Concentration of Credit Risk and Significant Suppliers

6 Months Ended

Jun. 30, 2022

Concentration of Credit Risk and Significant Suppliers

Note 4. Concentration of Credit Risk and Significant Suppliers

Financial instruments that potentially subject the Company to credit risk consist principally of cash and restricted cash equivalents held by financial institutions, other receivables and account receivables. Substantially all of the Company’s cash and restricted cash equivalents are held at one financial institution that management believes is of high credit quality. Such deposits may, at times, exceed federally insured limits.

As of June 30, 2022, the following customers had outstanding accounts receivable due of 10% or greater of the Company’s total accounts receivable.


	June 30, 2022			December 31, 2021
Customer A		68	%		19	%
Customer B		—	%		12	%
Customer E		—	%		18	%

For the three and six months ended June 30, 2022 and 2021, the following customers represented 10% or more of the Company’s net sales:


	Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021		2022			2021
Customer A		—	%	—	%		14	%	—	%
Customer B		—	%	—	%		—	%	14	%
Customer C		—	%	14	%		—	%	10	%
Customer D		—	%	10	%		—	%	—	%

As of June 30, 2022, the Company had non-cancellable purchase commitments of $57.7 million, consisting primarily of $27.3 million of raw material purchase commitments, $9.4 million related to asset and equipment related to expanding the Company’s manufacturing capacity and automation, $6.7 million related to non-commercial services, $14.4 million pursuant to the manufacturing services agreement (the “Jabil MSA”), with Jabil Inc. (“Jabil”), and technical services agreement with Jabil (the “Jabil TSA”). Under the Jabil MSA, the Company is obligated to provide, on a monthly basis, a rolling 12-month forecast to Jabil as well as 12 months of historical aggregate end customer demand at the finished product level, when available, which will be used to constitute written purchase orders from the Company, and the Company is obligated to purchase the quantity of products that is required by the first four months of each forecast.