Concentrations

6 Months Ended

Jun. 30, 2011

Concentrations

Concentrations

8. Concentrations

Our operations are concentrated in one area—security software/entity identification.  Sales to the U.S. Government through direct and indirect channels totaled 28.2% of total revenues for the second quarter of 2011 compared to 79.9% of total revenues for the second quarter of 2010.  During the second quarter of 2011, approximately 28.1% of total revenues were attributable to one government customer compared to approximately 79.8% of total revenues attributable to two government customers in the second quarter of 2010.  There was one individual commercial customer in the second quarter of 2011 compared to one individual commercial customer for the same period in 2010 that exceeded 10% of total revenues for that quarter.  Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering.