Quarterly report pursuant to Section 13 or 15(d)

Concentrations of Credit Risk

v3.7.0.1
Concentrations of Credit Risk
6 Months Ended
Mar. 31, 2017
Concentrations of Credit Risk [Abstract]  
Concentration Risk Disclosure [Text Block]
11.
Concentrations of Credit Risk
 
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, U.S Treasury Bills, and accounts receivable. The Company estimates its maximum credit risk at the amount recorded on the balance sheet.
 
Management’s assessment of the Company’s credit risk for cash and cash equivalents is low as they are held in major financial institutions believed to be credit worthy or U.S. Treasury Bills with maturities of 90 days or less. The Company limits its exposure to credit loss for short-term investments by holding U.S. Treasury Bills with maturities of 1 year or less. Based on credit monitoring and history, the Company considers the risk of credit losses due to customer non-performance on accounts receivable to be low.
 
The Company had the following concentrations of revenues by customers:
 
 
 
 
Six Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Product sales and contract services revenue
 
 
88% from
2 customers
 
 
90% from
5 customers
 
 
The Company had the following concentrations of revenues by geographic areas:
 
 
 
Six Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
Europe
 
 
71
%
 
45
%
U.S.
 
 
29
%
 
16
%
Asia
 
 
-
 
 
39
%
 
The Company had the following concentrations of accounts receivable:
 
 
 
March 31,
 
September 30,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Accounts receivable
 
 
76% from
1 customer
 
 
100% from
1 customer