Concentration of Credit Risk

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

7.      Concentration of Credit Risk

Credit risk is the risk of loss from amounts owed by the financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash and accounts receivable.

The Company maintains cash with major financial institutions. The Company’s cash consists of bank deposits held with banks that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of the relative credit standing of these financial institutions.

Concentration of credit risk with respect to accounts receivable is limited due to the large number of customers comprising the payer base. Management periodically monitors the creditworthiness of its customers and believes that it has adequately provided for any exposure to potential credit loss. For the year ended December 31, 2015, two customers accounted for, 14.2% and 11.8% of the Company’s revenue, respectively. As of December 31, 2015, two customers accounted for 19.4% and 13.3% of the Company’s accounts receivable, respectively. For the year ended December 31, 2016, one customer accounted for 15.1% of the Company’s revenue. As of December 31, 2016, three customers accounted for 24.2%, 15.1% and 13.7% of the Company’s accounts receivable, respectively.

As of December 31, 2016 and 2015 the allowance for doubtful accounts was $87 and $183, respectively.