Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 08, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 110 16th Street | ||
Entity Address, Address Line Two | Suite 1400-1024 | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80202 | ||
City Area Code | 213 | ||
Local Phone Number | 683-8863 ext. 5 | ||
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 | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,002,041 | ||
Entity Common Stock, Shares Outstanding | 16,684,571 | ||
Entity Central Index Key | 0000746210 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,990 | $ 3,085 |
Accounts receivable, net | 424 | 415 |
Inventory, net | 239 | 723 |
Prepaid expenses and other current assets | 243 | 649 |
Total current assets | 6,896 | 4,872 |
Property and equipment, net | 0 | 3 |
Intangibles, net | 0 | 604 |
Operating lease, right-of-use assets, net | 17 | 142 |
Other assets | 12 | 40 |
Total assets | 6,925 | 5,661 |
Current liabilities: | ||
Accounts payable | 211 | 184 |
Accrued expenses and other current liabilities | 1,038 | 1,074 |
Current portion deferred revenue | 132 | 436 |
Operating lease liabilities, current | 17 | 219 |
Total current liabilities | 1,398 | 1,913 |
Long-term liabilities: | ||
Operating lease liabilities, net of current portion | 0 | 17 |
Deferred revenue, net of current portion | 26 | 114 |
Total long-term liabilities | 26 | 131 |
Total liabilities | 1,424 | 2,044 |
Commitments and contingencies (see Note 14) | ||
Stockholders’ equity: | ||
Common stock, $.0001 par value; 150,000,000 shares authorized; 16,692,000 shares issued and 16,685,000 shares outstanding at December 31, 2023 and 2,071,000 shares issued and 2,063,000 outstanding at December 31, 2022 | 2 | 0 |
Treasury stock, 8,000 common shares at December 31, 2023 and 2022 | (181) | (181) |
Additional paid-in capital | 233,911 | 227,645 |
Accumulated deficit | (228,231) | (223,847) |
Total stockholders’ equity | 5,501 | 3,617 |
Total liabilities and stockholders’ equity | 6,925 | 5,661 |
Series F Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock Series F, convertible; $.0001 par value; $2,064,063 stated value; 42,000 shares authorized, 1,930 and zero shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, shares issued (in shares) | 1,930 | 1,930 |
Preferred stock, shares outstanding (in shares) | 1,930 | 1,930 |
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) | 16,692,124 | 2,071,000 |
Common stock, shares outstanding (in shares) | 16,684,571 | 2,063,000 |
Treasury stock, shares (in shares) | 8,000 | 8,000 |
Series F Preferred Stock | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, stated value | $ 2,064,063 | $ 2,064,063 |
Preferred stock, shares authorized (in shares) | 42,000 | 42,000 |
Preferred stock, shares issued (in shares) | 1,930 | 0 |
Preferred stock, shares outstanding (in shares) | 1,930 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 3,810 | $ 5,476 |
Cost of revenue (exclusive of depreciation and amortization and casualty loss) | 2,899 | 3,930 |
Gross profit | 911 | 1,546 |
Operating expenses (gains): | ||
Research and development | 20 | 1,699 |
Sales and marketing | 309 | 1,431 |
General and administrative | 4,870 | 5,278 |
Impairment charges | 262 | 12,740 |
Casualty (gain) loss, net | (400) | 483 |
Depreciation and amortization | 345 | 1,903 |
Total operating expenses | 5,406 | 23,534 |
Loss from operations | (4,495) | (21,988) |
Interest and other income, net | ||
Interest and other expense | 28 | 19 |
Interest and other income | (166) | (59) |
Total interest and other income, net | (138) | (40) |
Loss before income taxes | (4,357) | (21,948) |
Income tax expense (benefit) | 27 | (7) |
Net income (loss) | (4,384) | (21,941) |
Preferred stock dividends | 343 | 0 |
Induced conversion of warrants | 751 | 0 |
Warrant modification | 25 | 0 |
Net loss attributable to common stockholders | $ (5,503) | $ (21,941) |
Net loss attributable to common stockholders per share: | ||
Basic net loss per share (in dollars per share) | $ (0.98) | $ (10.62) |
Diluted net loss per share (in dollars per share) | $ (0.98) | $ (10.62) |
Weighted-average number of shares of common stock: | ||
Basic (in shares) | 5,595 | 2,065 |
Diluted (in shares) | 5,595 | 2,065 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Total | Series F Preferred Stock | Preferred Stock Series F Preferred Stock | Common Stock | Common Stock Pre-Funded Warrants | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit |
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Common stock, beginning balance (in shares) at Dec. 31, 2021 | 2,071,000 | |||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 8,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 25,497,000 | $ 0 | $ 0 | $ (181,000) | $ 227,584,000 | $ (201,906,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (21,941,000) | (21,941,000) | ||||||
Stock-based compensation | 146,000 | 146,000 | ||||||
Forfeiture of unvested stock options | (85,000) | (85,000) | ||||||
Series F Preferred Stock dividends | $ 0 | |||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2022 | 1,930 | 0 | 0 | |||||
Common stock, ending balance (in shares) at Dec. 31, 2022 | 2,071,000 | 2,071,000 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 8,000 | 8,000 | ||||||
Ending balance at Dec. 31, 2022 | $ 3,617,000 | $ 0 | $ 0 | $ (181,000) | 227,645,000 | (223,847,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (4,384,000) | (4,384,000) | ||||||
Stock-based compensation | 504,000 | $ 180,000 | 504,000 | |||||
Proceeds from private placement, net of fees (in shares) | 6,550 | |||||||
Proceeds from private placement, net of fees | 5,364,000 | 5,364,000 | ||||||
Proceeds from warrant exercise, net of fees (in shares) | 339,000 | |||||||
Proceeds from warrant exercise, net of fees | 534,000 | 534,000 | ||||||
Common stock exchanged for pre-funded warrants | (406,776) | (407,000) | ||||||
Exercise of pre-funded warrants (in shares) | 746,027 | 407,000 | ||||||
Conversions of Series F Preferred Stock (in shares) | (4,620) | 14,102,477 | ||||||
Conversions of Series F Preferred Stock and accrued dividends | 209,000 | $ 2,000 | 207,000 | |||||
Series F Preferred Stock dividends | $ (343,000) | $ (343,000) | (343,000) | |||||
Preferred stock, ending balance (in shares) at Dec. 31, 2023 | 1,930 | 1,930 | 1,930 | |||||
Common stock, ending balance (in shares) at Dec. 31, 2023 | 16,692,124 | 16,692,000 | ||||||
Treasury stock, ending balance (in shares) at Dec. 31, 2023 | 8,000 | 7,553 | 8,000 | |||||
Ending balance at Dec. 31, 2023 | $ 5,501,000 | $ 0 | $ 2,000 | $ (181,000) | $ 233,911,000 | $ (228,231,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from Operating Activities: | ||
Net loss | $ (4,384,000) | $ (21,941,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 345,000 | 1,903,000 |
Bad debt (recovery) expense | (52,000) | 118,000 |
Non-cash lease expense from right-of-use assets | 125,000 | 349,000 |
Stock-based compensation | 504,000 | 146,000 |
Forfeiture of unvested stock options | 0 | (85,000) |
Loss (gain) on disposal of assets | 3,000 | (2,000) |
Casualty loss on inventory | 0 | 483,000 |
Impairment charges - property and equipment | 0 | 61,000 |
Impairment charges - intangible assets | 259,000 | 5,133,000 |
Impairment charges - right-of use assets | 0 | 179,000 |
Impairment charges - goodwill | 0 | 7,367,000 |
Changes in assets and liabilities: | ||
Accounts receivable | 43,000 | 316,000 |
Prepaid expenses and other current assets | 406,000 | 432,000 |
Inventory | 484,000 | 615,000 |
Other assets | 28,000 | 69,000 |
Accounts payable | 27,000 | (75,000) |
Accrued expenses and other current liabilities | (170,000) | 115,000 |
Deferred revenue | (392,000) | (614,000) |
Lease liabilities | (219,000) | (503,000) |
Net cash used in operating activities | (2,993,000) | (5,934,000) |
Cash flows from Investing Activities: | ||
Proceeds on sale of equipment | 0 | 30,000 |
Purchases of property and equipment | 0 | (11,000) |
Net cash provided by investing activities | 0 | 19,000 |
Cash flows from Financing Activities: | ||
Proceeds from private placement, net of issuance costs | 5,364,000 | 0 |
Net proceeds from exercise of common stock warrants | 534,000 | 0 |
Net cash provided by financing activities | 5,898,000 | 0 |
Net increase (decrease) in cash and cash equivalents | 2,905,000 | (5,915,000) |
Cash and restricted cash at beginning of year | 3,085,000 | 9,000,000 |
Cash and cash equivalents at end of year | 5,990,000 | 3,085,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 20,000 | 7,000 |
Cash paid for income taxes | 31,000 | 0 |
Reconciliation of cash and cash equivalents | ||
Cash | 5,490,000 | 3,085,000 |
Current certificates of deposit | 500,000 | 0 |
Total cash and cash equivalents | 5,990,000 | 3,085,000 |
Non-cash investing and financing activities: | ||
New operating lease agreement | 0 | 11,000 |
Preferred stock dividends | 343,000 | 0 |
Warrant modification | 25,000 | 0 |
Induced exercise of common stock warrants | 751,000 | 0 |
Common stock issued for conversion of Preferred Stock and accrued dividends | $ 209,000 | $ 0 |
Business Description and Signif
Business Description and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 subsidiary Oblong Europe Limited, and combined the operations into Oblong Industries, Inc. There was no activity for this subsidiary in 2022 or 2023 and Oblong Europe, Limited remains 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 13 - 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 estimated credit losses and the inputs used in the fair value of equity based awards. Cash and Cash Equivalents As of December 31, 2023, our total cash balance of $5,990,000 is available, however, of this balance $500,000 was held in short-term certificates of deposit with MidFirst Bank. As of December 31, 2022, our total cash balance of $3,085,000 was available. The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. 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 estimated credit losses, 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 estimated credit losses 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, 2023 2022 Accounts receivable $ 577,000 $ 624,000 Allowance for estimated credit losses (153,000) (209,000) Accounts receivable, net $ 424,000 $ 415,000 During the years ended December 31, 2023 and 2022, the Company recorded bad debt recovery of $52,000 and bad debt expense of $118,000, respectively. As of December 31, 2021, accounts receivable and the allowance for doubtful accounts were $949,000 and $100,000, respectively. 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 and cash equivalents, accounts receivable, accounts payable and lease obligations to meet the definition of financial instruments. The carrying amount of cash and cash equivalents, 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 8 - 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. As of December 31, 2023 there was no deferred revenue related to Managed Services. During the year ended December 31, 2023, the Company recorded $1,000 of revenue that was included in deferred revenue as of December 31, 2022. 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. 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. 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, 2023, totaled $158,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2023, the Company recorded $435,000 of revenue that was included in deferred revenue as of December 31, 2022. 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. Revenue recorded over time for the years ended December 31, 2023 and 2022 was $516,000 and $970,000, respectively. Revenue recorded at a period in time for the years ended December 31, 2023 and 2022 was $3,294,000 and $4,506,000, respectively. The Company disaggregates its revenue by geographic region. See Note 13 - 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, 2023 and 2022, we included taxes of $95,000 and $207,000, respectively, in revenue and we included taxes of $101,000 and $217,000, 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 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 $17,000 and $142,000, as of December 31, 2023 and 2022, respectively. As of the date of this filing, the Company had no right-of-use assets remaining. The Company has primarily leased facilities for office and warehouse 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, 2023, 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 assets for this reporting unit. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability 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, 2023, the Company disposed of property and equipment assets with a net value of $3,000. See Note 5 - Property and Equipment for further discussion. During the year ended December 31, 2022, the Company recorded impairment charges of $61,000 on property and equipment assets. For the year ended December 31, 2023, the Company recorded impairment charges of $259,000 on purchased intangible assets, as a result of these impairment charges there are no intangible assets reported on our Consolidated Balance Sheet as of December 31, 2023. See Note 6 - Intangible Assets and Goodwill for further discussion. The Company recorded impairment Charges of $5,133,000 to purchased intangible assets for the year ended December 31, 2022. During the year ended December 31, 2022, we recorded impairment charges of $7,367,000 on goodwill. As a result of these impairment charges, there was no goodwill reported on our Consolidated Balance Sheets as of December 31, 2023 or December 31, 2022. 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. There were no right-of-use asset impairments for the year ended December 31, 2023. 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, 2023 and 2022 was $17,000 and $236,000, respectively. As of the date of this filing, the Company had no lease liability remaining. See Note 8 - 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. Historically, the Company’s leases have had terms of 6 months to five years and some of the leases included a Company option to extend the lease term for less than twelve months to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements did not contain any material residual value guarantees or material restrictive covenants. 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. 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. During 2022 and 2023, we received recovery payments from our insurance policies of $50,000 and $400,000, respectively, resulting in a net casualty loss of $483,000 on our Consolidated Statements of Operations for the year ended December 31, 2022 and a casualty gain of $400,000 on our Consolidated Statements of Operations for the year ended December 31, 2023. We do not expect any further recovery of the loss. Recent Accounting Pronouncements Recently Adopted 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. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280) : Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740) , to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity As of December 31, 2023, we had $5,990,000 of available cash and cash equivalents, inclusive of $500,000 held in short-term certificates of deposit, and $5,498,000 of working capital. For the years ended December 31, 2023 and 2022, we incurred net losses of $4,384,000 and $21,941,000, respectively, and net cash used in operating activities was $2,993,000 and $5,934,000, respectively. Net cash provided by investing activities for the year ended December 31, 2022 was $19,000, primarily related to the sale of property and equipment. There was no cash flow activity related to investing activities for the year ended December 31, 2023. Net cash provided by financing activities for the year ended December 31, 2023 was attributable to a private placement resulting in net proceeds of $5,364,000 and warrant exercises resulting in net proceeds of $534,000 (see Note 9 - Capital Stock and Note 10 - Preferred Stock to our Consolidated Financial Statements). There was no cash flow related to financing activities for the year ended December 31, 2022. Future Capital Requirements We believe that our existing cash and cash equivalents will be sufficient to fund our operations and meet our working capital requirements for at least the next 12 months from the filing date of this Report with the SEC. We believe additional capital will be required, in the long-term, to fund operations and provide growth capital including potential strategic alternatives and 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. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory (gross) was $930,000 and $1,175,000 as of December 31, 2023 and 2022, respectively, and consisted 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, as determined using average costs, and was stated at the lower of cost or net realizable value.. As of December 31, 2023 and 2022, reserves for obsolete or slow moving inventory were recorded of $691,000 and $452,000, respectively. Inventory is shown net of the obsolescence reserve on our Consolidated Balance Sheets. The reserve adjustment recorded to cost of goods sold was a net increase of $342,000 and $316,000 for the years ended December 31, 2023 and 2022, respectively. The following table summarizes our inventory reserve activity (in thousands): Reserve balance as of December 31, 2021 $ (731) Reserve adjustments (316) Disposals 595 Reserve balance as of December 31, 2022 (452) Reserve adjustments (342) Disposals 103 Reserve balance as of December 31, 2023 $ (691) |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 Prepaid expenses $ 75 $ 131 Employee Retention Credit receivable — 316 Other current assets 98 90 Prepaid software licenses 70 112 Prepaid expenses and other current assets $ 243 $ 649 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 Network equipment and software $ — $ 1,913 3 to 5 Years Computer equipment and software — $ 294 3 to 5 Years — 2,207 Accumulated depreciation — (2,204) Property and equipment, net $ — $ 3 Related depreciation expense was zero and $78,000 for the years ended December 31, 2023 and December 31, 2022, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The following table presents the components of net intangible assets (in thousands): December 31, 2023 2022 Developed technology $ — $ 486 Trade names — 204 Total intangible assets — 690 Accumulated amortization — (86) Intangible assets, net $ — $ 604 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, 2023, 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 $259,000 for the year ended December 31, 2023, writing down our intangible assets to zero as of December 31, 2023. During the year ended December 31, 2022, we recorded impairment charges of $5,133,000 on intangible assets. Historically, intangible assets with finite lives were amortized using the straight-line method over the estimated economic lives of the assets, which ranged from five years to twelve years in accordance with ASC Topic 350. Related amortization expense was $345,000 and $1,825,000 for the years ended December 31, 2023 and 2022, respectively. Goodwill During 2022, goodwill was written down to zero with impairment charges of $7,367,000. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Compensation costs $ 448 $ 707 Customer deposits 118 128 Professional fees 104 57 Taxes and regulatory fees 22 59 Accrued rent 202 — Accrued dividends on Series F Preferred Stock 136 — Other accrued expenses and liabilities 8 123 $ 1,038 $ 1,074 |
Operating Lease Liabilities and
Operating Lease Liabilities and Right-of-Use Assets | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Lease Liabilities and Right-of-Use Assets | Operating Lease Liabilities and Right-of-Use Assets As of December 31, 2023, we leased one facility in City of Industry, California, providing warehouse space. This lease expired in February 2024. During 2023, and through the date of this filing, we exited office space leases Austin, Texas and Los Angeles, California as well as the warehouse lease in City of Industry, CA. Lease expenses, net of common charges, for the years ended December 31, 2023 and 2022 were $214,000 and $502,000, respectively. Sublet proceeds for the years ended December 31, 2023 and 2022 were zero and $140,000, respectively. The following provides balance sheet information related to leases as of December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Assets Operating lease, right-of-use asset, net $ 17 $ 142 Liabilities Current portion of operating lease liabilities $ 17 $ 219 Operating lease liabilities, net of current portion — 17 Total operating lease liabilities $ 17 $ 236 The following table summarizes the future undiscounted cash payments reconciled to the lease liability (in thousands): Total lease payments remaining in 2024 $ 17 Effect of discounting (1) — Total lease liability 17 Less: current portion of lease liabilities 17 Operating lease liabilities, net of current portion $ — (1) The effect of discounting is less than $1,000 due to the term remaining on the lease. 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, 2021 $ 659 $ 728 Additions 11 11 Amortizations and Reductions (349) (503) Impairment Charges (179) Balance at December 31, 2022 142 236 Amortizations and Reductions (125) (219) Balance at December 31, 2023 $ 17 $ 17 The ROU assets and lease liabilities are recorded on the Company’s consolidated balance sheets as of December 31, 2023 and December 31, 2022. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock The Company’s common stock, par value $0.0001 per share (the “Common Stock”), is listed on the Nasdaq Capital Market (“Nasdaq”). As of December 31, 2023 we had 150,000,000 shares of Common Stock authorized, with 16,692,124 and 16,684,571 shares issued and outstanding, respectively. 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 has been adjusted for this stock split retrospectively for all periods represented herein. On April 18, 2023, the Company issued 339,498 shares of Common Stock in relation to certain warrant exercises discussed below, and 177,564 shares of Common Stock related to vested restricted stock units discussed in Note 11 - Stock Based Compensation . On May 28, 2023, in relation to the departure of certain directors, 42 restricted stock awards and 1,929 restricted stock units became fully vested and 1,971 shares of the Company’s Common Stock were issued. See Note 11 - Stock Based Compensation for further detail. During the year ended December 31, 2023, 4,620 shares of Series F Preferred Stock, plus accrued dividends, were converted to 14,102,477 shares of the Company’s Common Stock, respectively. See Note 10 - Preferred Stock, for further detail. On June 30, 2023, the Company entered into an exchange agreement (the “Exchange Agreement”) with entities affiliated with Foundry Group (the “Exchanging Stockholders”), pursuant to which the Company exchanged an aggregate of 406,776 shares of the Company’s Common Stock owned by the Exchanging Stockholders for pre-funded warrants (the “Exchange Warrants”) to purchase an aggregate of 407,000 shares of Common Stock (subject to adjustment in the event of stock splits, recapitalizations and other similar events affecting Common Stock), with an exercise price of $0.0001 per share. The Exchange Warrants were exercisable at any time, except that the Exchange Warrants were not exercisable by the Exchanging Stockholders if, upon giving effect or immediately prior thereto, the Exchanging Stockholders would beneficially own more than 4.99% of the total number of issued and outstanding Common Stock, which percentage may change at the holders’ election to any other number less than or equal to 19.99% upon 61 days’ notice to the Company. The holders of the Exchange Warrants did not have the right to vote on any matter except to the extent required by Delaware law. The shares were exchanged in July 2023, and the returned shares were added back to the authorized and unissued share balance of the Company.On November 15, 2023, all the Exchange Warrants were exercised resulting in 407,000 shares of Common Stock being issued. There was no Common Stock activity during the year ended December 31, 2022. The following table provides a summary of Common Stock activity for the year ended December 31, 2023: Issued Shares as of December 31, 2022 and 2021 2,070,861 Issuances from Preferred Stock conversions 14,102,477 Issuances related to warrants 746,027 Issuances related to stock compensation 179,535 Common shares exchanged for prefunded warrants (406,776) Issued Shares as of December 31, 2023 16,692,124 Less Treasury Shares: 7,553 Outstanding Shares as of December 31, 2023 16,684,571 Common Stock Warrants On January 3, 2023, the Company and all the holders of the Series A Warrants agreed to amend the terms of the Series A Warrants, issued on June 28, 2021, to extend the termination date from January 4, 2023 to January 4, 2024. All other terms of the Series A Warrants remain in full force and effect. The modification resulted in an incremental value adjustment, and deemed dividend, of $25,000, which was recorded within additional paid-in capital during the three months ended March 31, 2023. On March 30, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which we issued and sold, in a private placement (the “Private Placement”) (i) 6,550 shares of our newly designated Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), (ii) preferred warrants (the “Preferred Warrants”) to acquire 32,750 shares of Series F Preferred Stock, and (iii) common warrants (“Common Warrants” and with the Preferred Warrants the “Investor Warrants”) to acquire up to 3,830,417 shares of Common Stock. Please refer to Note 10 - Preferred Stock for further discussion on the Series F Preferred Stock and Preferred Warrants. In connection with the Private Placement, pursuant to an engagement letter dated March 30, 2023, between the Company and Dawson James Securities, Inc. (the “Placement Agent”), the Company agreed to (i) pay the Placement Agent a cash fee equal to 8% of the aggregate gross proceeds raised in the Private Placement, and (ii) grant to the Placement Agent warrants (the “Placement Agent Warrants”) to purchase 306,433 shares of Common Stock. On March 31, 2023, the Company issued the Common Warrants and the Placement Agent Warrants to purchase an aggregate of 4,136,850 shares of the Company’s Common Stock. The Common Warrants and Placement Agent Warrants have a term of 5 years, commencing six months and one day from the date of issuance, and are initially exercisable for $1.71 per share. The exercise price is subject to customary adjustments for stock splits, stock dividends, stock combination, recapitalization, or other similar transactions involving the Common Stock, and subject to price-based adjustment, on a full ratchet basis, in the event of any issuances of Common Stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable exercise price for the Common Warrants (subject to certain exceptions). The Common Warrants and Placement Agent Warrants are exercisable for cash, provided that if there is no effective registration statement available permitting the resale of the common shares, they may be exercised on a cashless basis. Exercise of the Common Warrants and Placement Agent Warrants is subject to certain limitations, including a 4.99% beneficial ownership limitation. The fair value of the warrants was recorded within additional paid-in capital during the three months ended March 31, 2023. On April 18, 2023, the Company entered into warrant exercise inducement offer letters with certain holders of outstanding warrants to purchase shares of the Company’s common stock originally issued on October 21, 2020, December 6, 2020, and June 28, 2021, (such holders the “Exercising Holders” and such warrants the “Existing Warrants”) pursuant to which the Exercising Holders agreed to exercise, for cash, Existing Warrants to purchase, in the aggregate, 339,498 shares of the Company’s Common Stock (the “ Existing Warrant Shares ”), in exchange for the Company’s agreement to lower the exercise price of the Existing Warrants to $1.71. The Company received net proceeds of $534,000 from the exercise of the Existing Warrants in April 2023 (net of $46,000 of financing costs). The inducement resulted in an incremental value adjustment, and deemed dividend, of $751,000, which was recorded within additional paid-in capital during the three months ended June 30, 2023. Following this transaction, 667, 1,934, and 1,000 warrants remained outstanding of the warrants issued on October 21, 2020, December 6, 2020, and June 28, 2021, respectively. On April 23, 2023, the 667 unexercised warrants issued on October 21, 2020 expired. On June 7, 2023, the 1,934 unexercised warrants issued on December 6, 2020 expired. On October 6, 2023, the Company and Investors holding a majority of the outstanding shares of the Preferred Stock agreed to waive any and all provisions, terms, covenants and obligations in the Certificate of Designations or Common Warrants to the extent such provisions permit the conversion or exercise of the Preferred Stock and the Common Warrants, respectively, to occur at a price below $0.2792. Notwithstanding anything to the contrary in the Common Warrants, the “Exercise Price” as set forth in the Common Warrant shall in no event be less than $0.2792 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). Warrants outstanding as of December 31, 2023 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date June 30, 2021 - Series A* 250 $ 60.00 January 4, 2024 June 30, 2021 - Series B 750 $ 66.00 June 28, 2024 Investor Common Warrants 3,830,417 $ 1.71 September 30, 2028 Placement Agent Warrants 306,433 $ 1.71 September 30, 2028 4,137,850 *The Series A warrant’ expiration date has been updated to reflect the extension described above that occurred on January 3, 2023, and as of the date of this filing, the remaining Series A Warrants have expired. Warrant activity for the years ended December 31, 2023 and 2022 is presented below: Outstanding Number of Warrants Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2021 343,099 $ 995.06 Warrants outstanding and exercisable, December 31, 2022 343,099 66.34 Granted 4,543,626 1.71 Exercised (746,027) 0.78 Expired (2,601) 76.93 Forfeited (247) — Warrants outstanding and exercisable, December 31, 2023 4,137,850 $ 1.73 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, 2023 and 2022, and the treasury shares outstanding were 7,553 as of December 31, 2023 and 2022. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of December 31, 2023 and 2022, we had 1,983,250 designated shares of preferred stock and 1,930 shares of preferred stock issued and outstanding. Series F Preferred Stock On March 30, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which we issued and sold, in a private placement (the “Private Placement”) (i) 6,550 shares of our newly designated Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), (ii) preferred warrants (the “Preferred Warrants”) to acquire 32,750 shares of Series F Preferred Stock, and (iii) common warrants (“Common Warrants” and with the Preferred Warrants the “Investor Warrants”) to acquire up to 3,830,417 shares of Common Stock. Please refer to Note 9 - Capital Stock for further discussion on the Common Warrants. The terms of the Series F Preferred Stock are as set forward in the Certificate of Designations of Series F Preferred Stock of Oblong, Inc. (the “Certificate of Designations”), which was filed and became effective with the Secretary of State of the State of Delaware on March 31, 2023. The Private Placement closed on March 31, 2023, in exchange for gross and net proceeds of $6,386,000 and $5,364,000, respectively. The financing fees associated with the Purchase Agreement were $1,022,000. The Series F Preferred Shares are convertible into fully paid and non-assessable shares of the Company’s Common Stock at the election of the holder at any time at an initial conversion price of $1.71 (the “Conversion Price”). The holders of the Series F Preferred Shares may also elect to convert their shares at an alternative conversion price equal to the lower of (i) 80% of the applicable Conversion Price as in effect on the date of the conversion, (ii) 80% of the closing price on the trading day immediately preceding the delivery of the conversion notice, and (iii) the greater of (a) the Floor Price (as defined in the Certificate of Designations) and (b) the quotient of (x) the sum of the five lowest Closing Bid Prices (as defined in the Certificate of Designations) for trading days in the 30 consecutive trading day period ending and including the trading day immediately preceding the delivery of the applicable Conversion Notice, divided by (y) five. The Conversion Price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalization, or other similar transactions involving the Common Stock, and subject to price-based adjustment, on a full ratchet basis, in the event of any issuances of our common stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable Conversion Price (subject to certain exceptions). On October 6, 2023, the Company and Investors holding a majority of the outstanding shares of the Preferred Stock agreed to waive any and all provisions, terms, covenants and obligations in the Certificate of Designations or Common Warrants to the extent such provisions permit the conversion or exercise of the Preferred Stock and the Common Warrants, respectively, to occur at a price below $0.2792. Notwithstanding anything to the contrary in the Certificate of Designations, each of the “Alternate Conversion Price” and the “Floor Price” as set forth in the Certificate of Designations shall in no event be less than $0.2792 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). Under the Certificate of Designations, the Series F Preferred Shares have an initial stated value of $1,000 per share (the “Stated Value”). The holders of the Series F Preferred Shares are entitled to dividends of 9% per annum, which will be payable in arrears quarterly. Accrued dividends may be paid, at our option, in cash and if not paid, shall increase the stated value of the Series F Preferred Shares. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations), the Series F Preferred Shares will accrue dividends at the rate of 20% per annum (the “Default Rate”). The Series F Preferred Shares have no voting rights, other than with respect to certain matters affecting the rights of the Series F Preferred Shares. On matters with respect to which the holders of the Series F Preferred Shares have a right to vote, holders of the Preferred Shares will have voting rights on an as-converted basis. Our ability to settle conversions is subject to certain limitations set forth in the Certificate of Designations. Further, the Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of common stock issuable upon conversion of the Series F Preferred Shares. The Certificate of Designations includes certain Triggering Events (as defined in the Certificate of Designations), including, among other things, (i) the failure to file and maintain an effective registration statement covering the sale of the holder’s securities registrable pursuant to the Registration Rights Agreement, (ii) the failure to pay any amounts due to the holders of the Series F Preferred Shares when due, and (iii) if Peter Holst ceases to be the chief executive officer of the Company other than because of his death, and a qualified replacement, reasonably acceptable to a majority of the holders of the Series F Preferred Shares, is not appointed within thirty (30) business days. In connection with a Triggering Event, the Default Rate is triggered. We are subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, acquisition transactions, the existence of liens, the repayment of indebtedness, the payment of cash in respect of dividends (other than dividends pursuant to the Certificate of Designations), maintenance of properties and the transfer of assets, among other matters. During the year ended December 31, 2023, 4,620 shares of Series F Preferred Stock, plus accrued dividends, were converted to 14,102,477 shares of the Company’s common stock, respectively. There were 1,930 shares of Series F Preferred Stock outstanding and accrued dividends of $136,000 as of December 31, 2023. Series F Preferred Stock transactions are summarized in the table below: Series F Preferred Stock Shares Accrued Dividends Weighted Average Conversion Price Common Shares Issued from Conversions March 31, 2023 Issuance 6,550 $ — 2023 Accrued Dividends $ 343,000 2023 Conversions (4,620) $ (207,000) $ 0.34 14,102,477 December 31, 2023 Balance 1,930 $ 136,000 14,102,477 Series F Preferred Stock Warrants The Preferred Warrants are exercisable for Series F Preferred Shares at an exercise price of $975. The exercise price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalizations or other similar transactions involving the Common Stock. The Preferred Warrants expire three years from the date of issuance and are exercisable for cash. For each Preferred Warrant exercised, the Investors shall receive Common Warrants to purchase a number of shares of Common Stock equal to 100% of the number of shares of Common Stock the Investors would receive if the Series F Preferred Shares issuable upon exercise of such Warrant were converted at the applicable Conversion Price. The fair value of the Preferred Warrants was recorded within additional paid-in capital during the year ended December 31, 2023. As of December 31, 2023, no Preferred Warrants have been exercised. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation 2019 Equity Incentive Plan In December 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, 2023, the share pool available for new grants under the 2019 Plan is 3 shares. A summary of stock compensation expense by category, for the years ended December 31, 2023 and 2022, is as follows: Year Ended December 31, Stock Based Compensation 2023 2022 Options $ 124 $ 61 RSUs 380 — Total $ 504 $ 61 A summary of stock compensation by department, for the years ended December 31, 2023 and 2022 is as follows: Year Ended December 31, Stock Based Compensation 2023 2022 Research and Development $ — $ (64) General & Administrative 504 125 Total $ 504 $ 61 Stock Options During the year ended December 31, 2023, no stock options were granted, 3,336 stock options vested, and 6,668 vested stock options expired. During the year ended December 31, 2022, no stock options were granted, 501 vested stock options expired, and 10,000 unvested stock options were forfeited. As of December 31, 2023 there were 10,000 stock options outstanding with a weighted average exercise price of $48.75 and a weighted average remaining contractual life of 7.5 years. 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, 2023 and 2022 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, 2021 27,169 113.63 7,169 294.63 Vested — — 3,332 97.56 Expired (501) 410.18 (501) 410.18 Forfeited (10,000) 48.75 — — Options outstanding and exercisable, December 31, 2022 16,668 $ 29.25 10,000 $ 223.11 Vested — — 3,336 48.75 Expired (6,668) 285.89 (6,668) 285.89 Options outstanding and exercisable, December 31, 2023 10,000 $ 48.75 6,668 $ 48.75 The intrinsic value of vested and unvested options were not significant for all periods presented. Stock compensation expense related to stock options for the year ended December 31, 2023 was $124,000, recorded as a component of General and Administrative expense. 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, 2023, there was $61,000 remaining as unrecognized stock-based compensation expense for options, which will be recognized over a weighted average period of 0.50 years. Restricted Stock Awards On May 28, 2023, in relation to the departure of certain directors, 42 restricted stock awards became fully vested and were delivered in shares of the Company’s common stock. The awards were issued in 2014 and vested over the lesser of ten years, a change in control, or separation from the company. As of December 31, 2023, there were no unvested restricted stock awards outstanding and there is no unrecognized stock-based compensation expense for restricted stock awards. There was no stock compensation expense related to restricted stock awards during the years ended December 31, 2023 and 2022. Restricted Stock Units On April 18, 2023, 177,564 restricted stock units (“RSUs”) were granted to certain board members. These RSUs vested immediately upon issuance. The closing price per share of the Company’s common stock was $2.14 on the day prior to the grant date, resulting in a total fair value of $380,000 which was included in general and administrative expense, as stock-based compensation expense, upon issuance. On May 28, 2023, in relation to the departure of certain directors, 1,929 fully vested RSUs were delivered in shares of the Company’s common stock, in accordance with the terms of the RSUs. As of December 31, 2023, there were no unvested RSUs outstanding and there was no remaining unrecognized stock-based compensation expense for RSUs. Stock compensation expense related to RSUs for the years ended December 31, 2023 and 2022 was $380,000 and zero, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. 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, 2023, 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: 2023 2022 Net loss $ (4,384) $ (21,941) Less: preferred stock dividends 343 — Less: conversion inducement 751 — Less: warrant modification 25 — Net loss attributable to common stockholders $ (5,503) $ (21,941) Denominator: Weighted-average number of shares of common stock for basic net loss per share 5,595 2,065 Basic net loss per share $ (0.98) $ (10.62) 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, 2023 2022 Unvested restricted stock units — 42 Outstanding stock options 10,000 16,668 Common stock issuable upon conversion of Series F Preferred Stock (1) 7,392,776 — Common stock issuable upon conversion of Series F Preferred Warrants (2) 117,299,427 — Common stock issuable upon conversion of Common Stock Warrants 4,137,850 343,099 (1) Calculation assumes conversion of the stated value, and accrued dividends, of the Series F Preferred Stock as of December 31, 2023 into Common Stock at the Floor Price. (2) Calculation assumes exercise of the Series F Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at the Floor Price. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 is presented in the following tables (in thousands): Year Ended December 31, 2023 Managed Services Collaboration Products Corporate Total Revenue $ 2,518 $ 1,292 $ — $ 3,810 Cost of revenues 1,671 1,228 — 2,899 Gross profit $ 847 $ 64 $ — $ 911 Gross profit % 34 % 5 % — % 24 % Allocated operating expenses $ 3 $ 481 $ — $ 484 Unallocated operating expenses — — 4,922 4,922 Total operating expenses $ 3 $ 481 $ 4,922 $ 5,406 Income (loss) from operations $ 844 $ (417) $ (4,922) $ (4,495) Interest and other income, net — — (138) (138) Income (loss) before income taxes $ 844 $ (417) $ (4,784) $ (4,357) Income tax expense $ 11 $ 16 $ — $ 27 Net income (loss) $ 833 $ (433) $ (4,784) $ (4,384) As of December 31, 2023 Total assets $ 367 $ 568 $ 5,990 $ 6,925 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 % 32.1 % 22.1 % — % 28.2 % 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 (income) expense, net 12 (52) — (40) Income (loss) before income taxes $ 1,044 $ (17,832) $ (5,160) $ (21,948) Income tax benefit $ (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 Unallocated operating expenses include costs for the year ending December 31, 2023 and 2022 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, 2023 and 2022, 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, 2023 2022 Domestic $ 1,843 $ 2,781 Foreign 1,967 2,695 $ 3,810 $ 5,476 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, 2023 % of Revenue 2022 % of Revenue Revenue: Managed Services Video collaboration services $ 183 4.8 % $ 334 6.1 % Network services 2,301 60.4 % 2,954 53.9 % Professional and other services 34 0.9 % 60 1.1 % Total Managed Services revenue $ 2,518 66.1 % $ 3,348 61.1 % Revenue: Collaboration Products Visual collaboration product offerings $ 1,291 33.9 % $ 2,114 38.6 % Licensing 1 — % 14 0.3 % Total Collaboration Products revenue $ 1,292 33.9 % $ 2,128 38.9 % Total revenue $ 3,810 100.0 % $ 5,476 100.0 % The Company’s long-lived assets were 100% located in domestic markets as of December 31, 2023 and 2022. 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, 2023 2023 2022 Segment % of Revenue % of Revenue Customer A Managed Services 55.9 % 46.8 % Concentration of accounts receivable was as follows: As of December 31, 2023 2022 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 38.2 % 42.8 % Customer B Collaboration Products 46.8 % 22.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 (“WHO”) 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. In May 2023, the WHO declared COVID-19 over as a global health emergency. Customers generally use our Mezzanine™ products in traditional office and operating center environments such as conference rooms or other presentation spaces. Revenue declines for our Collaboration Products business are primarily due to lower demand, largely a consequence of the commercial reactions to the COVID-19 pandemic and its prolonged effects. We believe the pandemic has fundamentally altered the way businesses consider the use of physical office spaces and, consequently, the demand for technologies that enable in-person collaboration within these spaces. Our analysis indicates that the reduced demand for our Mezzanine™ products, particularly in the aftermath of COVID-19, reflects a broader reassessment among our customers regarding the necessity and investment in collaboration solutions tailored for traditional office environments. Continuation of this trend could cause further declines in our revenue for this business. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth pretax book loss (in thousands): Year Ended December 31, 2023 2022 United States $ (4,357) $ (21,948) Foreign — — Total $ (4,357) $ (21,948) The following table sets forth income before taxes and the income tax expense for the years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Current: Federal $ — $ — Foreign 15 (4) State 12 (3) Total current 27 (7) Total deferred — — Income tax expense (benefit) $ 27 $ (7) Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2023 and 2022 as shown in the following table (in thousands): Year Ended December 31, 2023 2022 U.S. federal income taxes at the statutory rate $ (915) $ (4,609) Goodwill impairment — 1,547 State taxes, net of federal effects (58) (375) U.S. Federal and state NOL carryforward adjustment for expired NOLs 613 76 Stock compensation plan adjustments 385 16 Change in valuation allowance (112) 3,273 Other 114 65 Income tax expense (benefit) $ 27 $ (7) The tax effect of the temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and 2022 is presented below (in thousands): Year Ended December 31, 2023 2022 Deferred tax assets (liabilities): Tax benefit of operating loss carry forward - Federal $ 29,416 $ 28,459 Tax benefit of operating loss carry forward - State 5,965 6,429 Accrued expenses 131 147 Deferred revenue 36 129 Stock-based compensation 56 420 Fixed assets 4 116 Goodwill — 28 Inventory 156 106 Intangible amortization 32 (80) Section 174 research and experimentation — 409 Section 163(j) interest expense 314 — R&D credit 2,154 2,154 Texas margin tax temporary credit 55 74 Other 61 101 Total deferred tax asset, net of deferred tax liabilities 38,380 38,492 Valuation allowance (38,380) (38,492) 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, 2023 is a decrease of $112,000. The change in valuation allowance for the year ended December 31, 2022 was an increase of $3,273,000. 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 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, 2022, we had federal net operating loss carryforwards of $135,517,000 available to offset future federal taxable income, after Section 382 limitation considerations. At December 31, 2023, we had federal net operating loss carryforwards of $140,075,000 available to offset future federal taxable income, after section 382 limitation considerations. Of this amount, $75,350,000 will expire in various amounts from 2024 through 2037. As of December 31, 2023 and 2022, the Company also has various state net operating loss carryforwards of $98,844,000 and $97,531,000, 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, 2023 and 2022. The Research and Development credit begins to expire at the end of 2026. The issuance of the securities in the March 31, 2023 private placement significantly diluted the ownership interest of the existing holders of our common stock. The Company is reviewing if a Section 382 ownership change occurred as a result of the private placement stock issuance. If a Section 382 ownership change did occur, this event would further limit the utilization of, and the timing of utilization, of the federal and state net operating loss carryforwards above. 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, 2023 and 2022. 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, 2023 and 2022. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan We 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, 2023 and 2022 were $64,000 and $93,000, respectively. |
Business Description and Sign_2
Business Description and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 subsidiary Oblong Europe Limited, and combined the operations into Oblong Industries, Inc. There was no activity for this subsidiary in 2022 or 2023 and Oblong Europe, Limited remains 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 13 - 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 estimated credit losses and the inputs used in the fair value of equity based awards. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2023, our total cash balance of $5,990,000 is available, however, of this balance $500,000 was held in short-term certificates of deposit with MidFirst Bank. As of December 31, 2022, our total cash balance of $3,085,000 was available. The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. |
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’ financial condition. The Company maintains an allowance for estimated credit losses, 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 estimated credit losses 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 |
Inventory and Casualty Loss | 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. During 2022 and 2023, we received recovery payments from our insurance policies of $50,000 and $400,000, respectively, resulting in a net casualty loss of $483,000 on our Consolidated Statements of Operations for the year ended December 31, 2022 and a casualty gain of $400,000 on our Consolidated Statements of Operations for the year ended December 31, 2023. We do not expect any further recovery of the loss. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company considers its cash and cash equivalents, accounts receivable, accounts payable and lease obligations to meet the definition of financial instruments. The carrying amount of cash and cash equivalents, 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 8 - 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. As of December 31, 2023 there was no deferred revenue related to Managed Services. During the year ended December 31, 2023, the Company recorded $1,000 of revenue that was included in deferred revenue as of December 31, 2022. 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. 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. 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, 2023, totaled $158,000 as certain performance obligations were not satisfied as of this date. During the year ended December 31, 2023, the Company recorded $435,000 of revenue that was included in deferred revenue as of December 31, 2022. 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. Revenue recorded over time for the years ended December 31, 2023 and 2022 was $516,000 and $970,000, respectively. Revenue recorded at a period in time for the years ended December 31, 2023 and 2022 was $3,294,000 and $4,506,000, respectively. The Company disaggregates its revenue by geographic region. See Note 13 - 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 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 $17,000 and $142,000, as of December 31, 2023 and 2022, respectively. As of the date of this filing, the Company had no right-of-use assets remaining. The Company has primarily leased facilities for office and warehouse 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, 2023, 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 assets for this reporting unit. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability 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, 2023, the Company disposed of property and equipment assets with a net value of $3,000. See Note 5 - Property and Equipment for further discussion. During the year ended December 31, 2022, the Company recorded impairment charges of $61,000 on property and equipment assets. For the year ended December 31, 2023, the Company recorded impairment charges of $259,000 on purchased intangible assets, as a result of these impairment charges there are no intangible assets reported on our Consolidated Balance Sheet as of December 31, 2023. See Note 6 - Intangible Assets and Goodwill for further discussion. The Company recorded impairment Charges of $5,133,000 to purchased intangible assets for the year ended December 31, 2022. During the year ended December 31, 2022, we recorded impairment charges of $7,367,000 on goodwill. As a result of these impairment charges, there was no goodwill reported on our Consolidated Balance Sheets as of December 31, 2023 or December 31, 2022. 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. There were no right-of-use asset impairments for the year ended December 31, 2023. |
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, 2023 and 2022 was $17,000 and $236,000, respectively. As of the date of this filing, the Company had no lease liability remaining. See Note 8 - 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. Historically, the Company’s leases have had terms of 6 months to five years and some of the leases included a Company option to extend the lease term for less than twelve months to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements did not contain any material residual value guarantees or material restrictive covenants. 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 Risk |
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 Stock |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted 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. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280) : Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740) , to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. |
Business Description and Sign_3
Business Description and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Net accounts receivable consisted of the following: As of December 31, 2023 2022 Accounts receivable $ 577,000 $ 624,000 Allowance for estimated credit losses (153,000) (209,000) Accounts receivable, net $ 424,000 $ 415,000 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table summarizes our inventory reserve activity (in thousands): Reserve balance as of December 31, 2021 $ (731) Reserve adjustments (316) Disposals 595 Reserve balance as of December 31, 2022 (452) Reserve adjustments (342) Disposals 103 Reserve balance as of December 31, 2023 $ (691) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 Prepaid expenses $ 75 $ 131 Employee Retention Credit receivable — 316 Other current assets 98 90 Prepaid software licenses 70 112 Prepaid expenses and other current assets $ 243 $ 649 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): December 31, Estimated Useful Life 2023 2022 Network equipment and software $ — $ 1,913 3 to 5 Years Computer equipment and software — $ 294 3 to 5 Years — 2,207 Accumulated depreciation — (2,204) Property and equipment, net $ — $ 3 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table presents the components of net intangible assets (in thousands): December 31, 2023 2022 Developed technology $ — $ 486 Trade names — 204 Total intangible assets — 690 Accumulated amortization — (86) Intangible assets, net $ — $ 604 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Compensation costs $ 448 $ 707 Customer deposits 118 128 Professional fees 104 57 Taxes and regulatory fees 22 59 Accrued rent 202 — Accrued dividends on Series F Preferred Stock 136 — Other accrued expenses and liabilities 8 123 $ 1,038 $ 1,074 |
Operating Lease Liabilities a_2
Operating Lease Liabilities and Right-of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information | The following provides balance sheet information related to leases as of December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Assets Operating lease, right-of-use asset, net $ 17 $ 142 Liabilities Current portion of operating lease liabilities $ 17 $ 219 Operating lease liabilities, net of current portion — 17 Total operating lease liabilities $ 17 $ 236 |
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): Total lease payments remaining in 2024 $ 17 Effect of discounting (1) — Total lease liability 17 Less: current portion of lease liabilities 17 Operating lease liabilities, net of current portion $ — (1) The effect of discounting is less than $1,000 due to the term remaining on the lease. |
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, 2021 $ 659 $ 728 Additions 11 11 Amortizations and Reductions (349) (503) Impairment Charges (179) Balance at December 31, 2022 142 236 Amortizations and Reductions (125) (219) Balance at December 31, 2023 $ 17 $ 17 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | There was no Common Stock activity during the year ended December 31, 2022. The following table provides a summary of Common Stock activity for the year ended December 31, 2023: Issued Shares as of December 31, 2022 and 2021 2,070,861 Issuances from Preferred Stock conversions 14,102,477 Issuances related to warrants 746,027 Issuances related to stock compensation 179,535 Common shares exchanged for prefunded warrants (406,776) Issued Shares as of December 31, 2023 16,692,124 Less Treasury Shares: 7,553 Outstanding Shares as of December 31, 2023 16,684,571 |
Schedule of Warrants Activity | Warrants outstanding as of December 31, 2023 are as follows: Issue Date Warrants Issued Exercise Price Expiration Date June 30, 2021 - Series A* 250 $ 60.00 January 4, 2024 June 30, 2021 - Series B 750 $ 66.00 June 28, 2024 Investor Common Warrants 3,830,417 $ 1.71 September 30, 2028 Placement Agent Warrants 306,433 $ 1.71 September 30, 2028 4,137,850 *The Series A warrant’ expiration date has been updated to reflect the extension described above that occurred on January 3, 2023, and as of the date of this filing, the remaining Series A Warrants have expired. Warrant activity for the years ended December 31, 2023 and 2022 is presented below: Outstanding Number of Warrants Weighted Average Exercise Price Warrants outstanding and exercisable, December 31, 2021 343,099 $ 995.06 Warrants outstanding and exercisable, December 31, 2022 343,099 66.34 Granted 4,543,626 1.71 Exercised (746,027) 0.78 Expired (2,601) 76.93 Forfeited (247) — Warrants outstanding and exercisable, December 31, 2023 4,137,850 $ 1.73 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Series F Preferred Stock Transactions | Series F Preferred Stock transactions are summarized in the table below: Series F Preferred Stock Shares Accrued Dividends Weighted Average Conversion Price Common Shares Issued from Conversions March 31, 2023 Issuance 6,550 $ — 2023 Accrued Dividends $ 343,000 2023 Conversions (4,620) $ (207,000) $ 0.34 14,102,477 December 31, 2023 Balance 1,930 $ 136,000 14,102,477 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense | A summary of stock compensation expense by category, for the years ended December 31, 2023 and 2022, is as follows: Year Ended December 31, Stock Based Compensation 2023 2022 Options $ 124 $ 61 RSUs 380 — Total $ 504 $ 61 A summary of stock compensation by department, for the years ended December 31, 2023 and 2022 is as follows: Year Ended December 31, Stock Based Compensation 2023 2022 Research and Development $ — $ (64) General & Administrative 504 125 Total $ 504 $ 61 |
Schedule 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, 2023 and 2022 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, 2021 27,169 113.63 7,169 294.63 Vested — — 3,332 97.56 Expired (501) 410.18 (501) 410.18 Forfeited (10,000) 48.75 — — Options outstanding and exercisable, December 31, 2022 16,668 $ 29.25 10,000 $ 223.11 Vested — — 3,336 48.75 Expired (6,668) 285.89 (6,668) 285.89 Options outstanding and exercisable, December 31, 2023 10,000 $ 48.75 6,668 $ 48.75 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: 2023 2022 Net loss $ (4,384) $ (21,941) Less: preferred stock dividends 343 — Less: conversion inducement 751 — Less: warrant modification 25 — Net loss attributable to common stockholders $ (5,503) $ (21,941) Denominator: Weighted-average number of shares of common stock for basic net loss per share 5,595 2,065 Basic net loss per share $ (0.98) $ (10.62) |
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, 2023 2022 Unvested restricted stock units — 42 Outstanding stock options 10,000 16,668 Common stock issuable upon conversion of Series F Preferred Stock (1) 7,392,776 — Common stock issuable upon conversion of Series F Preferred Warrants (2) 117,299,427 — Common stock issuable upon conversion of Common Stock Warrants 4,137,850 343,099 (1) Calculation assumes conversion of the stated value, and accrued dividends, of the Series F Preferred Stock as of December 31, 2023 into Common Stock at the Floor Price. (2) Calculation assumes exercise of the Series F Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at the Floor Price. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Certain information concerning the Company’s segments for the years ended December 31, 2023 and 2022 is presented in the following tables (in thousands): Year Ended December 31, 2023 Managed Services Collaboration Products Corporate Total Revenue $ 2,518 $ 1,292 $ — $ 3,810 Cost of revenues 1,671 1,228 — 2,899 Gross profit $ 847 $ 64 $ — $ 911 Gross profit % 34 % 5 % — % 24 % Allocated operating expenses $ 3 $ 481 $ — $ 484 Unallocated operating expenses — — 4,922 4,922 Total operating expenses $ 3 $ 481 $ 4,922 $ 5,406 Income (loss) from operations $ 844 $ (417) $ (4,922) $ (4,495) Interest and other income, net — — (138) (138) Income (loss) before income taxes $ 844 $ (417) $ (4,784) $ (4,357) Income tax expense $ 11 $ 16 $ — $ 27 Net income (loss) $ 833 $ (433) $ (4,784) $ (4,384) As of December 31, 2023 Total assets $ 367 $ 568 $ 5,990 $ 6,925 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 % 32.1 % 22.1 % — % 28.2 % 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 (income) expense, net 12 (52) — (40) Income (loss) before income taxes $ 1,044 $ (17,832) $ (5,160) $ (21,948) Income tax benefit $ (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 Concentration of revenues was as follows: Year Ended December 31, 2023 2023 2022 Segment % of Revenue % of Revenue Customer A Managed Services 55.9 % 46.8 % Concentration of accounts receivable was as follows: As of December 31, 2023 2022 Segment % of Accounts Receivable % of Accounts Receivable Customer A Managed Services 38.2 % 42.8 % Customer B Collaboration Products 46.8 % 22.0 % |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by geographic area is allocated as follows (in thousands): Year Ended December 31, 2023 2022 Domestic $ 1,843 $ 2,781 Foreign 1,967 2,695 $ 3,810 $ 5,476 |
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, 2023 % of Revenue 2022 % of Revenue Revenue: Managed Services Video collaboration services $ 183 4.8 % $ 334 6.1 % Network services 2,301 60.4 % 2,954 53.9 % Professional and other services 34 0.9 % 60 1.1 % Total Managed Services revenue $ 2,518 66.1 % $ 3,348 61.1 % Revenue: Collaboration Products Visual collaboration product offerings $ 1,291 33.9 % $ 2,114 38.6 % Licensing 1 — % 14 0.3 % Total Collaboration Products revenue $ 1,292 33.9 % $ 2,128 38.9 % Total revenue $ 3,810 100.0 % $ 5,476 100.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 United States $ (4,357) $ (21,948) Foreign — — Total $ (4,357) $ (21,948) |
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, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Current: Federal $ — $ — Foreign 15 (4) State 12 (3) Total current 27 (7) Total deferred — — Income tax expense (benefit) $ 27 $ (7) |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rate differs from the statutory federal tax rate for the years ended December 31, 2023 and 2022 as shown in the following table (in thousands): Year Ended December 31, 2023 2022 U.S. federal income taxes at the statutory rate $ (915) $ (4,609) Goodwill impairment — 1,547 State taxes, net of federal effects (58) (375) U.S. Federal and state NOL carryforward adjustment for expired NOLs 613 76 Stock compensation plan adjustments 385 16 Change in valuation allowance (112) 3,273 Other 114 65 Income tax expense (benefit) $ 27 $ (7) |
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, 2023 and 2022 is presented below (in thousands): Year Ended December 31, 2023 2022 Deferred tax assets (liabilities): Tax benefit of operating loss carry forward - Federal $ 29,416 $ 28,459 Tax benefit of operating loss carry forward - State 5,965 6,429 Accrued expenses 131 147 Deferred revenue 36 129 Stock-based compensation 56 420 Fixed assets 4 116 Goodwill — 28 Inventory 156 106 Intangible amortization 32 (80) Section 174 research and experimentation — 409 Section 163(j) interest expense 314 — R&D credit 2,154 2,154 Texas margin tax temporary credit 55 74 Other 61 101 Total deferred tax asset, net of deferred tax liabilities 38,380 38,492 Valuation allowance (38,380) (38,492) Net deferred tax asset $ — $ — |
Business Description and Sign_4
Business Description and Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) segment lease_asset | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Ownership percentage in subsidiary | 100% | 100% | ||
Number of operating segments | segment | 2 | |||
Total cash and cash equivalents | $ 5,990,000 | $ 3,085,000 | $ 9,000,000 | |
Current portion of restricted cash | 500,000 | 0 | ||
Revenue | 3,810,000 | 5,476,000 | ||
Property and equipment, net | 0 | 3,000 | ||
Intangibles, net | 0 | 604,000 | ||
Operating lease, right-of-use asset, net | $ 17,000 | 142,000 | 659,000 | |
Number of lease assets | lease_asset | 2 | |||
Impairment charges - property and equipment | $ 3,000 | |||
Impairment charges - intangible assets | 259,000 | 5,133,000 | ||
Impairment charges - goodwill | 0 | 7,367,000 | ||
Impairment charges - right-of use assets | 0 | 179,000 | ||
Operating lease liabilities | 17,000 | 236,000 | $ 728,000 | |
Casualty (gain) loss, net | $ 533,000 | 0 | 483,000 | |
Insurance recovery | 400,000 | 50,000 | ||
Casualty (gain) loss, net | (400,000) | 483,000 | ||
Service | ||||
Property, Plant and Equipment [Line Items] | ||||
Performance obligation | 0 | |||
Deferred revenue | 1,000 | 7,000 | ||
Product | ||||
Property, Plant and Equipment [Line Items] | ||||
Performance obligation | 158,000 | |||
Deferred revenue | 435,000 | 776,000 | ||
Revenue | ||||
Property, Plant and Equipment [Line Items] | ||||
Excise and sales taxes | 95,000 | 207,000 | ||
Cost of Sales | ||||
Property, Plant and Equipment [Line Items] | ||||
Excise and sales taxes | 101,000 | 217,000 | ||
Over Time | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenue | 516,000 | 970,000 | ||
Period in Time | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenue | $ 3,294,000 | $ 4,506,000 | ||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life | 3 years | |||
Estimated useful life | 5 years | |||
Term of contract | 6 months | |||
Renewal term | 12 months | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Life | 10 years | |||
Estimated useful life | 12 years | |||
Term of contract | 5 years | |||
Renewal term | 5 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts receivable | $ 577 | $ 624 | $ 949 |
Allowance for estimated credit losses | (153) | (209) | $ (100) |
Accounts receivable, net | 424 | 415 | |
Bad debt (recovery) expense | $ (52) | $ 118 |
Liquidity (Details)
Liquidity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Total cash and cash equivalents | $ 5,990 | $ 3,085 | $ 9,000 |
Short-term certificates of deposit | 500 | ||
Working capital | 5,498 | ||
Net loss | 4,384 | 21,941 | |
Net cash used in operating activities | 2,993 | 5,934 | |
Sale of property and equipment | 0 | 19 | |
Proceeds from private placement, net of issuance costs | 5,364 | 0 | |
Net proceeds from exercise of common stock warrants | $ 534 | $ 0 |
Inventory - Narrative (Details)
Inventory - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory gross | $ 930 | $ 1,175 |
Inventory reserves | 691 | 452 |
Inventory adjustments | $ 342 | $ 316 |
Inventory - Summary of Inventor
Inventory - Summary of Inventory Reserve Activity (Details) - Inventory reserve - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Reserve balance, Beginning Balance | $ (452) | $ (731) |
Reserve adjustments | (342) | (316) |
Disposals | 103 | 595 |
Reserve balance, Ending Balance | $ (691) | $ (452) |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 75 | $ 131 |
Employee Retention Credit receivable | 0 | 316 |
Other current assets | 98 | 90 |
Prepaid software licenses | 70 | 112 |
Prepaid expenses and other current assets | $ 243 | $ 649 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 2,207 |
Accumulated depreciation | 0 | (2,204) |
Property and equipment, net | $ 0 | 3 |
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 | $ 0 | 1,913 |
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 | $ 0 | $ 294 |
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 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Related depreciation and amortization expense | $ 0 | $ 78 |
Accumulated depreciation | 0 | 2,204 |
Collaboration Products | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | 2,207 | $ 61 |
Accumulated depreciation | (2,204) | |
Impairment loss | $ 3 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 0 | $ 690 |
Accumulated amortization | 0 | (86) |
Intangible assets, net | 0 | 604 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 0 | 486 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 0 | $ 204 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charges - intangible assets | $ 259,000 | $ 5,133,000 |
Goodwill | 0 | |
Amortization expense | 345,000 | 1,825,000 |
Impairment charges - goodwill | $ 0 | $ 7,367,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Compensation costs | $ 448 | $ 707 |
Customer deposits | 118 | 128 |
Professional fees | 104 | 57 |
Taxes and regulatory fees | 22 | 59 |
Accrued rent | 202 | 0 |
Accrued dividends on Series F Preferred Stock | 136 | 0 |
Other accrued expenses and liabilities | 8 | 123 |
Total | $ 1,038 | $ 1,074 |
Operating Lease Liabilities a_3
Operating Lease Liabilities and Right-of-Use Assets - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) facility | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Non-cash lease expense | $ 214,000 | $ 502,000 | |
Sublease income | 0 | 140,000 | |
Operating lease, right-of-use asset, net | 17,000 | 142,000 | $ 659,000 |
Operating lease liabilities | 17,000 | 236,000 | $ 728,000 |
Impairment charges - right-of use assets | $ 0 | $ 179,000 | |
Los Angeles | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties | facility | 3 | ||
City of Industry | |||
Lessee, Lease, Description [Line Items] | |||
Number of facilities | facility | 1 |
Operating Lease Liabilities a_4
Operating Lease Liabilities and Right-of-Use Assets - Schedule of Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | |||
Operating lease, right-of-use asset, net | $ 17 | $ 142 | $ 659 |
Current portion of operating lease liabilities | 17 | 219 | |
Operating lease liabilities, net of current portion | 0 | 17 | |
Total operating lease liabilities | $ 17 | $ 236 | $ 728 |
Operating Lease Liabilities a_5
Operating Lease Liabilities and Right-of-Use Assets - Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | |||
Total lease payments remaining in 2024 | $ 17 | ||
Effect of discounting | 0 | ||
Total operating lease liabilities | 17 | $ 236 | $ 728 |
Less: current portion of lease liabilities | 17 | 219 | |
Operating lease liabilities, net of current portion | $ 0 | $ 17 |
Operating Lease Liabilities a_6
Operating Lease Liabilities and Right-of-Use Assets - Schedule of Activity for Our Right of Use Assets And Lease Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Right-of-Use Asset | ||
Balance at beginning | $ 142,000 | $ 659,000 |
Additions | 11,000 | |
Amortizations and Reductions | (125,000) | (349,000) |
Impairment Charges | 0 | (179,000) |
Balance at ending | 17,000 | 142,000 |
Operating Lease Liability | ||
Balance at beginning | 236,000 | 728,000 |
Additions | 11,000 | |
Amortizations and Reductions | (219,000) | (503,000) |
Impairment Charges | ||
Balance at ending | $ 17,000 | $ 236,000 |
Capital Stock - Common Stock (D
Capital Stock - Common Stock (Details) | 12 Months Ended | |||||||
Nov. 15, 2023 shares | Jun. 30, 2023 $ / shares shares | May 28, 2023 shares | Apr. 18, 2023 $ / shares shares | Jan. 03, 2023 | Dec. 31, 2023 $ / shares shares | 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) | 16,692,124 | 2,071,000 | ||||||
Common stock, shares outstanding (in shares) | 16,684,571 | 2,063,000 | ||||||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 1.73 | $ 66.34 | $ 995.06 | |||||
Exchange Warrants | ||||||||
Class of Stock [Line Items] | ||||||||
Proceeds from warrant exercise, net of fees (in shares) | 407,000 | |||||||
Exchange Agreement | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued (in shares) | 406,776 | |||||||
Exchange Agreement | Exchange Warrants | ||||||||
Class of Stock [Line Items] | ||||||||
Number of warrants called (in shares) | 407,000 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Beneficial ownership limitation (in percent) | 4.99% | |||||||
Notice period to increase beneficial ownership limitation | 61 days | |||||||
Exchange Agreement | Exchange Warrants | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Beneficial ownership limitation (in percent) | 19.99% | |||||||
Series F Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of stock, shares converted | 4,620 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 975 | |||||||
Director | ||||||||
Class of Stock [Line Items] | ||||||||
Stock-based compensation (in shares) | 1,971 | |||||||
Director | Unvested restricted stock awards | ||||||||
Class of Stock [Line Items] | ||||||||
Vested, restricted shares (in shares) | 42 | |||||||
Director | RSUs | ||||||||
Class of Stock [Line Items] | ||||||||
Vested, restricted shares (in shares) | 1,929 | |||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued (in shares) | 16,692,000 | 2,071,000 | 2,071,000 | |||||
Common stock, shares outstanding (in shares) | 16,684,571 | |||||||
Issuance of common shares from warrant exercise (in shares) | 339,498 | 746,027 | ||||||
Issuance of restricted stock (in shares) | 177,564 | |||||||
Stock-based compensation (in shares) | 179,535 | |||||||
Shares issued in conversion (in shares) | 14,102,477 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 1.71 | |||||||
Proceeds from warrant exercise, net of fees (in shares) | 339,000 |
Capital Stock - Common Stock Ac
Capital Stock - Common Stock Activity (Details) - shares | 12 Months Ended | ||
Apr. 18, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury stock, shares (in shares) | 8,000 | 8,000 | |
Common stock, shares outstanding (in shares) | 16,684,571 | 2,063,000 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance (in shares) | 2,070,861 | ||
Conversions of Series F Preferred Stock (in shares) | 14,102,477 | ||
Exercise of pre-funded warrants (in shares) | 339,498 | 746,027 | |
Issuances related to stock compensation (in shares) | 179,535 | ||
Common shares exchanged for prepaid warrants (in shares) | (406,776) | ||
Ending Balance (in shares) | 16,692,124 | ||
Ending Balance (in shares) | 16,692,124 | 2,070,861 | |
Treasury stock, shares (in shares) | 7,553 | ||
Common stock, shares outstanding (in shares) | 16,684,571 |
Capital Stock - Common Stock Wa
Capital Stock - Common Stock Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 07, 2023 | Apr. 23, 2023 | Apr. 18, 2023 | Mar. 31, 2023 | Mar. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 06, 2023 | Dec. 31, 2021 | Jun. 28, 2021 | Dec. 06, 2020 | Oct. 21, 2020 | |
Class of Warrant or Right [Line Items] | ||||||||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | |||||||||||||
Warrants issued (in shares) | 4,137,850 | |||||||||||||
Exercise price (in dollars per share) | $ 1.73 | $ 66.34 | $ 995.06 | |||||||||||
Weighted average conversion price (in dollars per share) | $ 0.2792 | |||||||||||||
Proceeds from Warrant Exercises | $ 534 | $ 0 | ||||||||||||
Warrants outstanding, ending (in shares) | 4,137,850 | 343,099 | 343,099 | |||||||||||
Expired (in shares) | 1,934 | 667 | 2,601 | |||||||||||
Private Placement | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Warrants issued (in shares) | 4,136,850 | 4,136,850 | ||||||||||||
Private Placement | Preferred Warrants | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of warrants called (in shares) | 32,750 | |||||||||||||
Private Placement | Investor Warrants | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of warrants called (in shares) | 3,830,417 | |||||||||||||
Private Placement | Placement Agent Warrants | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of warrants called (in shares) | 306,433 | |||||||||||||
Series F Preferred Stock | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of shares issued (in shares) | 6,550 | |||||||||||||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||||||
Exercise price (in dollars per share) | 975 | |||||||||||||
Weighted average conversion price (in dollars per share) | $ 1.71 | $ 0.34 | ||||||||||||
Series F Preferred Stock | Private Placement | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of shares issued (in shares) | 6,550 | |||||||||||||
Percentage of cash fees (in percent) | 8% | |||||||||||||
Payments of stock issuance costs | $ 1,022 | |||||||||||||
Common stock issuable upon conversion of Common Stock Warrants | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Deemed dividend | $ 751 | $ 25 | ||||||||||||
Common stock issuable upon conversion of Common Stock Warrants | Placement Agent Warrants | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Warrants issued (in shares) | 306,433 | |||||||||||||
Exercise price (in dollars per share) | $ 1.71 | |||||||||||||
Common stock issuable upon conversion of Common Stock Warrants | Private Placement | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Warrant term (in years) | 5 years | 5 years | ||||||||||||
Beneficial ownership limitation (in percent) | 4.99% | 4.99% | ||||||||||||
Common Stock | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Exercise price (in dollars per share) | $ 1.71 | |||||||||||||
Issuance of common shares from warrant exercise (in shares) | 339,498 | 746,027 | ||||||||||||
Proceeds from Warrant Exercises | $ 534 | |||||||||||||
Payments of stock issuance costs | $ 46 | |||||||||||||
Warrants outstanding, ending (in shares) | 1,000 | 1,934 | 667 |
Capital Stock - Warrants Outsta
Capital Stock - Warrants Outstanding (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 4,137,850 | |||
Exercise price (in dollars per share) | $ 1.73 | $ 66.34 | $ 995.06 | |
Series A Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 250 | |||
Exercise price (in dollars per share) | $ 60 | |||
Series B Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 750 | |||
Exercise price (in dollars per share) | $ 66 | |||
Warrants | Investor Common Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 3,830,417 | |||
Exercise price (in dollars per share) | $ 1.71 | |||
Warrants | Placement Agent Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 306,433 | |||
Exercise price (in dollars per share) | $ 1.71 |
Capital Stock - Warrants Activi
Capital Stock - Warrants Activity (Details) - $ / shares | 12 Months Ended | |||
Jun. 07, 2023 | Apr. 23, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | |
Number of Warrants | ||||
Warrants outstanding, beginning (in shares) | 343,099 | |||
Granted (in shares) | 4,543,626 | |||
Exercised (in shares) | (746,027) | |||
Expired (in shares) | (1,934) | (667) | (2,601) | |
Forfeited (in shares) | 247 | |||
Warrants outstanding, ending (in shares) | 4,137,850 | |||
Warrants outstanding, ending (in shares) | 4,137,850 | 343,099 | ||
Weighted Average Exercise Price | ||||
Warrants outstanding, beginning (in dollars per share) | $ 66.34 | |||
Granted (in dollars per share) | 1.71 | |||
Exercised (in dollars per share) | 0.78 | |||
Expired (in dollars per share) | 76.93 | |||
Forfeited (in dollars per share) | 0 | |||
Warrants outstanding, ending (in dollars per share) | 1.73 | |||
Exercise price (in dollars per share) | $ 1.73 | $ 995.06 |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Apr. 18, 2023 | Mar. 31, 2023 | Mar. 30, 2023 | Dec. 31, 2023 | Oct. 06, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares designated (in shares) | 1,983,250 | 1,983,250 | |||||
Preferred stock, shares issued (in shares) | 1,930 | 1,930 | |||||
Preferred stock, shares outstanding (in shares) | 1,930 | 1,930 | |||||
Weighted average conversion price (in dollars per share) | $ 0.2792 | ||||||
Exercise price (in dollars per share) | $ 1.73 | $ 66.34 | $ 995.06 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Payments of stock issuance costs | $ 46,000 | ||||||
Shares issued in conversion (in shares) | 14,102,477 | ||||||
Exercise price (in dollars per share) | $ 1.71 | ||||||
Private Placement | Preferred Warrants | |||||||
Class of Stock [Line Items] | |||||||
Number of warrants called (in shares) | 32,750 | ||||||
Private Placement | Investor Warrants | |||||||
Class of Stock [Line Items] | |||||||
Number of warrants called (in shares) | 3,830,417 | ||||||
Series F Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 42,000 | 42,000 | |||||
Preferred stock, shares issued (in shares) | 1,930 | 0 | |||||
Preferred stock, shares outstanding (in shares) | 1,930 | 0 | |||||
Number of shares issued (in shares) | 6,550 | ||||||
Weighted average conversion price (in dollars per share) | $ 1.71 | $ 0.34 | |||||
Preferred stock, conversion price percentage (in percent) | 80% | ||||||
Preferred stock convertible, threshold consecutive trading days | 30 days | ||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | ||||||
Preferred stock, cumulative dividend percentage rate, per annum | 9% | ||||||
Conversion of stock, shares converted | 4,620 | ||||||
Accrued Dividends | $ 0 | $ 136,000 | |||||
Exercise price (in dollars per share) | $ 975 | ||||||
Expiration period | 3 years | ||||||
Percentage of common stock issuable (in percent) | 100% | ||||||
Series F Preferred Stock | Scenario 1 | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, cumulative dividend percentage rate, per annum | 20% | ||||||
Series F Preferred Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued (in shares) | 6,550 | ||||||
Gross proceeds | 6,386,000 | ||||||
Proceeds from private placement, net of issuance costs | 5,364,000 | ||||||
Payments of stock issuance costs | $ 1,022,000 | ||||||
Maximum | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 5,000,000 |
Preferred Stock - Series F Pref
Preferred Stock - Series F Preferred Stock Transactions (Details) - USD ($) | 12 Months Ended | |||||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 06, 2023 | Mar. 30, 2023 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 1,930 | 1,930 | ||||
Preferred stock dividends | $ 343,000 | $ 0 | ||||
Weighted average conversion price (in dollars per share) | $ 0.2792 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Conversions of Series F Preferred Stock (in shares) | 14,102,477 | |||||
Shares issued in conversion (in shares) | 14,102,477 | |||||
Series F Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 6,550 | |||||
Preferred stock, shares outstanding (in shares) | 1,930 | 0 | ||||
Accrued Dividends | $ 0 | $ 136,000 | ||||
Preferred stock dividends | 343,000 | |||||
Converted preferred stock, accrued dividends | $ (207,000) | |||||
Weighted average conversion price (in dollars per share) | $ 0.34 | $ 1.71 | ||||
Series F Preferred Stock | Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued (in shares) | 6,550 | |||||
Conversions of Series F Preferred Stock (in shares) | (4,620) | |||||
Preferred stock, shares outstanding (in shares) | 1,930 | 0 | 0 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 12 Months Ended | ||||||
May 28, 2023 shares | Apr. 18, 2023 USD ($) shares | Jan. 03, 2023 | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Apr. 17, 2023 $ / shares | Dec. 31, 2021 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | ||||||
Number of options granted (in shares) | shares | 0 | 0 | |||||
Exercisable number of options, vested (in shares) | shares | 3,336 | 3,332 | |||||
Vested stock options expired (in shares) | shares | 6,668 | 501 | |||||
Forfeited (in shares) | shares | 10,000 | ||||||
Number of stock options outstanding (in shares) | shares | 10,000 | 16,668 | 27,169 | ||||
Weighted average exercise price, outstanding and exercisable (in dollars per share) | $ / shares | $ 48.75 | $ 29.25 | $ 113.63 | ||||
Weighted average remaining contractual term | 7 years 6 months | ||||||
Intrinsic value of exercisable options | $ 0 | $ 0 | |||||
Stock option compensation expense, forfeiture | 85,000 | ||||||
Unrecognized stock-based compensation expense for stock options | 61,000 | ||||||
Outstanding stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | 61,000 | ||||||
Expense gross | (146,000) | ||||||
Stock option compensation expense, forfeiture | $ 85,000 | ||||||
Period of recognition | 6 months | ||||||
Outstanding stock options | General and Administrative Expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | 124,000 | $ 125,000 | |||||
Outstanding stock options | Research and Development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | (64,000) | ||||||
Unvested restricted stock awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 0 | 0 | |||||
Unvested restricted shares outstanding (in shares) | shares | 0 | ||||||
Unrecognized stock-based compensation expense for other than options | $ 0 | ||||||
Unvested restricted stock awards | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vested, restricted shares (in shares) | shares | 42 | ||||||
Vesting period | 10 years | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 380,000 | 0 | |||||
Unvested restricted shares outstanding (in shares) | shares | 0 | ||||||
Unrecognized stock-based compensation expense for other than options | $ 0 | ||||||
Granted, restricted shares (in shares) | shares | 177,564 | ||||||
RSUs | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vested, restricted shares (in shares) | shares | 1,929 | ||||||
2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 3 | ||||||
Stock option compensation expense | $ 504,000 | 61,000 | |||||
Share price (in dollars per share) | $ / shares | $ 2.14 | ||||||
2019 Equity Incentive Plan | Research and Development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | 0 | (64,000) | |||||
2019 Equity Incentive Plan | Outstanding stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | 124,000 | 61,000 | |||||
2019 Equity Incentive Plan | RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option compensation expense | $ 380,000 | $ 380,000 | $ 0 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Apr. 18, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 504,000 | $ 61,000 | |
Research and Development | 2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0 | (64,000) | |
General & Administrative | 2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 504,000 | 125,000 | |
Outstanding stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 61,000 | ||
Outstanding stock options | 2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 124,000 | 61,000 | |
Outstanding stock options | Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | (64,000) | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 380,000 | 0 | |
RSUs | 2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 380,000 | $ 380,000 | $ 0 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Options Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options | |||
Outstanding number of options, beginning (in shares) | 16,668 | 27,169 | |
Granted (in shares) | 0 | 0 | |
Vested (in shares) | 0 | 0 | |
Expired (in shares) | (6,668) | (501) | |
Forfeited (in shares) | (10,000) | ||
Outstanding number of options, ending (in shares) | 10,000 | 16,668 | |
Weighted Average Exercise Price | |||
Outstanding weighted average exercise price, beginning (in dollars per share) | $ 29.25 | $ 113.63 | |
Vested (in shares) | 0 | 0 | |
Expired (in dollars per share) | 285.89 | 410.18 | |
Forfeited (in dollars per share) | 48.75 | ||
Outstanding weighted average exercise price, ending (in dollars per share) | $ 48.75 | $ 29.25 | |
Exercisable | |||
Exercisable number of options (in shares) | 6,668 | 10,000 | 7,169 |
Exercisable number of options, vested (in shares) | 3,336 | 3,332 | |
Exercisable number of options, expired (in shares) | (6,668) | (501) | |
Exercisable weighted average exercise price (in dollars per share) | $ 48.75 | $ 223.11 | $ 294.63 |
Exercisable weighted average exercise price, vested (in dollars per share) | 48.75 | 97.56 | |
Exercisable weighted average exercise price, expired (in dollars per share) | $ 285.89 | $ 410.18 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | 12 Months Ended | ||
Jan. 03, 2023 | Dec. 31, 2023 shares | Dec. 31, 2022 shares | |
Earnings Per Share [Abstract] | |||
Stockholders' equity note, stock split, conversion ratio | 0.06667 | ||
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares) | 0 | 0 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | ||
Net loss | $ (4,384) | $ (21,941) |
Less: preferred stock dividends | 343 | 0 |
Induced conversion of warrants | 751 | 0 |
Less: warrant modification | 25 | 0 |
Net loss attributable to common stockholders | $ (5,503) | $ (21,941) |
Denominator: | ||
Weighted-average number of shares of common stock for basic net loss per share (in shares) | 5,595 | 2,065 |
Basic net loss per share (in dollars per share) | $ (0.98) | $ (10.62) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Vested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 0 | 42 |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 10,000 | 16,668 |
Common stock issuable upon conversion of Series F Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 7,392,776 | 0 |
Common stock issuable upon conversion of Series F Preferred Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 117,299,427 | 0 |
Common stock issuable upon conversion of Common Stock Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 4,137,850 | 343,099 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Revenue | $ 3,810 | $ 5,476 |
Cost of revenues | 2,899 | 3,930 |
Gross profit | $ 911 | $ 1,546 |
Gross profit % | 24% | 28.20% |
Total operating expenses | $ 5,406 | $ 23,534 |
Income (loss) from operations | (4,495) | (21,988) |
Interest and other income, net | (138) | (40) |
Loss before income taxes | (4,357) | (21,948) |
Income tax expense (benefit) | 27 | (7) |
Net income (loss) | (4,384) | (21,941) |
Total assets | 6,925 | 5,661 |
Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 484 | 18,374 |
Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 4,922 | 5,160 |
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 | $ 4,922 | $ 5,160 |
Income (loss) from operations | (4,922) | (5,160) |
Interest and other income, net | (138) | 0 |
Loss before income taxes | (4,784) | (5,160) |
Income tax expense (benefit) | 0 | |
Net income (loss) | (4,784) | (5,160) |
Total assets | 5,990 | 3,085 |
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 | 4,922 | 5,160 |
Managed Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,518 | 3,348 |
Cost of revenues | 1,671 | 2,273 |
Gross profit | $ 847 | $ 1,075 |
Gross profit % | 34% | 32.10% |
Total operating expenses | $ 3 | $ 19 |
Income (loss) from operations | 844 | 1,056 |
Interest and other income, net | 0 | 12 |
Loss before income taxes | 844 | 1,044 |
Income tax expense (benefit) | 11 | (4) |
Net income (loss) | 833 | 1,048 |
Total assets | 367 | 752 |
Managed Services | Operating Segments | Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 3 | 19 |
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 | 1,292 | 2,128 |
Cost of revenues | 1,228 | 1,657 |
Gross profit | $ 64 | $ 471 |
Gross profit % | 5% | 22.10% |
Total operating expenses | $ 481 | $ 18,355 |
Income (loss) from operations | (417) | (17,884) |
Interest and other income, net | 0 | (52) |
Loss before income taxes | (417) | (17,832) |
Income tax expense (benefit) | 16 | (3) |
Net income (loss) | (433) | (17,829) |
Total assets | 568 | 1,824 |
Collaboration Products | Operating Segments | Allocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | 481 | 18,355 |
Collaboration Products | Operating Segments | Unallocated operating expenses | ||
Segment Reporting Information [Line Items] | ||
Total operating expenses | $ 0 | $ 0 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Disaggregation of Revenue (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Foreign revenue | 0.01 | |
Total revenue | $ 3,810 | $ 5,476 |
Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 3,810 | $ 5,476 |
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 | $ 2,518 | $ 3,348 |
Managed Services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 66.10% | 61.10% |
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 | $ 183 | $ 334 |
Managed Services | Video collaboration services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 4.80% | 6.10% |
Managed Services | Network services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,301 | $ 2,954 |
Managed Services | Network services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 60.40% | 53.90% |
Managed Services | Professional and other services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 34 | $ 60 |
Managed Services | Professional and other services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 0.90% | 1.10% |
Collaboration Products | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,292 | $ 2,128 |
Collaboration Products | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 33.90% | 38.90% |
Collaboration Products | Video collaboration services | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,291 | $ 2,114 |
Collaboration Products | Video collaboration services | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 33.90% | 38.60% |
Collaboration Products | Licensing | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1 | $ 14 |
Collaboration Products | Licensing | Revenue | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue | 0% | 0.30% |
Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,843 | $ 2,781 |
Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,967 | $ 2,695 |
Segment Reporting - Schedule _3
Segment Reporting - Schedule of Concentration Percentage (Details) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Customer A | Managed Services | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 55.90% | 46.80% |
Customer A | Managed Services | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 38.20% | 42.80% |
Customer B | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 46.80% | 22% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Income Tax Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (4,357) | $ (21,948) |
Foreign | 0 | 0 |
Loss before income taxes | $ (4,357) | $ (21,948) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current: | ||
Federal | $ 0 | $ 0 |
Foreign | 15 | (4) |
State | 12 | (3) |
Total current | 27 | (7) |
Total deferred | ||
Total deferred | 0 | 0 |
Income tax expense (benefit) | $ 27 | $ (7) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
U.S. federal income taxes at the statutory rate | $ (915) | $ (4,609) |
Goodwill impairment | 0 | 1,547 |
State taxes, net of federal effects | (58) | (375) |
U.S. Federal and state NOL carryforward adjustment for expired NOLs | 613 | 76 |
Stock compensation plan adjustments | 385 | 16 |
Change in valuation allowance | (112) | 3,273 |
Other | 114 | 65 |
Income tax expense (benefit) | $ 27 | $ (7) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets (liabilities): | ||
Accrued expenses | $ 131 | $ 147 |
Deferred revenue | 36 | 129 |
Stock-based compensation | 56 | 420 |
Fixed assets | 4 | 116 |
Goodwill | 0 | 28 |
Inventory | 156 | 106 |
Intangible amortization | 32 | |
Intangible amortization | (80) | |
Section 174 research and experimentation | 0 | 409 |
Section 163(j) interest expense | 314 | 0 |
R&D credit | 2,154 | 2,154 |
Texas margin tax temporary credit | 55 | 74 |
Other | 61 | 101 |
Total deferred tax asset, net of deferred tax liabilities | 38,380 | 38,492 |
Valuation allowance | (38,380) | (38,492) |
Net deferred tax asset | 0 | 0 |
Federal | ||
Deferred tax assets (liabilities): | ||
Tax benefit of operating loss carry forward | 29,416 | 28,459 |
State | ||
Deferred tax assets (liabilities): | ||
Tax benefit of operating loss carry forward | $ 5,965 | $ 6,429 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2019 | Oct. 01, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | $ (112,000) | $ 3,273,000 | ||
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 | 140,075,000 | 135,517,000 | ||
NOL subject to expiration | 75,350,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 98,844,000 | $ 97,531,000 | ||
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, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
401(k) plan, employer contributions | $ 64 | $ 93 |