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Concentrations
9 Months Ended
Sep. 30, 2024
Risks and Uncertainties [Abstract]  
Concentrations

12. Concentrations

 

Revenues from a limited number of customers have accounted for a substantial percentage of our total revenues. During the three months ended September 30, 2024, our two largest customers, the State of Michigan and Applied Innovation, Inc., accounted for 35% and 12%, respectively, of our total revenues. During the three months ended September 30, 2023, our largest customer, the State of Michigan, accounted for 31% of our total revenues. During the nine months ended September 30, 2024 and 2023, our largest customer, the State of Michigan, accounted for 41% and 34%, respectively, of our total revenues.

 

For the three months ended September 30, 2024 and 2023, government contracts, including K-12 education, represented approximately 72% and 82%, respectively, of our net revenues. For the nine months ended September 30, 2024 and 2023, government contracts, including K-12 education, represented approximately 82% and 79%, respectively, of our net revenues. A significant portion of our sales to resellers represent ultimate sales to government or K-12 education.

 

As of September 30, 2024, accounts receivable concentration from our two largest customer was 37% and 26%, respectively, of our gross accounts receivable, compared to 62% for our largest customer as of December 31, 2023.