9. Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

NOTE 9 - Commitments and Contingencies

Legal Proceedings

From time to time the Company may be involved in various claims and legal actions arising in the ordinary course of its business. There were no pending material claims or legal matters as of June 30, 2014.

Other

As of June 30, 2014, the Company had purchase orders to suppliers of approximately $4,320.

Significant Customers

Sales to United States government agencies represented approximately $3,434 (37.0%) and $6,617 (38.3%) of the Company’s total sales for the three and six months ended June 30, 2014, respectively, compared with approximately $1,356 (21.9%) and $4,632 (34.9%) for the same periods last year.  Accounts receivable from agencies of the United States government were $2,512 as of June 30, 2014 compared with approximately $588 at the same date last year.