11. Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 11 - 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 March 31, 2016.

Purchase Commitments

As of March 31, 2016, the Company had purchase orders to suppliers for inventory  of approximately $11,998.

Significant Customers

Sales to United States government agencies represented approximately $6,729 (55.8%) of the Company’s total sales for the three months ended March 31, 2016, compared with approximately $4,201 (49.0%) for the same quarter last year.  Accounts receivable from agencies of the United States government were $4,185 as of March 31, 2016, compared with approximately $2,381 at the same date last year.

Sales to a Canadian governmental agency represented approximately $1,660 (13.75%) of the Company’s total sales for the three months ended March 31, 2016, compared with approximately $282 (3.3%) for the same quarter last year.  Accounts receivable from this Canadian governmental agency were $1,659 as of March 31, 2016, compared with $275at the same date last year.