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Concentrations of Credit Risk and Significant Customers
12 Months Ended
Dec. 31, 2017
Risks and Uncertainties [Abstract]  
Concentrations of Credit Risk and Significant Customers
Concentrations of Credit Risk and Significant Customers
 
Accounts receivable, net were $2.9 million and $882,000 as of December 31, 2017 and 2016, respectively and is included as a component of accounts receivable, net, prepaid expenses, and other current assets in the accompanying consolidated balance sheets. As of December 31, 2017 we had two customers who made up approximately 26% of the net accounts receivable balance. As of December 31, 2016 we had two customers who made up approximately 43% of the accounts receivable, net balance.
 
Advanced commissions were $39.5 million and $37.0 million as of December 31, 2017, and 2016, respectively. For the year ended December 31, 2017, two distributors accounted for 60% of our advanced commissions balance compared to the two distributors who accounted for 81% for the year ended December 31, 2016.
 
Revenues primarily consist of commissions and fees earned for health insurance policies and supplemental products issued to members, referral fees, and fees for discount benefit plans paid by members as a direct result of our enrollment services, brokerage services or referral sales. No members individually accounted for 10% or more of the Company’s revenue for the years ended December 31, 2017 or 2016.
 
For the year ended December 31, 2017, three carriers accounted for 54% of our premium equivalents and for the year ended December 31, 2016, three carriers accounted for 60% of our premium equivalents. For the year ended December 31, 2017, Federal Insurance Company ("CHUBB") accounted for 26%, Everest Reinsurance Company accounted for 17%, and Companion Life Insurance Company accounted for 11%, of our premium equivalents. The Company anticipates that its premium equivalents in 2018 will continue to be concentrated among a small number of carriers, although as a part of the Company’s strategy of improving and increasing its product mix by seeking to add innovative new products, the Company anticipates that its carrier concentration may decrease.
 
The Company maintains its cash and cash equivalents at various financial institutions where we are insured by the Federal Deposit Insurance Corporation up to $250,000. The balances of these accounts from time to time exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.