4.	Accounts Receivable and Significant Concentrations

A significant portion of the Company’s revenue arrangements consist of firm fixed price contracts with agencies of the U.S. federal government and several large multinational corporations. Accounts receivable consist of the following by customer type in the table below as of the periods presented:

	MARCH 31,		DECEMBER 31,
	2018		2017
	(Unaudited)
Government	$	4,291,669	$	6,055,397
Commercial		4,466,676		2,183,246
Gross accounts receivable		8,758,345		8,238,643
Less: allowances for doubtful accounts		101,947		107,618

Accounts receivable, net	$	8,656,398	$	8,131,025

For the three month periods ended March 31, 2018 and 2017, the Company did not recognize any material provisions for bad debt or write-offs of existing provisions for bad debt. There were recoveries of approximately $5,800 related to commercial accounts receivable for which an allowance had been previously established. The Company has not historically maintained a bad debt reserve for its government customers as it has not experienced material or recurring bad debt charges and the nature and size of the contracts has not necessitated the Company’s establishment of such a bad debt reserve.

Significant Concentrations

The following table presents customers that represent ten (10) percent or more of consolidated trade accounts receivable in the current and/or comparative reporting period:

	MARCH 31,		DECEMBER 31,
	2018		2017
	As a % of		As a % of
Customer Name	Receivables		Receivables

	(Unaudited)
U.S. Customs Border and Protection		6%		12%
U.S. Immigration and Customs Enforcement		--		13%
U.S. Federal Air Marshall Service		4%		10%
Iron Bow Technologies		21%		--

The following table presents customers that represent ten (10) percent or more of consolidated revenues in the current and/or comparative reporting period:

	THREE MONTHS ENDED
	MARCH 31,
	2018		2017
	As a % of		As a % of
Customer Name	Revenues		Revenues
	(Unaudited)
U.S. Immigration and Customs Enforcement		17%		15%
U.S. Customs Border and Protection		--		15%
U.S. Federal Air Marshall Service		11%		--