customer D | Collaboration Products | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 0% | 11% |