Note 8 - Concentrations

9 Months Ended

Sep. 30, 2017

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

90.6%

of total revenues for the

third

quarter of

2017

compared to

78.4%

of total revenues for the

third

quarter of

2016.

During the

third

quarter of

2017,

approximately

90.6%

of total revenues were attributable to

six

government customers compared to approximately

78.4%

of total revenues attributable to

five

government customers in the

third

quarter of

2016.

Sales to commercial customers totaled

9.4%

of total revenue for the

third

quarter of

2017

compared to

21.6%

of total revenue for the

third

quarter of

2016.

During the

third

quarter of

2017,

approximately

6.2%

of total revenue was attributable to

one

commercial customer compared to approximately

18.9%

to

one

commercial customer in the

third

quarter of

2016.

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.