Credit Risk and Concentrations

6 Months Ended

Jun. 30, 2020

Risks and Uncertainties [Abstract]

Credit Risk and Concentrations

Note 16 - 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 June 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 June 30, 2020 and 2019 (in thousands):

	For the Three Months Ended June 30, 2020		For the Three Months Ended June 30, 2019
	$	%	$	%
Customer A	305	28%	306	21%
Customer B	--	--	750	50%

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

	For the Six Months Ended June 30, 2020		For the Six Months Ended June 30, 2019
	$	%	$	%
Customer A	611	21%	612	21%
Customer B	500	17%	1,500	53%

As of June 30, 2020, Customer B represented approximately 32% and Customer C represented approximately 27 % of total accounts receivable. As of June 30, 2019, Customer B represented approximately 57%, and Customer C represented approximately 19% of total accounts receivable.

As of June 30, 2020, two vendors represented approximately 18% and 12% of total gross accounts payable. Purchases from these vendors during the three and six months ended June 30, 2020 was $0.  As of June 30, 2019, two vendors represented approximately 43% and 14% of total gross accounts payable. Purchases from these vendors during the three and six months ended June 30, 2019 was $0.

For the three months ended June 30, 2020, three vendors represented approximately 54%, 20%, and 14% of total purchases. For the three months ended June 30, 2019, two vendors represented approximately 81% and 12% of total purchases.

For the six months ended June 30, 2020, five vendors represented approximately 30%, 18%, 15%, 14% and 13% of total purchases. For the six months ended June 30, 2019, two vendors represented approximately 80% and 11% of total purchases.