Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 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, $0.0001 par value | ||
Trading Symbol | OBLG | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,673,953 | ||
Entity Common Stock, Shares Outstanding | 2,063,308 | ||
Entity Central Index Key | 0000746210 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | EisnerAmper LLP |
Auditor Location | Iselin, New Jersey |
Auditor Firm ID | 274 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 3,085 | $ 8,939 |
Current portion of restricted cash | 0 | 61 |
Accounts receivable, net | 415 | 849 |
Inventory, net | 723 | 1,821 |
Prepaid expenses and other current assets | 649 | 1,081 |
Total current assets | 4,872 | 12,751 |
Property and equipment, net | 3 | 159 |
Goodwill | 0 | 7,367 |
Intangibles, net | 604 | 7,562 |
Operating lease, right-of-use assets, net | 142 | 659 |
Other assets | 40 | 109 |
Total assets | 5,661 | 28,607 |
Current liabilities: | ||
Accounts payable | 184 | 259 |
Accrued expenses and other current liabilities | 1,074 | 959 |
Current portion deferred revenue | 436 | 783 |
Operating lease liabilities, current | 219 | 492 |
Total current liabilities | 1,913 | 2,493 |
Long-term liabilities: | ||
Operating lease liabilities, net of current portion | 17 | 236 |
Deferred revenue, net of current portion | 114 | 381 |
Total long-term liabilities | 131 | 617 |
Total liabilities | 2,044 | 3,110 |
Commitments and contingencies (see Note 15) | ||
Stockholders’ equity: | ||
Common stock, $.0001 par value; 150,000,000 shares authorized; 2,070,861 shares issued and 2,063,308 outstanding at December 31, 2022 and 2,062,030 shares issued and 2,054,477 outstanding at December 31, 2021 | 0 | 0 |
Treasury stock, 7,553 shares at December 31, 2022 and 2021 | (181) | (181) |
Additional paid-in capital | 227,645 | 227,584 |
Accumulated deficit | (223,847) | (201,906) |
Total stockholders’ equity | 3,617 | 25,497 |
Total liabilities and stockholders’ equity | $ 5,661 | $ 28,607 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, convertible, 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) | 2,070,861 | 2,062,030 |
Common stock, shares outstanding (in shares) | 2,063,308 | 2,054,477 |
Treasury stock, shares (in shares) | 7,553 | 7,553 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 5,476 | $ 7,739 |
Cost of revenue (exclusive of depreciation and amortization and casualty loss) | 3,930 | 5,021 |
Gross profit | 1,546 | 2,718 |
Operating expenses: | ||
Research and development | 1,699 | 2,913 |
Sales and marketing | 1,431 | 2,195 |
General and administrative | 5,278 | 6,363 |
Impairment charges | 12,740 | 305 |
Casualty loss, net | 483 | 0 |
Depreciation and amortization | 1,903 | 2,736 |
Total operating expenses | 23,534 | 14,512 |
Loss from operations | (21,988) | (11,794) |
Interest and other expense | ||
Interest and other expense | 19 | 22 |
Gain on extinguishment of debt | 0 | (2,448) |
Interest and other income | (59) | (227) |
Total interest and other income, net | (40) | (2,653) |
Loss before income taxes | (21,948) | (9,141) |
Income tax benefit | (7) | (90) |
Net loss | (21,941) | (9,051) |
Preferred stock dividends | 0 | 1 |
Undeclared dividends | 0 | 366 |
Induced conversion of Series A-2 Preferred Stock | 0 | 300 |
Warrant modification | 0 | 37 |
Net loss attributable to common stockholders | $ (21,941) | $ (9,755) |
Net loss attributable to common stockholders per share: | ||
Basic net loss per share (in dollars per share) | $ (10.62) | $ (5.48) |
Diluted net loss per share (in dollars per share) | $ (10.62) | $ (5.48) |
Weighted-average number of shares of common stock: | ||
Basic (in shares) | 2,065 | 1,779 |
Diluted (in shares) | 2,065 | 1,779 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Series A-2 Preferred Stock | Series D Preferred Stock | Series 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 A-2 Preferred Stock | Common Stock Series D & E Preferred Stock conversion | Treasury Stock | Additional Paid-In Capital | 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 | 533,000 | ||||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 8,000 | ||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 22,057 | $ 0 | $ 0 | $ 0 | $ 0 | $ (181) | $ 215,093 | $ (192,855) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (9,051) | (9,051) | |||||||||||
Stock-based compensation | 713 | 713 | |||||||||||
Series D & E Preferred Stock conversion and Series A2 Preferred Stock conversion (in shares) | (45) | (1,697,022) | (131,579) | 1,257,000 | 6,000 | 1,251,000 | |||||||
Forfeiture of series D stock (in shares) | (81) | ||||||||||||
Series D shares exchanged for tax (in shares) | (855) | ||||||||||||
Issuance of stock for services (in shares) | 1,000 | ||||||||||||
Issuance of stock for services | 274 | 274 | |||||||||||
Issuance of shares from financing, net of issuance costs (in shares) | 267,000 | ||||||||||||
Issuance of shares from financing, net of issuance costs | $ 11,504 | 11,504 | |||||||||||
Issuance of stock on vested restricted stock units (in shares) | 13,000 | ||||||||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Common stock, ending balance (in shares) at Dec. 31, 2021 | 2,062,030 | 2,071,000 | |||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | 7,553 | 8,000 | |||||||||||
Ending Balance at Dec. 31, 2021 | $ 25,497 | $ 0 | $ 0 | $ 0 | $ 0 | $ (181) | 227,584 | (201,906) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (21,941) | (21,941) | |||||||||||
Stock-based compensation | 146 | 146 | |||||||||||
Forfeiture of unvested stock options | $ (85) | (85) | |||||||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Common stock, ending balance (in shares) at Dec. 31, 2022 | 2,070,861 | 2,071,000 | |||||||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 7,553 | 8,000 | |||||||||||
Ending Balance at Dec. 31, 2022 | $ 3,617 | $ 0 | $ 0 | $ 0 | $ 0 | $ (181) | $ 227,645 | $ (223,847) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from Operating Activities: | ||
Net loss | $ (21,941,000) | $ (9,051,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,903,000 | 2,736,000 |
Bad debt expense | 118,000 | 321,000 |
Non-cash lease expense from right-of-use assets | 349,000 | 495,000 |
Stock-based compensation | 146,000 | 597,000 |
Stock-based expense for services | 0 | 390,000 |
Forfeiture of unvested stock options | (85,000) | 0 |
Gain on disposal of assets | (2,000) | 0 |
Gain on extinguishment of liabilities | 0 | (2,675,000) |
Casualty loss on inventory | 483,000 | 0 |
Impairment charges - property and equipment | 61,000 | 98,000 |
Impairment charges - intangible assets | 5,133,000 | 207,000 |
Impairment charges - right-of use assets | 179,000 | 0 |
Impairment charges - goodwill | 7,367,000 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 316,000 | 1,996,000 |
Prepaid expenses and other current assets | 432,000 | (901,000) |
Inventory | 615,000 | (390,000) |
Other assets | 69,000 | (3,000) |
Accounts payable | (75,000) | (54,000) |
Accrued expenses and other current liabilities | 115,000 | (19,000) |
Deferred revenue | (614,000) | (559,000) |
Lease liabilities | (503,000) | (920,000) |
Net cash used in operating activities | (5,934,000) | (7,732,000) |
Cash flows from Investing Activities: | ||
Proceeds on sale of equipment | 30,000 | 1,000 |
Purchases of property and equipment | (11,000) | (50,000) |
Net cash provided by (used in) investing activities | 19,000 | (49,000) |
Cash flows from Financing Activities: | ||
Proceeds from stock issuance, net of offering costs | 0 | 11,504,000 |
Net cash provided by financing activities | 0 | 11,504,000 |
Net (decrease) increase in cash and restricted cash | (5,915,000) | 3,723,000 |
Cash and restricted cash at beginning of year | 9,000,000 | 5,277,000 |
Cash and restricted cash at end of year | 3,085,000 | 9,000,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 7,000 | 9,000 |
Reconciliation of cash and restricted cash | ||
Cash | 3,085,000 | 8,939,000 |
Current portion of restricted cash | 0 | 61,000 |
Total cash and restricted cash | 3,085,000 | 9,000,000 |
Non-cash investing and financing activities: | ||
New operating lease agreement | 11,000 | 60,000 |
Modification of operating lease agreement | 0 | 192,000 |
Warrant modification | 0 | 37,000 |
Accrued preferred stock dividends | 0 | 1,000 |
Inducement to convert Series A-2 Preferred Stock to common | $ 0 | $ 300,000 |
Business Description and Signif
Business Description and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Significant Accounting Policies | 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. Principles of Consolidation The 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, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. During 2022, the Company ceased operations through Oblong Industries’ 100%-owned subsidiaries (i) Oblong Industries Europe, S.L. and (ii) Oblong Europe Limited, and combined the operations into Oblong Industries, Inc. There was no activity in either subsidiary in 2022 and, as of December 31, 2022, Oblong Industries Europe, S.L. has been dissolved and Oblong Europe, Limited is in liquidation. Segments Effective October 1, 2019, the former businesses of Glowpoint (now Oblong, Inc.) and Oblong Industries have been managed separately, and involve different products and services. Accordingly, the Company currently operates in two segments for purposes of segment reporting: (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 14 - 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. Cash and Restricted Cash As of December 31, 2022, our total cash balance was $3,085,000, and all cash was unrestricted. As of December 31, 2021, our total cash balance of $9,000,000 included current restricted cash of $61,000. The restricted cash pertained to one letter of credit that served as the security deposit for our leased office space in Boston, Massachusetts, and was secured by an equal amount of cash pledged as collateral, and such cash was held in a restricted bank account. The Boston lease, and thereby the letter of credit, in the amount of $61,000, expired in February 2022 and the cash was released. Accounts Receivable and Provision for Estimated Credit Losses Accounts receivable are customer obligations due under normal trade terms. The Company sells its Managed Services products to end-users, and its Collaboration products to both resell partners and end-users. The Company extends credit to its customers based on their credit worthiness and on historical data, and performs ongoing credit evaluations of our customers’ financial condition. The Company maintains an allowance for doubtful accounts, related to accounts receivable, for future expected bad debt resulting from the inability or unwillingness of our customers to make required payments. We estimate our allowance for doubtful accounts based on relevant information such as historical experience, current economic conditions, and future expectations of specifically identified customer balances. This allowance is adjusted as appropriate to reflect current conditions. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. We do not obtain collateral from our customers to secure accounts receivable. Net accounts receivable consisted of the following: As of December 31, 2022 2021 Accounts receivable $ 624,000 $ 949,000 Allowance for doubtful accounts (209,000) (100,000) Accounts receivable, net $ 415,000 $ 849,000 During the years ended December 31, 2022 and 2021, the Company recorded bad debt of $118,000 and $321,000, respectively. As of December 31, 2020, accounts receivable and the allowance for doubtful accounts were $3,348,000 and $182,000, respectively. Employee Retention Credit The CARES Act provided an employee retention credit (“ERC”), which was a refundable tax credit against certain payroll taxes. Upon determination that the Company had complied with all of the conditions required to receive the credit, the Company qualified and filed to claim the ERC. The Company reflected the ERC as a reduction to the respective captions on the consolidated statements of operations associated with the employees to which the payroll tax benefit related. For the year ended December 31, 2021, the Company recorded a $874,000 reduction to operating expense. There was no ERC for the year ended December 31, 2022. During the year ended December 31, 2021, the company collected $558,000 of the ERC and, as of December 31, 2022, $316,000 remains outstanding. Inventory Inventory consists of finished goods and was determined using average costs and was stated at the lower of cost or net realizable value. The Company periodically performs analyses to identify obsolete or slow-moving inventory. Fair Value of Financial Instruments The Company considers its cash, accounts receivable, accounts payable and lease obligations to meet the definition of financial instruments. The carrying amount of cash, accounts receivable and accounts payable approximated their fair value due to the short maturities of these instruments. The carrying amounts of our lease obligations (see Note 9 - Operating Lease Liabilities and Right-of-Use Assets ) approximated their fair values, which were based on borrowing rates that were available to the Company for loans with similar terms, collateral, and maturity. The Company measures fair value as required by Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework and gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 - inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 - unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Revenue Recognition The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606. The Company recognizes revenue using the five-step model as prescribed by Topic 606: • Identification of the contract, or contracts, with a customer; • Identification of the distinct performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies a performance obligation. The Company’s managed videoconferencing services are offered to our customers on either a usage basis or on a subscription. Our network services are offered to our customers on a subscription basis. Revenue for these services is generally recognized on a monthly basis as services are performed. Revenue related to professional services is recognized at the time the services are performed. The costs associated with obtaining a customer contract were previously expensed in the period they were incurred. Under Topic 606, these payments are deferred on our consolidated balance sheets and amortized over the expected life of the customer contract. Deferred revenue as of December 31, 2022 totaled $1,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2022, the Company recorded $7,000 of revenue that was included in deferred revenue as of December 31, 2021. During the year ended December 31, 2021, the Company recorded $24,000 of revenue that was included in deferred revenue as of December 31, 2020. The Company’s visual collaboration products are composed of hardware and embedded software sold as a complete package, and generally include installation and maintenance services. Revenue for hardware and software is recognized upon shipment to the customer. Installation revenue is recognized upon completion of installation, which also triggers the beginning of recognition of revenue for maintenance services which range from one to three years. Revenue is recognized over time for maintenance services. Professional services are contracts with specific customers for software development, visual design, interaction design, engineering, and project support. These contracts vary in length, and revenue is recognized over time as services are rendered. Licensing agreements are for the Company’s core technology platform, g-speak, and are generally one year in length. Revenue for these services is recognized ratably over the service period. Deferred revenue, as of December 31, 2022, totaled $549,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2022, the Company recorded $776,000 of revenue that was included in deferred revenue as of December 31, 2021. During the year ended December 31, 2021, the Company recorded $1,193,000 of revenue that was included in deferred revenue as of December 31, 2020. Revenue recorded over time for the years ended December 31, 2022 and 2021 was $970,000 and $1,809,000, respectively. Revenue recorded at a period in time for the years ended December 31, 2022 and 2021 was $4,506,000 and $5,930,000, respectively. The Company disaggregates its revenue by geographic region. See Note 14 - Segment Reporting for more information. Taxes Billed to Customers and Remitted to Taxing Authorities We recognize taxes billed to customers in revenue and taxes remitted to taxing authorities in our cost of revenue. For the years ended December 31, 2022 and 2021, we included taxes of $207,000 and $264,000, respectively, in revenue and we included taxes of $217,000 and $271,000, respectively, in cost of revenue. Long-Lived Assets, Goodwill, and Intangible Assets Property and Equipment Property and equipment are accounted for in accordance with ASC Topic 360 “ Property, Plant, and Equipment” (“ASC Topic 360”), stated at cost, and are depreciated using the straight-line method over the estimated economic lives of the assets, which range from three Intangible Assets Intangible assets are accounted for in accordance with ASC Topic 350 “ Intangibles - Goodwill and Other” (“ASC Topic 350”), and intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which initially ranged from five Goodwill Goodwill is accounted for in accordance with ASC Topic 350 and is not amortized. Goodwill is subject to periodic testing for impairment. As of December 31, 2021, goodwill of $7,367,000 was recorded on our Consolidated Balance Sheet in connection with the October 1, 2019 acquisition of Oblong Industries. As a result of the impairment charges discussed below, there was no goodwill recorded on our Consolidated Balance Sheet as of December 31, 2022. Operating Lease Right-of-use-assets Right-of-use Assets are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”), and are amortized using a straight-line method over the estimated life of the lease. Right-of-use assets, net totaled $142,000 and $659,000, as of December 31, 2022 and 2021, respectively. The Company primarily leases facilities for office, warehouse, and data center space under non-cancellable operating leases for its U.S. locations, and accounts for these leases in accordance with ASC-842. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Right-of-use 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. Since our lease arrangements do not provide an implicit rate, we use our estimated incremental borrowing rate for the expected remaining lease term at commencement date in determining the present value of future lease payments. Impairment The Company assesses the impairment of our long-lived assets subject to amortization when events and circumstances indicate that the carrying value of the assets might not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in the Company’s strategic plan and/or other-than-temporary changes in market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. Long-lived assets are evaluated for impairment whenever an event or change in circumstances has occurred that could have a significant adverse effect on the fair value of long-lived assets. During the year ended December 31, 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 our long-lived and intangible 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 tests 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. For the year ended December 31, 2022, the Company recorded net impairment charges on property and equipment assets of $59,000. See Note 5 - Property and Equipment for further discussion. During the year ended December 31, 2021, the Company recorded impairment charges of $98,000 on property and equipment assets. For the year ended December 31, 2022, the Company recorded impairment charges of $5,133,000 on purchased intangible assets. See Note 7 - Intangible Assets for further discussion. The Company recorded impairment Charges of $207,000 to purchased intangible assets for the year ended December 31, 2021. We tested goodwill for impairment on an annual basis, on September 30 th of each year, unless events occurred or circumstances changed indicating that the fair value of the goodwill may be below its carrying amount. During the year ended December 31, 2022, 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. 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. During the year ended December 31, 2022, we recorded impairment charges of $7,367,000, related to the tests discussed above. See Note 6 - Goodwill for further discussion. No impairments were recorded for Goodwill during the year ended December 31, 2021. Right-of-use assets are tested for impairment using guidance from ASC Topic 360. For the year ended December 31, 2022, the Company recorded aggregate impairment charges of $179,000 on two right-of-use assets. See Note 9 - Operating Lease Liabilities and Right-of-Use Assets for further discussion. There were no right-of-use asset impairments for the year ended December 31, 2021. Operating Leases Operating leases are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”), and the liabilities are amortized using a straight-line method over the estimated life of the lease. The remaining operating lease liability as of December 31, 2022 and 2021 was $236,000 and $728,000, respectively. See Note 9 - Operating Lease Liabilities and Right-of-Use Assets for further discussion. Operating lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one Leases with an initial term of 12 months or less, with the exception of leases for real property, are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to leases are expensed as incurred. Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash needed for operations in commercial checking accounts, and the majority of our cash is held in a money market fund. Commercial bank balances may from time to time exceed federal insurance limits. Deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”) in an amount up to $250,000 for any depositor, any deposit in excess of this insured amount could be lost. As of December 31, 2022, cash held in banks, and the corresponding amounts in excess of the FDIC insured amounts were as follows: Bank Cash at December 31,2022 Excess over FDIC Insured Amount Silicon Valley Bank $ 260,000 $ 10,000 Morgan Stanley - SS&C for US Funds 2,795,000 2,795,000 Resolve Group, UK 30,000 30,000 Total $ 3,085,000 $ 2,835,000 Income Taxes We use the asset and liability method to determine our income tax expense or benefit. Deferred tax assets and liabilities are computed based on temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered or settled. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. Stock-based Compensation Stock-based awards have been accounted for as required by ASC Topic 718 “Compensation – Stock Compensation” (“ASC Topic 718”). Under ASC Topic 718 stock-based awards are valued at fair value on the date of grant, and that fair value is recognized over the requisite service period. The Company accounts for forfeitures when they occur. Research and Development Research and development expenses include internal and external costs related to developing new service offerings and features and enhancements to our existing product offerings. Treasury Stock Purchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in additional paid in capital, on a first-in first-out basis. The Company does not recognize a gain or loss to income from the purchase and sale of treasury stock. 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. The theft is being investigated further by the Los Angeles, CA Sheriff’s Department and claims have been filed with the Company’s insurance carriers. During 2022, we received a recovery payment from one of our insurance policies of $50,000, resulting in a net casualty loss of $483,000 on our Consolidated Statement of Operations. In February 2023, we received notification from our other insurance carrier that they determined the Company was entitled to insurance proceeds of $315,000 relating to our inventory theft claim. The Company is currently in negotiations with the insurance carrier with the objective of increasing their determination of insurance proceeds. We will offset the casualty loss with the recognition of any proceeds once received from our insurance carrier. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements There are no new accounting pronouncements that are expected to have a significant impact on financial statements. In June 2016 the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which was subsequently amended in February 2020 by ASU 2020-02, “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842).” The amendments introduce 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., 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. The update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted the new guidance, as of January 1, 2023, and it did not have a material impact on the Consolidated Financial Statements. |
Liquidity and Going Concern
Liquidity and Going Concern | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Liquidity and Going Concern | Liquidity and Going Concern As of December 31, 2022, we had $3,085,000 of available cash, and $2,959,000 of working capital. For the years ended December 31, 2022 and 2021, we incurred net losses of $21,941,000 and $9,051,000, respectively, and net cash used in operating activities was $5,934,000 and $7,732,000, respectively. 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, capital expenditures. The Company believes that, based on the 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 could have a material adverse effect on the Company. The factors discussed above raise substantial doubt as to our ability to continue as a going concern. The accompanying Consolidated Financial Statements do not include any adjustments that might result from these uncertainties. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory (gross) was $1,175,000 and $2,552,000 as of December 31, 2022 and 2021, respectively, and consisted primarily of equipment related to our Mezzanine™ product offerings , including cameras, tracking hardware, computer equipment, display equipment and amounts related to our Collaboration Products segment. Inventory consists of finished goods, was determined using average costs, and was stated at the lower of cost or net realizable value. The Company periodically performs analyses to identify obsolete or slow-moving inventory. As of December 31, 2022 and 2021, reserves for obsolete or slow moving inventory were recorded of $452,000 and $731,000, respectively. Inventory is shown net of the obsolescence reserve on our Consolidated Balance Sheet. The reserve adjustment recorded to cost of goods sold was a net increase of $316,000 and $525,000 for the years ended December 31, 2022 and 2021, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31 2022 2021 Prepaid expenses $ 131 $ 340 Employee Retention Credit receivable 316 316 Other current assets 90 164 Prepaid software licenses 112 261 Prepaid expenses and other current assets $ 649 $ 1,081 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands): December 31, Estimated Useful Life 2022 2021 Network equipment and software $ 1,913 $ 4,665 3 to 5 Years Computer equipment and software 294 $ 5,070 3 to 5 Years Leasehold improvements — $ 690 (*) Office furniture and equipment — $ 92 3 to 10 Years 2,207 10,517 Accumulated depreciation (2,204) (10,358) Property and equipment, net $ 3 $ 159 (*) – Depreciated over the shorter period of the estimated useful life (five years) or the lease term. Related depreciation expense was $78,000 and $365,000 for the years ended December 31, 2022 and December 31, 2021, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of December 31, 2022 and 2021, goodwill was zero and $7,367,000, respectively. This goodwill as of December 31, 2021 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 Consolidated Statement of Operations. Following these impairment charges, our goodwill value was reduced to zero. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table presents the components of net intangible assets (in thousands): December 31, 2022 2021 Developed technology $ 486 $ 10,060 Trade names 204 2,410 Distributor relationships — 310 Total intangible assets 690 12,780 Accumulated amortization (86) (5,218) Intangible assets, net $ 604 $ 7,562 At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. Collaboration Products Reportable Segment During the year ended December 31, 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 segment. Based on the corresponding recoverability tests of the asset group for this segment, 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 $5,133,000 for the year ended December 31, 2022. Additionally, as part of our evaluation at September 30, 2022, 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. Managed Services Reportable Segment During the year ended December 31, 2021, our Managed Services segment stopped offering video meeting suites (“VMS”) services. VMS services were a component of our video collaboration services revenue stream and contributed to the cash flows relating to the affiliate network intangible asset. As a result, we identified the cessation of our VMS services to be a triggering event for a recoverability test of the affiliate network intangible asset. Based on the corresponding recoverability test, we deemed the affiliate network intangible asset to have no remaining value. Therefore, we recorded an impairment charge of $207,000 for the year ended December 31, 2021. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which initially ranged from five years to twelve years in accordance with ASC Topic 350. Related amortization expense was $1,825,000 and $2,371,000 for the years ended December 31, 2022 and 2021, respectively. Amortization expense for each of the remaining years will be as follows (in thousands): 2023 $ 345 2024 259 Total $ 604 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Compensation costs $ 707 $ 551 Taxes and regulatory fees 59 92 Customer deposits 128 145 Professional fees 57 69 Other accrued expenses and liabilities 123 102 $ 1,074 $ 959 |
Operating Lease Liabilities and
Operating Lease Liabilities and Right-of-Use Assets | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Lease Liabilities and Right-of-Use Assets | Operating Lease Liabilities and Right-of-Use Assets We lease three facilities in Los Angeles, California providing office space and one facility in City of Industry, California, providing warehouse space. These leases expire between 2023 and 2024. During 2022, and through the date of this filing, we exited office space leases in Boston, Massachusetts, Dallas, Texas, Austin, Texas, and a residential lease in Los Angeles, California. We currently occupy the warehouse space in City of Industry; however, we do not occupy any of the office space in Los Angeles. We have a sublease in place for one of the Los Angeles properties and have impaired the right-of-use assets associated with the other two Los Angeles properties. 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, net of common charges, for the years ended December 31, 2022 and 2021 were $502,000 and $778,000, respectively. Sublet proceeds for the years ended December 31, 2022 and 2021 were $140,000 and $321,000, respectively. The following provides balance sheet information related to leases as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Assets Operating lease, right-of-use asset, net $ 142 $ 659 Liabilities Current portion of operating lease liabilities $ 219 $ 492 Operating lease liabilities, net of current portion 17 236 Total operating lease liabilities $ 236 $ 728 The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Year Ending December 31, 2023 $ 225 2024 17 Total lease payments 242 Effect of discounting (6) Total lease liability 236 Less: current portion of lease liabilities 219 Operating lease liabilties, net of current portion $ 17 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 Liability Balance at December 31, 2020 $ 903 $ 1,432 Additions 60 60 Terminations and Modifications 192 156 Amortizations and Reductions (496) (920) Balance at December 31, 2021 659 728 Additions 11 11 Terminations and Modifications — — Amortizations and Reductions (349) (503) Impairment Charges (179) — Balance at December 31, 2022 $ 142 $ 236 The ROU assets and lease liabilities are recorded on the Company’s consolidated balance sheets as of December 31, 2022 and December 31, 2021. During the year ended December 31, 2022, we entered into a residential lease in Los Angeles, CA. The new lease commenced in August 2022 and had a term of five months. The new lease resulted in an addition to ROU Assets, and corresponding increase to lease liability, of $11,000. During the year ended December 31, 2022, we vacated two of the properties in Los Angeles, California. These properties 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, an impairment charge of $179,000 was recorded for these assets during the year ended December 31, 2022. During the year ended December 31, 2022, the Company exited three of its leases, one in Dallas, Texas, one in Boston, Massachusetts, and one in Los Angeles, California. The Boston lease expired in the first quarter of 2022, the Dallas lease expired in the second quarter of 2022, and the Los Angeles residential lease expired in the fourth quarter of 2022. The Company elected to not renew the expired releases. In February 2023, the Company exited the Austin, Texas lease upon its expiration. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock Subsequent to the end of the year, on January 3, 2023, the Company effected a 1-for-15 reverse stock split of its Common Stock. All Common Stock share information (including treasury share information) in our Consolidated Financial Statements and in the following capital stock discussion and tables are shown as adjusted for this stock split retrospectively for all periods represented herein. The Company’s common stock, par value $0.0001 per share (the “Common Stock”), is listed on the Nasdaq Capital Market (“Nasdaq”). As of December 31, 2022 we had 150,000,000 shares of our $0.0001 par value Common Stock authorized, with 2,070,861 and 2,063,308 shares issued and outstanding, respectively. The following table provides a summary of Common Stock activity for the years ended December 31, 2022 and 2021 (in thousands): Issued Shares as of December 31, 2020 533 Issuances from Private Placements 267 Issuances from Preferred Stock Conversions 1,257 Issuances related to vested restricted units 13 Issuance of shares for services 1 Issued Shares as of December 31, 2021 2,071 Less Treasury Shares: 8 Outstanding Shares as of December 31, 2021 2,063 Issued Shares as of December 31, 2022 2,071 Less Treasury Shares: 8 Outstanding Shares as of December 31, 2022 2,063 During the year ended and December 31, 2021, 1,257,000 shares of the Company’s Common stock were issued in relation to preferred stock conversions, and 13,000 shares were issued upon the vesting of restricted stock units, respectively. See Note 11 - Preferred Stock and Note 12 - Stock Based Compensation for further information. Issuance for Professional Service Fees On January 21, 2021, the Company issued 1,000 shares of Common Stock as payment for services, with a fair value equal to $100,000, related to a financial advisory agreement entered into on January 15, 2021. During the year ended December 31, 2021, the Company recorded stock-based professional services expense of $390,000 relating to the issuance of the shares above, which is included as a component of general and administrative expense in the accompanying consolidated Statements of Operations. Issuance Pursuant to Equity Financing On June 30, 2021, the Company closed on a concurrent public offering of 267,000 shares of Common Stock, Series A Warrants to purchase 66,667 shares of the Company’s Common Stock at an exercise price of $60.00 per share, and private placement of Series B Warrants to purchase 200,000 shares of common stock at an exercise price of $66.00 per share for gross proceeds of $12,400,000. Issuance costs for this transaction were $896,000, resulting in net proceeds of $11,504,000. Warrants On June 30, 2021, the Company issued Series A Warrants to purchase up to 66,667 shares of Common Stock, and Series B Warrants to purchase up to 200,000 shares of Common Stock, pursuant to a securities purchase agreement with certain accredited investors. The Series A Warrants had an original term of 6 months and are initially exercisable at $60.00 per share. The Series B Warrants have a term of 3 years, commencing six months and one day from the date of issuance, and are initially exercisable at $66.00 per share. All of the warrants are subject to cashless exercise if, at the time of exercise, the Warrant Shares are not subject to an effective resale registration statement. The Warrants are also subject to adjustment in the event of (i) stock splits and dividends, (ii) subsequent rights offerings, (iii) pro-rata distributions, and (iv) certain fundamental transactions, including but not limited to the sale of the Company, business combinations, and reorganizations. The Warrants do not have any price protection or price reset provisions with respect to future issuances of securities. The fair value of the Series A and B Warrants was recorded to additional paid-in capital during the year ended December 31, 2021. As of December 31, 2022, no warrants had been exercised. On December 31, 2021, the Company agreed with all the holders of Series A Warrants to amend the terms of the Series A Warrants to extend the Termination Date from January 4, 2022 to January 4, 2023. All other terms of the Series A Warrants will remain in full force and effect. The modification resulted in an incremental value adjustment, and deemed dividend, of $37,000, which was recorded to additional paid in capital on December 31, 2022. On January 3, 2023, the Company agreed with all the holders of Series A Warrants to amend the terms of the Series A Warrants to extend the Termination Date from January 4, 2023 to January 4, 2024. All other terms of the Series A Warrants will remain in full force and effect. Warrants outstanding as of December 31, 2022 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date October 21, 2020 34,767 $ 61.20 April 22, 2023 December 6, 2020 41,667 82.35 June 7, 2023 June 30, 2021 - Series A* 66,667 60.00 January 4, 2024 June 30, 2021 - Series B 200,000 66.00 June 28, 2024 343,101 *The Series A warrant’ expiration date has been updated to reflect the extension described above that occurred on January 3, 2023. Warrant activity for the years ended December 31, 2022 and 2021 is presented below: Outstanding Number of Warrants Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2020 76,434 $ 72.75 Granted 266,667 64.50 Warrants outstanding and exercisable, December 31, 2021 343,101 66.34 Warrants outstanding and exercisable, December 31, 2022 343,101 $ 66.34 Treasury Shares The Company maintains Treasury Stock for the Common Stock shares bought back by the Company when they withhold shares to cover taxes on stock compensation transactions. There were no treasury stock transactions during the years ended December 31, 2022 and 2021, and the treasury shares outstanding were 7,553 as of December 31, 2022 and 2021. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Preferred Stock | Preferred Stock On January 3, 2023, the Company effected a 1-for-15 reverse stock split for its Common Stock. All Common Stock share information in the following Preferred Stock discussion are shown as adjusted for this stock split retrospectively for all periods represented herein. Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of December 31, 2022 and 2021, we had 1,938,250 designated shares of preferred stock and no shares of preferred stock issued and outstanding. Series A-2 Preferred Stock As of December 31, 2022 and 2021, there were no shares of Series A-2 Preferred Stock issued and outstanding. On January 28, 2021, the Company entered into an agreement with the holder of the Series A-2 Preferred Stock to convert the stated value of all outstanding shares of the Series A-2 Preferred Stock, 45 shares, into 5,620 shares of the Company’s common stock, at a negotiated conversion price of $60 per share, after taking into consideration accrued and unpaid dividends. The incremental cost of inducing the conversion was approximately $300,000 and was treated similar to a preferred dividend, increasing the net loss attributable to common stockholders. Series D and E Preferred Stock As of December 31, 2022 and 2021, there were no shares of Series D and E Preferred Stock issued and outstanding. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation On January 3, 2023, the Company effected a 1-for-15 reverse stock split for its Common Stock. All Common Stock share information in the following stock-based compensation discussion and tables are shown as adjusted for this stock split retrospectively for all periods represented herein. 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 December 31, 2022, the share pool available for new grants under the 2019 Plan is 177,567. Stock Options On June 28, 2021, the Company granted 20,000 stock options to certain employees. These options have a term of 10 years, vest equally over 3 years, 1/3 upon each anniversary of the grant date, and have an exercise price of $48.75 per share. Using the Black-Scholes option pricing model, the options were determined to have a fair value of $744,000 which is being expensed ratably over the vesting term. No stock options were granted during the year ended December 31, 2022. The fair value of each stock option granted was estimated using the following assumptions: June 28, 2021 Risk free interest rate 0.47% Expected option lives 3 years Expected volatility 1.36 Estimated forfeiture rate — Expected dividend yields — Weighted average grant date fair value of options $37.20 A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the years ended December 31, 2022 and 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 7,169 $ 294.63 7,169 $ 294.63 Granted 20,000 48.75 Options outstanding and exercisable, December 31, 2021 27,169 113.63 7,169 294.63 Vested — — 3,332 48.75 Expired (501) 410.18 (501) 410.18 Forfeited (10,000) 48.75 — — Options outstanding and exercisable, December 31, 2022 16,668 $ 143.63 10,000 $ 206.85 Additional information as of December 31, 2022 is as follows: Outstanding Exercisable Exercisable Range of price Number Weighted Weighted Number Weighted $0.00 – $100.00 10,000 8.50 $ 48.75 3,332 $ 48.75 $100.01 – $200.00 167 0.50 135.00 167 135.00 $201.01 – $300.00 6,501 0.17 289.77 6,501 289.77 16,668 3.06 $ 143.63 10,000 $ 206.85 The intrinsic value of vested and unvested options were not significant for all periods presented. Net stock compensation expense, related to stock options, for the year ended December 31, 2022 was $61,000, made up of $146,000 in expense offset by $85,000 related to forfeiture credits. There was $125,000 stock compensation expense, recorded as a component of General and Administrative expense and a net credit of $64,000 recorded as a component of Research and Development expense, related to stock options for the year ended December 31, 2022. As of December 31, 2022, there was $185,000 remaining as unrecognized stock-based compensation expense for options, which will be recognized over a weighted average period of 1.50 years. The recognized stock-based compensation expense for options for the year ended December 31, 2021 was $126,000. Restricted Stock Awards As of December 31, 2022 and 2021, there were 42 unvested restricted stock awards outstanding, with a weighted average grant date price of $235.87. 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 stock-based compensation expense for restricted stock awards for the years ended December 31, 2022 and 2021. Restricted Stock Units On August 18, 2021, the Company granted 13,334 restricted stock units (“RSUs”) to certain board members. These RSUs vested immediately upon issuance. The price per share of the Company’s common stock was $32.85 on the grant date, resulting in a total fair value of $438,000 which was included in general and administrative expense, as stock-based compensation expense, upon issuance. No RSUs were granted during the year ended December 31, 2022 and there was no stock compensation expense related to RSUs for the year ended December 31, 2022. There was no remaining unrecognized stock-based compensation expense for RSUs at December 31, 2022. As of December 31, 2022 and 2021, there were no unvested RSUs outstanding and 1,929 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. Restricted Series D Preferred Stock In connection with the acquisition of Oblong Industries, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 restricted shares of Series D Preferred Stock (“Restricted Series D Preferred Stock”), which were subject to vesting over a two-year period following the Closing Date. This vesting period and compensation expense were accelerated, in February 2021, when the Restricted Series D shares were converted to shares of Common Stock. Refer to Note 11 - Preferred Stock for discussion on the conversion of the Series D Restricted Preferred Stock. Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands): Year Ended December 31, 2022 2021 Research and development $ — $ 17 Sales, general and administrative — 16 $ — $ 33 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share On January 3, 2023, the Company effected a 1-for-15 reverse stock split for its Common Stock. All Common Stock share information in the following net loss per share discussion and tables are shown as adjusted for this stock split retrospectively for all periods represented herein. 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 any unvested restricted shares of common stock. Certain restricted shares, although classified as issued and outstanding at December 31, 2022 and December 31, 2021, are 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 shares of our restricted stock do not contain non-forfeitable rights to dividends and dividend equivalents. Vested RSUs (for which shares of common stock have not yet been delivered) are included in the calculations of basic net loss per share. 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 warrants, stock options, RSUs, and unvested restricted stock awards, to the extent they are dilutive. For the year ended December 31, 2022, 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 losses). The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, Numerator: 2022 2021 Net loss $ (21,941) $ (9,051) Less: preferred stock dividends — 1 Less: undeclared dividends — 366 Less: conversion inducement — 300 Less: warrant modification — 37 Net loss attributable to common stockholders $ (21,941) $ (9,755) Denominator: Weighted-average number of shares of common stock for basic net loss per share 2,065 1,779 Basic net loss per share $ (10.62) $ (5.48) The weighted-average number of shares, for the years ended December 31, 2022 and 2021, includes 1,929 shares of vested RSUs, as discussed in Note 12 - Stock Based Compensation . 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: Year Ended December 31, 2022 2021 Outstanding stock options 16,668 27,169 Warrants 343,101 343,101 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Effective October 1, 2019, the former businesses of Glowpoint (now Oblong, Inc.) and Oblong Industries have been managed separately, and involve different products and services. Accordingly, the Company currently operates in two segments for purposes of segment reporting: (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. Certain information concerning the Company’s segments for the years ended December 31, 2022 and 2021 is presented in the following tables (in thousands): Year Ended December 31, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 3,348 $ 2,128 $ — $ 5,476 Cost of revenues 2,273 1,657 — 3,930 Gross profit $ 1,075 $ 471 $ — $ 1,546 Gross profit % 32 % 22 % — % 28 % Allocated operating expenses $ 19 $ 18,355 $ — $ 18,374 Unallocated operating expenses — — 5,160 5,160 Total operating expenses $ 19 $ 18,355 $ 5,160 $ 23,534 Income (loss) from operations $ 1,056 $ (17,884) $ (5,160) $ (21,988) Interest and other expense (income), net 12 (52) — (40) Income (loss) before income taxes $ 1,044 $ (17,832) $ (5,160) $ (21,948) Income tax expense $ (4) $ (3) $ — $ (7) Net income (loss) $ 1,048 $ (17,829) $ (5,160) $ (21,941) As of December 31, 2022 Total assets $ 752 $ 1,824 $ 3,085 $ 5,661 Year Ended December 31, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 4,270 $ 3,469 $ — $ 7,739 Cost of revenues 2,991 2,030 — 5,021 Gross profit $ 1,279 $ 1,439 $ — $ 2,718 Gross profit % 30.0 % 41.5 % — % 35.1 % Allocated operating expenses $ 591 $ 7,879 $ — $ 8,470 Unallocated operating expenses — — 6,042 6,042 Total operating expenses $ 591 $ 7,879 $ 6,042 $ 14,512 Income (loss) from operations $ 688 $ (6,440) $ (6,042) $ (11,794) Interest and other (income) expense, net 22 (227) (2,448) (2,653) Loss before income taxes $ 666 $ (6,213) $ (3,594) $ (9,141) Income tax benefit $ (15) $ (75) $ (90) Net income (loss) $ 681 $ (6,138) $ (3,594) $ (9,051) As of December 31, 2021 Total assets $ 1,053 $ 18,615 $ 8,939 $ 28,607 Unallocated operating expenses include costs for the year ending December 31, 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. Unallocated assets consist of unrestricted cash. For the years ended December 31, 2022 and 2021, no material revenue was attributable to any individual foreign country. Approximately 1% of foreign revenue is billed in foreign currency and foreign currency gains and losses are not material. Revenue by geographic area is allocated as follows (in thousands): Year Ended December 31, 2022 2021 Domestic $ 2,781 $ 4,614 Foreign 2,695 3,125 $ 5,476 $ 7,739 Disaggregated information for the Company’s revenue has been recognized in the accompanying consolidated statements of operations and is presented below according to contract type (dollars in thousands): Year Ended December 31, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 334 6.1 % $ 854 11.0 % Network services 2,954 53.9 % 3,347 43.3 % Professional and other services 60 1.1 % 69 0.9 % Total Managed Services revenue $ 3,348 61.1 % $ 4,270 55.2 % Revenue: Collaboration Products Visual collaboration product offerings $ 2,114 38.6 % $ 3,367 43.5 % Licensing 14 0.3 % 102 1.3 % Total Collaboration Products revenue $ 2,128 38.9 % $ 3,469 44.8 % Total revenue $ 5,476 100.0 % $ 7,739 100.0 % The Company’s long-lived assets were 100% located in domestic markets as of December 31, 2022 and 2021. 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: Year Ended December 31, 2022 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 46.8 % 34.7 % Concentration of accounts receivable was as follows: As of December 31, 2022 2021 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 42.8 % 24.9 % Customer B Collaboration Products 22.0 % 8.5 % Customer C Collaboration Products — % 20.0 % Customer D Managed Services 4.3 % 18.2 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 On March 11, 2020, the World Health Organization announced that infections of the novel Coronavirus (COVID-19) had become pandemic, and on March 13, 2020, the U.S. President announced a National Emergency relating to the disease. National, state and local authorities have at times required or recommended social distancing and imposed or are considering |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth pretax book loss (in thousands): Year Ended December 31, 2022 2021 United States $ (21,948) $ (9,340) Foreign — 199 Total $ (21,948) $ (9,141) The following table sets forth income before taxes and the income tax expense for the years ended December 31, 2022 and 2021 (in thousands): Year Ended December 31, 2022 2021 Current: Federal $ — $ — Foreign (4) (75) State (3) (15) Total current (7) (90) Total deferred — — Income tax benefit $ (7) $ (90) Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2022 and 2021 as shown in the following table (in thousands): Year Ended December 31, 2022 2021 U.S. federal income taxes at the statutory rate $ (4,609) $ (1,919) Goodwill impairment 1,547 — Current Year Permanent Adjustment, Paycheck Protection Program loan forgiveness — (514) State taxes, net of federal effects (375) (464) Adjustment to U.S. NOLs, UK Anti-Hybrid — (1,837) U.S. Federal and state NOL carryforward adjustment for expired NOLs 76 78 Change in valuation allowance 3,273 4,662 True up of prior year foreign tax expense — (108) Other 81 12 Income tax benefit $ (7) $ (90) The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2022 and 2021 is presented below (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets (liabilities): Tax benefit of operating loss carry forward - Federal $ 28,459 $ 26,902 Tax benefit of operating loss carry forward - State 6,429 6,225 Accrued expenses 147 88 Deferred revenue 129 287 Stock-based compensation 420 449 Fixed assets 116 287 Goodwill 28 102 Inventory 106 197 Intangible amortization (80) (1,777) R&D credit 2,154 2,154 Texas margin tax temporary credit 74 139 Other 101 62 Total deferred tax asset, net of deferred tax liabilities 38,492 35,220 Valuation allowance (38,492) (35,220) Net deferred tax asset $ — $ — The ending balances of the deferred tax asset have been fully reserved, reflecting the uncertainties as to realizability evidenced by the Company’s historical results. The change in valuation allowance for the year ended December 31, 2022 is an increase of $3,272,600. The change in valuation allowance for the year ended December 31, 2021 was a increase of $4,678,000. We and our subsidiary file federal and state tax returns on a consolidated basis. On October 1, 2019 Oblong, Inc. acquired the stock of Oblong Industries Inc. that resulted in Oblong Industries Inc.'s shareholders now owning 75% of Oblong, Inc. Therefore, an “ownership change” occurred on this date (as defined under Section 382 of the Internal Revenue Code of 1986, as amended), which places an annual limitation on the utilization of the net operating loss (“NOL”) carryforwards accumulated before the ownership change. If additional ownership changes occur in the future, the use of the net operating loss carryforwards could be subject to further limitation. As a result of this annual limitation and the limited carryforward life of the accumulated NOLs, we determined that the 2019 ownership change resulted in the permanent loss of approximately $30,880,000 of tax NOL carryforwards. At December 31, 2021, we had federal net operating loss carryforwards of $128,447,000 available to offset future federal taxable income, after Section 382 limitation considerations. At December 31, 2022, we had federal net operating loss carryforwards of $135,517,000 available to offset future federal taxable income, after section 382 limitation considerations. Of this amount, $75,456,000 will expire in various amounts from 2023 through 2037. As of December 31, 2022 and 2021, the Company also has various state net operating loss carryforwards of $104,886,000 and $101,035,000, respectively. The determination of the state net operating loss carryforwards is dependent upon apportionment percentages and state laws that can change, from year to year and impact the amount of such carryforwards. The Company has Research and Development credits of $2,154,000 at December 31, 2022 and 2021. The Research and Development credit begins to expire at the end of 2026. There were no significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return, in accordance with ASC Topic 740 “ Income Taxes ” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized in the financial statements, that have been recorded on the Company’s Consolidated Financial Statements for the years ended December 31, 2022 and 2021. The Company does not anticipate a material change to unrecognized tax benefits in the next twelve months. Additionally, ASC 740 provides guidance on the recognition of interest and penalties related to unrecognized tax benefits. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2022 and 2021. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) PlanWe have adopted a retirement plan under Section 401(k) of the Internal Revenue Code. The 401(k) plan covers substantially all employees who meet minimum age and service requirements. Company contributions to the 401(k) plan for the years ended December 31, 2022 and 2021 were $93,000 and $130,000, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Effective August 16, 2021, Matthew Blumberg was appointed to the Company’s Board of Directors. Mr. Blumberg is the Co-Founder and CEO of Bolster, an on-demand executive talent marketplace that helps accelerate companies’ growth by connecting them with experienced, highly vetted executives for interim, fractional, advisory, project-based or board roles. During the year ended December 31, 2021, the Company paid Bolster $31,000 for fractional labor . There were no services provided by, or payments made to, Bolster during the year ended December 31, 2022. |
Business Description and Sign_2
Business Description and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The 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, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. During 2022, the Company ceased operations through Oblong Industries’ 100%-owned subsidiaries (i) Oblong Industries Europe, S.L. and (ii) Oblong Europe Limited, and combined the operations into Oblong Industries, Inc. There was no activity in either subsidiary in 2022 and, as of December 31, 2022, Oblong Industries Europe, S.L. has been dissolved and Oblong Europe, Limited is in liquidation. |
Segments | Segments Effective October 1, 2019, the former businesses of Glowpoint (now Oblong, Inc.) and Oblong Industries have been managed separately, and involve different products and services. Accordingly, the Company currently operates in two segments for purposes of segment reporting: (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 14 - 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 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. |
Cash and Restricted cash | Cash and Restricted Cash As of December 31, 2022, our total cash balance was $3,085,000, and all cash was unrestricted. As of December 31, 2021, our total cash balance of $9,000,000 included current restricted cash of $61,000. The restricted cash pertained to one letter of credit that served as the security deposit for our leased office space in Boston, Massachusetts, and was secured by an equal amount of cash pledged as collateral, and such cash was held in a restricted bank account. The Boston lease, and thereby the letter of credit, in the amount of $61,000, expired in February 2022 and the cash was released. |
Accounts Receivable and Provision for Estimated Credit Losses | Accounts Receivable and Provision for Estimated Credit Losses Accounts receivable are customer obligations due under normal trade terms. The Company sells its Managed Services products to end-users, and its Collaboration products to both resell partners and end-users. The Company extends credit to its customers based on their credit worthiness and on historical data, and performs ongoing credit evaluations of our customers’ |
Employee Retention Credit | Employee Retention CreditThe CARES Act provided an employee retention credit (“ERC”), which was a refundable tax credit against certain payroll taxes. Upon determination that the Company had complied with all of the conditions required to receive the credit, the Company qualified and filed to claim the ERC. The Company reflected the ERC as a reduction to the respective captions on the consolidated statements of operations associated with the employees to which the payroll tax benefit related |
Inventory | Inventory Inventory consists of finished goods and was determined using average costs and was stated at the lower of cost or net realizable value. The Company periodically performs analyses to identify obsolete or slow-moving inventory. 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. The theft is being investigated further by the Los Angeles, CA Sheriff’s Department and claims have been filed with the Company’s insurance carriers. During 2022, we received a recovery payment from one of our insurance policies of $50,000, resulting in a net casualty loss of $483,000 on our Consolidated Statement of Operations. In February 2023, we received notification from our other insurance carrier that they determined the Company was entitled to insurance proceeds of $315,000 relating to our inventory theft claim. The Company is currently in negotiations with the insurance carrier with the objective of increasing their determination of insurance proceeds. We will offset the casualty loss with the recognition of any proceeds once received from our insurance carrier. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company considers its cash, accounts receivable, accounts payable and lease obligations to meet the definition of financial instruments. The carrying amount of cash, accounts receivable and accounts payable approximated their fair value due to the short maturities of these instruments. The carrying amounts of our lease obligations (see Note 9 - Operating Lease Liabilities and Right-of-Use Assets ) approximated their fair values, which were based on borrowing rates that were available to the Company for loans with similar terms, collateral, and maturity. The Company measures fair value as required by Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework and gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 - inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 - unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. |
Revenue Recognition and Taxes Billed to Customers and Remitted to Taxing Authorities | Revenue Recognition The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606. The Company recognizes revenue using the five-step model as prescribed by Topic 606: • Identification of the contract, or contracts, with a customer; • Identification of the distinct performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies a performance obligation. The Company’s managed videoconferencing services are offered to our customers on either a usage basis or on a subscription. Our network services are offered to our customers on a subscription basis. Revenue for these services is generally recognized on a monthly basis as services are performed. Revenue related to professional services is recognized at the time the services are performed. The costs associated with obtaining a customer contract were previously expensed in the period they were incurred. Under Topic 606, these payments are deferred on our consolidated balance sheets and amortized over the expected life of the customer contract. Deferred revenue as of December 31, 2022 totaled $1,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2022, the Company recorded $7,000 of revenue that was included in deferred revenue as of December 31, 2021. During the year ended December 31, 2021, the Company recorded $24,000 of revenue that was included in deferred revenue as of December 31, 2020. The Company’s visual collaboration products are composed of hardware and embedded software sold as a complete package, and generally include installation and maintenance services. Revenue for hardware and software is recognized upon shipment to the customer. Installation revenue is recognized upon completion of installation, which also triggers the beginning of recognition of revenue for maintenance services which range from one to three years. Revenue is recognized over time for maintenance services. Professional services are contracts with specific customers for software development, visual design, interaction design, engineering, and project support. These contracts vary in length, and revenue is recognized over time as services are rendered. Licensing agreements are for the Company’s core technology platform, g-speak, and are generally one year in length. Revenue for these services is recognized ratably over the service period. Deferred revenue, as of December 31, 2022, totaled $549,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2022, the Company recorded $776,000 of revenue that was included in deferred revenue as of December 31, 2021. During the year ended December 31, 2021, the Company recorded $1,193,000 of revenue that was included in deferred revenue as of December 31, 2020. Revenue recorded over time for the years ended December 31, 2022 and 2021 was $970,000 and $1,809,000, respectively. Revenue recorded at a period in time for the years ended December 31, 2022 and 2021 was $4,506,000 and $5,930,000, respectively. The Company disaggregates its revenue by geographic region. See Note 14 - Segment Reporting for more information. Taxes Billed to Customers and Remitted to Taxing Authorities |
Long-Lived Assets, Goodwill and Intangible Assets | Long-Lived Assets, Goodwill, and Intangible Assets Property and Equipment Property and equipment are accounted for in accordance with ASC Topic 360 “ Property, Plant, and Equipment” (“ASC Topic 360”), stated at cost, and are depreciated using the straight-line method over the estimated economic lives of the assets, which range from three Intangible Assets Intangible assets are accounted for in accordance with ASC Topic 350 “ Intangibles - Goodwill and Other” (“ASC Topic 350”), and intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which initially ranged from five Goodwill Goodwill is accounted for in accordance with ASC Topic 350 and is not amortized. Goodwill is subject to periodic testing for impairment. As of December 31, 2021, goodwill of $7,367,000 was recorded on our Consolidated Balance Sheet in connection with the October 1, 2019 acquisition of Oblong Industries. As a result of the impairment charges discussed below, there was no goodwill recorded on our Consolidated Balance Sheet as of December 31, 2022. Operating Lease Right-of-use-assets Right-of-use Assets are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”), and are amortized using a straight-line method over the estimated life of the lease. Right-of-use assets, net totaled $142,000 and $659,000, as of December 31, 2022 and 2021, respectively. The Company primarily leases facilities for office, warehouse, and data center space under non-cancellable operating leases for its U.S. locations, and accounts for these leases in accordance with ASC-842. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Right-of-use 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. Since our lease arrangements do not provide an implicit rate, we use our estimated incremental borrowing rate for the expected remaining lease term at commencement date in determining the present value of future lease payments. Impairment The Company assesses the impairment of our long-lived assets subject to amortization when events and circumstances indicate that the carrying value of the assets might not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in the Company’s strategic plan and/or other-than-temporary changes in market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. Long-lived assets are evaluated for impairment whenever an event or change in circumstances has occurred that could have a significant adverse effect on the fair value of long-lived assets. During the year ended December 31, 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 our long-lived and intangible 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 tests 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. For the year ended December 31, 2022, the Company recorded net impairment charges on property and equipment assets of $59,000. See Note 5 - Property and Equipment for further discussion. During the year ended December 31, 2021, the Company recorded impairment charges of $98,000 on property and equipment assets. For the year ended December 31, 2022, the Company recorded impairment charges of $5,133,000 on purchased intangible assets. See Note 7 - Intangible Assets for further discussion. The Company recorded impairment Charges of $207,000 to purchased intangible assets for the year ended December 31, 2021. We tested goodwill for impairment on an annual basis, on September 30 th of each year, unless events occurred or circumstances changed indicating that the fair value of the goodwill may be below its carrying amount. During the year ended December 31, 2022, 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. 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. During the year ended December 31, 2022, we recorded impairment charges of $7,367,000, related to the tests discussed above. See Note 6 - Goodwill for further discussion. No impairments were recorded for Goodwill during the year ended December 31, 2021. Right-of-use assets are tested for impairment using guidance from ASC Topic 360. For the year ended December 31, 2022, the Company recorded aggregate impairment charges of $179,000 on two right-of-use assets. See Note 9 - Operating Lease Liabilities and Right-of-Use Assets for further discussion. There were no right-of-use asset impairments for the year ended December 31, 2021. |
Operating Leases | Operating Leases Operating leases are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”), and the liabilities are amortized using a straight-line method over the estimated life of the lease. The remaining operating lease liability as of December 31, 2022 and 2021 was $236,000 and $728,000, respectively. See Note 9 - Operating Lease Liabilities and Right-of-Use Assets for further discussion. Operating lease expense is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one Leases with an initial term of 12 months or less, with the exception of leases for real property, are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to leases are expensed as incurred. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. We place our cash needed for operations in commercial checking accounts, and the majority of our cash is held in a money market fund. Commercial bank balances may from time to time exceed federal insurance limits. Deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”) in an amount up to $250,000 for any depositor, any deposit in excess of this insured amount could be lost. |
Income Taxes | Income Taxes We use the asset and liability method to determine our income tax expense or benefit. Deferred tax assets and liabilities are computed based on temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered or settled. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than not that all or some portion of the deferred tax asset will not be realized. |
Stock-based Compensation | Stock-based Compensation Stock-based awards have been accounted for as required by ASC Topic 718 “Compensation – Stock Compensation” (“ASC Topic 718”). Under ASC Topic 718 stock-based awards are valued at fair value on the date of grant, and that fair value is recognized over the requisite service period. The Company accounts for forfeitures when they occur. |
Research and Development | Research and Development |
Treasury Stock | Treasury StockPurchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in additional paid in capital, on a first-in first-out basis. The Company does not recognize a gain or loss to income from the purchase and sale of treasury stock. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements There are no new accounting pronouncements that are expected to have a significant impact on financial statements. In June 2016 the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which was subsequently amended in February 2020 by ASU 2020-02, “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842).” The amendments introduce 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., 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. The update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted the new guidance, as of January 1, 2023, and it did not have a material impact on the Consolidated Financial Statements. |
Business Description and Sign_3
Business Description and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Net accounts receivable consisted of the following: As of December 31, 2022 2021 Accounts receivable $ 624,000 $ 949,000 Allowance for doubtful accounts (209,000) (100,000) Accounts receivable, net $ 415,000 $ 849,000 |
Schedule of Cash and Cash Equivalents | As of December 31, 2022, cash held in banks, and the corresponding amounts in excess of the FDIC insured amounts were as follows: Bank Cash at December 31,2022 Excess over FDIC Insured Amount Silicon Valley Bank $ 260,000 $ 10,000 Morgan Stanley - SS&C for US Funds 2,795,000 2,795,000 Resolve Group, UK 30,000 30,000 Total $ 3,085,000 $ 2,835,000 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31 2022 2021 Prepaid expenses $ 131 $ 340 Employee Retention Credit receivable 316 316 Other current assets 90 164 Prepaid software licenses 112 261 Prepaid expenses and other current assets $ 649 $ 1,081 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): December 31, Estimated Useful Life 2022 2021 Network equipment and software $ 1,913 $ 4,665 3 to 5 Years Computer equipment and software 294 $ 5,070 3 to 5 Years Leasehold improvements — $ 690 (*) Office furniture and equipment — $ 92 3 to 10 Years 2,207 10,517 Accumulated depreciation (2,204) (10,358) Property and equipment, net $ 3 $ 159 (*) – Depreciated over the shorter period of the estimated useful life (five years) or the lease term. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table presents the components of net intangible assets (in thousands): December 31, 2022 2021 Developed technology $ 486 $ 10,060 Trade names 204 2,410 Distributor relationships — 310 Total intangible assets 690 12,780 Accumulated amortization (86) (5,218) Intangible assets, net $ 604 $ 7,562 |
Schedule of Future Amortization Expense | Amortization expense for each of the remaining years will be as follows (in thousands): 2023 $ 345 2024 259 Total $ 604 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Compensation costs $ 707 $ 551 Taxes and regulatory fees 59 92 Customer deposits 128 145 Professional fees 57 69 Other accrued expenses and liabilities 123 102 $ 1,074 $ 959 |
Operating Lease Liabilities a_2
Operating Lease Liabilities and Right-of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Balance Sheet Information | The following provides balance sheet information related to leases as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Assets Operating lease, right-of-use asset, net $ 142 $ 659 Liabilities Current portion of operating lease liabilities $ 219 $ 492 Operating lease liabilities, net of current portion 17 236 Total operating lease liabilities $ 236 $ 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): Year Ending December 31, 2023 $ 225 2024 17 Total lease payments 242 Effect of discounting (6) Total lease liability 236 Less: current portion of lease liabilities 219 Operating lease liabilties, net of current portion $ 17 |
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 Liability Balance at December 31, 2020 $ 903 $ 1,432 Additions 60 60 Terminations and Modifications 192 156 Amortizations and Reductions (496) (920) Balance at December 31, 2021 659 728 Additions 11 11 Terminations and Modifications — — Amortizations and Reductions (349) (503) Impairment Charges (179) — Balance at December 31, 2022 $ 142 $ 236 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides a summary of Common Stock activity for the years ended December 31, 2022 and 2021 (in thousands): Issued Shares as of December 31, 2020 533 Issuances from Private Placements 267 Issuances from Preferred Stock Conversions 1,257 Issuances related to vested restricted units 13 Issuance of shares for services 1 Issued Shares as of December 31, 2021 2,071 Less Treasury Shares: 8 Outstanding Shares as of December 31, 2021 2,063 Issued Shares as of December 31, 2022 2,071 Less Treasury Shares: 8 Outstanding Shares as of December 31, 2022 2,063 |
Schedule of Warrants Activity | Warrants outstanding as of December 31, 2022 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date October 21, 2020 34,767 $ 61.20 April 22, 2023 December 6, 2020 41,667 82.35 June 7, 2023 June 30, 2021 - Series A* 66,667 60.00 January 4, 2024 June 30, 2021 - Series B 200,000 66.00 June 28, 2024 343,101 *The Series A warrant’ expiration date has been updated to reflect the extension described above that occurred on January 3, 2023. Warrant activity for the years ended December 31, 2022 and 2021 is presented below: Outstanding Number of Warrants Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2020 76,434 $ 72.75 Granted 266,667 64.50 Warrants outstanding and exercisable, December 31, 2021 343,101 66.34 Warrants outstanding and exercisable, December 31, 2022 343,101 $ 66.34 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option granted was estimated using the following assumptions: June 28, 2021 Risk free interest rate 0.47% Expected option lives 3 years Expected volatility 1.36 Estimated forfeiture rate — Expected dividend yields — Weighted average grant date fair value of options $37.20 |
Summary of Options Granted, Exercised, Expired and Forfeited | A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the years ended December 31, 2022 and 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 7,169 $ 294.63 7,169 $ 294.63 Granted 20,000 48.75 Options outstanding and exercisable, December 31, 2021 27,169 113.63 7,169 294.63 Vested — — 3,332 48.75 Expired (501) 410.18 (501) 410.18 Forfeited (10,000) 48.75 — — Options outstanding and exercisable, December 31, 2022 16,668 $ 143.63 10,000 $ 206.85 |
Shares Outstanding and Exercisable, By Exercise Price Range | Additional information as of December 31, 2022 is as follows: Outstanding Exercisable Exercisable Range of price Number Weighted Weighted Number Weighted $0.00 – $100.00 10,000 8.50 $ 48.75 3,332 $ 48.75 $100.01 – $200.00 167 0.50 135.00 167 135.00 $201.01 – $300.00 6,501 0.17 289.77 6,501 289.77 16,668 3.06 $ 143.63 10,000 $ 206.85 |
Schedule of Compensation Expense | Stock-based compensation expense relating to Restricted Series D Preferred Stock is allocated as follows (in thousands): Year Ended December 31, 2022 2021 Research and development $ — $ 17 Sales, general and administrative — 16 $ — $ 33 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Loss 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): Year Ended December 31, Numerator: 2022 2021 Net loss $ (21,941) $ (9,051) Less: preferred stock dividends — 1 Less: undeclared dividends — 366 Less: conversion inducement — 300 Less: warrant modification — 37 Net loss attributable to common stockholders $ (21,941) $ (9,755) Denominator: Weighted-average number of shares of common stock for basic net loss per share 2,065 1,779 Basic net loss per share $ (10.62) $ (5.48) |
Schedule of Potential Shares of Common Stock Excluded from Diluted Weighted Average Shares | 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: Year Ended December 31, 2022 2021 Outstanding stock options 16,668 27,169 Warrants 343,101 343,101 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Certain information concerning the Company’s segments for the years ended December 31, 2022 and 2021 is presented in the following tables (in thousands): Year Ended December 31, 2022 Managed Services Collaboration Products Corporate Total Revenue $ 3,348 $ 2,128 $ — $ 5,476 Cost of revenues 2,273 1,657 — 3,930 Gross profit $ 1,075 $ 471 $ — $ 1,546 Gross profit % 32 % 22 % — % 28 % Allocated operating expenses $ 19 $ 18,355 $ — $ 18,374 Unallocated operating expenses — — 5,160 5,160 Total operating expenses $ 19 $ 18,355 $ 5,160 $ 23,534 Income (loss) from operations $ 1,056 $ (17,884) $ (5,160) $ (21,988) Interest and other expense (income), net 12 (52) — (40) Income (loss) before income taxes $ 1,044 $ (17,832) $ (5,160) $ (21,948) Income tax expense $ (4) $ (3) $ — $ (7) Net income (loss) $ 1,048 $ (17,829) $ (5,160) $ (21,941) As of December 31, 2022 Total assets $ 752 $ 1,824 $ 3,085 $ 5,661 Year Ended December 31, 2021 Managed Services Collaboration Products Corporate Total Revenue $ 4,270 $ 3,469 $ — $ 7,739 Cost of revenues 2,991 2,030 — 5,021 Gross profit $ 1,279 $ 1,439 $ — $ 2,718 Gross profit % 30.0 % 41.5 % — % 35.1 % Allocated operating expenses $ 591 $ 7,879 $ — $ 8,470 Unallocated operating expenses — — 6,042 6,042 Total operating expenses $ 591 $ 7,879 $ 6,042 $ 14,512 Income (loss) from operations $ 688 $ (6,440) $ (6,042) $ (11,794) Interest and other (income) expense, net 22 (227) (2,448) (2,653) Loss before income taxes $ 666 $ (6,213) $ (3,594) $ (9,141) Income tax benefit $ (15) $ (75) $ (90) Net income (loss) $ 681 $ (6,138) $ (3,594) $ (9,051) As of December 31, 2021 Total assets $ 1,053 $ 18,615 $ 8,939 $ 28,607 Concentration of revenues was as follows: Year Ended December 31, 2022 2022 2021 Segment % of Revenue % of Revenue Customer A Managed Services 46.8 % 34.7 % Concentration of accounts receivable was as follows: As of December 31, 2022 2021 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 42.8 % 24.9 % Customer B Collaboration Products 22.0 % 8.5 % Customer C Collaboration Products — % 20.0 % Customer D Managed Services 4.3 % 18.2 % |
Revenue from External Customers by Geographic Areas | Revenue by geographic area is allocated as follows (in thousands): Year Ended December 31, 2022 2021 Domestic $ 2,781 $ 4,614 Foreign 2,695 3,125 $ 5,476 $ 7,739 |
Schedule of Disaggregated Revenue Information | Disaggregated information for the Company’s revenue has been recognized in the accompanying consolidated statements of operations and is presented below according to contract type (dollars in thousands): Year Ended December 31, 2022 % of Revenue 2021 % of Revenue Revenue: Managed Services Video collaboration services $ 334 6.1 % $ 854 11.0 % Network services 2,954 53.9 % 3,347 43.3 % Professional and other services 60 1.1 % 69 0.9 % Total Managed Services revenue $ 3,348 61.1 % $ 4,270 55.2 % Revenue: Collaboration Products Visual collaboration product offerings $ 2,114 38.6 % $ 3,367 43.5 % Licensing 14 0.3 % 102 1.3 % Total Collaboration Products revenue $ 2,128 38.9 % $ 3,469 44.8 % Total revenue $ 5,476 100.0 % $ 7,739 100.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Income Tax, Domestic and Foreign | The following table sets forth pretax book loss (in thousands): Year Ended December 31, 2022 2021 United States $ (21,948) $ (9,340) Foreign — 199 Total $ (21,948) $ (9,141) |
Schedule of Components of Income Tax (Benefit) Expense | The following table sets forth income before taxes and the income tax expense for the years ended December 31, 2022 and 2021 (in thousands): Year Ended December 31, 2022 2021 Current: Federal $ — $ — Foreign (4) (75) State (3) (15) Total current (7) (90) Total deferred — — Income tax benefit $ (7) $ (90) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2022 and 2021 as shown in the following table (in thousands): Year Ended December 31, 2022 2021 U.S. federal income taxes at the statutory rate $ (4,609) $ (1,919) Goodwill impairment 1,547 — Current Year Permanent Adjustment, Paycheck Protection Program loan forgiveness — (514) State taxes, net of federal effects (375) (464) Adjustment to U.S. NOLs, UK Anti-Hybrid — (1,837) U.S. Federal and state NOL carryforward adjustment for expired NOLs 76 78 Change in valuation allowance 3,273 4,662 True up of prior year foreign tax expense — (108) Other 81 12 Income tax benefit $ (7) $ (90) |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2022 and 2021 is presented below (in thousands): Year Ended December 31, 2022 2021 Deferred tax assets (liabilities): Tax benefit of operating loss carry forward - Federal $ 28,459 $ 26,902 Tax benefit of operating loss carry forward - State 6,429 6,225 Accrued expenses 147 88 Deferred revenue 129 287 Stock-based compensation 420 449 Fixed assets 116 287 Goodwill 28 102 Inventory 106 197 Intangible amortization (80) (1,777) R&D credit 2,154 2,154 Texas margin tax temporary credit 74 139 Other 101 62 Total deferred tax asset, net of deferred tax liabilities 38,492 35,220 Valuation allowance (38,492) (35,220) Net deferred tax asset $ — $ — |
Business Description and Sign_4
Business Description and Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage in subsidiary | 100% | |||||
Number of operating segments | segment | 2 | |||||
Total cash and restricted cash | $ 3,085,000 | $ 9,000,000 | $ 5,277,000 | |||
Current portion of restricted cash | 0 | 61,000 | ||||
Decrease in operating expense | 0 | 874,000 | ||||
Change in refundable tax credit | 558,000 | |||||
Refundable tax credit | 316,000 | |||||
Revenue | 5,476,000 | 7,739,000 | ||||
Property and equipment, net | 3,000 | 159,000 | ||||
Impairment charges - property and equipment | 59,000 | |||||
Impairment charges - property and equipment | 61,000 | 98,000 | ||||
Operating lease, right-of-use asset, net | $ 142,000 | 659,000 | 903,000 | |||
Estimated useful life | 2 years | |||||
Intangibles, net | $ 604,000 | 7,562,000 | ||||
Impairment charges - intangible assets | 5,133,000 | 207,000 | ||||
Goodwill | 0 | 7,367,000 | ||||
Impairment charges - goodwill | $ 7,367,000 | 7,367,000 | 0 | |||
Impairment charges - right-of use assets | 179,000 | 0 | ||||
Operating lease liabilities | 236,000 | 728,000 | $ 1,432,000 | |||
Casualty loss, net | $ 533,000 | 483,000 | 0 | |||
Insurance recovery | 50,000 | |||||
Subsequent Event | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Casualty loss, net | $ 315,000 | |||||
Service | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Performance obligation | 1,000 | |||||
Deferred revenue | 7,000 | 24,000 | ||||
Product | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Performance obligation | 549,000 | |||||
Deferred revenue | 776,000 | 1,193,000 | ||||
Revenue | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Excise and sales taxes | 207,000 | 264,000 | ||||
Cost of Sales | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Excise and sales taxes | 217,000 | 271,000 | ||||
Over Time | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenue | 970,000 | 1,809,000 | ||||
Period in Time | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenue | $ 4,506,000 | $ 5,930,000 | ||||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated Useful Life | 3 years | |||||
Estimated useful life | 5 years | 5 years | ||||
Term of contract | 1 month | |||||
Renewal term | 12 months | |||||
Useful lives | three | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated Useful Life | 10 years | |||||
Estimated useful life | 12 years | 12 years | ||||
Term of contract | 14 months | |||||
Renewal term | 5 years | |||||
Useful lives | ten years |
Business Description and Sign_5
Business Description and Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts receivable | $ 624 | $ 949 | $ 3,348 |
Allowance for doubtful accounts | (209) | (100) | $ (182) |
Accounts receivable, net | 415 | 849 | |
Bad debt expense | $ 118 | $ 321 |
Business Description and Sign_6
Business Description and Significant Accounting Policies - Schedule of Excess of the FDIC Insured Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 3,085 | $ 8,939 |
Excess over FDIC Insured Amount | 2,835 | |
Silicon Valley Bank | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 260 | |
Excess over FDIC Insured Amount | 10 | |
Morgan Stanley - SS&C for US Funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 2,795 | |
Excess over FDIC Insured Amount | 2,795 | |
Resolve Group, UK | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 30 | |
Excess over FDIC Insured Amount | $ 30 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Total cash and restricted cash | $ 3,085 | $ 9,000 | $ 5,277 |
Working capital | 2,959 | ||
Net loss | 21,941 | 9,051 | |
Net cash used in operating activities | $ 5,934 | $ 7,732 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory gross | $ 1,175 | $ 2,552 |
Inventory reserve | (452) | (731) |
Inventory adjustments | $ 316 | $ 525 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 131 | $ 340 |
Employee Retention Credit receivable | 316 | 316 |
Other current assets | 90 | 164 |
Prepaid software licenses | 112 | 261 |
Prepaid expenses and other current assets | $ 649 | $ 1,081 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,207 | $ 10,517 |
Accumulated depreciation | (2,204) | (10,358) |
Property and equipment, net | 3 | 159 |
Collaboration Products | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ 332 | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Network equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,913 | 4,665 |
Network equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Network equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 294 | 5,070 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | 690 |
Estimated Useful Life | 5 years | |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 92 |
Office furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Office furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Related depreciation and amortization expense | $ 78 | $ 365 |
Disposal of fixed assets | 7,928 | |
Accumulated depreciation of fixed assets disposed | 7,900 | |
Proceeds from sale of fixed assets | 30 | |
Gain(loss) on disposal of fixed assets | 2 | (98) |
Accumulated depreciation | 2,204 | $ 10,358 |
Collaboration Products | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | 393 | |
Accumulated depreciation | (332) | |
Impairment loss | $ 61 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2022 | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 690 | $ 12,780 |
Accumulated amortization | (86) | (5,218) |
Total | 604 | 7,562 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 486 | 10,060 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 204 | 2,410 |
Distributor relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 0 | $ 310 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Impairment charges - intangible assets | $ 5,133 | $ 207 |
Estimated useful life | 2 years | |
Amortization expense | $ 1,825 | $ 2,371 |
Minimum | ||
Business Acquisition [Line Items] | ||
Estimated useful life | 5 years | 5 years |
Maximum | ||
Business Acquisition [Line Items] | ||
Estimated useful life | 12 years | 12 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 345 | |
2024 | 259 | |
Total | $ 604 | $ 7,562 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Compensation costs | $ 707 | $ 551 |
Taxes and regulatory fees | 59 | 92 |
Customer deposits | 128 | 145 |
Professional fees | 57 | 69 |
Other accrued expenses and liabilities | 123 | 102 |
Total | $ 1,074 | $ 959 |
Operating Lease Liabilities a_3
Operating Lease Liabilities and Right-of-Use Assets - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) lease facility | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Non-cash lease expense | $ 502,000 | $ 778,000 | |
Sublease income | 140,000 | 321,000 | |
Operating lease, right-of-use asset, net | 142,000 | 659,000 | $ 903,000 |
Operating lease liabilities | 236,000 | 728,000 | $ 1,432,000 |
Impairment charges - right-of use assets | $ 179,000 | $ 0 | |
Number of leases exited | lease | 3 | ||
Los Angeles | |||
Lessee, Lease, Description [Line Items] | |||
Number of facilities | facility | 3 | ||
Number of sublease | facility | 1 | ||
Number of properties | facility | 2 | ||
Term of contract | 5 months | ||
Operating lease, right-of-use asset, net | $ 11,000 | ||
Operating lease liabilities | $ 11,000 | ||
Number of leases exited | lease | 1 | ||
City of Industry | |||
Lessee, Lease, Description [Line Items] | |||
Number of facilities | facility | 1 | ||
Dallas | |||
Lessee, Lease, Description [Line Items] | |||
Number of leases exited | lease | 1 | ||
Boston | |||
Lessee, Lease, Description [Line Items] | |||
Number of leases exited | lease | 1 |
Operating Lease Liabilities a_4
Operating Lease Liabilities and Right-of-Use Assets - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating lease, right-of-use asset, net | $ 142 | $ 659 | $ 903 |
Current portion of operating lease liabilities | 219 | 492 | |
Operating lease liabilities, net of current portion | 17 | 236 | |
Total operating lease liabilities | $ 236 | $ 728 | $ 1,432 |
Operating Lease Liabilities a_5
Operating Lease Liabilities and Right-of-Use Assets - Table Operating Lease Future Minimum Rental Commitment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
2023 | $ 225 | ||
2024 | 17 | ||
Total lease payments | 242 | ||
Effect of discounting | (6) | ||
Total operating lease liabilities | 236 | $ 728 | $ 1,432 |
Current portion of operating lease liabilities | 219 | 492 | |
Operating lease liabilities, net of current portion | $ 17 | $ 236 |
Operating Lease Liabilities a_6
Operating Lease Liabilities and Right-of-Use Assets - Summary of Activity for Our Right of Use Assets And Lease Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Right-of-Use Asset | ||
Balance at December 31, 2020 | $ 659,000 | $ 903,000 |
Additions | 11,000 | 60,000 |
Terminations and Modifications | 0 | 192,000 |
Amortizations and Reductions | (349,000) | (496,000) |
Impairment Charges | (179,000) | 0 |
Balance at December 31, 2021 | 142,000 | 659,000 |
Operating Lease Liability | ||
Balance at December 31, 2020 | 728,000 | 1,432,000 |
Additions | 11,000 | 60,000 |
Terminations and Modifications | 0 | 156,000 |
Amortizations and Reductions | (503,000) | (920,000) |
Impairment Charges | 0 | |
Balance at December 31, 2021 | $ 236,000 | $ 728,000 |
Capital Stock - Common Stock (D
Capital Stock - Common Stock (Details) | Jan. 03, 2023 | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares |
Class of Stock [Line Items] | |||
Common Stock, convertible, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common Stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |
Common Stock, shares issued (in shares) | 2,070,861 | 2,062,030 | |
Common stock, shares outstanding (in shares) | 2,063,308 | 2,054,477 | |
Subsequent Event | |||
Class of Stock [Line Items] | |||
Stockholders' equity note, stock split, conversion ratio | 0.06667 |
Capital Stock - Common Stock Ac
Capital Stock - Common Stock Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock, shares outstanding (in shares) | 2,054,477 | 2,063,308 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning issued shares balance (in shares) | 533,000 | |
Issuances from private placements (in shares) | 267,000 | |
Issuances from preferred stock conversions (in shares) | 1,257,000 | |
Issuances related to vested restricted units (in shares) | 13,000 | |
Issuance of shares for services (in shares) | 1,000 | |
Treasury stock (in shares) | 8,000 | 8,000 |
Ending issued shares balance (in shares) | 2,071,000 | |
Shares issued (in shares) | 2,071,000 | 2,071,000 |
Common stock, shares outstanding (in shares) | 2,063,000 | 2,063,000 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2021 | Jan. 21, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 06, 2020 | Oct. 21, 2020 | |
Class of Stock [Line Items] | |||||||
Stock issued during period, value, issued for services | $ 274 | ||||||
Payments of stock issuance costs | $ 896 | ||||||
Proceeds from stock issuance, net of offering costs | 11,504 | $ 0 | $ 11,504 | ||||
Exercise price (in dollars per share) | $ 66.34 | $ 66.34 | $ 72.75 | $ 82.35 | $ 61.20 | ||
Class of warrant or right, exercise of warrants (in shares) | 0 | ||||||
Treasury stock, shares (in shares) | 7,553 | 7,553 | |||||
General and Administrative Expense | |||||||
Class of Stock [Line Items] | |||||||
Stock option compensation expense | $ 390 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Series D & E Preferred Stock conversion and Series A2 Preferred Stock conversion (in shares) | 1,257,000 | ||||||
Issuance of stock for services (in shares) | 1,000 | ||||||
Stock issued during period, value, issued for services | $ 100 | ||||||
Common Stock | Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, price per share (in dollars per share) | $ 60 | ||||||
Common Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, price per share (in dollars per share) | $ 66 | ||||||
Deducting issuance cost | $ 12,400 | ||||||
Warrant term | 3 years | ||||||
Exercise price (in dollars per share) | $ 66 | ||||||
Warrants | |||||||
Class of Stock [Line Items] | |||||||
Warrant modification | $ 37 | ||||||
Warrants | Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Number of shares sold in transaction (in shares) | 66,667 | ||||||
Warrant term | 6 months | ||||||
Exercise price (in dollars per share) | $ 60 | ||||||
Warrants | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares sold in transaction (in shares) | 200,000 |
Capital Stock - Warrants Outsta
Capital Stock - Warrants Outstanding (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 06, 2020 | Oct. 21, 2020 |
Class of Stock [Line Items] | ||||||
Warrants issued (in shares) | 343,101 | 41,667 | 34,767 | |||
Exercise price (in dollars per share) | $ 66.34 | $ 66.34 | $ 72.75 | $ 82.35 | $ 61.20 | |
Warrants | Public Offering | ||||||
Class of Stock [Line Items] | ||||||
Warrants issued (in shares) | 66,667 | |||||
Exercise price (in dollars per share) | $ 60 | |||||
Common Stock | Private Placement | ||||||
Class of Stock [Line Items] | ||||||
Warrants issued (in shares) | 200,000 | |||||
Exercise price (in dollars per share) | $ 66 |
Capital Stock - Warrants Activi
Capital Stock - Warrants Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 06, 2020 | Oct. 21, 2020 | |
Number of Warrants | ||||
Warrants outstanding and exercisable, Beginning (in shares) | 76,434 | |||
Granted (in shares) | 266,667 | |||
Warrants outstanding and exercisable, Ending (in shares) | 343,101 | |||
Warrants outstanding and exercisable, Ending (in shares) | 343,101 | 343,101 | ||
Weighted Average Exercise Price | ||||
Warrants outstanding and exercisable, Beginning (in dollars per share) | $ 72.75 | |||
Granted (in dollars per share) | 64.50 | |||
Warrants outstanding and exercisable, Ending (in dollars per share) | 66.34 | |||
Warrants outstanding and exercisable, Ending (in dollars per share) | $ 66.34 | $ 66.34 | $ 82.35 | $ 61.20 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jan. 03, 2023 | Feb. 12, 2021 shares | Jan. 28, 2021 USD ($) $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 1,938,250 | 1,938,250 | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Forfeited in period (in shares) | 10,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares issued in conversion (in shares) | 5,620 | |||||
Series A-2 Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 45 | 0 | 0 | |||
Stock issued during period, conversion of convertible securities, price (in dollars per share) | $ / shares | $ 60 | |||||
Series D & E Preferred Stock conversion and Series A2 Preferred Stock conversion | $ | $ 300,000 | |||||
Series A-2 Preferred Stock | Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 45 | |||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Shares issued in conversion (in shares) | 1,697,022 | |||||
Forfeited in period (in shares) | 81 | |||||
Series D Preferred Stock | Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 855 | |||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 1,697,958 | |||
Series E Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Shares issued in conversion (in shares) | 131,579 | |||||
Series E Preferred Stock | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 89,678 | |||||
Series E Preferred Stock | Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 131,579 | |||
Series D Convertible Preferred Stock | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 1,161,130 | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 5,000,000 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Jan. 03, 2023 | Aug. 18, 2021 USD ($) $ / shares shares | Jun. 28, 2021 USD ($) | Oct. 01, 2019 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted (in shares) | shares | 20,000 | ||||||
Outstanding weighted average exercise price, exchanged for oblong industries stock options (in dollars per share) | $ / shares | $ 48.75 | ||||||
Intrinsic value of exercisable options | $ 0 | $ 0 | |||||
Stock option compensation expense, forfeiture | 85,000 | ||||||
Unrecognized stock-based compensation expense for stock options | 185,000 | $ 185,000 | |||||
Forfeited in period (in shares) | shares | 10,000 | ||||||
Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | ||||||
General and Administrative Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 390,000 | ||||||
Series D Preferred Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited in period (in shares) | shares | 81 | ||||||
Outstanding stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 61,000 | $ 126,000 | |||||
Stock option compensation expense, gross | 146,000 | ||||||
Stock option compensation expense, forfeiture | $ 85,000 | ||||||
Period of recognition | 1 year 6 months | ||||||
Outstanding stock options | General and Administrative Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | 125,000 | ||||||
Outstanding stock options | Research and Development Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ (64,000) | ||||||
Outstanding stock options | Share-based Payment Arrangement, Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options granted (in shares) | shares | 0 | ||||||
Exercise period | 10 years | ||||||
Vesting period | 3 years | ||||||
Share-based compensation vested in period, fair Value | $ 744,000 | ||||||
Outstanding stock options | Share-based Payment Arrangement, Employee | Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33% | ||||||
Outstanding stock options | Share-based Payment Arrangement, Employee | Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33% | ||||||
Outstanding stock options | Share-based Payment Arrangement, Employee | Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33% | ||||||
Unvested restricted stock awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 10 years | ||||||
Unvested restricted shares outstanding (in shares) | shares | 42 | 42 | 42 | ||||
Granted, weighted average grant price (in dollars per share) | $ / shares | $ 235.87 | $ 235.87 | |||||
Award service period | 5 years | ||||||
Unvested restricted stock awards | Series D Preferred Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Stock option compensation expense | $ 0 | $ 33,000 | |||||
Unvested restricted shares outstanding (in shares) | shares | 0 | 0 | |||||
Unrecognized stock-based compensation expense for other than options | $ 0 | $ 0 | |||||
Issuance of stock on vested restricted stock units (in shares) | shares | 49,967 | ||||||
Forfeited in period (in shares) | shares | 81 | 28,618 | |||||
Unvested restricted stock awards | Series D Preferred Stock | Research and Development Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 0 | $ 17,000 | |||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested restricted shares outstanding (in shares) | shares | 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) | shares | 1,929 | 1,929 | |||||
RSUs | Share-based Payment Arrangement, Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, restricted shares (in shares) | shares | 0 | ||||||
Share-based compensation arrangement by share-based payment award, fair value in period | $ 438,000 | ||||||
RSUs | Nonemployee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, weighted average grant price (in dollars per share) | $ / shares | $ 32.85 | ||||||
Granted, restricted shares (in shares) | shares | 13,334 | ||||||
2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 177,567 | 177,567 |
Stock Based Compensation - Para
Stock Based Compensation - Parameters of Fair Value Calculation (Details) | Jun. 28, 2021 $ / shares |
Share-Based Payment Arrangement [Abstract] | |
Risk free interest rate | 0.47% |
Expected option lives | 3 years |
Expected volatility | 1.36% |
Estimated forfeiture rate | 0 |
Expected dividend yields | 0% |
Weighted average grant date fair value of options (in dollars per share) | $ 37.20 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | |||
Outstanding number of options, beginning (in shares) | 27,169 | 7,169 | |
Granted (in shares) | 20,000 | ||
Vested (in shares) | 0 | ||
Expired (in shares) | (501) | ||
Forfeited (in shares) | (10,000) | ||
Outstanding number of options, ending (in shares) | 16,668 | 27,169 | |
Weighted Average Exercise Price | |||
Outstanding weighted average exercise price, beginning (in dollars per share) | $ 113.63 | $ 294.63 | |
Granted (in dollars per share) | 48.75 | ||
Vested (in shares) | 0 | ||
Expired (in dollars per share) | 410.18 | ||
Forfeited (in dollars per share) | 48.75 | ||
Outstanding weighted average exercise price, ending (in dollars per share) | $ 143.63 | $ 113.63 | |
Exercisable | |||
Exercisable number of options (in shares) | 10,000 | 7,169 | 7,169 |
Exercisable number of options, vested (in shares) | 3,332 | ||
Exercisable number of options, expired (in shares) | (501) | ||
Exercisable weighted average exercise price (in dollars per share) | $ 206.85 | $ 294.63 | $ 294.63 |
Exercisable weighted average exercise price, vested (in dollars per share) | 48.75 | ||
Exercisable weighted average exercise price, expired (in dollars per share) | $ 410.18 |
Stock Based Compensation - Exer
Stock Based Compensation - Exercise Price Range (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of options, outstanding and exercisable (in shares) | 16,668 | 27,169 | 7,169 |
Weighted Average Remaining Contractual Life (In Years) | 3 years 21 days | ||
Weighted average exercise price, outstanding and exercisable (in dollars per share) | $ 143.63 | $ 113.63 | $ 294.63 |
Number of options, exercisable (in shares) | 10,000 | 7,169 | 7,169 |
Weighted average exercise price, exercisable (in dollars per share) | $ 206.85 | $ 294.63 | $ 294.63 |
$0.00 – $100.00 | |||
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) | $ 100 | ||
Number of options, outstanding and exercisable (in shares) | 10,000 | ||
Weighted Average Remaining Contractual Life (In Years) | 8 years 6 months | ||
Weighted average exercise price, outstanding and exercisable (in dollars per share) | $ 48.75 | ||
Number of options, exercisable (in shares) | 3,332 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 48.75 | ||
$100.01 – $200.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 100.01 | ||
Range of price, upper range limit (in dollars per share) | $ 200 | ||
Number of options, outstanding and exercisable (in shares) | 167 | ||
Weighted Average Remaining Contractual Life (In Years) | 6 months | ||
Weighted average exercise price, outstanding and exercisable (in dollars per share) | $ 135 | ||
Number of options, exercisable (in shares) | 167 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 135 | ||
$201.01 – $300.00 | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Range of price, lower range limit (in dollars per share) | 201.01 | ||
Range of price, upper range limit (in dollars per share) | $ 300 | ||
Number of options, outstanding and exercisable (in shares) | 6,501 | ||
Weighted Average Remaining Contractual Life (In Years) | 2 months 1 day | ||
Weighted average exercise price, outstanding and exercisable (in dollars per share) | $ 289.77 | ||
Number of options, exercisable (in shares) | 6,501 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 289.77 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Compensation Expense, Restricted Stock (Details) - Unvested restricted stock awards - Series D Preferred Stock - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock compensation expense | $ 0 | $ 33 |
Research and Development Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock compensation expense | 0 | 17 |
Sales, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock compensation expense | $ 0 | $ 16 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | 12 Months Ended | ||
Jan. 03, 2023 | Dec. 31, 2022 shares | Dec. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares) | 0 | ||
Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested and remaining outstanding (in shares) | 1,929 | 1,929 |
Net Loss Per Share - Reconcilia
Net Loss Per Share - Reconciliation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||
Net loss | $ (21,941) | $ (9,051) |
Preferred stock dividends | 0 | 1 |
Less: undeclared dividends | 0 | 366 |
Less: conversion inducement | 0 | 300 |
Less: warrant modification | 0 | 37 |
Net loss attributable to common stockholders | $ (21,941) | $ (9,755) |
Denominator: | ||
Weighted-average number of shares of common stock for diluted net loss per share (in shares) | 2,065 | 1,779 |
Basic net loss per share (in dollars per share) | $ (10.62) | $ (5.48) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 16,668 | 27,169 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 343,101 | 343,101 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Revenue | $ 5,476 | $ 7,739 |
Cost of revenues | 3,930 | 5,021 |
Gross profit | $ 1,546 | $ 2,718 |
Gross profit % | 28% | 35.10% |
Total operating expenses | $ 23,534 | $ 14,512 |
Income (loss) from operations | (21,988) | (11,794) |
Interest and other expense (income), net | (40) | (2,653) |
Loss before income taxes | (21,948) | (9,141) |
Income tax benefit | (7) | (90) |
Net loss | (21,941) | (9,051) |
Total assets | 5,661 | 28,607 |
Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 18,374 | 8,470 |
Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 5,160 | 6,042 |
Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Cost of revenues | 0 | 0 |
Gross profit | $ 0 | $ 0 |
Gross profit % | 0% | 0% |
Total operating expenses | $ 5,160 | $ 6,042 |
Income (loss) from operations | (5,160) | (6,042) |
Interest and other expense (income), net | 0 | (2,448) |
Loss before income taxes | (5,160) | (3,594) |
Income tax benefit | 0 | |
Net loss | (5,160) | (3,594) |
Total assets | 3,085 | 8,939 |
Unallocated operating expenses | Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 0 | 0 |
Unallocated operating expenses | Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 5,160 | 6,042 |
Managed Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,348 | 4,270 |
Cost of revenues | 2,273 | 2,991 |
Gross profit | $ 1,075 | $ 1,279 |
Gross profit % | 32% | 30% |
Total operating expenses | $ 19 | $ 591 |
Income (loss) from operations | 1,056 | 688 |
Interest and other expense (income), net | 12 | 22 |
Loss before income taxes | 1,044 | 666 |
Income tax benefit | (4) | (15) |
Net loss | 1,048 | 681 |
Total assets | 752 | 1,053 |
Managed Services | Operating Segments | Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 19 | 591 |
Managed Services | Operating Segments | Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 0 | 0 |
Collaboration Products | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,128 | 3,469 |
Cost of revenues | 1,657 | 2,030 |
Gross profit | $ 471 | $ 1,439 |
Gross profit % | 22% | 41.50% |
Total operating expenses | $ 18,355 | $ 7,879 |
Income (loss) from operations | (17,884) | (6,440) |
Interest and other expense (income), net | (52) | (227) |
Loss before income taxes | (17,832) | (6,213) |
Income tax benefit | (3) | (75) |
Net loss | (17,829) | (6,138) |
Total assets | 1,824 | 18,615 |
Collaboration Products | Operating Segments | Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 18,355 | 7,879 |
Collaboration Products | Operating Segments | Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | $ 0 | $ 0 |
Segment Reporting - Disaggregat
Segment Reporting - Disaggregation of Revenue (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Foreign revenue | 0.01 | |
Total revenue | $ 5,476 | $ 7,739 |
Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 5,476 | $ 7,739 |
Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 100% | 100% |
Managed Services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 3,348 | $ 4,270 |
Managed Services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 61.10% | 55.20% |
Managed Services | Assets | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 100% | 100% |
Managed Services | Video collaboration services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 334 | $ 854 |
Managed Services | Video collaboration services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 6.10% | 11% |
Managed Services | Network services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,954 | $ 3,347 |
Managed Services | Network services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 53.90% | 43.30% |
Managed Services | Professional and other services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 60 | $ 69 |
Managed Services | Professional and other services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 1.10% | 0.90% |
Collaboration Products | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,128 | $ 3,469 |
Collaboration Products | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 38.90% | 44.80% |
Collaboration Products | Video collaboration services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,114 | $ 3,367 |
Collaboration Products | Video collaboration services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 38.60% | 43.50% |
Collaboration Products | Licensing | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 14 | $ 102 |
Collaboration Products | Licensing | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 0.30% | 1.30% |
Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,781 | $ 4,614 |
Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,695 | $ 3,125 |
Segment Reporting - Concentrati
Segment Reporting - Concentration Percentage (Details) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Customer A | Managed Services | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 46.80% | 34.70% |
Customer A | Managed Services | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 42.80% | 24.90% |
Customer B | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22% | 8.50% |
Customer C | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 0% | 20% |
Customer D | Managed Services | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.30% | 18.20% |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (21,948) | $ (9,340) |
Foreign | 0 | 199 |
Loss before income taxes | $ (21,948) | $ (9,141) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Federal | $ 0 | $ 0 |
Foreign | (4) | (75) |
State | (3) | (15) |
Total current | (7) | (90) |
Total deferred | ||
Total deferred | 0 | 0 |
Income tax benefit | $ (7) | $ (90) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
U.S. federal income taxes at the statutory rate | $ (4,609) | $ (1,919) |
Goodwill impairment | 1,547 | 0 |
Current Year Permanent Adjustment, Paycheck Protection Program loan forgiveness | 0 | (514) |
State taxes, net of federal effects | (375) | (464) |
Adjustment to U.S. NOLs, UK Anti-Hybrid | 0 | (1,837) |
U.S. Federal and state NOL carryforward adjustment for expired NOLs | 76 | 78 |
Change in valuation allowance | 3,273 | 4,662 |
True up of prior year foreign tax expense | 0 | (108) |
Other | 81 | 12 |
Income tax benefit | $ (7) | $ (90) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets (liabilities): | ||
Accrued expenses | $ 147 | $ 88 |
Deferred revenue | 129 | 287 |
Stock-based compensation | 420 | 449 |
Fixed assets | 116 | 287 |
Goodwill | 28 | 102 |
Inventory | 106 | 197 |
Intangible amortization | (80) | (1,777) |
R&D credit | 2,154 | 2,154 |
Texas margin tax temporary credit | 74 | 139 |
Other | 101 | 62 |
Total deferred tax asset, net of deferred tax liabilities | 38,492 | 35,220 |
Valuation allowance | (38,492) | (35,220) |
Net deferred tax asset | 0 | 0 |
Federal | ||
Deferred tax assets (liabilities): | ||
Tax benefit of operating loss carry forward | 28,459 | 26,902 |
State | ||
Deferred tax assets (liabilities): | ||
Tax benefit of operating loss carry forward | $ 6,429 | $ 6,225 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Oct. 01, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | $ 3,272,600,000 | $ 4,678,000,000 | ||
Net operating loss carryforwards, permanent loss of tax benefit | $ 30,880,000 | |||
R&D credit | 2,154,000 | 2,154,000 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 0 | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 135,517,000 | 128,447,000 | ||
NOL subject to expiration | 75,456,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 104,886,000 | $ 101,035,000 | ||
Collaboration Products | ||||
Operating Loss Carryforwards [Line Items] | ||||
Noncontrolling interest, ownership percentage by parent | 75% |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
401(k) plan, employer contributions | $ 93 | $ 130 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fractional Labor | Bolster | ||
Related Party Transaction [Line Items] | ||
Related party expense | $ 0 | $ 31,000 |