Quarterly report pursuant to Section 13 or 15(d)

Credit Risk and Concentrations

v3.19.2
Credit Risk and Concentrations
6 Months Ended
Jun. 30, 2019
Risks and Uncertainties [Abstract]  
Credit Risk and Concentrations

Note 12 - Credit Risk and Concentrations

 

Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, consequently, believes that its accounts receivable credit risk exposure beyond such allowances is limited.

 

The Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured limits. Cash is also maintained at foreign financial institutions for its Canadian subsidiary and its majority-owned India subsidiary. Cash in foreign financial institutions as of June 30, 2019 and December 31, 2018 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.

  

The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the six months ended June 30, 2019 and 2018 (in thousands):

 

    For the
Six Months Ended
June 30, 2019
 

For the

Six Months Ended

June 30, 2018

    $   %   $   %
Customer A   1,500   53%   --   --
Customer B   612   21%   644   38%
Customer C   --   --   210   12%

 

The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the three months ended June 30, 2019 and 2018 (in thousands):

 

    For the
Three Months Ended
June 30, 2019
 

For the

Three Months Ended

June 30, 2018

    $   %   $   %
Customer A   750   50%   --   --
Customer B   306   21%   319   38%
Customer C   --   --   105   13%

  

As of June 30, 2019, Customer A represented approximately 57%, Customer B represented approximately 0%, and Customer C represented approximately 0% of total accounts receivable. As of June 30, 2018, Customer A represented approximately 0%, Customer B represented approximately 6%, and Customer C represented approximately 24% of total accounts receivable. 

 

As of June 30, 2019, two vendors represented approximately 43% and 14% of total gross accounts payable. There were no purchases from these vendors during the three and six months ended June 30, 2019.  As of June 30, 2018, two vendors represented approximately 50% and 19% of total gross accounts payable. There were no purchases from these vendors during the three and six months ended June 30, 2018.