Note 13 - Significant Risks and Uncertainties

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

1

3

–

Significant Risks and Uncertainties

Cash

and Cash Equivalents

The Company places most of its temporary cash investments with financial institutions, which from time to time

may

exceed the Federal Deposit Insurance Corporation limit. The amount at

risk at

December

31,

2016

and at

December

31,

2015

was

$20,157,000

and

$11,966,000

respectively.

Sales Concentrations

Revenue to a single customer in any

one

year can exceed

10.0%

of our total sales.

One

customer represented

45.3%

and

49.6%

respectively, of our annual revenues in fiscal years

2016

and

2015.

Another customer represented

13.7%

of our revenue in

2015.

Previously, we have not been generally dependent on any single customer, and the loss of any customer would be replaced by others, however, the dynamic has changed and although, we believe that our relationship with our current largest customers will provide us with ongoing continuous sustainability for years to come, the loss of current key customers would have to be replaced by others, and our inability to do so

may

have a material adverse effect on our business and financial condition.

Export sales to unaffiliated customers represented approximately

11.9%

and

9.0%

of sales for the years ended

December

31,

2016

and

2015,

respectively. Export sales in both

2016

and

2015

were primarily to customers in Europe and Asia. All contracts are denominated in U.S. dollars. The Company does not enter into any foreign exchange contracts.