Concentration of Credit Risk and Major Customers

9 Months Ended

Sep. 30, 2012

Concentration Of Credit Risk and Major Customers [Abstract]

Concentration of Credit Risk and Major Customers [Text Block]

Note 4 – Concentration of Credit Risk and Major Customers

Financial instruments that subject DCT to credit risk are cash balances maintained in excess of federal depository insurance limits and trade receivables.

Cash and Cash Equivalents

DCT maintains cash balances at several banks. Cash accounts maintained in the United States are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. Non-interest bearing accounts are 100% insured. As of September 30, 2012, DCT had consolidated balances of approximately $203,000 which were not guaranteed by the FDIC. DCT has not experienced any losses in such accounts and believes the exposure is minimal.

Major Customers and Trade Receivables

A relatively small number of customers account for a significant percentage of DCT’s sales. Customers that exceeded 10% of total revenues and accounts receivable were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Customer A		31	%		20	%		37	%		18	%
Customer B		17			15			13			14
Customer C		12			12			*			16
Customer D		*			11			16			16
Customer E		*			23			*			10

* Customer accounted for less than 10% for the period indicated.

Trade receivables from all significant customers at September 30, 2012 totaled $1,792,000. As of September 30, 2012, all the Company's trade receivables were unsecured.

DOCUMENT CAPTURE TECHNOLOGIES, INC. 10-Q