Note 1 - Basis of Presentation

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note

1

– Basis of Presentation

The financial statements included herein have been prepared by Mikros Systems Corporation (the “Company” or “we”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form

10

-K for the year ended

December 31, 2019.

In the opinion of the Company's management, the accompanying unaudited interim condensed financial statements contain all adjustments, consisting solely of those which are of a normal recurring nature, necessary to present fairly the Company's financial position as of

September 30, 2020,

the results of its operations for the

three

and

nine

months ended

September 30, 2020

and

2019,

changes in shareholders' equity for the

three

and

nine

months ended

September 30, 2020

and

2019

and cash flows for the

nine

months ended

September 30, 2020

and

2019.

Because COVID-

19

infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-

19.

Additional, more restrictive proclamations and/or directives

may

be issued in the future.

The ultimate impact of the COVID-

19

pandemic on the Company's operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-

19

outbreak, new information which

may

emerge concerning the severity of the COVID-

19

pandemic, and any additional preventative and protective actions that governments, or the Company,

may

direct, which

may

result in an extended period of continued business disruption and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but

may

have a material impact on our business, financial condition and results of operations.

In light of the COVID-

19

pandemic, the Company has taken proactive steps to manage its costs and discretionary spending.