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Segment reporting and concentrations
 9 Months Ended
Sep. 30, 2022
Segment reporting and concentrations  
Segment reporting and concentrations

10.           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 AI-enabled software platforms and managed services to companies that require high-quality data for training AI and machine learning (ML) algorithms, and AI digital transformation solutions to help companies apply AI/ML to real-world problems relating to analyzing and deriving insights from documents. In conjunction with AI digital transformation, the Company often provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data compliance, and master data management.

The Synodex segment provides an industry platform that transforms medical records into useable digital data organized in accordance with its proprietary data models or customer data models.

The Agility segment provides an industry 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 revenue is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel.

Revenues from external customers, segment operating profit (loss), and other reportable segment information are as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended September 30, 

​

For the Nine Months Ended September 30, 

​

    

2022

    

2021

    

2022

    

2021

Revenues:

 

​

  

 

​

  

​

​

  

 

​

  

DDS

​

$

12,852

​

$

13,237

​

$

42,944

​

$

37,997

Synodex

​

 

1,762

​

 

983

​

 

5,376

​

 

2,888

Agility

​

 

3,833

​

 

3,230

​

 

11,306

​

 

9,581

Total Consolidated

​

$

18,447

​

$

17,450

​

$

59,626

​

$

50,466

​

​

 

​

​

 

​

​

 

​

​

 

​

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

​

 

​

​

 

​

​

 

​

​

 

​

DDS

​

$

135

​

$

1,544

​

$

1,516

​

$

3,924

Synodex

​

 

(977)

​

 

(657)

​

 

(2,796)

​

 

(878)

Agility

​

 

(2,216)

​

 

(1,406)

​

 

(7,474)

​

 

(2,993)

Total Consolidated

​

$

(3,058)

​

$

(519)

​

$

(8,754)

​

$

53

​

​

 

​

​

 

​

​

 

​

​

 

​

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

​

 

​

​

 

​

​

 

​

​

 

​

DDS

​

$

(59)

​

$

1,445

​

$

987

​

$

3,676

Synodex

​

 

(778)

​

 

(584)

​

 

(2,318)

​

 

(711)

Agility

​

 

(2,221)

​

 

(1,380)

​

 

(7,423)

​

 

(2,912)

Total Consolidated

​

$

(3,058)

​

$

(519)

​

$

(8,754)

​

$

53

​

​

​

​

​

​

​

​

​

    

September 30, 2022

    

December 31, 2021

Total assets:

 

​

  

 

​

  

DDS

​

$

26,542

​

$

38,180

Synodex

​

 

3,294

​

 

1,753

Agility

​

 

17,973

​

 

19,284

Total Consolidated

​

$

47,809

​

$

59,217

​

​

​

​

​

​

​

​

​

​

    

September 30, 2022

    

December 31, 2021

Goodwill:

 

​

  

 

​

  

Agility

​

$

1,982

​

$

2,143

Total

​

$

1,982

​

$

2,143

​

(1)Before elimination of any inter-segment profits
(2)After elimination of any inter-segment profits

The table below shows intersegment revenues which are eliminated in consolidation (in thousands).

​

​

​

​

​

​

​

​

​

​

    

For the Three Months Ended September 30,

    

For the Nine Months Ended September 30,

​

​

2022

​

2021

​

2022

​

2021

Revenues of DDS Segment from:

 

  

 

  

 

  

 

  

Synodex

 

2,119

 

1,113

 

6,167

 

2,559

Agility

 

425

 

411

 

1,274

 

1,229

Totals

 

2,544

 

1,524

 

7,441

 

3,788

​

Revenues for the period ended September 30, 2022 and 2021 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Nine Months Ended

​

​

September 30, 

​

September 30, 

​

    

2022

    

2021

    

2022

    

2021

United States

​

$

11,904

​

$

9,467

​

$

37,843

​

$

26,761

United Kingdom

​

 

2,677

​

 

2,912

​

 

8,312

​

 

8,709

The Netherlands

​

 

1,734

​

 

1,750

​

 

5,105

​

 

5,012

Canada

​

 

579

​

 

1,469

​

 

3,234

​

 

4,556

Others - principally Europe

​

 

1,553

​

 

1,852

​

 

5,132

​

 

5,428

Totals

​

$

18,447

​

$

17,450

​

$

59,626

​

$

50,466

​

Long-lived assets as of September 30, 2022 and December 31, 2021 by geographic region were comprised of (in thousands):

​

​

​

​

​

​

​

​

​

    

September 30, 

    

December 31, 

​

 

2022

 

2021

United States

​

$

6,747

​

$

4,578

​

​

 

​

​

 

​

Foreign countries:

​

 

​

​

 

​

Canada

​

 

7,669

​

 

9,280

United Kingdom

​

 

1,139

​

 

1,538

Philippines

​

 

3,784

​

 

4,027

India

​

 

1,364

​

 

1,481

Sri Lanka

​

 

136

​

 

154

Israel

​

 

2

​

 

-

Total foreign

​

 

14,094

​

 

16,480

Totals

​

$

20,841

​

$

21,058

​

Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.2 million and $5.6 million as of September 30, 2022 and December 31, 2021, respectively.

No customer generated 10% or more of the Company’s total revenues for the three months ended September 30, 2022. One customer in the DDS segment generated approximately 10% of the Company’s total revenues for the three months ended September 30, 2021. Further, revenues from non-U.S. customers accounted for 35% and 46% of the Company’s total revenues for the three months ended September 30, 2022 and 2021, respectively.

One customer in the DDS segment generated approximately 13% and 11%  of the Company’s total revenues for the nine months ended September 30, 2022 and 2021, respectively. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 37% and 47% of the Company’s total revenues for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, approximately 47% of the Company’s accounts receivable was from foreign (principally European) customers and 24% of the Company’s accounts receivable was due from two customers. As of December 31, 2021, approximately 37% of the Company’s accounts receivable was from foreign (principally European) customers and 19% of the Company’s accounts receivable was due from one customer. No other customer accounted for 10% or more of the accounts receivable as of September 30, 2022 and December 31, 2021.