Concentration of Credit Risk

12 Months Ended

Dec. 31, 2016

Concentration Risk Disclosure [Text Block]

Note 10 – Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash deposits and trade accounts receivable.

Credit risk with respect to trade accounts receivable was concentrated with three and two of the Company’s customers in 2016 and 2015, respectively. These customers accounted for approximately 41% of the Company’s outstanding trade accounts receivable at both December 31, 2016 and 2015, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition, uses credit insurance and requires collateral, such as letters of credit, to mitigate its credit risk. The deterioration of the financial condition of one or more of its major customers could adversely impact the Company’s operations. From time to time where the Company determines that circumstances warrant, such as when a customer agrees to commit to a large blanket purchase order, the Company extends payment terms beyond its standard payment terms.

The Company’s largest customer accounted for approximately 17% and 10% of the Company’s sales in the years ended December 31, 2016 and 2015, respectively. This customer accounted for approximately 19% of the Company’s outstanding trade accounts receivable at December 31, 2016. A second customer accounted for approximately 15% of the Company’s sales in each of the years ended December 31, 2016 and 2015, respectively. This customer accounted for approximately 12% and 18% of the Company’s outstanding trade accounts receivable at December 31, 2016 and 2015, respectively. A third customer accounted for approximately 10% of the Company’s sales in the year ended December 31, 2015. A fourth customer accounted for approximately 10% of the Company’s trade accounts receivable at December 31, 2016. A fifth customer accounted for approximately 23% of the Company’s trade accounts receivable at December 31, 2015. The Company had sales outside the United States of approximately 3% in each of years ended December 31, 2016 and 2015, respectively.