Note 13 - Significant Risks and Uncertainties

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

1

3

–

Significant Risks and

U

ncertainties

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,

20

17

and at

December 31, 2016

was

$12,198,000

and

$20,157,000

respectively.

Sales Concentration

s

Revenue

to a single customer in any

one

year can exceed

10.0%

of our total sales.

One

customer represented

66.1%

and

45.3%

respectively, of our annual revenues in fiscal years

2017

and

2016.

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 customer will provide us with ongoing continuous sustainability for years to come, the loss of our largest customer 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

9.6%

and

11.9%

of sales for the years ended

December 31, 2017

and

2016,

respectively. Export sales in both

2017

and

2016

were primarily to customers in Europe and Asia. All contracts except those entered into by CVD Tantaline ApS are denominated in U.S. dollars. The Company does

not

enter into any foreign exchange contracts.