Concentration of Credit Risk

9 Months Ended

Sep. 30, 2016

Concentration Risk Disclosure [Text Block]

Note 7 – Concentration of Credit Risk

Concentration of credit risk with respect to trade accounts receivable is generally limited due to the large number of entities comprising the Company’s customer base. The Company performs ongoing credit evaluations and provides an allowance for potential credit losses against the portion of accounts receivable which is estimated to be uncollectible. Such losses have historically been within management’s expectations. During the three and nine months ended September 30, 2016 and 2015, there were two customers whose purchases represented more than 10% of the Company’s consolidated net sales, respectively. Sales to these customers for the three and nine months ended September 30, 2016 and 2015 are as follows:

	Three Months Ended					Three Months Ended
	September 30, 2016					September 30, 2015
			% of Net				% of Net
Customer	Net Sales		Sales		Net Sales		Sales
Customer A	$	3,088,000	22.9	%	$	3,256,000		21.9	%
Customer B	$	3,070,000	22.8	%	$	2,282,000		15.3	%

	Nine Months Ended					Nine Months Ended
	September 30, 2016					September 30, 2015
			% of Net					% of Net
Customer	Net Sales		Sales			Net Sales		Sales
Customer A	$	11,859,000		27.7	%	$	11,660,000		26.8	%
Customer B	$	7,870,000		18.4	%	$	6,091,000		14.0	%

As of September 30, 2016, the total amounts owed to the Company by these customers were approximately $1,411,000 or 13.9%, and $2,653,000 or 26.1%, of the Company’s consolidated net accounts receivable, respectively. The amounts owed at September 30, 2015 by these customers were approximately $1,957,000 or 19.3%, and $1,972,000 or 19.5% of the Company’s consolidated net accounts receivable, respectively.