Concentrations

6 Months Ended

Jun. 30, 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 30.6% of total revenues for the second quarter of 2012 compared to 28.2% of total revenues for the second quarter of 2011, and 35.6% of total revenues for the six months ended June 30, 2012 compared to 28.5% of total revenues for the six months ended June 30, 2011.  During the second quarter of 2012, approximately 27.9% of total revenues were attributable to two government customers compared to approximately 28.1% of total revenues attributable to one government customer in the second quarter of 2011.  There was one individual commercial customer in the second quarter of 2012 attributable for 67.7% of total revenue compared 67.9% 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.