13. 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, 2016, the Company’s two largest customers, Laser Systems (“Laser Systems”), a Reseller and Tiburon (“Tiburon”), a Reseller, accounted for 9% and 8%, respectively, of the Company’s revenue for that period. For the three months ended June 30, 2015, the Company’s two largest customers Bruner Corp (“Bruner”), a direct client and ComDoc, (“ComDoc”), a reseller, accounted for 10% and 9%, respectively, of the Company’s revenue for that period. For the six months ended June 30, 2016, the Company’s two largest customers, Laser Systems and Tiburon, accounted for approximately 10% and 9%, respectively, of the Company’s revenues for that period. For the six months ended June 30, 2015, the Company’s two largest customers Tiburon, a reseller, and Bruner, a direct client accounted for approximately 12% and 5%, respectively, of the Company’s revenues for that period.

For the three months ended June 30, 2016 and 2015, government contracts represented approximately 39% and 39% 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 six months ended June 30, 2016 and 2015 government contracts represented approximately 42% and 43%, respectively, of the Company’s net revenue.

As of June 30, 2016, accounts receivable concentrations from the Company’s two largest customers were 16% and 13% of gross accounts receivable, respectively. As of December 31, 2015, accounts receivable concentrations from the Company’s three largest customers were 18 %, 13 % and 12 % of gross accounts receivable, respectively. Accounts receivable balances from the Company’s two largest customers at June 30, 2016 have since been partially collected.