Note 8 - Concentrations

6 Months Ended

Jun. 30, 2018

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

88.4%

of total revenues for the

second

quarter of

2018

compared to

72.2%

of total revenues for the

second

quarter of

2017.

During the

second

quarter of

2018,

approximately

73.7%

of total revenues were attributable to

four

government customers compared to approximately

54.2%

of total revenues attributable to

three

government customers in the

second

quarter of

2017.

There was

one

individual commercial customer in the

second

quarter of

2018

attributable for

10.2%

of total revenue compared to

25.9%

of total revenue to

one

individual commercial customer for the same period in

2017.

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.