The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances.

During the six months ended June 30, 2017, the Company had two (2016 - one) customers which accounted for 78% (2016 - 53%) of total revenues.

As at June 30, 2017, the Company had two (December 31, 2016 - two) customers which accounted for 98% (December 31, 2016 - 90%) of accounts receivable.