Annual report pursuant to Section 13 and 15(d)

Credit Risk and Concentrations

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Credit Risk and Concentrations
12 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
Credit Risk and Concentrations

Note 22 - 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 December 31, 2019 and 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 years ended December 31, 2019 and 2018 (in thousands):

 

    For the Year Ended
December 31, 2019
    For the Year Ended
December 31, 2018
 
    $     %     $     %  
Customer A     2,661       42%     --       --  
Customer B     1,224       19%     1,238       33%

  

 

As of December 31, 2019, Customer C represented approximately 29%, Customer A represented approximately 14%, and Customer D represented approximately 10 % of total accounts receivable. As of December 31, 2018, Customer E represented approximately 30%, Customer C represented approximately 26%, Customer F represented approximately 13%, Customer D represented approximately 10% and Customer G represented approximately 10% of total accounts receivable.

 

As of December 31, 2019, three vendors represented approximately 36%, 12%, and 10% of total gross accounts payable. Purchases from these vendors during the year ended December 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 year ended December 31, 2018 was $0.

 

For the year ended December 31, 2019, three vendors represented approximately 32%, 27%, and 21% of total purchases. For the year ended December 31, 2018, one vendor represented approximately 97% of total purchases.