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Segment Reporting and Concentrations
6 Months Ended
Jun. 30, 2020
Segment Reporting and Concentrations  
Segment Reporting and Concentrations

9.           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 a range of solutions and platforms for solving complex data challenges that companies face when they seek to obtain the benefits of artificial intelligence (AI) systems and analytics platforms. These include data annotation, data transformation, data curation and intelligent automation. The DDS segment also provides a variety of services for clients in the information industry that relate to content operations and product development.

The Synodex segment provides an intelligent data platform that transforms medical records into useable digital data organized in accordance with our proprietary data models or client data models.

The Agility segment provides an intelligent data 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 revenues are generated from its 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 

 

For the six months ended June 30, 

 

    

2020

    

2019

    

2020

    

2019

Revenues:

 

 

  

 

 

  

 

 

  

 

 

  

DDS

 

$

9,858

 

$

10,052

 

$

20,267

 

$

20,229

Synodex

 

 

1,201

 

 

915

 

 

2,483

 

 

1,939

Agility

 

 

2,804

 

 

2,672

 

 

5,643

 

 

5,165

Total Consolidated

 

$

13,863

 

$

13,639

 

$

28,393

 

$

27,333

 

 

 

 

 

 

 

 

 

  

 

 

  

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

 

 

 

 

 

 

 

 

  

 

 

  

DDS

 

$

(56)

 

$

153

 

$

73

 

$

227

Synodex

 

 

81

 

 

(130)

 

 

277

 

 

(11)

Agility

 

 

(406)

 

 

(584)

 

 

(680)

 

 

(1,256)

Total Consolidated

 

$

(381)

 

$

(561)

 

$

(330)

 

$

(1,040)

 

 

 

 

 

 

 

 

 

  

 

 

  

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

 

 

 

 

 

 

 

 

  

 

 

  

DDS

 

$

(126)

 

$

94

 

$

(67)

 

$

106

Synodex

 

 

125

 

 

(91)

 

 

366

 

 

68

Agility

 

 

(380)

 

 

(564)

 

 

(629)

 

 

(1,214)

Total Consolidated

 

$

(381)

 

$

(561)

 

$

(330)

 

$

(1,040)

 

 

 

 

 

 

 

 

 

    

June 30, 2020

    

December 31, 2019

Total assets:

 

 

  

 

 

  

DDS

 

$

25,085

 

$

23,196

Synodex

 

 

500

 

 

675

Agility

 

 

25,743

 

 

25,875

Total Consolidated

 

$

51,328

 

$

49,746

 

 

 

 

 

 

 

 

 

    

June 30, 2020

    

December 31, 2019

Goodwill:

 

 

  

 

 

  

Agility

 

$

2,026

 

$

2,108

Total Consolidated

 

$

2,026

 

$

2,108


(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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30, 

 

June 30, 

 

    

2020

    

2019

    

2020

    

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

6,258

 

$

6,223

 

$

12,948

 

$

12,754

United Kingdom

 

 

2,681

 

 

2,408

 

 

5,452

 

 

4,726

The Netherlands

 

 

1,659

 

 

1,694

 

 

3,299

 

 

3,416

Canada

 

 

1,325

 

 

1,476

 

 

2,870

 

 

2,960

Others - principally Europe

 

 

1,940

 

 

1,838

 

 

3,824

 

 

3,477

Totals

 

$

13,863

 

$

13,639

 

$

28,393

 

$

27,333

 

Long-lived assets of the Company as of June 30, 2020 and December 31, 2019, respectively, by geographic region, were comprised of the following (in thousands):

 

 

 

 

 

 

 

 

 

    

June 30, 

    

December 31, 

 

 

2020

 

2019

United States

 

$

4,338

 

$

4,591

 

 

 

  

 

 

  

Foreign countries:

 

 

  

 

 

  

Canada

 

 

8,500

 

 

8,876

United Kingdom

 

 

1,666

 

 

1,907

Philippines

 

 

4,817

 

 

5,135

India

 

 

297

 

 

508

Sri Lanka

 

 

580

 

 

678

Israel

 

 

 1

 

 

19

Germany

 

 

 1

 

 

 1

Total foreign

 

 

15,862

 

 

17,124

Totals

 

$

20,200

 

$

21,715

 

Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.3 million and $7.0 million as of June 30, 2020 and December 31, 2019, respectively.

One client in the DDS segment generated approximately 16% of the Company's total revenues for each of the three-month periods ended June 30, 2020 and 2019. Another client in the DDS segment generated less than 10% of the Company's total revenues for the three months ended June 30, 2020 and 10% of the Company's total revenues for the three months ended June 30, 2019. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 55% and 54% of the Company's total revenues for the three months ended June 30, 2020 and 2019, respectively.

One client in the DDS segment generated approximately 15% of the Company’s total revenues for the six months ended June 30, 2020 and 16% of the Company’s total revenues for the six months ended June 30, 2019.  Another client in the DDS segment generated less than 10% of the Company’s total revenues for the six months ended June 30, 2020 and 10% of the Company’s total revenues for the six months ended June 30, 2019. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 54% and 53% of the Company’s total revenues for the six months ended June 30, 2020 and 2019, respectively.

As of June 30, 2020, approximately 59% of the Company's accounts receivable was from foreign (principally European) clients and 40% of the Company’s accounts receivable was due from three clients.  As of December 31, 2019, approximately 60% of the Company's accounts receivable was from foreign (principally European) clients and 44% of the Company’s accounts receivable was due from three clients.