Segment Information

3 Months Ended

Mar. 31, 2022

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, 2022 and 2021 and the fiscal year ended December 31, 2021.

2022 Three Month Segment Data	Patent Monetization			Andrea DSP Microphone and Audio Software Products			2022 Three Month Segment Data
Net product revenues	$	-		$	509,468		$	509,468
License revenues		38			1,080			1,118
Operating loss		(66,562	)		(7,328	)		(73,890	)
Depreciation and amortization		4,518			7,748			12,266
Assets		214,569			912,790			1,127,359
Total long lived assets		92,582			280,801			373,383
Purchases of property and equipment		-			2,294			2,294

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
Payments for patents and trademarks		180			180			360

December 31, 2021 Year End Segment Data	Patent Monetization		Andrea DSP Microphone and Audio Software Products		2021 Year End Segment Data
Assets	$	188,717	$	949,727	$	1,138,444
Total long lived assets		97,100		298,487		395,587

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, 2022 and 2021, total revenues by geographic area were as follows:

Geographic Data	March 31, 2022		March 31, 2021
Total revenues:
United States	$	398,038	$	247,514
Foreign(1)		112,548		178,970
	$	510,586	$	426,484

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(1) Net revenues to any one foreign country did not exceed 10% for the three months ended March 31, 2022. Net revenues to India represented 20% of total net revenues for the three months ended March 31, 2021.

As of March 31, 2022 and December 31, 2021, accounts receivable by geographic area were as follows:

Geographic Data	March 31, 2022		December 31, 2021
Accounts receivable:
United States	$	93,721	$	134,695
Foreign		140,778		101,643
	$	234,499	$	236,338