Note 3 - Concentration of Credit Risk

9 Months Ended

Sep. 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 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 investments at

September 30, 2017

and

December 31, 2016,

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

$15.6

million and

$20.2

million respectively.

Sales concentration

Revenue to a single customer in any

one

period can exceed

10%

of our total sales. During the

three

months ended

September 30, 2017

and

September 30, 2016,

one

customer represented approximately

59%

and

43%

respectively, of our revenues. During the

nine

months ended

September 30, 2017

and

September 30, 2016

that same customer represented

65%

and

40%

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. One customer represented

23.2%,

another customer represented

14.2%

and a

third

customer represented

10.0%

of the accounts receivable balance at

September 30, 2017.