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Note 2 - Concentration of Credit Risk and Major Customers
9 Months Ended
Sep. 30, 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 $1,443 in cash at September 30, 2021, approximately $378 and $5 was held at banks located in China and Mexico, respectively. We grant credit to customers in the normal course of business and do not require collateral on our accounts receivable.
 
We have certain customers whose revenue individually represented 10% or more of net sales, or whose accounts receivable balances individually represented 10% or more of total accounts receivable. For the three months ended September 30, 2021, two customers accounted for 36% of net sales. For the three months ended September 30, 2020, one customer accounted for 23% of net sales. At September 30, 2021 and 2020, one customer accounted for 26% and 23% of net sales, respectively 

 

At September 30, 2021, two customers represented approximately 36% of our total accounts receivable. At December 31, 2020, one customer represented approximately 20% of our total accounts receivable.

 

Export sales represented approximately 3% of net sales for the three months ended September 30, 2021 and 2020. Export sales represented 3% of net sales for the nine months ended September 30, 2021 and 2020.