FACTORING

Due from factor consisted of the following as of:

	June 30,			December 31,
	201 8			201 7

Original invoice value	$	118,494		$	423,349
Factored amount		(90,831	)		(313,484	)
Due from factor	$	27,663		$	109,865

The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to

October 31,

2018.

Pursuant to the terms of the arrangement, the Company, from time to time, sells to the Factor a minimum of

$150,000

per quarter of 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%

15%

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 June 30,
	201 8		201 7

Factoring fees	$	12,691	$	85,326

	Six Months ended June 30,
	201 8		201 7

Factoring fees	$	104,214	$	133,717