Note 7 - Factoring

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Factoring [Text Block]

7. FACTORING

Due from factor consisted of the following as of: 

	June 30,			December 31,
	2021			2020
Original invoice value	$	99,000		$	241,715
Factored amount		(49,500	)		(181,262	)
Due from factor	$	49,500		$	60,453

The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2021. 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, 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 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,
	2021		2020
Factoring fees	$	18,900	$	33,230

	Six Months ended June 30,
	2021		2020
Factoring fees	$	32,247	$	65,230