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Concentration of Credit Risk
9 Months Ended
Sep. 30, 2019
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk

NOTE 12 — 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 two and four of the Company’s customers at September 30, 2019 and December 31, 2018, respectively.

 

At September 30, 2019, G2 ICT Co., Ltd.and Shinwoo E&D Co., Ltd. represented 46% and 11% of accounts receivable outstanding.

 

At December 31, 2018, G2 ICT Co., Ltd., Shinwoo E&D Co., Ltd., Hyundai Heavy Industries Co., Ltd. and Hanjin Heavy Industries & Construction Co., Ltd. represented 44%, 15%, 13% and 11% 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, 2019, Naval Logistics Command represented 26% of the Company’s net sales.

 

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