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Note F - Concentration of Risk
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

NOTE FCONCENTRATION OF RISK

 

Financial instruments which potentially subject the Company to risk primarily consist of cash, and cash equivalents, investment in debt security, and accounts receivables.

 

The Company maintains its cash and cash equivalents with various financial institutions, which, at times may exceed insured limits. The exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company was in excess of coverage of approximately $7,057,000 and $16,020,000 at December 31, 2021 and 2020, respectively. The Company has not incurred any losses on these accounts.

 

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.

 

For the year ended December 31, 2021 and 2020, one customer accounted for 13% and 18% of total revenue, respectively.

 

Three customers accounted for 87% and one customer accounted for 31% of total accounts receivable, as of December 31, 2021 and 2020, respectively.