Concentration of Credit Risk and Off-Balance Sheet Risk

9 Months Ended

Sep. 30, 2013

Risks And Uncertainties [Abstract]

Concentration of Credit Risk and Off-Balance Sheet Risk

4. Concentration of Credit Risk and Off-Balance Sheet Risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company has no material off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. The Company places its cash with one institution, which management believes is of high credit quality. As of September 30, 2013, all of the Company’s cash is held in an interest bearing account.

The Company provides credit in the form of invoiced and unbilled accounts receivable in the normal course of business. Collateral is not required for trade accounts receivable, but ongoing credit evaluations are performed. While the majority of the Company’s revenue is generated from retail energy transactions where the winning bidder pays a commission to the Company, commission payments for certain auctions can be paid by the lister, bidder or a combination of both. Management provides for an allowance for doubtful accounts on a specifically identified basis, as well as through historical experience applied to an aging of accounts, if necessary. Trade accounts receivable are written off when deemed uncollectible. To date, write-offs have not been material.

The following represents revenue and trade accounts receivable from bidders exceeding 10% of the total in each category:

	Revenue for the three months ended September 30,						Revenue for the nine months ended September 30,						Trade Accounts Receivable as of September 30,
Bidder	2013			2012			2013			2012			2013			2012
A		6	%		8	%		8	%		10	%		8	%		8	%
B		13	%		12	%		12	%		12	%		14	%		13	%
C		8	%		3	%		8	%		3	%		10	%		5	%

In addition to its direct relationship with bidders, the Company also has direct contractual relationships with listers for the online procurement of certain of their energy, demand response or environmental needs. These listers are primarily large businesses and government organizations and do not have a direct creditor relationship with the Company. For the three and nine months ended September 30, 2013 and 2012, no lister represented more than 10% individually of the Company’s aggregate revenue, respectively.