Significant Risks and Uncertainties Including Business and Credit Concentrations

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

Significant Risks and Uncertainties Including Business and Credit Concentrations

Significant Risks and Uncertainties Including Business and Credit ConcentrationsFinancial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term available-for-sale debt securities and trade receivables. The Company’s cash, cash equivalents and short-term available-for-sale marketable securities are held by large, credit worthy financial

institutions. The Company invests its excess cash in money market funds and short-term available-for-sale debt securities with the primary objective of facilitating liquidity and capital preservation. The Company has established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these financial institutions may exceed the amounts of insurance provided on such deposits. To date, the Company has not experienced any losses on its deposits of cash, cash equivalents and marketable securities.

The Company controls credit risk through credit approvals and monitoring procedures. The Company performs periodic credit evaluations of its customers and generally does not require collateral. Accounts receivable are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of specific customer accounts and the aging of the related invoices and represents the Company’s best estimate of expected credit losses in its existing trade accounts receivable. At each of September 30, 2022 and December 31, 2021, the Company had not recorded any material allowance for doubtful accounts.

For the three months ended September 30, 2022, two customers accounted for 26% and 10% of revenue. For the nine months ended September 30, 2022, one customer accounted for 19% of revenue. For the three months ended September 30, 2021, four customers accounted for 16%, 15%, 10% and 10%, of revenue. For the nine months ended September 30, 2021, three customers accounted for 21%, 15% and 10% of revenue.

As of September 30, 2022, two customers comprised 30% and 14% of accounts receivable. As of December 31, 2021, three customers accounted for 15%, 11% and 11% of accounts receivable.