SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

2019 Twelve Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			Total 2019
Net product revenues	$	-		$	1,852,322		$	1,852,322
Service related revenues		-			17,271			17,271
License revenues		950			24,697			25,647
Loss from operations		(397,200	)		(79,428	)		(476,628	)
Depreciation and amortization		24,220			53,141			77,361
Purchases of patents and trademarks		8,369			8,368			16,737
Assets		257,685			1,031,786			1,289,471
Total long lived assets		115,562			141,721			257,283

2018 Twelve Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			Total 2018
Net product revenues	$	-		$	1,391,335		$	1,391,335
Service related revenues		-			38,999			38,999
License revenues		1,241			32,959			34,200
Loss from operations		(394,382	)		(495,803	)		(890,185	)
Depreciation and amortization		34,250			63,800			98,050
Purchases of patents and trademarks		23,453			23,454			46,907
Purchases of property and equipment		-			24,309			24,309
Assets		287,206			1,231,802			1,519,008
Total long lived assets		131,410			186,497			317,907

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, 2019 and 2018, and as of each respective year-end, total revenues and accounts receivable by geographic area were as follows:

Geographic Data	2019		2018
Total Revenues:
United States	$	1,420,447	$	1,108,749
Foreign⁽¹⁾		474,793		355,785
	$	1,895,240	$	1,464,534
Accounts receivable:
United States	$	218,935	$	293,978
Foreign		159,244		124,703
	$	378,179	$	418,681

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(1)	Net revenues to any one foreign country did not exceed 10% for the year ended December 31, 2019 or 2018.