Note 7 - Concentration of Business and Credit Risk

Financial instruments which potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable.

Atrinsic is currently utilizing several billing aggregators in order to provide content and billings to the end users of its subscription products. These billing aggregators act as a billing interface between Atrinsic and the carriers that ultimately bill Atrinsic’s end user subscribers. These billing aggregators have not had long operating histories in the U.S. or operations with traditional business models. These companies face a greater business risk in the marketplace, due to a constant evolving business environment that stems from the infancy of the U.S. mobile content industry. In addition, the Company also has customers other than aggregators that represent significant amounts of revenues and accounts receivable.

The table below represents the company’s concentration of business and credit risk by customers and aggregators.

	For The Nine Months Ended
	September 30,
	2011			2010

Revenues
Aggregator A		14	%		19	%
Customer B		9	%		6	%
Customer C		27	%		0	%
Other Customers & Aggregators		50	%		75	%

	As of
	September 30,			December 31,
	2011			2010

Accounts Receivable
Aggregator A		29	%		44	%
Customer B		5	%		5	%
Customer C		30	%		0	%
Other Customers & Aggregators		36	%		51	%