Credit Risk and Concentrations

9 Months Ended

Sep. 30, 2023

Risks and Uncertainties [Abstract]

Credit Risk and Concentrations

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 UK subsidiary, German subsidiaries and its majority-owned India subsidiary. Cash in foreign financial institutions as of September 30, 2023 and December 31, 2022 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.

For the three months ended September 30, 2023, there is one single customer who accounts for 17% of the Company's revenue totaling $0.3 million with $0.3 million accounts receivable at September 30, 2023. This customer represents 19% of the total accounts receivable balance as of September 30, 2023.

For the nine months ended September 30, 2023, there are two customers who account for 14% and 10% of the Company's revenue totaling $1.0 million and $0.7 million. These customers represent $0.3 million or 19% and $0.0 million or —% of accounts receivable at September 30, 2023.

An additional customer, which does not account for 10% of revenue in the three or nine months ended September 30, 2023, accounts for 11% or $0.2 million of the total accounts receivable balance as of September 30, 2023.

For the three months ended September 30, 2022, there are two customers who account for 15% and 13% of the Company's revenue totaling $0.4 million and $0.3 million. These customers represent 22% or $0.4 million and 8% or $0.1 million of accounts receivable at September 30, 2022.

For the nine months ended September 30, 2022, there is one single customer who accounts for 14% of the Company's revenue totaling $1.1 million. This customer represents $0.4 million or 22% of accounts receivable at September 30, 2022.

An additional customer, which does not account for 10% of revenue in the three or nine months ended September 30, 2022, accounts for 12% or $0.2 million of the total accounts receivable balance as of September 30, 2022.

For the three months ended September 30, 2023, there is one single vendor who accounts for 21% of the Company's purchases totaling $0.9 million. This vendor represents 5% or $0.1 million of accounts payable at September 30, 2023.

For the nine months ended September 30, 2023, there is one single vendor who accounts for 13% of the Company's purchases totaling $2.2 million. This vendor had no accounts payable at September 30, 2023.

Two additional vendors, which do not account for 10% of purchases in the three or nine months ended September 30, 2023, account for 20% or $0.4 million and 10% or $0.2 million of the total accounts payable balance as of September 30, 2023.

For the three months ended September 30, 2022, there are two vendors who account for 18% and 13% of the Company's purchases totaling $1.0 million and $0.7 million. These vendors represent 26% or $0.6 million and —% or $0.0 million of the total accounts payable balance as of September 30, 2022.

For the nine months ended September 30, 2022, there is one single vendor who accounts for 37% of the Company's purchases totaling $6.8 million. This vendor had no accounts payable at September 30, 2022.

One additional vendor, which did not account for 10% of purchases in the three or nine months ended September 30, 2022, accounts for 11% or $0.3 million of the total accounts payable balance as of September 30, 2022.