CONCENTRATION OF RISK

9 Months Ended

Dec. 31, 2019

CONCENTRATION OF RISK

CONCENTRATION OF RISK

4.    CONCENTRATION OF RISK

Financial Instruments — Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade accounts receivable.

Concentrations of credit risk with respect to trade receivables are normally limited due to the number of customers comprising the Company’s customer base and their dispersion across different geographic areas. At December 31, 2019, five customers accounted for 12.66% of the Company’s trade accounts receivables, and two customers accounted for 6.73%. At December 31, 2018, five customers accounted for 53% the Company's trade accounts receivables, and two customers accounted for 46.37%.  The Company performs ongoing credit evaluations of its customers and normally does not require collateral to support accounts receivable.

Purchases — The Company has diversified its sources for product components and finished goods and, as a result, the loss of a supplier would not have a material impact on the Company’s operations. For the nine months ended December 31, 2019, the Company had five suppliers who accounted for 44.93% of accounts payable. For the nine months ended December 31, 2018 five suppliers accounted for 47.71% of the Company’s accounts payable.

Revenues —  For the nine months ended December 31, 2019 the Company had five customers that accounted for 31.39% of total revenues. Two of the five customers accounted for 16.16% of total revenues. For the nine months ended December 31, 2018 the Company had five customers accounted for 76.77% of total revenues. Two of the five customers accounted for 55.80% of total revenues.