CONCENTRATION OF RISK

3 Months Ended

Mar. 31, 2012

CONCENTRATION OF RISK [Abstract]

CONCENTRATION OF RISK

12. CONCENTRATION OF RISK

Included in technology development and support revenue in the accompanying statements of comprehensive loss is $1.2 million and $1.9 million for the three months ended March 31, 2012 and 2011, respectively, which was derived from contracts with the United States government agencies.  Revenues derived from contracts with government agencies represented 9% and 20% of the consolidated revenue for the three months ended March 31, 2012 and 2011, respectively.

Revenues for the three months ended March 31, 2012 and 2011, and accounts receivable as of March 31, 2012, from our largest non-government customers, were as follows:

	% of Total Revenue				Accounts Receivable (in thousands)
Customer	2012		2011		March 31, 2012
A		42%		43%	$	3,831
B		13%		20%		1,602
C		12%		-		-

The Company's relationships with customers B and C are under agreements that are presently scheduled to expire in less than twelve months.

Revenues from outside of North America represented 90% and 79% of consolidated revenue for the three months ended March 31, 2012 and 2011, respectively. Revenues by geographic area are as follows (in thousands):

Country	2012		2011
United States	$	1,274	$	2,002
South Korea		7,393		6,154
Japan		2,566		1,116
Taiwan		1,257		287
Other		130		42
All foreign locations		11,346		7,599
Total revenue	$	12,620	$	9,601

The Company attributes revenue to different geographic areas on the basis of the location of the customer.

Long-lived tangible assets at international locations are not significant for each of the periods presented.

All chemical materials were purchased from one supplier. See Note 7.