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Segment Reporting and Concentrations
 6 Months Ended
Jun. 30, 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 the Company’s 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 June 30,

​

For the Six Months Ended June 30, 

​

    

2021

    

2020

    

2021

    

2020

Revenues:

 

​

  

 

​

  

​

​

  

 

​

  

DDS

​

$

12,997

​

$

9,858

​

$

24,760

​

$

20,267

Synodex

​

 

886

​

 

1,201

​

 

1,905

​

 

2,483

Agility

​

 

3,166

​

 

2,804

​

 

6,351

​

 

5,643

Total Consolidated

​

$

17,049

​

$

13,863

​

$

33,016

​

$

28,393

​

​

 

​

​

 

​

​

 

  

​

 

  

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

​

 

​

​

 

​

​

 

  

​

 

  

DDS

​

$

1,726

​

$

17

​

$

2,379

​

$

220

Synodex

​

 

(329)

​

 

81

​

 

(221)

​

 

277

Agility

​

 

(1,161)

​

 

(406)

​

 

(1,586)

​

 

(680)

Total Consolidated

​

$

236

​

$

(308)

​

$

572

​

$

(183)

​

​

 

​

​

 

​

​

 

  

​

 

  

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

​

 

​

​

 

​

​

 

  

​

 

  

DDS

​

$

1,646

​

$

(53)

​

$

2,230

​

$

80

Synodex

​

 

(278)

​

 

125

​

 

(126)

​

 

366

Agility

​

 

(1,132)

​

 

(380)

​

 

(1,532)

​

 

(629)

Total Consolidated

​

$

236

​

$

(308)

​

$

572

​

$

(183)

​

​

​

​

​

​

​

​

​

    

June 30, 2021

    

December 31, 2020

Total assets:

 

​

  

 

​

  

DDS

​

$

32,039

​

$

27,767

Synodex

​

 

132

​

 

457

Agility

​

 

28,758

​

 

29,030

Total Consolidated

​

$

60,929

​

$

57,254

​

​

​

​

​

​

​

​

​

    

June 30, 2021

    

December 31, 2020

Goodwill:

 

​

  

 

​

  

Agility

​

$

2,179

​

$

2,150

Total

​

$

2,179

​

$

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

​

For the Six Months Ended

​

​

June 30,

​

June 30, 

​

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

United States

​

$

9,074

​

$

6,258

​

$

17,294

​

$

12,948

United Kingdom

​

 

2,995

​

 

2,681

​

 

5,797

​

 

5,452

The Netherlands

​

 

1,608

​

 

1,659

​

 

3,262

​

 

3,299

Canada

​

 

1,492

​

 

1,325

​

 

3,087

​

 

2,870

Others - principally Europe

​

 

1,880

​

 

1,940

​

 

3,576

​

 

3,824

Totals

​

$

17,049

​

$

13,863

​

$

33,016

​

$

28,393

​

Long-lived assets as of June 30, 2021 and December 31, 2020 by geographic region were comprised of (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30,

    

December 31, 

​

 

2021

 

2020

United States

​

$

3,935

​

$

4,045

​

​

 

  

​

 

  

Foreign countries:

​

 

  

​

 

  

Canada

​

 

9,402

​

 

9,044

United Kingdom

​

 

1,675

​

 

1,759

Philippines

​

 

4,238

​

 

4,545

India

​

 

980

​

 

930

Sri Lanka

​

 

234

​

 

319

Israel

​

 

-

​

 

1

Total foreign

​

 

16,529

​

 

16,598

Totals

​

$

20,464

​

$

20,643

​

Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.1 million and $6.6 million as of June 30, 2021 and December 31, 2020, respectively.

One client in the DDS segment generated approximately 11% and 16% of the Company’s total revenues for the three months ended June 30, 2021 and 2020, respectively. Another client in the DDS segment accounted for 11% of the Company’s total revenues for the three months ended June 30, 2021. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 47% and 55% of the Company’s total revenues for the three months ended June 30, 2021 and 2020, respectively.

One client in the DDS segment generated approximately 12% and 15% of the Company’s total revenues for the six months ended June 30, 2021 and 2020, respectively. Another client in the DDS segment accounted for 10% of the Company’s total revenues for the six months ended June 30, 2021. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 48% and 54% of the Company’s total revenues for the six months ended June 30, 2021 and 2020, respectively.

Apriyas of June 30, 2021, approximately 46% 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. 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.