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Concentrations
 9 Months Ended
Sep. 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 September 30, 2012, the Company’s two largest customers, FormFast, Inc. (“FormFast”) and Tiburon, Inc. (“Tiburon”), which are both Resellers, accounted for approximately 12% and 7%, respectively, of the Company’s revenues for that period. For the three months ended September 30, 2011, the Company’ s two largest customer, Ohio Office of Budget Management (“OBM”) and Careworks (“Careworks”), accounted for approximately 31% and 13% of the Company’s revenues for that period. For the nine months ended September 30, 2012, the Company’s two largest customers, Tiburon and Lexmark International, Inc. (“Lexmark”), which are both Resellers, accounted for approximately 23% and 8%, respectively, of the Company’s revenues for that period. For the nine months ended September 30, 2011, the Company’s two largest customers, OBM and Washington State Patrol ("WSP") which are both direct customers, accounted for approximately 13% and 12% of the Company’s revenue for the period.

 

For the three months ended September 30, 2012 and 2011, government contracts represented approximately 65% and 70% of the Company’s net revenues, respectively. A significant portion of the Company’s sales to Tiburon and Lexmark represent ultimate sales to government agencies. For the nine months ended September 30, 2012 and 2011 government contracts represented approximately 43% and 64% of the Company’s net revenue respectively.

 

As of September 30, 2012, accounts receivable concentrations from the Company’s three largest customers were 0%, 7% and 13% of gross accounts receivable, respectively, and as of September 30, 2011, accounts receivable concentrations from the Company’s two largest customers were 1% and 0% of gross accounts receivable, respectively. Accounts receivable balances from the Company’s three largest customers at September 30, 2012 have since been fully collected.