Note 10 – Significant Customers

Revenue from continuing operations for the three months ended March 31, 2018 and March 31, 2017 was $3.4 million and $771,000, respectively. Two third-party contract manufacturing customers accounted for 48.2% and 33.2%, respectively, of our revenue from continuing operations for the three months ended March 31, 2018. Two third-party contract manufacturing customers accounted for 56.4% and 19.9%, respectively, of our revenues from continuing operations for the three months ended March 31, 2017. The loss of sales to either of these large third-party contract manufacturing customers could have a material adverse effect on our business operations and financial condition.

We are subject to account receivable credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. These concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. Two customers represented 56% and 35% and one customer represented 84% of our total trade receivable balances at March 31, 2018 and December 31, 2017, respectively. Management believes that the provision for possible losses on uncollectible accounts receivable is adequate for our credit loss exposure. The allowance for doubtful accounts was zero for both March 31, 2018 and December 31, 2017.