Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

Note 8. Segment Information

Andrea follows the provisions of ASC 280 “Segment Reporting.” 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 also 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 Amended and Restated 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 unaudited condensed consolidated interim financial information for Andrea’s segments for the three month periods ended March 31, 2020 and 2019 and the fiscal year ended December 31, 2019.

2020 Three Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2020 Three Month Segment Data
Net product revenues	$	-		$	377,755		$	377,755
License revenues		139			4,757			4,896
Operating loss		(89,132	)		(89,156	)		(178,288	)
Depreciation and amortization		5,517			10,014			15,531
Assets		319,453			924,229			1,243,682
Total long lived assets		115,562			138,397			253,959
Purchases of property and equipment		-			5,989			5,989
Payments for patents and trademarks		3,109			3,109			6,218
2019 Three Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2019 Three Month Segment Data
Net product revenues	$	-		$	422,680		$	422,680
Service related revenues		-			7,800			7,800
License revenues		382			6,978			7,360
Operating loss		(97,456	)		(82,780	)		(180,236	)
Depreciation and amortization		7,318			14,550			21,868
Payments for patents and trademarks		2,045			2,046			4,091
December 31, 2019 Year End Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2019 Year End Segment Data
Assets	$	257,685		$	1,031,786		$	1,289,471
Total long lived assets		115,562			141,721			257,283

Management assesses 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 three-month periods ended March 31, 2020 and 2019, total revenues by geographic area were as follows:

Geographic Data	March 31, 2020		March 31, 2019
Total revenues:
United States	$	288,338	$	383,262
Foreign(1)		94,313		54,578
	$	382,651	$	437,840

____________________

(1) Net revenues to any one foreign country did not exceed 10% for the three months ended March 31, 2020 or March 31, 2019.

As of March 31, 2020 and December 31, 2019, accounts receivable by geographic area were as follows:

Geographic Data	March 31, 2020		December 31, 2019
Accounts receivable:
United States	$	210,842	$	218,935
Foreign		123,729		159,244
	$	334,571	$	378,179