Accounts Receivable

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Accounts Receivable

NOTE 5 — ACCOUNTS RECEIVABLE

The Company’s accounts receivable result from sales to a broad customer base. The Company extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history and generally does not require collateral. Accounts receivable are generally due within 30 days in the Company’s U.S. and French operations and 60 days in its English operations and are stated net of an allowance for doubtful accounts. Accounts outstanding for longer than the contractual payment terms are considered past due. Provisions for uncollectible accounts are made based on the Company’s specific assessment of the collectability of all past due accounts. Credit losses are provided for in the financial statements and consistently have been within management’s expectations. The Company carries insurance to cover accounts receivable derived from export sales from the United Kingdom. Two customers accounted for 11.0% and 10.3% of total sales in the quarter to March 31, 2014, and these two customers accounted for $1,089,000 of accounts receivable at the period end. At May 12, 2014, $499,000 of this sum had been received since the period end; this payment schedule is in accordance with the Company’s normal terms of business with these customers. The same two customers each represented ten percent or more of the Company’s total net sales during three months ended March 31, 2013.

The following table reflects the changes in the Company’s doubtful accounts reserve during the three months ended March 31, 2014 and 2013 (in thousands):

	2014			2013
Balance at December 31,	$	70			75
Additional reserve for three months		12			1
Recoveries		(14	)		-
Accounts receivable written off		-			(6	)
Foreign currency translation		-			(3	)
Balance at March 31,	$	68			67