Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 9. 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, 2021 and 2020 and the fiscal year ended December 31, 2020.

2021 Three Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2021 Three Month Segment Data
Net product revenues	$	-		$	423,215		$	423,215
License revenues		84			3,185			3,269
Operating loss		(84,146	)		(45,631	)		(129,777	)
Depreciation and amortization		3,759			5,415			9,174
Assets		332,092			1,029,381			1,361,473
Total long lived assets		102,718			316,492			419,210
Payments for patents and trademarks		180			180			360
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
Payments for patents and trademarks		3,109			3,109			6,218
December 31, 2020 Year End Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2020 Year End Segment Data
Assets	$	279,437		$	930,467		$	1,209,904
Total long lived assets		106,296			333,379			439,675

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, 2021 and 2020, total revenues by geographic area were as follows:

Geographic Data	March 31, 2021		March 31, 2020
Total revenues:
United States	$	247,514	$	288,338
Foreign(1)		178,970		94,313
	$	426,484	$	382,651

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(1) Net revenues from India represented 20% and 15% of total net revenues for the three months ended March 31, 2021 and March 31, 2020, respectively.

As of March 31, 2021 and December 31, 2020, accounts receivable by geographic area were as follows:

Geographic Data	March 31, 2021		December 31, 2020
Accounts receivable:
United States	$	130,465	$	127,567
Foreign		154,553		55,304
	$	285,018	$	182,871