Notes to Consolidated Financial Statements

Index Company Profile Financial Highlights Dear Fellow Shareholders Question and Answer with the CEO ASP Solutions HealtheWare HealthWeb Complementary Business Milestones Form 10-K Report of Independent Accountants Balance Sheets Statements of Operations Statements of Comprehensive Loss Statement of Stockholders' Equity (Deficit) Statements of Cash Flows Notes to Consolidated Financial Statements Valuation and Qualifying Accounts Corporate Information

NOTE 14 Segment Information    The Company has adopted SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." SFAS 131 requires enterprises to report information about operating segments in annual financial statements and selected information about reportable segments in interim financial reports issued to stockholders. It also establishes standards for related disclosures about products and services, geographic areas and major customers.    The Company operates in two reportable segments: recurring or multi-year contractually based revenue, and revenue generated via non-recurring agreements. The Company's chief operating decision maker evaluates performance and allocates resources based on gross margin for these segments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.    The Company's reportable segments are organized primarily by the nature of services provided. The reportable segments are managed separately because of the difference in marketing strategies, customer base and client approach. Financial information about segments is reported in the consolidated statements of operations. The Company does not identify assets by business segments.    The Company's assets are all located in the United States, and all sales were to customers located in the United States.    Recurring and non-recurring revenues by type of similar products and services are as follows: YEARS ENDED DECEMBER 31, ----------------------------- 2000 1999 1998 ------- ------- ------- ASP revenue................................................. $54,596 $19,448 $ 5,300 Software maintenance agreement revenue...................... 7,215 -- -- ------- ------- ------- Recurring revenue......................................... 61,811 19,448 5,300 ------- ------- ------- Consulting revenue.......................................... 26,051 13,478 6,131 Software license revenue.................................... 1,194 -- -- ------- ------- ------- Non-recurring revenue..................................... 27,245 13,478 6,131 ------- ------- ------- Total revenue............................................... $89,056 $32,926 $11,431 ======= ======= =======