| Reconciliation of Assets from Segment to Consolidated |
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. |
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| Segment information for other significant income statement |
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. |
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| Schedule of revenue by geographic region |
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 |
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| Schedule of long-lived assets by geographic region |
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 |
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