Concentration of Credit Risk

9 Months Ended

Sep. 30, 2018

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

6. Concentration of Credit Risk

Credit risk is the risk of loss from amounts owed by the financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash and accounts receivable.

The Company maintains cash with major financial institutions. The Company’s cash consists of bank deposits held with banks that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of the relative credit standing of these financial institutions.

Management periodically monitors the creditworthiness of its customers and believes that it has adequately provided for any exposure to potential credit loss. For the three months ended September 30, 2017, two customers accounted for 51.1% and 14.9% of the Company’s revenue, respectively. For the nine months ended September 30, 2017, one customer accounted for 52.0% of the Company’s revenue. As of December 31, 2017, two customers accounted for 56.6% and 23.9% of the Company’s accounts receivable, respectively. For the three months ended September 30, 2018, two customers accounted for 51.8% and 22.2% of the Company’s revenue. For the nine months ended September 30, 2018, two customers accounted for 53.1% and 19.4% of the Company’s revenue. As of September 30, 2018, two customers accounted for 47.6% and 40.1% of the Company’s accounts receivable.