Note 2 - Concentration of Credit Risk and Major Customers

3 Months Ended

Mar. 31, 2020

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 primarily

two

financial institutions,

one

in the United States and

one

in China. The account in the United States

may

at times exceed federally insured limits. Of the

$974

in cash at

March 31, 2020,

approximately

$703

was held at banks located in China. 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

three

month period ended and

March 31, 2020

and

2019.

One division accounted for approximately

24%

and

23%

of net sales for the

three

March 31, 2020

and

2019,

respectively. The other division accounted for approximately

2%

of net sales for the

three

month period ended

March 31, 2020

and , and approximately

3%

net sales for the

three

month period ended

March 31, 2019.

Together they accounted for approximately

26%

and

26%

of net sales for the

three

March 31, 2020

and

2019,

respectively. Accounts receivable from the customer at

March 31, 2020

and

December 31, 2019

represented approximately

42%

and

36%

of our total accounts receivable, respectively.

Export sales represented approximately

12%

and

19%

of net sales for the

three

months ended

March 31, 2020

and

2019,

respectively.