Credit Risk and Concentrations

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 (in thousands of dollars):

	For the Nine Months Ended September 30, 2020					For the Nine Months Ended September 30, 2019
	$		%			$		%
Customer A		3,253		54	%		884		33	%
Customer B		576		10	%		--		--
Customer C		--		--			999		38	%

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

	For the Three Months Ended September 30, 2020					For the Three Months Ended September 30, 2019
	$		%			$		%
Customer A		470		33	%		390		37	%
Customer B		283		20	%		--		--
Customer C		276		19	%		--		--
Customer D		--		--			149		14	%
Customer E		--		--			149		14	%

As of September 30, 2020, Customers A and B represented approximately 1% and 0% of total accounts receivable.

For the nine months ended September 30, 2020, two vendors represented approximately 44%and 38% of total purchases. Purchases from these vendors during the nine months ended September 30, 2020 were $2.0 million and $1.7 million, respectively. For the three months ended September 30, 2020, four vendors represented approximately 25%, 22%, 13% and 11% of total purchases. Purchases from these vendors during the three months ended September 30, 2020 were $0.3 million, $0.3 million, $0.2 million and $0.1 million respectively.

For the nine months ended September 30, 2019, two vendors represented approximately 46% and 27% of total purchases. Purchases from these vendors during the nine months ended September 30, 2019 were $1.0 million and $0.6 million, respectively. For the three months ended September 30, 2019, two vendor represented approximately 53% and 10% of total purchases. Purchases from this vendor during the three months ended September 30, 2019 were $0.7 million and $0.1 million, respectively.