Note 10 - 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 March 31, 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 three months ended March 31, 2019 and 2018 (in thousands):

As of March 31, 2019, Customer A represented approximately 37%, Customer D represented approximately 22%, Customer E represented approximately 11%, and Customer C represented approximately 11% of total accounts receivable. As of December 31, 2018, Customer C represented approximately 30%, Customer D represented approximately 26% and Customer E represented approximately 13% of total accounts receivable.

As of March 31, 2019, one vendor represented approximately 43% of total gross accounts payable. Purchases from this vendor during the three months ended March 31, 2019 was $0. As of December 31, 2018, one vendor represented approximately 49% of total gross accounts payable. Purchases from this vendor during the three months ended March 31, 2018 was $0.

For the three months ended March 31, 2019, two vendors represented approximately 56% and 44% of total purchases. For the three months ended March 31, 2018, one vendor represented approximately 84% of total purchases.