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Segment Information and Concentrations

6 Months Ended

Jun. 30, 2015

NOTE 7 — Segment Information and Concentrations

Segment Information

The Company operates in one segment—mobile systems solutions for businesses. Mobile systems solutions typically consist of a handheld computer or other mobile device such as a smartphone or tablet, some with data collection peripherals, and third-party vertical applications software. The Company markets its products in the United States and foreign countries through its sales personnel and distributors. Revenues for the geographic areas were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Revenues:
United States	$	3,575,031	$	3,616,007	$	6,408,976	$	6,298,084
Europe		716,952		489,303		1,400,115		1,234,373
Asia and rest of world		193,270		285,762		681,906		653,954
Total revenues	$	4,485,253	$	4,391,072	$	8,490,997	$	8,186,411

Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations.

Major Customers

Customers who accounted for at least 10% of the Company’s total revenues in the three and six month periods ended June 30, 2015 and 2014 were:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Ingram Micro Inc.		33	%		35	%		29	%		34	%
ScanSource, Inc.		21	%		25	%		20	%		19	%
BlueStar, Inc.		21	%		18	%		21	%		17	%

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand and money market deposit accounts in banks. To date, the Company has not experienced losses on these investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances at June 30, 2015 and December 31, 2014 were as follows:

	June 30,			December 31,
	2015			2014
Company A		35	%		42	%
Company B		30	%		25	%
Company C		21	%		14	%

Concentration of Suppliers

Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. If the Company was unable to procure certain of such materials, it could have a material adverse effect upon its results. At June 30, 2015 and December 31, 2014, 17% and 22%, respectively, of the Company’s accounts payable balances were concentrated in a single supplier. For the three months ended June 30, 2015, the top two suppliers accounted for 61% of the inventory purchases.