Concentration of Credit Risk

12 Months Ended

Dec. 31, 2018

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

NOTE 14 – Concentration of Credit Risk

Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed completely to perform as contracted.  Concentrations of credit risk that arise from financial instruments exist for groups of customers when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below.

• Cash – Financial instruments that subject the Company to credit risk are cash balances maintained in excess of federal depository insurance limits.  At December 31, 2018 and 2017, the Company had $0 in cash which was not guaranteed by the Federal Deposit Insurance Corporation.  To date, the Company has not experienced any losses in such accounts and believes the exposure is minimal.

• Major customers and accounts receivable – Major customers represent any customer that accounts for more than 10% of revenues for the year. During the years ended December 31, 2018 and 2017, the Company had two and five customers that accounted for 29% and 56%, respectively, of revenues. The Company had three customers in 2018 and three customers in 2017, whose accounts receivable balance (unsecured) accounted for 57% and 42%, respectively, of accounts receivable at December 31, 2018 and 2017.