NOTE B—FACTORING

Due from factor consisted of the following as of

December

31:

	Original Invoice Value		Factored Amount		Factored Balance due
Year Ended December 31, 2016
Factored accounts receivable	$	214,556	$	160,918	$	53,638
Year Ended December 31, 2015
Factored accounts receivable	$	149,680	$	112,259	$	37,421

As of

December

2011,

the Company entered into a

month accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to

October

31,

2017.

Pursuant to the terms of the arrangement, the Company, from time to time, sells to the Factor certain of its accounts receivable balances on a non-recourse basis for credit approved accounts. The Factor remits

35%

of the foreign and

75%

of the domestic accounts receivable balance to the Company (the “Advance Amount”), with the remaining balance, less fees to be forwarded to the Company once the Factor collects the full accounts receivable balance from the customer. In addition, the Company, from time to time, receives over advances from the factor. Factoring fees range from

2.75%

21%

of the face value of the invoice factored, and are determined by the number of days required for collection of the invoice. The cost of factoring is included in selling, general and administrative expenses. The cost of factoring was as follows:

	Years Ended December 31,
	2016		2015

Factoring fees	$	341,023	$	383,629