Note 7 - Major Customers and Export Revenue

9 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE

7.

Major Customers and Export Revenue

During the

three

month period ended

June 30, 2018,

the Company had

one

customer that represented

91%

of net revenue as compared to the

three

month period ended

July 1, 2017,

during which the Company had

two

customers that represented

97%

(

66%

and

31%,

respectively) of net revenue. During the

nine

month period ended

June 30, 2018,

the Company had

one

customer that represented

87%

of net revenue as compared to the

nine

month period ended

July 1, 2017,

during which the Company had

two

customers that represented

91%

(

81%

and

10%,

respectively) of net revenue.

A breakdown of foreign and domestic net revenue for the

three

and

nine

month periods ended

June 30, 2018

and

July 1, 2017

is as follows:

	June 30, 2018				July 1, 2017
	3 months		9 months		3 months		9 months
Domestic	$	832,441	$	2,343,878	$	1,008,380	$	2,792,102
Foreign		74,736		203,794		10,725		243,710
Total net revenue	$	907,177	$	2,547,672	$	1,019,105	$	3,035,812

The Company sold products into

two

foreign countries during the

three

month period ended

June 30, 2018

and

one

foreign country during the

three

month period ended

July 1, 2017.

The Company sold products into

four

foreign countries during the

nine

month period ended

June 30, 2018

and

five

foreign countries during the

nine

month period ended

July 1, 2017.

A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue

may

include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes the Company’s foreign revenues by country as a percentage of total foreign revenue.

	June 30, 2018						July 1, 2017
	3 months			9 months			3 months			9 months
Saudi Arabia		73	%		44	%		-			42	%
Philippines		27	%		44	%		-			4	%
Bahrain		-			-			100	%		4	%
Jordan		-			6	%		-			43	%
Other		-			6	%		-			7	%

A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows:

	June 30, 2018						July 1, 2017
	3 months			9 months			3 months			9 months
Mid-East and Africa		73	%		56	%		100	%		89	%
Far East		27	%		44	%		-			11	%