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Concentrations
 6 Months Ended
Jun. 30, 2012
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block]

14. Concentrations

 

Revenues from the Company’s services to a limited number of customers have accounted for a substantial percentage of the Company’s total revenues. For the three months ended June 30, 2012, the Company’s two largest customers, Tiburon, Inc. (“Tiburon”) and Lexmark International, Inc. (“Lexmark”), which are both Resellers, accounted for approximately 39% and 11%, respectively, of the Company’s revenues for that period. For the three months ended June 30, 2011, the Company’ s two largest customer, Careworks (“CareWorks”) and Washington State Patrol (“WSP”), accounted for approximately 12% and 28% of the Company’s revenues for that period. For the six months ended June 30, 2012, the Company’s two largest customers, Tiburon, and Lexmark, which are both Resellers, accounted for approximately 33% and 12%, respectively, of the Company’s revenues for that period. For the six months ended June 30, 2011, the Company’s two largest customers, Tiburon and WSP, of which Tiburon is a Reseller and WSP a direct customer, accounted for approximately 11% and 20% respectively, of the Company’s revenue for the period.

 

For the three months ended June 30, 2012 and 2011, government contracts represented approximately 32% and 60% of the Company’s total revenues, respectively. A significant portion of the Company’s sales to Tiburon and Lexmark represent ultimate sales to government agencies. For the six months ended June 30, 2012 and 2011 government contracts represented approximately 35% and 55%, respectively, of the Company’s net revenue.

 

As of June 30, 2012, accounts receivable concentrations from the Company’s two largest customers were 28% and 5% of gross accounts receivable, respectively, and as of June 30, 2011, accounts receivable concentrations from the Company’s two largest customers were 9% and 18% of gross accounts receivable, respectively. Accounts receivable balances from the Company’s two largest customers at June 30, 2012 have subsequently been partly collected.