XML 29 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Major Customers
6 Months Ended
Jun. 30, 2017
Risks and Uncertainties [Abstract]  
Major Customers
Major Customers

Major customers are defined as direct customers or channel partners that account for more than 10% of the Company’s revenue. For the three months ended June 30, 2017, two major customers represented 23% and 15%, respectively of our revenue. For the six months ended June 30, 2017, the same major customers represented 22% and 16%, respectively of our revenue and represented 51% and 21%, respectively, of our accounts receivable balance at June 30, 2017. For the three months ended June 30, 2016, the same two major customers represented 17% and 12%, respectively, of our revenue. For the six months ended June 30, 2016, the same major customers represented 15% and 11%, respectively of our revenue.

In January 2017, our largest customer filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code. This customer has paid us in full for all amounts that were due as of their bankruptcy filing date. Since the bankruptcy filing date, we have continued to perform services for this customer, and we have received payments in accordance with payment terms and expect to continue to do so. It has not yet been determined whether the bankruptcy estate will assume or reject our contract with this customer. A rejection of our contract with this customer by the bankruptcy estate could have a material adverse effect on our business, financial condition and results of operations, as any reduction in the use of our services or the business failure by one of our major customers or wholesale channel partners could have such a result.