Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

SEGMENT INFORMATION

13. SEGMENT INFORMATION

Andrea follows the provisions of ASC 280 “Segment Reporting” (“ASC 280”). Reportable operating segments are determined based on Andrea’s management approach. The management approach, as defined by ASC 280, is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making operating decisions and assessing performance. While Andrea’s results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker manages the enterprise in two segments: (i) Patent Monetization; and (ii) Andrea DSP Microphone and Audio Software Products. Patent Monetization includes Monetization Revenues (as defined in our Revenue Sharing Agreement). Andrea DSP Microphone and Audio Software Products primarily include products based on the use of some, or all, of the following technologies: Andrea Digital Super Directional Array microphone technology (“DSDA”), Andrea Direction Finding and Tracking Array microphone technology (“DFTA”), Andrea PureAudio noise filtering technology, and Andrea EchoStop, an advanced acoustic echo cancellation technology. The following represents selected consolidated financial information for Andrea’s segments for the years ended December 31, 2015 and 2014:

			Andrea DSP
			Microphone and
	Patent		Audio Software
2015 Twelve Month Segment Data	Monetization		Products			Total 2015
Net product revenues	$	-	$	388,298		$	388,298
License revenues		12,104,958		741,626			12,846,584
Income (loss) from operations		3,595,645		(908,432	)		2,687,213
Depreciation and amortization		28,835		54,286			83,121
Purchases of property and equipment		-		18,443			18,443
Purchases of patents and trademarks		14,434		14,434			28,868
Assets		2,278,587		6,282,269			8,560,856
Total long lived assets		172,677		259,642			432,319

			Andrea DSP
			Microphone and
	Patent		Audio Software
2014 Twelve Month Segment Data	Monetization		Products			Total 2014
Net product revenues	$	-	$	326,647		$	326,647
License revenues		4,557		892,358			896,915
Loss (income) from operations		2,463,461		(149,831	)		2,313,630
Depreciation and amortization		22,023		40,597			62,620
Purchases of patents and trademarks		46,047		46,046			92,093
Assets		187,078		4,384,542			4,571,620
Total long lived assets		187,078		281,051			468,129

Management of Andrea assesses assets and non-operating income statement data on a consolidated basis only. International revenues are based on the country in which the end-user is located. For the years ended December 31, 2015 and 2014, and as of each respective year-end, total revenues and accounts receivable by geographic area are as follows:

Geographic Data	2015		2014
Total Revenues:
United States	$	2,498,721	$	191,103
Foreign(1)		10,736,161		1,032,459
	$	13,234,882	$	1,223,562
Accounts receivable:
United States	$	1,788,500	$	40,546
Foreign		113,888		198,268
	$	1,902,388	$	238,814

(1) Total revenue from the People’s Republic of China and Singapore represented 81% and 84% of total revenues for the year ended December 31, 2015 and 2014, respectively.