Credit Risk and Concentrations

6 Months Ended

Jun. 30, 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 six months ended June 30, 2020 and 2019 (in thousands of dollars):

	For the Six Months Ended June 30, 2020					For the Six Months Ended June 30, 2019
	$		%			$		%
Customer A		2,783		61	%		494		30	%
Customer B		576		13	%		--		--
Customer C		--		--			999		61	%

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 June 30, 2020 and 2019 (in thousands of dollars):

	For the Three Months Ended June 30, 2020					For the Three Months Ended June 30, 2019
	$		%			$		%
Customer A		1,475		63	%		--		--
Customer B		--		--			999		81	%
Customer C		--		--			171		14	%
Customer D		--		--			--		--
Customer E		--		--			--		--
Customer F		--		--			--		--

As of June 30, 2020, Customer A represented approximately 46% of total accounts receivable. As of June 30, 2019, Customer A represented approximately 52% of total accounts receivable.

For the six months ended June 30, 2020, two vendors represented approximately 44%and 35% of total purchases. Purchases from these vendors during the six months ended June 30, 2020 were $1.8 million and $1.4 million, respectively. For the three months ended June 30, 2020, two vendors represented approximately 44% and 33% of total purchases. Purchases from these vendors during the three months ended June 30, 2020 were $0.9 million and $0.7 million, respectively.

For the six months ended June 30, 2019, three vendors represented approximately 76%, 11%, and 11% of total purchases. Purchases from these vendors during the six months ended June 30, 2019 were $1.0 million, $0.1 million, and $0.1 million. For the three months ended June 30, 2019, one vendor represented approximately 87% of total purchases. Purchases from this vendor during the three months ended June 30, 2019 was $0.9 million.