Note 5 - Accounts Receivable

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5. ACCOUNTS RECEIVABLE

Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible.

As a result of the payment delays from a large customer, the Company has reserved 

$1,720,000

at 

September 30, 2020

and

December 31, 2019, 

which represents

100%

of the remaining balance owed under the contract. Recoveries of accounts receivable previously written off are recorded when received. Additionally, the Company sold a license to a Chinese reseller in

December 2018.

Revenue was recognized in accordance with ASC

606

in the amount of

$1.1

million in

2018.

As of

December 31, 2019,

the

second

payment due to be paid in

March 2019

of 

$555,555

was still outstanding and payable. As of

December 31, 2019,

the Company wrote off the amount directly to bad debt expense as it was determined

not

to be collectible.

	September 30,			December 31,
	20 20			2019
Accounts receivable - current	$	506,165		$	139,785
Accounts receivable - non current		1,720,000			1,720,000
Total accounts receivable		2,226,165			1,859,785
Allowance for doubtful accounts - current		(13,785	)		(13,785	)
Allowance for doubtful accounts - non current		(1,720,000	)		(1,720,000	)
Total allowance for doubtful accounts		(1,733,785	)		(1,733,785	)
Accounts receivable, net of allowance for doubtful accounts	$	492,380		$	126,000