Credit Risk and Concentrations

3 Months Ended

Mar. 31, 2023

Credit Risk and Concentrations [Abstract]

Credit Risk and Concentrations

Note 7 — 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 sales derived by the Company from those customers that accounted for at least 10% of sales during the three months ended March 31, 2023, and 2022 (in thousands of dollars):

	For the Three Months Ended March 31, 2023					For the Three Months Ended March 31, 2022
	$		%			$		%
Customer A		492		12	%		3,583		72	%
Customer B		2,994		75	%		1,170		24	%
Customer C		477		12	%		-		-

As of March 31, 2023, Customer B and Customer C represented approximately 83% and 16% of total accounts receivable.

As of December 31, 2022, Customer B represented approximately 61% of total accounts receivable.

For the three months ended March 31, 2023, three vendors represented approximately 56%, 16% and 12% of total purchases, respectively. Purchases from these vendors during the three months ended March 31, 2023, were approximately $2.1 million, $0.6 million and $0.4 million, respectively.

For the three months ended March 31, 2022, one vendor represented approximately 82% of total purchases. Purchases from this vendor during the three months ended March 31, 2022, were approximately $3.2 million.