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Concentration of Credit Risk
9 Months Ended
Sep. 30, 2018
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk

NOTE 15 — CONCENTRATION OF CREDIT RISK

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. Credit risk with respect to trade accounts receivable was concentrated with three and three of the Company’s customers in September 30, 2018 and December 31, 2017, respectively.

 

At September, 2018, Naval Logistics Command, HANCOM MDS, Co., Ltd. and Shinwoo E&D Co., Ltd. represented 31%, 20% and 16% of accounts receivable outstanding.

 

At December 31, 2017, Naval Logistics Command, Hyundai Heavy Industries Co., Ltd. and Shinwoo E&D Co., Ltd. represented 38%, 22% and 17% of accounts receivable outstanding.

 

The Company performs ongoing credit evaluations of its customers’ financial condition to mitigate its credit risk. The deterioration of the financial condition of its major customers could adversely impact the Company’s operations. From time to time where the Company determines that circumstances warrant, the Company extends payment terms beyond its standard payment terms.

 

During the nine month period ended September 30, 2018, Naval Logistics Command represented 31% of the Company’s net sales.

 

During the nine month period ended September 30, 2017, Naval Logistics Command, National Information Society Agency and Hyundai Electric & Energy System Co., Ltd. represented 20%, 16% and 13% of the Company’s net sales.