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Segment reporting and concentrations | 6 Months Ended
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Jun. 30, 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): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | December 31, 2024*
Total assets: |  | ​ |  |  | ​ |
DDS | ​ | $ | 112,159 | ​ | $ | 91,588
Synodex | ​ |  | 4,828 | ​ |  | 4,790
Agility(1) | ​ |  | 15,636 | ​ |  | 17,071
Total Consolidated | ​ | $ | 132,623 | ​ | $ | 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 $2.1 million and $2.0 million for each of the periods ended June 30, 2025 and December 31, 2024, respectively.
(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 June 30, 2025
​ |  | ​ | DDS | ​ | ​ | Synodex |  | Agility |  | Total
Revenues |  | $ | 50,576 |  | $ | 2,065 | ​ | $ | 5,752 | ​ | $ | 58,393
Direct operating costs (1) (3) | ​ | ​ | 31,177 | ​ | ​ | 1,618 | ​ | ​ | 2,575 | ​ | ​ | 35,370
Gross profit | ​ |  | 19,399 | ​ |  | 447 | ​ | ​ | 3,177 | ​ | ​ | 23,023
Selling and administrative expenses (2) (4) | ​ |  | 10,430 | ​ |  | 140 | ​ | ​ | 3,542 | ​ | ​ | 14,112
Segment operating income (loss) | ​ | ​ | 8,969 | ​ | ​ | 307 | ​ | ​ | (365) | ​ | ​ | 8,911
Interest income, net | ​ |  | (577) | ​ |  | - | ​ | ​ | - | ​ | ​ | (577)
Income (loss) before provision for income taxes | ​ | $ | 9,546 | ​ | $ | 307 | ​ | $ | (365) | ​ | $ | 9,488
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, 2024
​ |  | DDS | ​ | Synodex | ​ | Agility | ​ | Total
Revenues | ​ | $ | 25,410 |  | $ | 1,986 |  | $ | 5,157 |  | $ | 32,553
Direct operating costs (1) (3) | ​ |  | 19,331 | ​ |  | 1,530 |  |  | 2,341 |  |  | 23,202
Gross profit | ​ |  | 6,079 | ​ |  | 456 |  |  | 2,816 |  |  | 9,351
Selling and administrative expenses (2) (4) | ​ |  | 6,197 | ​ |  | 140 |  |  | 2,683 |  |  | 9,020
Segment operating income (loss) | ​ |  | (118) | ​ |  | 316 |  |  | 133 |  |  | 331
Interest (income) expense, net | ​ |  | 54 | ​ |  | - |  |  | 1 |  |  | 55
Income (loss) before provision for income taxes | ​ | $ | (172) | ​ | $ | 316 |  | $ | 132 |  | $ | 276
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Six Months Ended June 30, 2025
​ | ​ | DDS |  | Synodex |  | Agility |  | Total
Revenues |  | $ | 101,406 |  | $ | 4,079 | ​ | $ | 11,252 | ​ | $ | 116,737
Direct operating costs (1) (3) | ​ | ​ | 62,279 | ​ | ​ | 3,079 | ​ | ​ | 5,104 | ​ | ​ | 70,462
Gross profit | ​ | ​ | 39,127 | ​ | ​ | 1,000 | ​ | ​ | 6,148 | ​ | ​ | 46,275
Selling and administrative expenses (2) (4) | ​ | ​ | 22,025 | ​ | ​ | 427 | ​ | ​ | 6,640 | ​ | ​ | 29,092
Segment operating income (loss) | ​ | ​ | 17,102 | ​ | ​ | 573 | ​ | ​ | (492) | ​ | ​ | 17,183
Interest (income) expense, net | ​ | ​ | (705) | ​ | ​ | - | ​ | ​ | 1 | ​ | ​ | (704)
Income (loss) before provision for income taxes | ​ | $ | 17,807 | ​ | $ | 573 | ​ | $ | (493) | ​ | $ | 17,887
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended June 30, 2024
​ | ​ | DDS | ​ | Synodex | ​ | Agility | ​ | Total
Revenues |  | $ | 45,116 |  | $ | 3,857 |  | $ | 10,084 |  | $ | 59,057
Direct operating costs (1) (3) | ​ |  | 32,479 | ​ |  | 3,002 | ​ |  | 4,590 | ​ |  | 40,071
Gross profit | ​ |  | 12,637 | ​ |  | 855 | ​ |  | 5,494 | ​ |  | 18,986
Selling and administrative expenses (2) (4) | ​ |  | 11,992 | ​ |  | 263 | ​ |  | 5,070 | ​ |  | 17,325
Segment operating income | ​ |  | 645 | ​ |  | 592 | ​ |  | 424 | ​ |  | 1,661
Interest (income) expense, net | ​ |  | (31) | ​ |  | — | ​ |  | 2 | ​ |  | (29)
Income before provision for income taxes | ​ | $ | 676 | ​ | $ | 592 | ​ | $ | 422 | ​ | $ | 1,690
​
(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 and six-month periods ended June 30, 2025, and 2024 by geographic region (determined based upon customer’s domicile), were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended | ​ | For the Six Months Ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
United States | ​ | $ | 48,563 | ​ | $ | 23,804 | ​ | $ | 97,460 | ​ | $ | 41,673
Canada | ​ |  | 2,955 | ​ |  | 2,284 | ​ |  | 5,678 | ​ |  | 4,510
United Kingdom | ​ |  | 2,470 | ​ |  | 2,364 | ​ |  | 4,897 | ​ |  | 4,614
The Netherlands | ​ | ​ | 2,277 | ​ | ​ | 2,005 | ​ | ​ | 4,442 | ​ | ​ | 4,044
Others - principally other European countries | ​ |  | 2,128 | ​ |  | 2,096 | ​ |  | 4,260 | ​ |  | 4,216
Totals | ​ | $ | 58,393 | ​ | $ | 32,553 | ​ | $ | 116,737 | ​ | $ | 59,057
​ Long-lived assets as of June 30, 2025 and December 31, 2024 by geographic region were comprised of (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, |  | December 31,
​ |  | 2025 |  | 2024
United States | ​ | $ | 10,859 | ​ | $ | 10,182
​ | ​ |  | ​ | ​ |  | ​
Foreign countries: | ​ |  | ​ | ​ |  | ​
Canada | ​ |  | 6,442 | ​ |  | 6,265
United Kingdom | ​ |  | 772 | ​ |  | 806
Philippines | ​ |  | 3,435 | ​ |  | 3,532
India | ​ |  | 2,257 | ​ |  | 2,251
Sri Lanka | ​ |  | 721 | ​ |  | 587
Israel | ​ |  | 66 | ​ |  | 63
Germany | ​ | ​ | 4 | ​ | ​ | 4
Total foreign | ​ |  | 13,697 | ​ |  | 13,508
Totals | ​ | $ | 24,556 | ​ | $ | 23,690
​ Long-lived assets include the unamortized balance of right-of-use assets amounting to $3.8 million and $4.2 million as of June 30, 2025 and December 31, 2024, respectively. One customer in the DDS segment generated approximately 58% and 38% of the Company’s total revenues for the three months ended June 30, 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 17% and 27% of the Company’s total revenues for the three months ended June 30, 2025 and 2024, respectively. One customer in the DDS segment generated approximately 59% and 31% of the Company’s total revenues for the six months ended June 30, 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 17% and 29% of the Company’s total revenues for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, approximately 20% of the Company’s accounts receivable was due from foreign (principally European) customers and 60% 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 June 30, 2025 and December 31, 2024.

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