CONCENTRATION OF RISK

6 Months Ended

Jun. 30, 2014



13.	CONCENTRATION OF RISK:

Included in technology development and support revenue in the accompanying statement of operations is $48,000 and $232,000 for the three months ended June 30, 2014 and 2013, respectively, and $117,000 and $861,000 for the six months ended June 30, 2014 and 2013, respectively, of revenue which was derived from contracts with United States government agencies. Revenues derived from contracts with United States government agencies represented less than 1% of the consolidated revenue for all periods presented.

Revenues and accounts receivable from the Company's largest non-government customers were as follows (in thousands):



	% of Revenues for the three months ended June 30,		% of Revenues for the six months ended June 30,		Accounts Receivable as of
Customer	2014	2013	2014	2013	June 30, 2014
A	62%	73%	52%	65%	$	9,501
B	16%	19%	22%	20%	$	1,556
C	14%	5%	18%	8%	$	8,384

Revenues from outside of North America represented nearly 100% and 99% of the consolidated revenue for the three months ended June 30, 2014 and 2013, respectively, and nearly 100% and 98% of the consolidated revenue for the six months ended June 30, 2014 and 2013, respectively. Revenues by geographic area are as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
Country	2014		2013		2014		2013
United States	$	164	$	329	330		1,084

South Korea	49,262		38,458		72,218		47,802
Japan	10,903		10,485		24,961		15,097
Other	3,798		87		4,456		352
All foreign locations	63,963		49,030		101,635		63,251
Total revenue	$	64,127	$	49,359	$	101,965	$	64,335

The Company attributes revenue to different geographic areas on the basis of the location of the customer.

Long-lived assets (net), by geographic area are as follows (in thousands):



	June 30, 2014		December 31, 2013
United States	$	16,778	$	14,660
Other	195		233
Total long-lived assets	$	16,973	$	14,893

Substantially all chemical materials were purchased from one supplier. See Note 7.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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