NOTE 5 – MAJOR CUSTOMERS

The Company is a strategic business partner for Daimler Financial Services (which consists of a group of many companies in different countries), which accounts for approximately 44.25% and 19.96% of revenue, and 1insurer accounts for approximately 8.67% and 12.64% of revenue for the fiscal years ended June 30, 2017 and 2016, respectively. The revenue from these two customers is shown in the Asia – Pacific segment. Accounts receivable at June 30, 2017 for these customers were $1,620,717 and $1,462,078, respectively. Accounts receivable at June 30, 2016 for these customers were $5,306,166 and $4,689,322, respectively. Revenue in excess of billing at June 30, 2017 for these customers was $18,579,540 and $nil, respectively. Included in this amount was $5,173,538 shown as long term. Revenue in excess of billing at June 30, 2016 for these customers was $2,801,354 and $nil, respectively.

On December 21, 2015, the Company entered into a 10-year contract with Daimler Financial Services to provide license, maintenance and services for 12 countries in the Asia Pacific Region.  The implementation phase is expected to be over a five-year period with maintenance and support over 10 years.  The contract is a fixed fee arrangement with total license and maintenance fees of approximately €71,000,000 (approximately $81,000,000) with services to be separately agreed upon and billed as they are performed. The customer will make fixed annual payments of €5,850,000 (approximately $6,648,000) for years 1-5 and €8,350,000 (approximately $9,489,000) for years 6-10. Under the terms of the contract, the customer has the right to withdraw from certain modules and terminate the agreement as to certain countries based on good cause or business reasons prior to the beginning of implementation.