CONCENTRATION OF CREDIT RISK

6 Months Ended

Jun. 30, 2012

CONCENTRATION OF CREDIT RISK

NOTE 17 — CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject us to credit risk include accounts receivable. We believe that credit risks related to our accounts receivable are moderated by the diversity of our products, customers and geographic sales areas. We monitor extensions of credit and have not experienced significant credit losses in the past. We maintain an allowance both for bad debts and for sales returns and cancellations and such losses and returns have historically been within management’s expectations. The Company’s significant customers consist primarily of resellers. We have one reseller customer that accounted for 11.4% of our total revenues for the six months ended June 30, 2012. This customer also accounted for 18.2 % of our accounts receivable as of June 30, 2012.