Note 3 - Concentration of Credit Risk

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 3: CONCENTRATION OF CREDIT RISK

Cash and cash equivalents

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company places its cash equivalents with high credit-quality domestic financial institutions and invests its excess cash primarily in savings accounts, treasury bills and money market instruments. The Company performs periodic evaluations of the relative credit standing of all such institutions as it seeks to maintain stability and liquidity. Cash and cash equivalents at

June 30, 2017

and

December 31, 2016,

exceeded the Federal Deposit Insurance Corporation (“FDIC”) limits by approximately

$19,846,000

and

$20,157,000,

respectively.

Sales concentration

Revenue to a single customer in any

one

period can exceed

10%

of our total sales. During the

three

months ended

June 30, 2017

and

June 30 2016,

one

customer represented approximately

66%

and

53%

respectively, of our revenues. During the

six

months ended

June 30, 2017

and

June 30, 2016

that same customer represented

68%

and

38%

respectively, of our revenues.

Accounts receivable

The Company sells products and services to various companies across several industries in the ordinary course of business. The Company performs ongoing credit evaluations to assess the probability of accounts receivable collection based on a number of factors, including past transaction experience, evaluation of their credit history and review of the invoicing terms of the contract to determine the financial strength of its customers. The Company also maintains allowances for anticipated losses. The accounts receivable balance as of

June 30, 2017

includes balances from

three

customers that exceed

10%

of the total.