SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

14. 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, 2020 and 2019:

2020 Twelve Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			Total 2020
Net product revenues	$	-		$	1,295,833		$	1,295,833
Service related revenues		-			45,200			45,200
License revenues		554			13,776			14,330
Loss from operations		(362,254	)		(392,942	)		(755,196	)
Depreciation and amortization		18,908			33,323			52,231
Purchases of property and equipment		-			5,989			5,989
Purchases of patents and trademarks		9,651			9,652			19,303
Assets		279,437			930,467			1,209,904
Total long lived assets		106,296			333,379			439,675
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			207,333			322,895

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, 2020 and 2019, and as of each respective year-end, total revenues and accounts receivable by geographic area were as follows:

Geographic Data	2020		2019
Total Revenues:
United States	$	1,043,384	$	1,420,447
Foreign(1)		311,979		474,793
	$	1,355,363	$	1,895,240
Accounts receivable:
United States	$	157,725	$	218,935
Foreign		25,146		159,244
	$	182,871	$	378,179

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