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Segment reporting and concentrations | 10. Segment reporting and concentrations The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility. The DDS segment provides AI-enabled software platforms and managed services to companies that require high-quality data for training AI and machine learning (ML) algorithms, and AI digital transformation solutions to help companies apply AI/ML to real-world problems relating to analyzing and deriving insights from documents. In conjunction with AI digital transformation, the Company often provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data compliance, and master data management. The Synodex segment provides an industry platform that transforms medical records into useable digital data organized in accordance with its proprietary data models or customer data models. The Agility segment provides an industry platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers world-wide and to monitor and analyze global news channels (print, web, radio and TV) and social media channels. A significant portion of the Company’s revenue is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel. Revenues from external customers, segment operating profit (loss), and other reportable segment information are as follows (in thousands):
Revenues for the period ended June 30, 2022 and 2021 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):
Long-lived assets as of June 30, 2022 and December 31, 2021 by geographic region were comprised of (in thousands):
Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.4 million and $5.6 million as of June 30, 2022 and December 31, 2021, respectively. One customer in the DDS segment generated approximately 13% of the Company’s total revenues for the three months ended June 30, 2022. A second customer in the DDS segment generated approximately 10% and 11% of the Company’s total revenues for the three months ended June 30, 2022 and June 30, 2021, respectively. A third customer in the DDS segment generated approximately 11% of the Company’s total revenues for the three months ended June 30, 2021. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 38% and 47% of the Company’s total revenues for the three months ended June 30, 2022 and 2021, respectively. One customer in the DDS segment generated approximately 17% of the Company’s total revenues for the six months ended June 30, 2022. Two other customers in the DDS segment generated approximately 22% of the Company’s total revenues for the six months ended June 30, 2021. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 38% and 48% of the Company’s total revenues for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, approximately 33% of the Company’s accounts receivable was from foreign (principally European) customers and 44% of the Company’s accounts receivable was due from three customers. As of December 31, 2021, approximately 37% of the Company’s accounts receivable was from foreign (principally European) customers and 19% of the Company’s accounts receivable was due from one customer. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2022 and December 31, 2021. |