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Segment Reporting and Concentrations
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
9.
Segment Reporting and Concentrations
 
The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility PR Solutions (Agility).
 
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 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):
 
 
 
Three Months Ended March 31,
 
 
 
 
2019
 
 
 
2018
 
Revenues:
 
 
 
 
 
 
 
 
DDS
 
$
10,177
 
 
$
10,477
 
Synodex
 
 
1,024
 
 
 
981
 
Agility
 
 
2,493
 
 
 
2,662
 
Total Consolidated
 
$
13,694
 
 
$
14,120
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes
(1)
:
 
 
 
 
 
 
 
 
DDS
 
$
74
 
 
$
656
 
Synodex
 
 
119
 
 
 
(35
)
Agility
 
 
(672
)
 
 
(315
)
Total Consolidated
 
$
(479
)
 
$
306
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes
(2)
:
 
 
 
 
 
 
 
 
DDS
 
$
12
 
 
$
590
 
Synodex
 
 
159
 
 
 
7
 
Agility
 
 
(650
)
 
 
(291
)
Total Consolidated
 
$
(479
)
 
$
306
 
 
 
 
March 31, 2019
 
 
December 31, 2018
 
Total assets:
 
 
 
 
 
 
 
 
DDS
 
$
26,480
 
 
$
22,334
 
Synodex
 
 
382
 
 
 
787
 
Agility
 
 
25,818
 
 
 
22,930
 
Total Consolidated
 
$
52,680
 
 
$
46,051
 
 
 
 
March 31, 2019
 
 
December 31, 2018
 
Goodwill:
 
 
 
 
 
 
 
 
Agility
 
$
2,089
 
 
$
2,050
 
 
 
(1)
Before elimination of inter-segment profits
(2)
After elimination of inter-segment profits
 
The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands):
 
 
 
Three months ended
 
 
 
March 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
United States
 
$
6,531
 
 
$
5,979
 
United Kingdom
 
 
2,318
 
 
 
2,955
 
The Netherlands
 
 
1,722
 
 
 
1,762
 
Canada
 
 
1,484
 
 
 
1,469
 
Other - principally Europe
 
 
1,639
 
 
 
1,955
 
 
 
$
13,694
 
 
$
14,120
 
 
Long-lived assets of the Company as of March 31, 2019 and December 31, 2018, respectively, by geographic region, are comprised of the following (in thousands):
 
 
 
March 31,
 
 
December 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
United States
 
$
4,981
 
 
$
4,383
 
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
 
Canada
 
 
8,329
 
 
 
7,023
 
United Kingdom
 
 
2,071
 
 
 
2,045
 
Philippines
 
 
5,683
 
 
 
900
 
India
 
 
946
 
 
 
475
 
Sri Lanka
 
 
846
 
 
 
280
 
Israel
 
 
27
 
 
 
30
 
Germany
 
 
1
 
 
 
2
 
Total foreign
 
 
17,903
 
 
 
10,755
 
 
 
$
22,884
 
 
$
15,138
 
 
Long lived assets include the unamortized balance of right of use assets amounting to $7,784 as of March 31, 2019.
 
Two clients in the DDS segment generated approximately 26% of the Company’s total revenues for the three months ended March 31, 2019 and 32% of the Company’s total revenues for the three months ended March 31, 2018. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 52% and 58% of the Company’s total revenues for the three months ended March 31, 2019 and 2018, respectively.
 
As of March 31, 2019, approximately 62% of the Company's accounts receivable was from foreign (principally European) clients and 43% of the Company’s accounts receivable was due from three clients. As of December 31, 2018, approximately 57% of the Company's accounts receivable was from foreign (principally European) clients and 48% of the Company’s accounts receivable was due from three clients.