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Segment reporting and concentrations
 3 Months Ended
Mar. 31, 2025
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 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, the 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):

​

​

​

​

​

​

​

​

​

    

March 31, 2025

    

December 31, 2024*

Total assets:

 

​

  

 

​

  

DDS

​

$

102,723

​

$

91,588

Synodex

​

 

4,743

​

 

4,790

Agility(1)

​

 

17,744

​

 

17,071

Total Consolidated

​

$

125,210

​

$

113,449

​

*Prior period segment assets of DDS, Synodex and Agility segments have been reclassified to align with the current period presentation, with no impact on the Company’s consolidated results.

(1)Agility assets include goodwill of $2.0 million for each of the periods ended March 31, 2025 and December 31, 2024.
(2)Segment assets consist of cash, receivables, prepaid and other assets, property and equipment, right of-use-assets, deferred income tax and intangibles.

The table below shows segment information for other significant income statement items (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2025

​

   

​

DDS

​

​

Synodex

   

Agility

   

Total

Revenues

 

$

50,831

 

$

2,013

​

$

5,500

​

$

58,344

Direct operating costs (1) (3)

​

​

31,102

​

​

1,461

​

​

2,529

​

​

35,092

Gross profit

​

 

19,729

​

 

552

​

​

2,971

​

​

23,252

Selling and administrative expenses (2) (4)

​

 

11,594

​

 

286

​

​

3,100

​

​

14,980

Segment operating income

​

​

8,135

​

​

266

​

​

(129)

​

​

8,272

Interest income, net

​

 

(127)

​

 

-

​

​

-

​

​

(127)

Income (loss) before provision for income taxes

​

$

8,262

​

$

266

​

$

(129)

​

$

8,399

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended March 31, 2024

​

​

DDS

    

Synodex

    

Agility

    

Total

Revenues

 

$

19,705

 

$

1,871

​

$

4,928

​

$

26,504

Direct operating costs (1) (3)

​

​

13,147

​

​

1,472

​

​

2,250

​

​

16,869

Gross profit

​

​

6,558

​

​

399

​

​

2,678

​

​

9,635

Selling and administrative expenses (2) (4)

​

​

5,795

​

​

123

​

​

2,387

​

​

8,305

Segment operating income

​

​

763

​

​

276

​

​

291

​

​

1,330

Interest (income) expense, net

​

​

(85)

​

​

-

​

​

1

​

​

(84)

Income before provision for income taxes

​

$

848

​

$

276

​

$

290

​

$

1,414

​

(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, recruitment costs 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.

Revenues for the three-month periods ended March 31, 2025, and 2024 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

​

March 31, 

​

    

2025

    

2024

United States

​

$

48,897

​

$

17,872

Canada

​

 

2,723

​

 

2,226

United Kingdom

​

 

2,426

​

 

2,249

The Netherlands

​

​

2,165

​

​

2,039

Others - principally other European countries

​

 

2,133

​

 

2,118

Totals

​

$

58,344

​

$

26,504

​

Long-lived assets as of March 31, 2025 and December 31, 2024 by geographic region were comprised of (in thousands):

​

​

​

​

​

​

​

​

​

    

March 31, 

    

December 31, 

​

 

2025

 

2024

United States

​

$

10,633

​

$

10,182

​

​

 

​

​

 

​

Foreign countries:

​

 

​

​

 

​

Canada

​

 

6,214

​

 

6,265

United Kingdom

​

 

784

​

 

806

Philippines

​

 

3,606

​

 

3,532

India

​

 

2,367

​

 

2,251

Sri Lanka

​

 

621

​

 

587

Israel

​

 

74

​

 

63

Germany

​

​

4

​

​

4

Total foreign

​

 

13,670

​

 

13,508

Totals

​

$

24,303

​

$

23,690

​

Long-lived assets include the unamortized balance of right-of-use assets amounting to $4.0 million and $4.2 million as of March 31, 2025 and December 31, 2024, respectively.

One customer in the DDS segment generated approximately 61% and 24% of the Company’s total revenues for the three months ended March 31, 2025 and 2024, respectively. No other customer accounted for 10% or more of total revenues during these periods. Further revenues from non-U.S. customers accounted for 16% and 33% of the Company’s total revenues for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, approximately 17% of the Company’s accounts receivable was due from foreign (principally European) customers and 51% of the Company’s accounts receivable was due from one customer. As of December 31, 2024, approximately 16% of the Company’s accounts receivable was due from foreign (principally European) customers and 61% of the Company’s accounts receivable was due from two customers. No other customer accounted for 10% or more of the accounts receivable as of March 31, 2025 and December 31, 2024.