Note 8. Concentrations

9 Months Ended

Sep. 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 78.4% of total revenues for the third quarter of 2016 compared to 55.4% of total revenues for the third quarter of 2015. During the third quarter of 2016, approximately 78.4% of total revenues were attributable to five government customers compared to approximately 50.7% of total revenues attributable to three government customers in the third quarter of 2015. Sales to commercial customers totaled 21.6% of total revenue for the third quarter of 2016 compared to 44.6% of total revenue for the third quarter of 2015. During the third quarter of 2016, approximately 18.9% of total revenue was attributable to one commercial customers compared to approximately 31.6% to two commercial customers in the third 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.