SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2014

Significant Customers And Concentration Of Credit Risk [Abstract]

SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

9. SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Royalty income from Econolite comprised 44%, 44% and 50% of revenue in the years ended December 31, 2014, 2013 and 2012, respectively. Accounts receivable from Econolite were $1.5 million and $1.6 million at December 31, 2014 and 2013, respectively. Major disruptions in the manufacturing and distribution of our products by Econolite or the inability of Econolite to make payments on its accounts receivable with us could have a material adverse effect on our business, financial condition and results of operations. Econolite and one other customer comprised approximately 42% of accounts receivable as of December 31, 2014. Econolite was the only customer that comprised more than 10% of accounts receivable as of December 31, 2013. During the period from April 2011 through August 2012, the Chief Executive Officer of the parent company of Econolite served on our Board of Directors.