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Segment Reporting and Concentrations
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
11.
Segment reporting and concentrations
 
The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility PR Solutions (Agility).
 
Prior to the first quarter of 2018, the Company referred to the Agility segment as Media Intelligence Solutions (MIS) and the Synodex segment as Innodata Advanced Data Solutions (IADS), and reported the results of the Innodata docGenix, LLC subsidiary (docGenix) within the IADS segment. Effective with the first quarter of 2018, the results for docGenix are reported within the DDS segment.
 
The DDS segment specializes in combining 
deep neural networks
 and 
human expertise
 in multiple domains (including health, science, and law) to make “unstructured information” (sometimes referred to as “content”) useable. For business information companies, “useable” means that the content can be sold via subscription to a 
digital product
. For enterprises, “useable” means that the content can drive 
digital process transformation 
and 
AI
. The Company works with all classes of data, including sensitive and protected data.
 
The Synodex segment enables clients in the insurance and healthcare sectors to transform medical records into useable digital data and to apply technologies to the digital data to augment decision support.
 
The Agility segment provides tools and related professional services that enable public relations (PR) and communications professionals to discover influencers, amplify messages, monitor coverage, and measure the impact of campaigns. Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and the Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies, are properties of Agility.
 
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):
 
The results below for the year ended December 31, 2017 are presented on a reclassified basis as if for the full year 2017 docGenix had been included in the DDS segment and the Synodex segment had solely included the results of Synodex. docGenix revenue was $531,000 and $1,087,000 for years ended December 31, 2018 and 2017, respectively.
 
 
 
For the Years Ended December 31,
 
 
 
2018
 
 
2017
 
Revenues:
 
 
 
 
 
 
 
 
DDS
 
$
43,546
 
 
$
47,840
 
Synodex
 
 
4,063
 
 
 
3,664
 
Agility
 
 
9,809
 
 
 
9,425
 
Total Consolidated
 
$
57,418
 
 
$
60,929
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes
(1)
:
 
 
 
 
 
 
 
 
DDS
 
$
3,882
 
 
$
(1,177
)
Synodex
 
 
284
 
 
 
(1,084
)
Agility
 
 
(2,347
)
 
 
(2,813
)
Total Consolidated
 
$
1,819
 
 
$
(5,074
)
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes
(2)
:
 
 
 
 
 
 
 
 
DDS
 
$
3,648
 
 
$
(1,444
)
Synodex
 
 
446
 
 
 
(881
)
Agility
 
 
(2,275
)
 
 
(2,749
)
Total Consolidated
 
$
1,819
 
 
$
(5,074
)
 
 
 
December 31, 2018
 
 
December 31, 2017
 
Total assets:
 
 
 
 
 
 
 
 
DDS
 
$
22,334
 
 
$
26,173
 
Synodex
 
 
787
 
 
 
678
 
Agility
 
 
22,930
 
 
 
21,020
 
Total Consolidated
 
$
46,051
 
 
$
47,871
 
 
 
 
December 31, 2018
 
 
December 31, 2017
 
Goodwill:
 
 
 
 
 
 
 
 
DDS
 
$
-
 
 
$
675
 
Agility
 
 
2,050
 
 
 
2,157
 
Total Consolidated
 
$
2,050
 
 
$
2,832
 
 
(1)
Before elimination of any inter-segment profits
(2)
After elimination of any inter-segment profits
  
Long-lived assets as of December 31, 2018 and 2017 by geographic region are comprised of:
 
 
 
2018
 
 
2017
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
United States
 
$
4,383
 
 
$
5,321
 
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
 
Canada
 
 
7,023
 
 
 
6,888
 
United Kingdom
 
 
2,045
 
 
 
2,388
 
Philippines
 
 
900
 
 
 
1,446
 
India
 
 
475
 
 
 
1,042
 
Sri Lanka
 
 
280
 
 
 
504
 
Israel
 
 
30
 
 
 
36
 
Germany
 
 
2
 
 
 
2
 
Total foreign
 
 
10,755
 
 
 
12,306
 
Total
 
$
15,138
 
 
$
17,627
 
 
Two clients in the DDS segment generated approximately 30% of the Company’s total revenues in the fiscal years ended December 31, 2018 and 2017, respectively. No other client accounted for 10% or more of total revenues during these periods. Further, in the years ended December 31, 2018 and 2017, revenues from non-US clients accounted for 56% and 51%, respectively, of the Company's revenues.
 
Revenues for each of the two years in the period ended December 31, 2018 by geographic region (determined based upon client’s domicile), are as follows:
 
 
 
2018
 
 
2017
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
United States
 
$
25,403
 
 
$
30,135
 
United Kingdom
 
 
10,874
 
 
 
10,514
 
The Netherlands
 
 
7,488
 
 
 
6,871
 
Canada
 
 
5,985
 
 
 
5,636
 
Others - principally Europe
 
 
7,668
 
 
 
7,773
 
Total
 
$
57,418
 
 
$
60,929
 
 
As of December 31, 2018, approximately 57% of the Company's accounts receivable was due from foreign (principally European) clients and 48% of accounts receivable was due from three clients. As of December 31, 2017, approximately 61% of the Company's accounts receivable was due from foreign (principally European) clients and 52% of accounts receivable was due from three clients. No other client accounts for 10% or more of the receivables as of December 31, 2018.