Note 13 - Concentrations of Credit Risk

6 Months Ended

Jun. 30, 2019

Concentration Risk Disclosure [Text Block]

13.

Concentrations of Credit Risk

Cash and cash equivalents

: For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of

three

months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of

$250,000.

June 30, 2019

and

December 31, 2018,

$701,000

and

$313,000,

respectively, exceeded the FDIC limit.

Customer concentration

: Accounts receivable potentially exposes the Company to concentrations of credit risk. The Company monitors the amount of credit it allows each of its customers, using the customer’s prior payment history to determine how much credit to allow or whether any credit should be given at all. It is the Company’s policy to discontinue shipments to any customer that is substantially past due on its payments. The Company sometimes requires payment in advance from customers whose payment record is questionable. As a result of its monitoring of the outstanding credit allowed for each customer, as well as the fact that the majority of the Company’s sales are to customers whose satisfactory credit and payment record has been established over a long period of time, the Company believes that its credit risk from accounts receivable is low.

For the

six

months ended

June 30, 2019,

one

of the Company’s personal care product marketing partners, and

one

of its pharmaceutical distributors, together accounted for

59%

of the Company’s sales and

53%

of its outstanding accounts receivable at

June 30, 2019.

During the

six

-month period ended

June 30, 2018,

the same marketing partner and distributor together were responsible for

62%

of the Company’s sales and

64%

of its outstanding accounts receivable at

June 30, 2018.