Credit Risk and Concentrations

3 Months Ended

Mar. 31, 2019

Risks and Uncertainties [Abstract]

Credit Risk and Concentrations

Note 4 — Credit Risk and Concentrations

Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash. 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 that accounted for at least 10% of revenues during the three months ended March 31, 2019 and 2018 (in thousands of dollars):

	For the Three Months Ended March 31, 2019					For the Three Months Ended March 31, 2018
	$		%			$		%
Customer A		322		90	%		--		--
Customer B		--		--			512		41	%
Customer C		--		--			211		17	%
Customer D		--		--			200		16	%

As of March 31, 2019, Customer A represented approximately 86% of total accounts receivable. As of March 31, 2018, Customer A represented approximately 49%, Customer B represented approximately 10% and Customer C and D represented approximately 0% of total accounts receivable.

For the three months ended March 31, 2019, three vendors represented approximately 84%, 68%, and 25% of total purchases. Purchases from these vendors during the three months ended March 31, 2019 were $143 thousand, $115 thousand, and $43 thousand. For the three months ended March 31, 2018, two vendors represented approximately 48% and 32% of total purchases. Purchases from these vendors during the three months ended March 31, 2018 were $0.2 million and $0.1 million.

As of March 31, 2019, three vendors represented approximately 38%, 14% and 11% of total gross accounts payable. As of March 31, 2018, two vendors represented approximately 34% and 17% of total gross accounts payable.