FACTORING

Due from factor consisted of the following as of:

	March 31,			December 31,
	2017			2016

Original invoice value	$	471,562		$	214,556
Factored amount		(353,671	)		(160,918	)
Balance due from factor	$	117,891		$	53,638

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:

	Three Months ended March 31,
	2017		2016

Factoring fees	$	48,391	$	195,012