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CONCENTRATIONS OF RISK
6 Months Ended
Jun. 30, 2012
Concentrations Of Risk  
Note 14. CONCENTRATIONS OF RISK

Significant Customer

 

Buffalo Wild Wings together with its franchisees is a significant customer of the Company. For the three months ended June 30, 2012 and 2011, approximately 22% and 21%, respectively, of the Company’s total revenue was generated from this national chain. For the six months ended June 30, 2012 and 2011, approximately 23% and 21%, respectively, of the Company’s revenue was generated from this chain. As of June 30, 2012 and December 31, 2011, approximately $112,000 and $95,000, respectively, was included in accounts receivable from this customer.

 

Single Source Playmaker Supplier

 

The Company currently purchases its Playmakers from an unaffiliated Taiwanese manufacturer subject to the terms of a supply agreement dated April 23, 2007 with a term that automatically renews for one year periods. The Company currently does not have an alternative source for its playmaker devices. Management believes other manufacturers could be identified to produce the Playmakers on comparable terms.  A change in manufacturers, however, could cause delays in supply and may have an adverse effect on the Company’s operations. As of June 30, 2012 and December 31, 2011, approximately $100,000 and $70,000, respectively, was included in accounts payable or accrued expenses for this supplier.