XML 22 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note D- Concentration of Risk
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE D—CONCENTRATION OF RISK
 
Financial instruments which potentially subject the Company to risk primarily consist of cash and accounts receivables.
 
The Company maintains its cash and cash equivalents with various financial institutions, which, at times
may
exceed the amounts insured by the Federal Deposit Insurance Corporation. The exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company has not incurred any losses on these accounts. At
December
31,
2016
and
2015,
amounts in excess of insured limits were approximately
$811,000
and
$4,073,000,
respectively.
 
The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances.
   
The Company had certain customers whose revenue individually represented
10%
or more of the Company’s total revenue, as follows:
 
 
 
Years Ended December 31,
 
 
 
2016
 
 
2015
 
                 
Customer A
   
34
%
    
*
  
Customer B
   
12
%
    
*
  
Customer C
   
*
      
37
%
 
*      Less than
10%
of total revenue
 
The Company had certain customers whose accounts receivable balances individually represented
10%
or more of the Company’s total accounts receivable, as follows:
 
 
 
As of December 31,
 
 
 
2016
 
 
2015
 
                 
Customer A
   
35
%
    
*
  
Customer C
   
56
%
    
62
%
Customer D
   
*
      
14
%
Customer E
   
*
      
11
%
 
*      Less than
10%
of total accounts receivable
 
 
Customer C’s receivable of
$2,070,000
has been past due per the terms of the invoice for
eighteen
months as of
December
31,
2016.
The Company has reserved
$500,000
which represents
24%
of the remaining balance owed under the contract.