1. Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary Of Significant Accounting Policies Tables

Reclassification of accounts receivable allowances to accrued other expenses

Accounts receivable, net:

	March 31, 2018			December 31, 2017
Gross accounts receivable	$	2,851,026		$	2,811,638
Allowance for doubtful accounts		(14,908)			(15,094)
Allowance for marketing distribution funds *		––			(127,821	)
Allowance for returns *		––			(439,211)
Allowance for price protection, promotions *		––			––
Total allowances		(14,908	)		(582,126)
Total accounts receivable, net	$	2,836,118		$	2,229,512

Accrued other expenses:

	March 31, 2018		December 31, 2017
Audit, legal, payroll	$	176,104	$	193,394
Royalty costs		875,000		750,000
Sales allowances *		492,565		––
Other		199,192		229,590
Total accrued other expenses	$	1,742,861	$	1,172,984

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* Upon adoption of ASC 606 on January 1, 2018, certain accounts receivable allowances totaling $492,565 as of March 31, 2018 were reclassified to accrued other expenses as payable to the Company's customers and settled in cash or by credit on account.

Disaggregation of Revenue

Disaggregated revenue by distribution channel for three months ended:

Through :	March 31, 2018		March 31, 2017
Retailers	$	7,933,218	$	4,771,351
Distributors		185,066		161,317
Other		218,583		213,221
Total	$	8,336,867	$	5,145,889

Disaggregated revenue by product for three months ended:

	March 31, 2018		March 31, 2017
Cable Modems & gateways	$	7,826,164	$	4,831,761
Other		510,703		314,128
Total	$	8,336,867	$	5,145,889