Note 3 - Concentration of Credit Risk

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 3: CONCENTRATION OF CREDIT RISK

Cash and cash equivalents

The Company had cash and cash equivalents of

$6.7

million and

$11.4

million at

September 30, 2019

and

December 31, 2018,

respectively. The Company invests excess cash in U.S. treasury bills, certificates of deposit or money market accounts, all with original maturities of less than

three

months. Cash equivalents were

$5.8

million and

$8.9

million at

September 30, 2019

and

December 31, 2018,

respectively.

The Company places most of its temporary cash investments with financial institutions, which from time to time

may

exceed the Federal Deposit Insurance Corporation limit. The amount at risk at

September 30, 2019

and

December 31, 2018

was

$5,017,000

and

$6,920,000,

respectively.

Sales concentration

Revenue from a single customer in any

one

period can exceed

10%

of our total revenues. During the

three

and

nine

months ended

September 30, 2019,

two

customers exceeded

10%,

and in total represented

42.8%

and

28.1%

of revenues. For the

three

and

nine

months ended

September 30, 2018,

one

customer represented approximately

27.1%

and

34.7%

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. At

September 30, 2019

two

customers each exceeded

10%

of the accounts receivable balance, representing

47.9%

in total, and at

December 31, 2018

two

customers represented approximately

42%

of the accounts receivable balance.