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Note 4 - Factoring
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Factoring [Text Block]
4.
FACTORING
 
Due from factor consisted of the following as of: 
 
 
 
June 30,
 
 
December 31,
 
 
 
2016
 
 
2015
 
                 
Original invoice value
  $ 10,665     $ 149,680  
Factored amount
    (8,342
)
    (112,259
)
Due from factor
  $ 2,323     $ 37,421  
 
 
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, sells to the Factor 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% to 21% 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,
 
 
 
2016
 
 
2015
 
                 
Factoring fees
  $ 108,351     $ 196,488  
 
 
 
Six Months ended
June 30,
 
 
 
2016
 
 
2015
 
                 
Factoring fees
  $ 303,363     $ 235,130