CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

6 Months Ended

Sep. 30, 2012

CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

NOTE 2 – CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS

Financial instruments, which include cash, cash equivalents, accounts receivable and accounts payable, are stated at cost, plus accrued interest where applicable, which approximates fair value. Debt is recorded at the amount drawn on the revolving credit facility plus interest based on floating rates reflective of changes in the market which approximates fair value.

At September 30, 2012, the Company had one direct customer which accounted for more than 10% of the accounts receivable balance. At March 31, 2012, no one direct customer or indirect channel partner accounted for more than 10% of the accounts receivable balance. During the three and six months ended September 30, 2012, one direct customer accounted for more than 10% of total revenue, while no one indirect channel partner accounted for more than 10% of total revenue. During the three and six months ended September 30, 2011, no one direct customer or indirect channel partner accounted for more than 10% of total revenue. Historically, the Company has not experienced any significant failure of its customers to meet their payment obligations nor does the Company anticipate non-performance by its customers in the future; accordingly, the Company does not require collateral from its customers. However, if our assumptions are incorrect, there could be an adverse impact on our allowance for doubtful accounts.