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11. CONCENTRATIONS OF RISK
6 Months Ended
Jun. 30, 2013
Risks and Uncertainties [Abstract]  
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, 2013 and 2012, approximately 27% and 23%, respectively, of the Company’s total revenue was generated from this national chain. For the six months ended June 30, 2013 and 2012, approximately 25% and 23%, respectively, of the Company’s revenue was generated from this chain. As of June 30, 2013 and December 31, 2012, approximately $108,000 and $123,000, respectively, was included in accounts receivable from this customer.

 

Single Source Playmaker Supplier

 

The Company currently purchases its Classic playmakers from an unaffiliated manufacturer located in Taiwan pursuant to a supply agreement dated April 23, 2007, the term of which automatically renews for one year periods. The Company purchases certain next generation, or Next-Gen, playmaker tablet equipment from an unaffiliated manufacturer located in China, and it purchases its Next-Gen playmaker tablets from another unaffiliated manufacturer. The Company currently does not have alternative sources for its Classic or Next-Gen playmakers or its Next-Gen playmaker equipment. Management believes other manufacturers could be identified to produce the playmaker, playmaker tablets and playmaker equipment 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, 2013 and December 31, 2012, approximately $28,000 and $15,000, respectively, were included in accounts payable or accrued expenses for these suppliers.