Note 2 - Concentration of Credit Risk and Major Customers

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

note

2.

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. With regard to cash, we maintain our excess cash balances in checking accounts at

two

high-credit quality financial institutions. These accounts

may

at times exceed federally insured limits. We grant credit to customers in the normal course of business and do

not

require collateral on our accounts receivable.

Our largest customer has

two

divisions that together accounted for

10%

or more of our net sales during the year ended

December 31, 2019

and

2018.

One division accounted for approximately

19.9%

and

20.8%

of net division sales for the years ended

December 31, 2019

and

2018,

respectively. The

second

division accounted for approximately

2.6%

and

2.4%

of net division sales for the years ended

December 31, 2019

and

2018,

respectively. Together they accounted for approximately for

22.5%

and

23.2%

of net sales for the years ended

December 31, 2019

and

2018,

respectively. Accounts receivable from the customer at

December 31, 2019

and

2018

represented

35.6%

and

16.3%

of our total accounts receivable, respectively.