10.

Segment Reporting and Concentrations

The Company’s operations are classified into three reportable segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS).

The DDS segment provides solutions to digital retailers, information services companies, publishers and enterprises that have one or more of the following broad business requirements: development of digital content (including e-books); development of new digital information products; and operational support of existing digital information products and systems.

The IADS segment performs advanced data analysis. IADS operates through two subsidiaries: Synodex and docGenix. Synodex offers a range of data analysis services in the healthcare, medical and insurance areas. docGenix provides services to certain financial services institutions.

The Company’s MIS segment operates through its Agility PR Solutions and Bulldog Reporter subsidiaries. In December 2016, the Company rebranded the MediaMiser and Agility PR Solutions products under the name Agility PR Solutions and in March 2017 MediaMiser Ltd. in Canada changed its name to Agility PR Solutions Canada Ltd. Agility PR Solutions offers self and full-service solutions that address the entire communications life cycle – from identifying influencers, amplifying messages, monitoring coverage, to measuring impact.

A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel.

Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Revenues:	2017		2016		2017		2016
DDS	$	11,800	$	13,232	$	23,155	$	26,876
IADS		1,211		1,165		2,213		2,062
MIS		2,289		1,245		4,885		2,402
Total Consolidated	$	15,300	$	15,642	$	30,253	$	31,340

Income (loss) before provision for income taxes⁽¹⁾:
DDS	$	1,228	$	81	$	1,153	$	2,327
IADS		(816)		(1,089)		(1,962)		(2,458)
MIS		(555)		(604)		(717)		(1,072)
Total Consolidated	$	(143)	$	(1,612)	$	(1,526)	$	(1,203)

Income (loss) before provision for income taxes⁽²⁾:
DDS	$	474	$	(640)	$	(343)	$	902
IADS		(79)		(374)		(493)		(1,045)
MIS		(538)		(598)		(690)		(1,060)
Total Consolidated	$	(143)	$	(1,612)	$	(1,526)	$	(1,203)

	June 30, 2017		December 31, 2016
Total assets:
DDS	$	32,991	$	29,804
IADS		1,717		1,282
MIS		16,653		16,502
Total Consolidated	$	51,361	$	47,588

	June 30, 2017		December 31, 2016
Goodwill:
DDS	$	675	$	675
MIS		2,101		2,059
Total Consolidated	$	2,776	$	2,734

⁽¹⁾ Before elimination of any inter-segment profits

⁽²⁾ After elimination of any inter-segment profits

The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands):

	Three months ended				Six months ended
	June 30,				June 30,
	2017		2016		2017		2016

United States	$	8,372	$	8,079	$	15,053	$	16,351
United Kingdom		2,162		1,999		5,387		3,980
The Netherlands		1,589		2,529		3,483		5,090
Canada		1,370		1,498		2,833		2,974
Other - principally Europe		1,807		1,537		3,497		2,945
	$	15,300	$	15,642	$	30,253	$	31,340

Long-lived assets as of June 30, 2017 and December 31, 2016, respectively, by geographic region, are comprised of (in thousands):

	June 30,		December 31,
	2017		2016

United States	$	5,419	$	4,669

Foreign countries:
Canada		6,325		5,085
United Kingdom		2,397		2,376
Philippines		1,822		1,940
India		1,300		1,520
Sri Lanka		628		683
Israel		42		47
Germany		2		2
Total foreign		12,516		11,653
	$	17,935	$	16,322

Two clients in the DDS segment generated approximately 28% of the Company’s total revenues for the three months ended June 30, 2017 and 33% of the Company’s total revenues for the three months ended June 30, 2016. Another client in the DDS segment accounted for 10% of the Company’s total revenues for the three months ended June 30, 2017 but accounted for less than 10% of the Company’s total revenues for the three months ended June 30, 2016. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended June 30, 2017 and 2016, revenues from non-U.S. clients accounted for 45% and 48%, respectively, of the Company’s total revenues.

Two clients in the DDS segment generated approximately 29% of the Company’s total revenues for the six months ended June 30, 2017 and 32% of the Company’s total revenues for the six months ended June 30, 2016. Another client in the DDS segment accounted for less than 10% of the Company’s total revenues for the six months ended June 30, 2017 but accounted for 10% of the Company’s total revenues for the six months ended June 30, 2016. No other client accounted for 10% or more of total revenues during these periods. Further, for the six months ended June 30, 2017 and 2016, revenues from non-U.S. clients accounted for 50% and 48%, respectively, of the Company’s total revenues.

As of June 30, 2017, approximately 63% of the Company's accounts receivable was from foreign (principally European) clients and 50% of accounts receivable was due from three clients. As of December 31, 2016, approximately 73% of the Company's accounts receivable was from foreign (principally European) clients and 52% of accounts receivable was due from three clients.