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, as a consequence, 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 Saudi Arabia subsidiary. Cash in foreign financial institutions as of June 30, 2016 and December 31, 2015 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, 2016 and 2015 (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 three months ended June 30, 2016 and 2015 (in thousands):

As of June 30, 2016, Customer A represented approximately 17%, Customer C represented approximately 31%, and Customer D represented approximately 13% of total accounts receivable. As of June 30, 2015, Customer A represented approximately 38%, and Customer E represented approximately 12% of total accounts receivable. 

As of June 30, 2016, one vendor represented approximately 53% of total gross accounts payable. Purchases from this vendor during the three months ended June 30, 2016 were $5.3 million. Purchases from this vendor during the six months ended June 30, 2016 were $9.8 million.  As of June 30, 2015, two vendors represented approximately 63% and 11% of total gross accounts payable. Purchases from these vendors during the three months ended June 30, 2015 were $9.4 million. Purchases from these vendors during the six months ended June 30, 2015 were $15.2 million.

For the three months ended June 30, 2016, Vendor A represented approximately 71% and Vendor B represented approximately 10% of total purchases. For the three months ended June 30, 2015, Vendor A represented approximately 84% and Vendor B represented approximately 16% of total purchases. For the six months ended June 30, 2016, Vendor A represented approximately 62% and Vendor B represented approximately 11% of total purchases. For the six months ended June 30, 2015, Vendor A represented approximately 63% and Vendor B represented approximately 12% of total purchases.