12. 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, 2014, the Company’s two largest customers, Tiburon (“Tiburon”), a Reseller, and Alabama Department of Insurance (“ALDOI”), a direct client, accounted for 16% and 10%, respectively, of the Company’s total revenue for that period. For the three months ended September 30, 2013, the Company’s two largest customers, Clearwater COGS, a direct client and Tiburon, a Reseller, accounted for approximately 8% and 8%, respectively, of the Company’s total revenue for that period. For the nine months ended September 30, 2014, the Company’s two largest customers, Tiburon, and Washington State Patrol (“WSP”), accounted for approximately 14% and 7%, respectively, of the Company’s total revenues for that period. For the nine months ended September 30, 2013, the Company’s two largest customers, Tiburon and Ohio Auditor of State (“Ohio AOS”) which are accounted for approximately 8% and 6%, respectively, of the Company’s total revenues for that period.

For the three months ended September 30, 2014 and 2013, government contracts represented approximately 50% and 60% of the Company’s total revenues, respectively. A significant portion of the Company’s sales to Tiburon represent ultimate sales to government agencies. For the nine months ended September 30, 2014 and 2013 government contracts represented approximately 49% and 55%, respectively, of the Company’s total revenue.

As of September 30, 2014, accounts receivable concentrations from the Company’s three largest customers were 45%, 16% and 11% of gross accounts receivable, respectively, and as of December 31, 2013, accounts receivable concentrations from the Company’s four largest customers were 24%, 21%, 17% and 12% of gross accounts receivable, respectively. Accounts receivable balances form the Company’s three largest customers at September 30, 2014 have been partially collected.