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Concentrations
6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Concentrations
16. 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, 2020 the Company’s two largest customers, State of Michigan (“Michigan”), a direct client, and Quicken Loans, a direct client, accounted for 43% and 11% respectively, of the Company’s revenue for that period. For the three months ended June 30, 2019, the Company’s two largest customers, Careworks, a direct client, and Tiburon, a reseller, accounted for 10% and 9%, respectively, of the Company’s revenue for that period. For the six months ended June 30, 2020, the Company’s two largest customers, Michigan and Quicken Loans, accounted for 40% and 8%, respectively, of the Company’s revenues for that period. For the six months ended June 30, 2019, the Company’s two largest customers, Tiburon and Careworks, accounted for approximately 10% and 8%, respectively, of the Company’s revenues for that period.

 

For the three months ended June 30, 2020 and 2019, government contracts represented approximately 57% and 36% 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, 2020 and 2019 government contracts represented approximately 58% and 33%, respectively, of the Company’s net revenue.

 

As of June 30, 2020, accounts receivable concentrations from the Company’s two largest customers were 45% and 21% of gross accounts receivable, respectively. As of December 31, 2019, accounts receivable concentrations from the Company’s four largest customers were 25%, 25%, 16% and 12% of gross accounts receivable, respectively. Accounts receivable balances from the Company’s two largest customers at June 30, 2020 have since been partially collected.