Note 2 - Concentration of Credit Risk and Major Customers

3 Months Ended

Mar. 31, 2021

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

$982

in cash at

March 31, 2021,

approximately

$369

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, 2021

and

2020.

One division accounted for approximately

25%

and

24%

of net sales for the

three

March 31, 2021

and

2020,

respectively. The other division accounted for approximately

4%

of net sales for the

three

month period ended

March 31, 2021,

and approximately

2%

net sales for the

three

month period ended

March 31, 2020.

Together they accounted for approximately

29%

and

26%

of net sales for the

three

March 31, 2021

and

2020,

respectively. Accounts receivable from the customer at

March 31, 2021

and

December 31, 2020

represented approximately

23%

and

20%

of our total accounts receivable, respectively. Another customer's accounts receivable represented

13%

and

10%

as of

March 31, 2021

and

December 31, 2020,

respectively.

Export sales represented approximately

4%

and

3%

of net sales for the

three

months ended

March 31, 2021

and

2020,

respectively.