2. CONTRACTS RECEIVABLE AND RETAINAGE

The principal customers of the Company include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. Of our contracts receivable balance at December 31, 2013, $74.4 million, or 75.45%, is for two customers.

At December 31, 2013, the company included a reserve for bad debt in the amount of $0.9 million in connection with a vessel upgrade and outfitting project.