Note D - Concentration of Risk

12 Months Ended

Dec. 31, 2017

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, 2017

and

2016,

amounts in excess of insured limits were approximately

and

$811,000,

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,
	201 7			201 6

Customer A		54	%		34	%
Customer B		*			12	%

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,
	201 7			201 6

Customer A		55	%		35	%
Customer B		37	%		56	%

Customer

B’s receivable of

$1,760,000

has been past due per the terms of the invoice for

thirty

months as of

December 31, 2017.

The Company has reserved

$1,000,000

which represents

57%

of the remaining balance owed under the contract.