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Note 7 - Segment Information and Concentrations

3 Months Ended

Mar. 31, 2021

NOTE 7 — Segment Information and Concentrations

Segment Information

The Company operates in the mobile barcode scanning and RFID/NFC data capture market. Mobile scanning typically consists of mobile devices such as smartphones or tablets, with mobile scanning or NFC peripherals for data collection, and third-party vertical applications software. The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. The Company markets its products primarily through application developers whose applications are designed to work with Company’s products.

Revenues for the geographic areas for three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
Revenues:	2021		2020
United States	$	3,563,055	$	3,143,409
Europe		777,580		615,529
Asia and rest of world		472,344		461,748
Total revenues	$	4,812,979	$	4,220,686

Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations.

Major Customers

Customers who accounted for at least 10% of the Company’s total revenues for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
	2021			2020
Ingram Micro, Inc.		25	%		36	%
BlueStar, Inc.		29	%		17	%

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand deposit accounts in banks and the Company has not experienced losses on the investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition, but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances at March 31, 2021 and December 31, 2020 were as follows:

	March 31,			December 31,
	2021			2020
Ingram Micro Inc.		30	%		34	%
BlueStar, Inc.		30	%		29	%
ScanSource, Inc.		12	%		13	%
Bluestar Europe DistributionBV		*			11	%
*Customer accounted for less than 10% of the Company’s accounts receivable balances

Concentration of Suppliers

Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. If the Company were unable to procure certain of such materials, it could have a material adverse effect upon its results. For the three months ended March 31, 2021 and 2020, the top two suppliers accounted for 37% and 60%, respectively, of the inventory purchases. At March 31, 2021 and December 31, 2020, 17% and 15%, respectively, of the Company’s accounts payable balances were concentrated with a single supplier.