Annual report pursuant to section 13 and 15(d)

20. Concentrations

20. Concentrations
12 Months Ended
Dec. 31, 2012
Risks and Uncertainties [Abstract]  
20. Concentrations

Major Customers

For the years ended December 31, 2012 and 2011, five customers of the Company accounted for 52% and 47%, respectively, of the Company’s consolidated revenues. These five customers, all of which are in the Company’s Carrier Services business segment, each contributed more than 5% of the Company’s consolidated revenues. At December 31, 2012 and 2011, the amounts owed to the Company by these customers were approximately $414,000 and $1,237,000, or 14% and 52% of total accounts receivable, respectively.


Geographic Concentrations

The Company’s operations are significantly influenced by economic factors and risks inherent in conducting business in foreign countries, including government regulations, currency restrictions and other factors that may significantly affect management’s estimates and the Company’s performance.

For the years ended December 31, 2012 and 2011, the Company generated approximate revenues from customers in the following countries:

        2012   2011
United States   $ 37,750,000 $ 34,510,000
Other       6,538,000   7,841,000
      $ 44,288,000 $ 42,351,000


Revenues by geographic area are based upon the location of the customers.


Credit Risk

The Company maintains its cash balances in high credit quality financial institutions. These balances are insured by the Federal Deposit Insurance Corporation up to $250,000 per institution. These balances may at times, exceed federally insured limits.