Concentration of Risk

The Company maintains its cash in various bank accounts, the balances of which at times

may

exceed federally insured limits. The Company has

not

experienced any losses related to these accounts, and management does

not

believe that the Company is exposed to significant credit risk.

The Company’s investments in marketable securities are in

one

publicly traded entity. The Company recognized a gain on investment in common stock warrants in a prior period and during

2018

recognized a realized gain of

$7,000

and an unrealized loss of

$57,000

in the consolidated income statement. During

2017,

the Company recognized an unrealized loss in comprehensive income (loss) for changes in the fair value of the investment. The Company is exposed to the fluctuation in the stock price of this investment.

Management believes that adequate provision has been made for risk of loss on all credit transactions.

The Company buys a significant amount of its disposable protective apparel products from a limited number of subcontractors located in Asia and, to a much lesser extent, a subcontractor in Mexico. Management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely.

The Building Supply segment buys semi-finished housewrap and synthetic roof underlayment from its joint venture, Harmony, located in India. Although there are a limited number of manufacturers of the particular product, management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely.

The Company provides products to customers located primarily in the United States. Customers accounting for

10%

or more of accounts receivable as of

December 31, 2018

and

2017,

and

10%

or more of net sales for the years ended

December 31, 2018

and

2017,

were as follows:

Accounts receivable:	2018			2017
Customer A		24	%		26	%
Customer B		14	%		*

Net sales:
Customer A		20	%		19	%
Customer B		12	%		10	%

Customer’s balance was below the

10%

threshold for accounts receivable as of

December 31, 2017.