SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2017

SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]

SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

10. SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Royalty income from Econolite comprised 59% and 55% of revenue in the years ended December 31, 2017 and 2016, respectively. Accounts receivable from Econolite were $2.5 million and $1.7 million at December 31, 2017 and 2016, 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. At December 31, 2017, Econolite comprised more than 10% of accounts receivable.