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14. CONCENTRATIONS OF RISK
 9 Months Ended
Sep. 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 each of the three months ended September 30, 2012 and 2011, approximately 22% of the Company’s total revenue was generated from this national chain. For the nine months ended September 30, 2012 and 2011, approximately 23% and 21%, respectively, of the Company’s revenue was generated from this chain. As of September 30, 2012, approximately $356,000 was included in accounts receivable from this customer, of which approximately $193,000 was received in October 2012. As of December 31, 2011, approximately $95,000 was included in accounts receivable from this customer.

 

Single Source Playmaker Supplier

 

The Company currently purchases its traditional 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 September 30, 2012 and December 31, 2011, approximately $13,000 and $70,000, respectively, was included in accounts payable or accrued expenses for this supplier.

 

Tablet Supplier

 

The Company is in the process of developing a new tablet device that can be used at customer venues to access the Company’s network of services. In preparation for a test phase rollout, the Company has made a verbal commitment with a tablet manufacturer to purchase approximately $320,000 of tablets. As of September 30, 2012, the Company has purchased approximately $7,000 of tablets and is expected to purchase the remaining tablets during the fourth quarter of 2012.