Annual report pursuant to Section 13 and 15(d)

Major Customers and Major Suppliers

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Major Customers and Major Suppliers
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 8 - Major Customers and Major Suppliers

The Company's prime contracts and subcontracts with agencies of the federal government accounted for 89% and 90% of the Company's revenues during 2011 and 2010, respectively.  The Company has prime contracts with one federal government agency that accounted for 48% and 31% of the Company’s 2011 and 2010 revenue, respectively.  Also, the company has subcontracts under another company for which work is done for a federal agency that accounts for 16% of the Company’s 2011 revenue and 17% of the 2010 revenue.

 

The Company sold third party software and maintenance contracts under agreements with two major suppliers.  These sales accounted for 40% of total revenue in 2011 and 29% of revenue in 2010.  Resale of third party software is recognized upon delivery. Resale of third party maintenance is recognized ratably over the maintenance period. Revenue on third party software sales was recognized on a gross, as opposed to a net, basis in accordance with generally accepted accounting principles.