Note 10 - Significant Business Concentrations and Risk

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

10

. SIGNIFICANT BUSINESS CONCENTRATIONS AND RISK

Major Customers

Our revenues are derived from a diverse group of customers primarily involved in the sale of leathercraft.

No

single customer accounted for more than

1/2%

of our consolidated revenues in

2017,

2016,

or

2015

and sales to our

five

largest customers represented

1.2%,

1.4%,

and

1.3%,

respectively, of consolidated revenues in those years. While we do

not

believe the loss of

one

of these customers would have a significant negative impact on our operations, we do believe the loss of several of these customers simultaneously or a substantial reduction in sales generated by them could temporarily affect our operating results.

Major Vendors

We purchase a significant portion of our inventory through

one

supplier. Due to the number of alternative sources of supply, loss of this supplier would

not

have an adverse impact on our operations.

Credit Risk

Due to the large number of customers comprising our customer base, concentrations of credit risk with respect to customer receivables are limited

, although at

December 31, 2017

and

2016,

two

customer’s balances represented

21.4%

and

35.2%

of net accounts receivable balance, respectively. We do

not

generally require collateral for accounts receivable, but we do perform periodic credit evaluations of our customers and believe the allowance for doubtful accounts is adequate. It is our opinion that if any

one

or a group of customer receivable balances should be deemed uncollectable, it would

not

have a material adverse effect on our results of operations or financial condition.

We maintain our cash in bank deposit accounts that, at times,

may

exceed federally insured limits. We have

not

experienced any losses in such accounts. We believe we are

not

exposed to any significant credit risk on our cash and cash equivalents.