Note 15 - Concentrations

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

15.

       Concentrations:

Major customers

During the quarter ended

September 30, 2019,

the Company sold Ad tech revenue and during the quarter ended

September 30, 2019

and

2018,

sold content revenue including subscriptions on its site Rooplay, in-app purchases on its social bingo sites, Trophy Bingo and Garfield’s Bingo and Rooplay Originals. During the quarter ended

September 30, 2019,

the Company had

two

customers (

September 30, 2019 -

$680,192

and

$184,376

respectively) (

September 30, 2018 -

$nil

) who purchased more than

10%

of the total revenue. The Company is reliant on the Google App, iOS App and Amazon App Stores to provide a content platform for Rooplay, Trophy Bingo and Garfield’s Bingo to be played thereon and certain advertising agencies for the Ad tech revenue.

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any

one

institution.

The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At

September 30, 2019,

the Company had total cash and cash equivalents balances of

$812,477

(

December 31, 2018 -

$641,536

) at financial institutions, where

$527,373

(

December 31, 2018 -

$489,235

) is in excess of federally insured limits.

The Company has concentrations of credit risk with respect to accounts receivable, the majority of its accounts receivable are concentrated geographically in the United States amongst a small number of customers.

As of

September 30, 2019,

the Company had

one

customer, totaling

$1,296,246

who accounted for greater than

10%

of the total accounts receivable. As of

December 31, 2018,

the Company had

three

customers, totaling

$8,814

who accounted for greater than

10%

of the total accounts receivable.

The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.  The Company performs credit evaluations of its customers but generally does

not

require collateral to secure accounts receivable.