9. Segment Reporting and Concentrations

The Company’s operations are classified in three reporting segments: DDS, Synodex and 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 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues:
DDS	$	10,124	$	10,756	$	30,353	$	32,059
Synodex		977		1,013		2,916		3,008
Agility		2,745		2,280		7,910		7,372
Total Consolidated	$	13,846	$	14,049	$	41,179	$	42,439

Income (loss) before provision for income taxes(1):
DDS	$	376	$	1,731	$	603	$	2,843
Synodex		(70)		91		(81)		144
Agility		(443)		(660)		(1,699)		(1,530)
Total Consolidated	$	(137)	$	1,162	$	(1,177)	$	1,457

Income (loss) before provision for income taxes(2):
DDS	$	309	$	1,673	$	415	$	2,663
Synodex		(26)		132		42		266
Agility		(420)		(643)		(1,634)		(1,472)
Total Consolidated	$	(137)	$	1,162	$	(1,177)	$	1,457


	September 30, 2019		December 31 , 2018
Total assets:
DDS	$	29,186	$	22,334
Synodex		752		787
Agility		22,214		22,930
Total Consolidated	$	52,152	$	46,051

⁽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				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018

United States	$	6,022	$	6,481	$	18,776	$	18,452
United Kingdom		2,394		2,403		7,120		8,387
The Netherlands		1,730		1,896		5,146		5,485
Canada		1,634		1,459		4,594		4,397
Other - principally Europe		2,066		1,810		5,543		5,718
	$	13,846	$	14,049	$	41,179	$	42,439

Long-lived assets of the Company as of September 30, 2019 and December 31, 2018, respectively, by geographic region, were comprised of the following (in thousands):


	September 30,		December 31,
	2019		2018
United States	$	4,740	$	4,383

Foreign countries:
Canada		8,709		7,023
United Kingdom		1,840		2,045
Philippines		5,326		900
India		634		475
Sri Lanka		733		280
Israel		21		30
Germany		1		2
Total foreign		17,264		10,755
	$	22,004	$	15,138

Long-lived assets include the unamortized balance of right-of-use assets amounting to $7.3 million as of September 30, 2019.

Two clients in the DDS segment together generated approximately 25% of the Company’s total revenues for the three months ended September 30, 2019 and 29% of the Company’s total revenues for the three months ended September 30, 2018. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 57% and 54% of the Company’s total revenues for the three months ended September 30, 2019 and 2018, respectively.

Two clients in the DDS segment together generated approximately 26% of the Company’s total revenues for the nine months ended September 30, 2019 and 30% of the Company’s total revenues for the nine months ended September 30, 2018. No other client accounted for 10% or more of total revenues during these periods. Further, for the nine months ended September 30, 2019 and 2018, revenues from non-U.S. clients accounted for 54% and 57%, respectively, of the Company’s total revenues.

As of September 30, 2019, approximately 59% 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.

September 30, 2019

December 31, 2018