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Concentrations
6 Months Ended
Jun. 30, 2017
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 three months ended June 30, 2017, the Company’s two largest customers, Franklin County Data Center (“FCDC”), a direct client and Ohio Department of Commerce (“ODC”), a direct client, accounted for 10% and 9%, respectively, of the Company’s revenue for that period. 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 six months ended June 30, 2017, the Company’s two largest customers, Tiburon, a reseller and FCDC, a direct client, accounted for approximately 10% and 9%, respectively, of the Company’s revenues for that period. For the six months ended June 30, 2016, the Company’s two largest customers Laser Systems, a reseller, and Tiburon, a reseller, accounted for approximately 10% and 9%, respectively, of the Company’s revenues for that period.

 

For the three months ended June 30, 2017 and 2016, government contracts represented approximately 45% 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, 2017 and 2016 government contracts represented approximately 40% and 42%, respectively, of the Company’s net revenue.

 

As of June 30, 2017, accounts receivable concentrations from the Company’s four largest customers were 18%,13%, 12% and 11% of gross accounts receivable, respectively. 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. Accounts receivable balances from the Company’s two largest customers at June 30, 2017 have since been partially collected.