Note 12 - Major Customers and Accounts Receivable

3 Months Ended

Mar. 31, 2017

12.	MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLES

For the

three

months ended

March

31,

2017

and

2016,

three

customers accounted for

70%

of revenues and

three

customers accounted for

58%

of revenues, respectively. Two customers accounted for

40%

of current accounts receivable as of

March

31,

2017.

One customer accounted for

100%

of non-current accounts receivable as of

March

31,

2017

and

December

31,

2016.

Based on prior history with this customer, the Company believes the amount is fully collectable, however, the Company has reserved

$1,00,000

which represents

48%

of the remaining balance owed under the contract, due to the length of time the receivable has been outstanding. At

December

31,

2016,

one

customer accounted for

81%

of current accounts receivable.