In late December 2013, the Company exercised its right to audit the royalties paid to it by Cisco for the years 2012 and 2013 (the “Audit Period”) in accordance with its May 2011 license agreement with Cisco.  As a result of the audit, Cisco agreed to pay the Company additional royalty payments pursuant to the May 2011 license agreement of $3,281,000 for the Audit Period and other periods covered by the license agreement. These additional aggregate royalty payments of $3,281,000 were all recorded as royalty revenue in the three month period ended June 30, 2014, at the time the Company completed the audit and the additional royalty payments were agreed to by the parties.

Cisco constituted approximately 87% (including the additional revenue from the Company’s Cisco audit referenced above) and 77% of the Company’s revenue, respectively, for years ended December 31, 2014 and December 31, 2013.  At December 31, 2014 and December 31, 2013, the royalty receivable from Cisco constituted approximately 74% and 75% of the Company’s royalty receivables, respectively.