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Segment reporting and concentrations
6 Months Ended
Jun. 30, 2022
Segment reporting and concentrations.  
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):

For the Three Months Ended June 30, 

For the Six Months Ended June 30, 

    

2022

    

2021

    

2022

    

2021

Revenues:

 

  

 

  

  

 

  

DDS

$

14,181

$

12,997

$

30,092

$

24,760

Synodex

 

1,945

 

886

 

3,614

 

1,905

Agility

 

3,861

 

3,166

 

7,473

 

6,351

Total Consolidated

$

19,987

$

17,049

$

41,179

$

33,016

 

 

 

 

Income (loss) before provision for income taxes(1):

 

 

 

 

DDS

$

(72)

$

1,726

$

1,381

$

2,379

Synodex

 

(831)

 

(329)

 

(1,819)

 

(221)

Agility

 

(2,378)

 

(1,161)

 

(5,258)

 

(1,586)

Total Consolidated

$

(3,281)

$

236

$

(5,696)

$

572

 

 

 

  

 

  

Income (loss) before provision for income taxes(2):

 

 

 

  

 

  

DDS

$

(250)

$

1,646

$

1,046

$

2,230

Synodex

 

(680)

 

(278)

 

(1,540)

 

(126)

Agility

 

(2,351)

 

(1,132)

 

(5,202)

 

(1,532)

Total Consolidated

$

(3,281)

$

236

$

(5,696)

$

572

    

June 30, 2022

    

December 31, 2021

Total assets:

 

  

 

  

DDS

$

29,723

$

40,100

Synodex

 

2,702

 

1,753

Agility

 

17,498

 

17,364

Total Consolidated

$

49,923

$

59,217

    

June 30, 2022

    

December 31, 2021

Goodwill:

 

  

 

  

Agility

$

2,076

$

2,143

Total

$

2,076

$

2,143

(1)Before elimination of any inter-segment profits
(2)After elimination of any inter-segment profits

Revenues for the period ended June 30, 2022 and 2021 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

    

2022

    

2021

    

2022

    

2021

United States

$

12,385

$

9,074

$

25,777

$

17,294

United Kingdom

 

2,558

 

2,995

 

5,640

 

5,797

The Netherlands

 

1,717

 

1,608

 

3,369

 

3,262

Canada

 

1,439

 

1,492

 

2,816

 

3,087

Others - principally Europe

 

1,888

 

1,880

 

3,577

 

3,576

Totals

$

19,987

$

17,049

$

41,179

$

33,016

Long-lived assets as of June 30, 2022 and December 31, 2021 by geographic region were comprised of (in thousands):

    

June 30, 

    

December 31, 

 

2022

 

2021

United States

$

6,042

$

4,578

 

 

Foreign countries:

 

 

Canada

 

8,156

 

9,280

United Kingdom

 

1,292

 

1,538

Philippines

 

3,858

 

4,027

India

 

1,522

 

1,481

Sri Lanka

 

156

 

154

Israel

 

2

 

-

Germany

-

-

Total foreign

 

14,986

 

16,480

Totals

$

21,028

$

21,058

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.