Note 17 - 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 September 30, 2020 and December 31, 2019 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 three-month period ended September 30, 2020 and 2019 (in thousands):

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 nine-month period ended September 30, 2020 and 2019 (in thousands):

As of September 30, 2020, Customer A represented approximately 44% of total accounts receivable. As of September 30, 2019, Customer A represented approximately 59%, and Customer C represented approximately 17% of total accounts receivable.

As of September 30, 2020, two vendors represented approximately 19% and 11% of total gross accounts payable. Purchases from these vendors during the three and nine months ended September 30, 2020 was $0.  As of September 30, 2019, two vendors represented approximately 41% and 14% of total gross accounts payable. Purchases from these vendors during the three and nine months ended September 30, 2019 was $0.

For the three months ended September 30, 2020, four vendors represented approximately 21%, 19%, 15%, and 14% of total purchases. For the three months ended September 30, 2019, five vendors represented approximately 23%, 19%, 13%, 12% and 10% of total purchases.

For the nine months ended September 30, 2020, four vendors represented approximately 24%, 13%, 11%, and 10% of total purchases. For the nine months ended September 30, 2019, three vendors represented approximately 25%, 19% and 13% of total purchases.