Concentrations

3 Months Ended

Mar. 31, 2012

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 42.7% of total revenues for the first quarter of 2012 compared to 28.9% of total revenues for the first quarter of 2011.  During the first quarter of 2012, approximately 38.9% of total revenues were attributable to two government customers compared to approximately 28.8% of total revenues attributable to one government customer in the first quarter of 2011.  There was one individual commercial customer in the first quarter of 2012 attributable for 54.7% of total revenue compared 66.8% of total revenue to one individual commercial customer for the same period in 2011 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.