Note 8. Concentrations

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

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 66.2% of total revenues for the second quarter of 2016 compared to 41.9% of total revenues for the second quarter of 2015. During the second quarter of 2016, approximately 54.4% of total revenues were attributable to three government customers compared to approximately 29.0% of total revenues attributable to two government customers in the second quarter of 2015. Sales to commercial customers totaled 33.8% of total revenue for the second quarter of 2016 compared to 58.1% of total revenue for the second quarter of 2015. During the second quarter of 2016, approximately 30.3% of total revenue was attributable to one commercial customer compared to approximately 56.4% to four commercial customers in the second quarter of 2015. 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.