Concentration

APUS students utilize various payment sources and programs to finance their educational expenses, including funds from: Department of Defense, or DoD, tuition assistance programs; federal student aid from Title IV programs; and education benefit programs administered by the U.S. Department of Veterans Affairs, or VA education benefits; as well as cash and other sources. Reductions in or changes to DoD tuition assistance, Title IV programs, VA education benefits, and other payment sources could have a significant impact on the Company’s business, operations, financial condition and cash flows.

A summary of APEI Segment revenue derived from APUS students by primary funding source for the three and nine months ended September 30, 2017 and September 30, 2016 is included in the table below (unaudited).



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
DoD tuition assistance programs	36.3%	35.3%	36.5%	35.8%
Title IV programs	27.4%	29.5%	26.9%	29.2%
VA education benefits	22.8%	22.3%	22.7%	22.1%
Cash and other sources	13.5%	12.9%	13.9%	12.9%

HCN students also utilize various payment sources and programs to finance their educational expenses, including Title IV programs and VA education benefits. For the nine months ended September 30, 2017 and 2016, approximately 83.5% and 84.4%, respectively, of HCN Segment revenue was derived from Title IV programs.