Annual report pursuant to section 13 and 15(d)

19. Concentrations

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19. Concentrations
 12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
19. Concentrations

Major Customers

For the year ended December 31, 2013, one customer accounted for more than 10% of the Company’s consolidated revenues. The amount owed to the Company by this customer was approximately $543,000, or 9% of the Company’s consolidated accounts receivable.

 

For the year ended December 31, 2012, two customers accounted for more than 10% of the Company’s consolidated revenues, and these two customers combined accounted for 36.6% of the Company’s consolidated revenues. At December 31, 2012 the aggregate amount owed to the Company by these customers, both of which are in the Company’s Carrier Services business segment, was approximately $150,000, or 5% of the Company’s consolidated accounts receivable.

 

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, 2013 and 2012, the Company generated approximate revenues from customers in the following countries:

 

    2013     2012  
United States   $ 53,912,000     $ 37,750,000  
Other     7,585,000       6,538,000  
    $ 61,497,000     $ 44,288,000  

 

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. The Company’s cash balances may, at times, exceed the deposit insurance limits provided by the Federal Deposit Insurance Corp.