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Segment reporting and concentrations | 12 Months Ended
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Dec. 31, 2024
Segment reporting and concentrations |
Segment reporting and concentrations | 14. 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 data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. The DDS segment also provides a range of data engineering support services including data transformation, data curation, data hygiene, data consolidation, data extraction, 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 revenues is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, Israel, United States and the United Kingdom. The Company’s chief operating decision maker (CODM) is the senior executive committee that includes the chief executive officer, chief operating officer, and the chief financial officer (interim). The U.S. GAAP measures used by the Company’s CODM to evaluate segment performance and allocate resources—such as employees, property, and financial or capital resources during the annual budgeting and forecasting process, are Revenues, Gross Profit and Income before provision for income taxes. Performance results are monitored, reviewed, and measured monthly and quarterly by comparing budget and forecast to actual results for profit measures, assessing returns on investment, compensation decisions and changing strategies, if required. The accounting policies used by the DDS, Synodex and Agility segments are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the balance sheet as total consolidated assets shown in the table below (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31,
​ |  | 2024 |  | 2023
Total assets: |  | ​ |  |  | ​ |
DDS | ​ | $ | 87,165 | ​ | $ | 37,232
Synodex | ​ |  | 4,983 | ​ |  | 3,379
Agility (1) | ​ |  | 21,301 | ​ |  | 18,820
Total Consolidated | ​ | $ | 113,449 | ​ | $ | 59,431
​ (1)Agility assets include goodwill of $2.0 million and $2.1 million as of December 31, 2024 and 2023, respectively (2)Segment assets consist of cash, receivables, prepaid and other current assets, property and equipment, and intangibles. ​ The table below shows segment information for other significant income statement items (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, 2024
​ |  | DDS |  | Synodex |  | Agility |  | Total
Revenues | ​ | $ | 141,098 | ​ | $ | 7,864 | ​ | $ | 21,499 | ​ | $ | 170,461
Direct operating costs (1) (3) | ​ |  | 88,186 | ​ |  | 5,763 | ​ |  | 9,438 | ​ |  | 103,387
Gross profit | ​ | ​ | 52,912 | ​ | ​ | 2,101 | ​ | ​ | 12,061 | ​ | ​ | 67,074
Selling and administrative expenses (2) (4) | ​ |  | 31,685 | ​ |  | 194 | ​ |  | 10,859 | ​ |  | 42,738
Segment operating income | ​ | ​ | 21,227 | ​ | ​ | 1,907 | ​ | ​ | 1,202 | ​ | ​ | 24,336
Interest expense (income), net | ​ | ​ | (153) | ​ | ​ | - | ​ | ​ | 4 | ​ |  | (149)
Income before provision for income taxes | ​ | $ | 21,380 | ​ | $ | 1,907 | ​ | $ | 1,198 | ​ | $ | 24,485
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, 2023
​ |  | DDS |  | Synodex |  | Agility |  | Total
Revenues |  | $ | 61,576 |  | $ | 7,511 |  | $ | 17,688 |  | $ | 86,775
Direct operating costs (1) (3) |  | ​ | 40,057 |  | ​ | 6,712 |  | ​ | 8,713 |  | ​ | 55,482
Gross profit | ​ | ​ | 21,519 | ​ | ​ | 799 | ​ | ​ | 8,975 | ​ | ​ | 31,293
Selling and administrative expenses (2) (4) |  | ​ | 20,085 |  | ​ | 580 |  | ​ | 10,310 |  | ​ | 30,975
Segment operating income | ​ | ​ | 1,434 | ​ | ​ | 219 | ​ | ​ | (1,335) | ​ | ​ | 318
Interest expense, net | ​ |  | 174 | ​ |  | - | ​ |  | 5 | ​ |  | 179
Income before provision for income taxes | ​ | $ | 1,260 | ​ | $ | 219 | ​ | $ | (1,340) | ​ | $ | 139
​
(1) | Direct operating costs consist of direct and indirect labor costs, occupancy costs, data center hosting fees, cloud services, content acquisition costs, depreciation and amortization, travel, telecommunications, computer services and supplies, realized (gain) loss on forward contracts, foreign currency revaluation (gain) loss, and other direct expenses that are incurred in providing services to our customers.
(2) | Selling and administrative expenses consist of payroll and related costs including commissions, bonuses, and stock-based compensation; marketing, advertising, trade conferences and related expenses; new services research and related software development expenses, software subscriptions, professional and consultant fees, provision for credit losses and other administrative overhead expenses.
(3) | Includes non-cash expenses which consist mainly of depreciation, amortization of capitalized software development costs and stock-based compensation expense.
(4)Includes non-cash expenses which consist mainly of stock-based compensation expense. Long-lived assets as of December 31, 2024 and 2023 by geographic region were comprised of (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31,
​ | ​ | 2024 | ​ | 2023
United States | ​ | $ | 10,182 | ​ | $ | 9,101
Foreign countries: | ​ |  | ​ | ​ |  | ​
Canada | ​ |  | 6,265 | ​ |  | 7,328
United Kingdom | ​ |  | 806 | ​ |  | 1,028
Philippines | ​ |  | 3,532 | ​ |  | 3,484
India | ​ |  | 2,251 | ​ |  | 1,791
Sri Lanka | ​ |  | 587 | ​ |  | 423
Israel | ​ |  | 63 | ​ |  | 13
Germany | ​ |  | 4 | ​ |  | -
Total foreign | ​ |  | 13,508 | ​ |  | 14,067
Totals | ​ | $ | 23,690 | ​ | $ | 23,168
​ Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.2 million and $5.1 million as of December 31, 2024 and December 31, 2023, respectively. ​ One customer in the DDS segment generated approximately 48% of the Company’s total revenues in the fiscal year ended December 31, 2024. Another customer in the DDS segment generated approximately 10% of the Company’s total revenues in the fiscal year ended December 31, 2023. No other customer accounted for 10% or more of total revenues during these periods. Further, in the years ended December 31, 2024 and 2023, revenues from non-U.S. customers accounted for 21% and 37%, respectively, of the Company’s revenues. Revenues for each of the two years in the period ended December 31, 2024 and 2023 by geographic region (determined based upon customer domicile), were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended December 31,
​ | ​ | 2024 | ​ | 2023
United States | ​ | $ | 133,876 | ​ | $ | 54,430
United Kingdom | ​ |  | 10,006 | ​ |  | 10,766
The Netherlands | ​ |  | 8,059 | ​ |  | 7,291
Canada | ​ |  | 8,696 | ​ |  | 7,156
Others - principally other European countries | ​ |  | 9,824 | ​ |  | 7,132
Totals | ​ | $ | 170,461 | ​ | $ | 86,775
​ As of December 31, 2024, approximately 16% of the Company’s accounts receivable was due from foreign (principally European) customers and 61% of accounts receivable was due from two customers. As of December 31, 2023, approximately 31% of the Company’s accounts receivable was due from foreign (principally European) customers and 53% of accounts receivable was due from three customers. No other customer accounted for 10% or more of the accounts receivable as of December 31, 2024 and 2023.

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- Definition The entire disclosure for reporting segments including data and tables. 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