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Segment Information and Concentrations

9 Months Ended

Sep. 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, distributors, resellers and vertical industry partners. Revenues for the geographic areas were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenues:
United States	$	3,698,721	$	3,681,834	$	10,107,697	$	9,980,944
Europe		519,765		945,172		1,919,880		2,165,576
Asia and rest of world		299,412		294,590		981,318		961,487
Total revenues	$	4,517,898	$	4,921,596	$	13,008,895	$	13,108,007

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 nine month periods ended September 30, 2015 and 2014 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Ingram Micro Inc.		30	%		29	%		29	%		32	%
BlueStar, Inc.		27	%		15	%		23	%		16	%
ScanSource, Inc.		19	%		20	%		20	%		19	%
ScanSource Europe SPRL		*			12	%		*			*

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* Customer accounted for less than 10% of total revenues for the period

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 deposit accounts in banks. To date, the Company has not experienced losses on the 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 September 30, 2015 and December 31, 2014 were as follows:

	September 30,			December 31,
	2015			2014
BlueStar, Inc.		40	%		42	%
Ingram Micro Inc.		35	%		25	%
ScanSource, Inc.		12	%		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 were unable to procure certain of such materials, it could have a material adverse effect upon its results. At September 30, 2015 and December 31, 2014, 22% and 32%, respectively, of the Company’s accounts payable balances were concentrated with the top two suppliers. For the three months ended September 30, 2015, top two suppliers accounted for 55% of the inventory purchases.