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Segment Reporting and Concentrations
 3 Months Ended
Mar. 31, 2021
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 March 31,

 

    

2021

    

2020

Revenues:

 

 

  

 

 

  

DDS

 

$

11,764

 

$

10,409

Synodex

 

 

1,018

 

 

1,282

Agility

 

 

3,185

 

 

2,839

Total Consolidated

 

$

15,967

 

$

14,530

 

 

 

 

 

 

 

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

 

 

 

 

 

 

DDS

 

$

654

 

$

203

Synodex

 

 

108

 

 

196

Agility

 

 

(426)

 

 

(274)

Total Consolidated

 

$

336

 

$

125

 

 

 

 

 

 

 

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

 

 

 

 

 

 

DDS

 

$

584

 

$

133

Synodex

 

 

152

 

 

241

Agility

 

 

(400)

 

 

(249)

Total Consolidated

 

$

336

 

$

125

 

 

 

 

 

 

 

 

 

    

March 31, 2021

    

December 31, 2020

Total assets:

 

 

  

 

 

  

DDS

 

$

26,948

 

$

27,767

Synodex

 

 

129

 

 

457

Agility

 

 

29,214

 

 

29,030

Total Consolidated

 

$

56,291

 

$

57,254

 

 

 

 

 

 

 

 

 

    

March 31, 2021

    

December 31, 2020

Goodwill:

 

 

  

 

 

  

Agility

 

$

2,157

 

$

2,150

Total

 

$

2,157

 

$

2,150

(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

 

 

March 31,

 

    

2021

    

2020

 

 

 

 

 

 

 

United States

 

$

8,220

 

$

6,694

United Kingdom

 

 

2,802

 

 

2,771

The Netherlands

 

 

1,654

 

 

1,640

Canada

 

 

1,595

 

 

1,545

Others - principally Europe

 

 

1,696

 

 

1,880

Totals

 

$

15,967

 

$

14,530

 

Long-lived assets as of March 31, 2021 and 2020 by geographic region were comprised of (in thousands):

 

 

 

 

 

 

 

 

 

    

March 31,

    

December 31, 

 

 

2021

 

2020

United States

 

$

3,901

 

$

4,045

 

 

 

  

 

 

  

Foreign countries:

 

 

  

 

 

  

Canada

 

 

9,160

 

 

9,044

United Kingdom

 

 

1,703

 

 

1,759

Philippines

 

 

4,386

 

 

4,545

India

 

 

833

 

 

930

Sri Lanka

 

 

279

 

 

319

Israel

 

 

 —

 

 

 1

Total foreign

 

 

16,361

 

 

16,598

Totals

 

$

20,262

 

$

20,643

 

Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.4 million and $6.6 million as of March 31, 2021 and December 31, 2020, respectively.

One client in the DDS segment generated approximately 12% and 14% of the Company’s total revenues for the three months ended March 31, 2021 and March 31, 2020, respectively. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 49% and 54% of the Company’s total revenues for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, approximately 48% of the Company’s accounts receivable was from foreign (principally European) clients and 45% of the Company’s accounts receivable was due from four clients.  As of December 31, 2020, approximately 55% of the Company’s accounts receivable was from foreign (principally European) clients and 36% of the Company’s accounts receivable was due from three clients.