Quarterly report pursuant to sections 13 or 15(d)

Concentration of Credit Risk

Concentration of Credit Risk
6 Months Ended
Mar. 31, 2012
Concentration of Credit Risk

Note 10: Concentration of Credit Risk


The Company maintains cash balances at major banking institutions in California and Nevada. Accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 per bank, and bank balances periodically exceed the FDIC limit. At times, the Company’s balances may exceed federally insured limits.


The Company has concentrations of receivables with respect to certain wholesale accounts and remaining holdbacks with Local Exchange Carrier (“LEC”) service providers. Three such entities accounted for 37%, 28% and 15% of gross receivables at March 31, 2012 and 31%, 25%, and 20% of gross receivables at September 30, 2011, respectively.