6. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

6. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to credit risk principally consist of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by ongoing credit evaluation processes, relatively short collection terms, and the nature of the Company’s customer base, primarily mid- and large-size corporations with significant financial histories. Collateral is not generally required from customers. The need for an allowance for doubtful accounts is determined based upon factors surrounding the credit risk of specific customers, historical trends, and other information.

A significant portion of revenues is derived from certain customer relationships. The following is a summary of customers that represent greater than 10% of total revenues:

		Three Months Ended September 30, 2012
	Revenue Type	Revenues		% of Total  Revenues
Customer A	Subscription fees and other revenue	$	99,572		71	%
Customer B	Subscription fees		-		-	%
Others	Various		40,465		29	%
Total		$	140,037		100	%

		Three Months Ended September 30, 2011
	Revenue Type	Revenues		% of Total  Revenues
Customer A	Subscription fees and other revenue	$	95,592		83	%
Customer B	Subscription fees and other revenue		19,396		16	%
Others	Various		101		1	%
Total		$	115,089		100	%

		Nine Months Ended September 30, 2012
	Revenue Type	Revenues		% of Total  Revenues
Customer A	Subscription fees and other revenue	$	283,957		68	%
Customer B	Subscription fees and other revenue		39,008		10	%
Others	Various		94,328		22	%
Total		$	417,293		100	%

		Nine Months Ended September 30, 2011
	Revenue Type	Revenues		% of Total  Revenues
Customer A	Subscription fees and other revenue	$	292,365		80	%
Customer B	Subscription fees and other revenue		70,052		19	%
Others	Various		2,481		1	%
Total		$	364,898		100	%

As of September 30, 2012, the Company had current accounts receivable of $536,121.  The Company established a reserve of $438,083 for bad debts against total receivables.  As of September 30, 2012, nine customers accounted for 100% of the Company’s accounts receivable and at December 31, 2011, one customer accounted for 100% of accounts receivable.