Accounts Receivable and Significant Concentrations

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Accounts Receivable And Significant Concentration [Text Block]

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 publicly traded and private corporations. Accounts receivable consist of the following by customer type in the table below as of the periods presented:

	JUNE 30,		DECEMBER 31,
	2018		2017
	(Unaudited)
Government	$	4,363,451	$	6,055,397
Commercial		2,394,728		2,183,246
Gross accounts receivable		6,758,179		8,238,643
Less: allowances for doubtful
accounts		97,745		107,618
Accounts receivable, net	$	6,660,434	$	8,131,025

For the three and six month periods ended June 30, 2018, the Company did not recognize any material provisions for bad debt or write-offs of existing provisions for bad debt. For the six month period ended June 30, 2017, the Company recorded a provision for bad debt of approximately $31,200 related to a billing dispute with a commercial customer. For the six month period ended June 30, 2017, the Company wrote-off a previously reserved uncollectible customer account of approximately $274,500.

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 accounts receivable in the current and/or comparative period:

	JUNE 30,		DECEMBER 31,
	2018		2017
	As a % of		As a % of
Customer Name	Receivables		Receivables
	(Unaudited)
U.S. Customs Border Patrol		6%		12%
U.S. Immigration and Customs Enforcement		17%		13%
U.S. Federal Air Marshall Service		11%		10%

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

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
	2018		2017		2018		2017
	As a % of		As a % of		As a % of		As a % of
Customer Name	Revenues		Revenues		Revenues		Revenues
	(Unaudited)
U.S. Immigration and Customs Enforcement		19%		17%		18%		16%
U.S. Customs Border Patrol		11%		–		–		12%