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Note 5 - Factoring
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Factoring [Text Block]
5
.      FACTORING
 
Due from factor consisted of the following as of:
 
 
   
September 30,
    
December 31,
  
   
2017
    
201
6
  
                 
Original invoice value
   $
115,001
     $
214,556
  
Factored amount
    
(86,251
)
    
(160,918
)
Balance due from factor
   $
28,750
     $
53,638
  
 
As of
December 2011,
the Company entered into a
24
-month accounts receivable factoring arrangement with a financial institution (the “Factor”). In
April 2012,
the terms were updated from monthly to quarterly, and the
24
-month arrangement was extended to
August 1, 2014.
  In
July
of
2014,
the arrangement was extended to
July 31, 2016.
In
June
of
2015,
the arrangement was extended to
October 31, 2017.
Pursuant to the terms of the arrangement, the Company, from time to time, sold to the Factor certain of its accounts receivable balances on a non-recourse basis for credit approved accounts. The Factor remitted
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, received over advances from the Factor. Factoring fees range from
2.75%
to
21%
of the face value of the invoice factored, and were determined by the number of days required for collection of the invoice. The cost of factoring was included in selling, general and administrative expenses. The cost of factoring for the
three
and
nine
months ended
September 30, 2017
and
2016
was as follows: 
 
   
Three Months ended
September 30,
    
Nine Months ended
September 30,
  
   
201
7
    
201
6
    
201
7
    
201
6
  
                                 
Factoring fees
   $
46,409
     $
16,264
     $
180,126
     $
319,627