7. Concentrations

Financial Risks — As of December 31, 2016 and 2015, the Company held Pakistani rupees of approximately 1.8 million, (US $17,000) and Pakistani rupees of 78.9 million (US $751,000), respectively, in the name of its subsidiary at banks in Pakistan. Funds are wired to Pakistan near the end of each month to cover payroll at the beginning of the next month and operating expenses throughout the month. The banking system in Pakistan does not provide deposit insurance coverage. Funds are also held at banks in Poland, India and Sri Lanka, however, those amounts were not significant as of December 31, 2016 and 2015. Additionally, from time to time, the Company maintains cash balances at financial institutions in the United States in excess of federal insurance limits. The Company has not experienced any losses on such accounts.

Concentrations of credit risk with respect to trade accounts receivable are managed by periodic credit evaluations of customers. The Company does not require collateral for outstanding trade accounts receivable. No one customer accounts for a significant portion of the Company’s trade accounts receivable portfolio and write-offs have not been significant. During the year ended December 31, 2016, there was one customer with sales of approximately 3% of the total revenue. During the year ended December 31, 2015, there were no customers with sales of 4% or more of the total.

Geographical Risks — The Company’s offices in Islamabad and Bagh, Pakistan, Chennai, India, Colombo, Sri Lanka and Lublin, Poland conduct significant back-office operations for the Company. The Company has no revenue earned outside of the United States. The office in Bagh is located in a different territory of Pakistan from the Islamabad office. The Bagh office was opened in 2009 for the purpose of providing operational support and operating as a backup to the Islamabad office. The Company’s office in Poland was opened in 2015 to serve as back-up to the Pakistan offices in addition to performing specialized work. As a result of the MediGain acquisition, the Company obtained offices in India and Sri Lanka which also perform back-office operations. The Poland, India and Sri Lanka offices would need to be significantly expanded to serve as a full back-up facility for operations in Pakistan. The Company’s operations in Pakistan are subject to special considerations and significant risks not typically associated with companies in the United States. The Company’s business, financial condition and results of operations may be influenced by the political, economic, and legal environment in Pakistan and by the general state of Pakistan’s economy. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, changes in Pakistan’s telecommunications industry, regulatory rules and policies, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Carrying amounts of net assets located in Pakistan were approximately $687,000 and $1 million as of December 31, 2016 and 2015, respectively. These balances exclude intercompany receivables of approximately $5.2 million and $3.4 million as of December 31, 2016 and 2015, respectively. The following is a summary of the net assets located in Pakistan as of December 31, 2016 and 2015:

The net assets located in Poland, India and Sri Lanka were not significant at December 31, 2016. The net assets of Poland were not significant at December 31, 2015.