Segment reporting and concentrations

Segment information for other significant income statement

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


	Three Months Ended September 30, 2025
		DDS		Synodex	Agility		Total
Revenues	$	54,779	$	1,653	$	6,118	$	62,550
Direct operating costs ^{(1) (3)}		32,627		1,536		2,883		37,046
Gross profit		22,152		117		3,235		25,504
Selling and administrative expenses ^{(2) (4)}		10,246		161		3,338		13,745
Segment operating income (loss)		11,906		(44)		(103)		11,759
Interest income, net		(420)		-		-		(420)
Income (loss) before provision for income taxes	$	12,326	$	(44)	$	(103)	$	12,179


	Three Months Ended September 30, 2024
	DDS		Synodex		Agility		Total
Revenues	$	44,694	$	1,935	$	5,595	$	52,224
Direct operating costs ^{(1) (3)}		27,084		1,452		2,357		30,893
Gross profit		17,610		483		3,238		21,331
Selling and administrative expenses ^{(2) (4)}		6,996		102		2,812		9,910
Segment operating income		10,614		381		426		11,421
Interest (income) expense, net		(27)		-		1		(26)
Income before provision for income taxes	$	10,641	$	381	$	425	$	11,447


	Nine Months Ended September 30, 2025
	DDS		Synodex		Agility		Total
Revenues	$	156,186	$	5,731	$	17,370	$	179,287
Direct operating costs ^{(1) (3)}		94,905		4,615		7,988		107,508
Gross profit		61,281		1,116		9,382		71,779
Selling and administrative expenses ^{(2) (4)}		32,275		587		9,975		42,837
Segment operating income (loss)		29,006		529		(593)		28,942
Interest (income) expense, net		(1,125)		-		1		(1,124)
Income (loss) before provision for income taxes	$	30,131	$	529	$	(594)	$	30,066


	Nine Months Ended September 30, 2024
	DDS		Synodex		Agility		Total
Revenues	$	89,810	$	5,792	$	15,679	$	111,281
Direct operating costs ^{(1) (3)}		59,563		4,454		6,947		70,964
Gross profit		30,247		1,338		8,732		40,317
Selling and administrative expenses ^{(2) (4)}		18,988		365		7,882		27,235
Segment operating income		11,259		973		850		13,082
Interest (income) expense, net		(58)		-		3		(55)
Income before provision for income taxes	$	11,317	$	973	$	847	$	13,137

(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 and cloud service 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.

Schedule of long-lived assets by geographic region

Long-lived assets as of September 30, 2025 and December 31, 2024 by geographic region were comprised of (in thousands):


	September 30,		December 31,
	2025		2024
United States	$	12,455	$	10,182

Foreign countries:
Canada		6,247		6,265
United Kingdom		707		806
Philippines		4,500		3,532
India		2,637		2,251
Sri Lanka		817		587
Israel		60		63
Germany		4		4
Total foreign		14,972		13,508
Totals	$	27,427	$	23,690