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Concentrations of Credit Risk
12 Months Ended
Sep. 30, 2013
Concentrations of Credit Risk

16.    Concentrations of Credit Risk

Financial instruments that potentially expose the Company to concentrations of credit risk at any given time may consist of cash and cash equivalents, money market funds and overnight investment accounts, short-term investments in certificates of deposit, trade and other receivables and other current assets. At September 30, 2013 and 2012, the Company had deposits with domestic and international banks in excess of federally insured limits. Management believes the credit risk associated with these deposits is minimal. Money market funds seek to preserve the value of the investment, but it is possible to lose money investing in these funds.

The Company’s sales are to clients whose activities relate to oil and natural gas exploration and production. The Company generally extends unsecured credit to these clients; therefore, collection of receivables may be affected by the economy surrounding the oil and natural gas industry or other economic conditions. The Company closely monitors extensions of credit and may negotiate payment terms that mitigate risk. For the year ended September 30, 2013, sales to the Company’s largest client represented 19% of its revenues as compared to less than 10% of its revenues at September 30, 2012. The sales to the Company’s second largest client represented 17% of its revenues at September 30, 2013 as compared to less than 10% of its revenues at September 30, 2012. The remaining balance of the Company’s fiscal 2013 revenues was derived from varied clients and none represented 10% or more of its fiscal 2013 revenues.