11. Commitments and Contingencies

6 Months Ended

Jun. 30, 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 June 30, 2016.

Purchase Commitments

As of June 30, 2016, the Company had purchase orders to suppliers for inventory of approximately $6,140.

Significant Customers

Sales to United States government agencies represented approximately $10,055 (60.3%) and $16,785 (58.4%) of the Company’s total sales for the three and six months ended June 30, 2016, respectively, compared with approximately $2,070 (31.1%) and $6,271 (41.2%), respectively, for the same periods last year. Accounts receivable from agencies of the United States government were $2,765 as of June 30, 2016, compared with approximately $601 at the same date last year.