Credit Risk and Concentrations

3 Months Ended

Mar. 31, 2020

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, 2020 and 2019 (in thousands of dollars):

	For the Three Months Ended March 31, 2020					For the Three Months Ended March 31, 2019
	$		%			$		%
Customer A		1,121		49	%		322		90	%
Customer B		576		25	%		—		—

As of March 31, 2020, Customer A represented approximately 67% of total accounts receivable and Customer B represented 0% of total accounts receivable.

For the three months ended March 31, 2020, purchases from two vendors represented approximately 43% and 36% of total purchases. Purchases from these vendors during the three months ended March 31, 2020 were $859 thousand and $724 thousand. For the three months ended March 31, 2019, purchases from 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. 

As of March 31, 2020, two vendors represented approximately 32% and 15% of total gross accounts payable.