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Concentrations
12 Months Ended
Dec. 31, 2016
Risks and Uncertainties [Abstract]  
Concentrations

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 twelve months ended December 31, 2016, the Company’s two largest customers, Franklin County Data Center a direct end user and Tiburon, Inc. a reseller, accounted for approximately 11% and 10%, respectively, of the Company’s revenues for that period. For the twelve months ended December 31, 2015, the Company’s two largest customers, Tiburon, Inc., a reseller, and Washington State Patrol a direct end user, accounted for approximately 10% and 5%, respectively, of the Company’s revenues for that period.

 

For the twelve months ended December 31, 2016 and 2015, government contracts represented approximately 40% and 42% of the Company’s net revenues, respectively. A significant portion of the Company’s sales to Resellers represent ultimate sales to government agencies.

 

As of December 31, 2016, accounts receivable concentrations from the Company’s three largest customers were 20%, 19%, and 16% of gross accounts receivable, respectively, and 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 three largest customers at December 31, 2016 has been partially collected.