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Segment Reporting and Concentrations
 9 Months Ended
Sep. 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: 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 services are generated from its operations 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, 

​

    

2021

    

2020

    

2021

    

2020

Revenues:

 

​

  

 

​

  

​

​

  

 

​

  

DDS

​

$

13,237

​

$

10,526

​

$

37,997

​

$

30,793

Synodex

​

 

983

​

 

1,197

​

 

2,888

​

 

3,680

Agility

​

 

3,230

​

 

2,830

​

 

9,581

​

 

8,473

Total Consolidated

​

$

17,450

​

$

14,553

​

$

50,466

​

$

42,946

​

​

 

​

​

 

​

​

 

  

​

 

  

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

​

 

​

​

 

​

​

 

  

​

 

  

DDS

​

$

1,608

​

$

4

​

$

3,988

​

$

226

Synodex

​

 

(657)

​

 

79

​

 

(878)

​

 

356

Agility

​

 

(1,470)

​

 

60

​

 

(3,057)

​

 

(621)

Total Consolidated

​

$

(519)

​

$

143

​

$

53

​

$

(39)

​

​

 

​

​

 

​

​

 

  

​

 

  

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

​

 

​

​

 

​

​

 

  

​

 

  

DDS

​

$

1,509

​

$

(64)

​

$

3,740

​

$

27

Synodex

​

 

(584)

​

 

124

​

 

(711)

​

 

487

Agility

​

 

(1,444)

​

 

83

​

 

(2,976)

​

 

(553)

Total Consolidated

​

$

(519)

​

$

143

​

$

53

​

$

(39)

​

​

​

​

​

​

​

​

​

    

September 30, 2021

    

December 31, 2020

Total assets:

 

​

  

 

​

  

DDS

​

$

29,640

​

$

27,767

Synodex

​

 

714

​

 

457

Agility

​

 

28,479

​

 

29,030

Total Consolidated

​

$

58,833

​

$

57,254

​

​

​

​

​

​

​

​

​

    

September 30, 2021

    

December 31, 2020

Goodwill:

 

​

  

 

​

  

Agility

​

$

2,143

​

$

2,150

Total Consolidated

​

$

2,143

​

$

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 Nine Months Ended

​

​

September 30,

​

September 30, 

​

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

United States

​

$

9,467

​

$

6,613

​

$

26,761

​

$

19,561

United Kingdom

​

 

2,912

​

 

2,832

​

 

8,709

​

 

8,284

The Netherlands

​

 

1,750

​

 

1,704

​

 

5,012

​

 

5,003

Canada

​

 

1,469

​

 

1,434

​

 

4,556

​

 

4,304

Others - principally Europe

​

 

1,852

​

 

1,970

​

 

5,428

​

 

5,794

Totals

​

$

17,450

​

$

14,553

​

$

50,466

​

$

42,946

​

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

​

​

​

​

​

​

​

​

​

    

September 30,

    

December 31, 

​

 

2021

 

2020

United States

​

$

4,367

​

$

4,045

​

​

 

  

​

 

  

Foreign countries:

​

 

  

​

 

  

Canada

​

 

9,238

​

 

9,044

Philippines

​

 

4,162

​

 

4,545

United Kingdom

​

 

1,577

​

 

1,759

India

​

 

1,140

​

 

930

Sri Lanka

​

 

194

​

 

319

Israel

​

 

-

​

 

1

Total foreign

​

 

16,311

​

 

16,598

Totals

​

$

20,678

​

$

20,643

​

Long-lived assets include the unamortized balance of right-of-use assets amounting to $5.9 million and $6.6 million as of September 30, 2021 and December 31, 2020, respectively.

One client in the DDS segment generated approximately 10% and 13% of the Company’s total revenues for the three months ended September 30, 2021 and 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 46% and 55% of the Company’s total revenues for the three months ended September 30, 2021 and 2020, respectively. One client in the DDS segment generated approximately 11% and 14% of the Company's total revenues for the nine months ended September 30, 2021 and 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 47% and 54% of the Company’s total revenues for the nine months ended September 30, 2021 and 2020, respectively.

As of September 30, 2021, approximately 44% of the Company’s accounts receivable was from foreign (principally European) clients and 34% 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.