NATURE OF BUSINESS

9 Months Ended

Sep. 30, 2014

NATURE OF BUSINESS [Abstract]

NATURE OF BUSINESS

Note 1 – Nature of Business

Direct Insite Corp. (“Direct Insite” or the “Company”) operates as a Software as a Service provider (“SaaS”), providing financial supply chain automation and workflow efficiencies within the Procure-to-Pay and Order-to-Cash processes. Specifically, Direct Insite’s global electronic invoice (“e-invoice”) management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing in a business-to-business transaction based “fee for services” business model.

The Company’s revenue comes from (i) recurring, on-going services that are billed monthly; and (ii) non-recurring, professional services derived from the configuration of the Company’s software platform.

Throughout the year, the Company operated redundant data centers in Miami, Florida, and Santa Clara, California.

As described in Note9, the Company has two major customers that accounted for 77.5% and 74.2% of the Company’s revenue for the three months ended September 30, 2014 and 2013, respectively, and 76.6% and 78.0% of the Company’s revenue for the nine months ended September 30, 2014 and 2013, respectively.  Loss of either of these customers would have a material effect on the Company.

In February 2013, the Company was notified by one of these two major customers, that one of its customers, comprising 11.0% of the Company’s revenues for the nine months ended September 30, 2013, terminated its contract effective March 31, 2013.The Company did not record any revenue from this client after June 30, 2013.