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Concentrations of Risk
12 Months Ended
Dec. 31, 2019
Notes  
Concentrations of Risk

 

NOTE 9 -    CONCENTRATIONS OF RISK

 

Cash in Excess of Federally Insured Amount

 

While the Company, at December 31, 2019 and at various other times during 2019 and 2018 had cash balances that exceed the $250,000 FDIC insurance limit per depositor per banking institution, the Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk with respect to its cash balances.

 

Sales and Accounts Receivable

 

Four customers represent 37% and 44% of total sales revenue for the year ended December 31, 2019 and 2018, respectively.  At December 31, 2019 and 2018, accounts receivable balances from four customers represented 80% and 41% respectively, of the total receivables.  The Company has strong relationships with each of these customers and does not believe this concentration poses a significant risk due to those long-term relationships and uniqueness of the products they purchase from the Company.  We have identified primary and secondary sources for each of the products we purchase for resale and for the raw materials we use to manufacture our products, so do not anticipate any difficulty in filling the orders placed by our customers.