Accounts Receivable and Significant Concentrations

6 Months Ended

Jun. 30, 2021

Accounts Receivable and Significant Concentrations

3. Accounts Receivable And Significant Concentration

3. Accounts Receivable and Significant Concentrations

A significant portion of the Company’s receivables are billed under firm fixed price contracts with agencies of the U.S. federal government and similar pricing structures with several corporations. Accounts receivable consist of the following by customer type in the table below as of the periods presented:

	JUNE 30,		DECEMBER 31,
	2021		2020
	(Unaudited)
Government (1)	$	7,185,598	$	34,097,906
Commercial (2)		1,655,242		1,898,924
Gross accounts receivable		8,840,840		35,996,830
Less: allowances for doubtful accounts (3)		86,854		114,169
Accounts receivable, net	$	8,753,986	$	35,882,661

(1) Government contracts are generally firm fixed price not to exceed arrangements with a term of five (5) years, which consists of a base year and four (4) annual option year renewals. Government receivables are billed under a single consolidated monthly invoice and are billed approximately thirty (30) to sixty (60) days in arrears from the date of service and payment is generally due within thirty (30) days of the invoice date. Government accounts receivable payments could be delayed due to administrative processing delays by the government agency, continuing budget resolutions that may delay availability of contract funding, and/or administrative only invoice correction requests by contracting officers that may delay payment processing by our government customers.

(2) Commercial contracts are generally fixed price arrangements with contract terms ranging from two (2) to three (3) years. Commercial accounts receivables are billed based on the underlying contract terms and conditions which generally have payment terms that range from thirty (30) to ninety (90) days. Commercial receivables are stated at amounts due from customers net of an allowance for doubtful accounts if deemed necessary.

(3) For the three months ended June 30, 2021, the Company recognized $24,300 of recoveries of existing provision for bad debt. 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 as of the dates presented below:

	JUNE 30,		DECEMBER 31,
	2021		2020
	As a % of		As a % of
Customer Name	Receivables		Receivables
	(Unaudited)
U.S. Department of Homeland Security HQ		23%		-
U.S. Coast Guard		10%		-
National Aeronautics and Space Administration		11%		-
U.S. Census Bureau		12%		70%

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

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
	2021		2020		2021		2020
	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%		--		19%		10%
U.S. Department of Homeland Security HQ		12%		--		13%		--
U.S. Transportation Safety Administration		10%		--		--		--
U.S. Coast Guard		12%		--		16%		--
U.S. Census Bureau		--		60%		-		51%