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Segment Reporting and Concentrations
 9 Months Ended
Sep. 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 for the periods presented were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 

 

For the Nine Months Ended September 30, 

 

    

2020

    

2019

    

2020

    

2019

Revenues:

 

 

  

 

 

  

 

 

  

 

 

  

DDS

 

$

10,526

 

$

10,124

 

$

30,793

 

$

30,353

Synodex

 

 

1,197

 

 

977

 

 

3,680

 

 

2,916

Agility

 

 

2,830

 

 

2,745

 

 

8,473

 

 

7,910

Total Consolidated

 

$

14,553

 

$

13,846

 

$

42,946

 

$

41,179

 

 

 

 

 

 

 

 

 

  

 

 

  

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

 

 

 

 

 

 

 

 

  

 

 

  

DDS

 

$

 4

 

$

371

 

$

226

 

$

579

Synodex

 

 

79

 

 

(70)

 

 

356

 

 

(81)

Agility

 

 

60

 

 

(446)

 

 

(621)

 

 

(1,724)

Total Consolidated

 

$

143

 

$

(145)

 

$

(39)

 

$

(1,226)

 

 

 

 

 

 

 

 

 

  

 

 

  

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

 

 

 

 

 

 

 

 

  

 

 

  

DDS

 

$

(64)

 

$

304

 

$

27

 

$

391

Synodex

 

 

124

 

 

(26)

 

 

487

 

 

42

Agility

 

 

83

 

 

(423)

 

 

(553)

 

 

(1,659)

Total Consolidated

 

$

143

 

$

(145)

 

$

(39)

 

$

(1,226)

 

 

 

 

 

 

 

 

 

    

September 30, 2020

    

December 31, 2019

Total assets:

 

 

  

 

 

  

DDS

 

$

27,433

 

$

23,115

Synodex

 

 

564

 

 

675

Agility

 

 

26,001

 

 

25,707

Total Consolidated

 

$

53,998

 

$

49,497

 

 

 

 

 

 

 

 

 

    

September 30, 2020

    

December 31, 2019

Goodwill:

 

 

  

 

 

  

Agility

 

$

2,069

 

$

2,108

Total Consolidated

 

$

2,069

 

$

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 customers’ domicile) for the periods presented (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

September 30, 

 

September 30, 

 

    

2020

    

2019

    

2020

    

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

6,613

 

$

5,967

 

$

19,561

 

$

18,507

United Kingdom

 

 

2,832

 

 

2,394

 

 

8,284

 

 

7,120

The Netherlands

 

 

1,704

 

 

1,730

 

 

5,003

 

 

5,146

Canada

 

 

1,434

 

 

1,634

 

 

4,304

 

 

4,594

Others - principally Europe

 

 

1,970

 

 

2,121

 

 

5,794

 

 

5,812

Totals

 

$

14,553

 

$

13,846

 

$

42,946

 

$

41,179

 

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

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

 

 

2020

 

2019

United States

 

$

4,162

 

$

4,521

 

 

 

  

 

 

  

Foreign countries:

 

 

  

 

 

  

Canada

 

 

8,532

 

 

8,708

United Kingdom

 

 

1,699

 

 

1,907

Philippines

 

 

4,688

 

 

5,135

India

 

 

1,025

 

 

508

Sri Lanka

 

 

529

 

 

678

Israel

 

 

 1

 

 

19

Germany

 

 

 1

 

 

 1

Total foreign

 

 

16,475

 

 

16,956

Totals

 

$

20,637

 

$

21,477

 

Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.9 million and $7.0 million as of September 30, 2020 and December 31, 2019, respectively.

Two clients in the DDS segment generated approximately 23% and 25% of the Company's total revenues for the three months ended September 30, 2020 and September 30, 2019 , respectively. 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 57% of the Company's total revenues for the three months ended September 30, 2020 and 2019, respectively.

One client in the DDS segment generated approximately 14% and 16% of the Company’s total revenues for the nine months ended September 30, 2020 and 2019 , respectively.  Another client in the DDS segment generated 10% of the Company’s total revenues for the nine months ended September 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% of the Company’s total revenues for each of the nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, approximately 57% of the Company's accounts receivable was from foreign (principally European) clients and 24% of the Company’s accounts receivable was due from two 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.