Credit Risk and Concentrations

12 Months Ended

Dec. 31, 2018

Risks and Uncertainties [Abstract]

Credit Risk and Concentrations

Note 11 — 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. 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 years ended December 31, 2018 and 2017 (in thousands of dollars):

	For the Years Ended December 31
	2018					2017
	$		%			$		%
Customer A		2,005		38	%		-		-
Customer B		633		12	%		-		-
Customer C		523		10	%		-		-
Customer D		-		-			4,603		11	%

As of December 31, 2018, Customer A represented approximately 27%, of total accounts receivable. As of December 31, 2017, the Company did not have any concentrations of accounts receivable.

For the year ended December 31, 2018, two vendors represented approximately 20% and 11% of total purchases. Purchases from these vendors during the year ended December 31, 2018 were $440,000 and $257,000.  For the year ended December 31, 2017, two vendors represented approximately 28% and 16% of total purchases. Purchases from these vendors during the year ended December 31, 2017 were $6.5 million and $3.8 million.

As of December 31, 2018, three vendors represented approximately 40%, 15% and 12% of total gross accounts payable As of December 31, 2017, two vendors represented approximately 30% and 15% of total gross accounts payable.