Concentrations of Risk

6 Months Ended

Jun. 30, 2022

Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract]

Concentrations of Risk

Note 4. Concentrations of Risk

Teknova’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality banking institutions. At times, the Company’s cash and cash equivalent balances may exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit. Teknova has never experienced any losses related to its cash and cash equivalent balances. Teknova routinely communicates with its customers regarding payments and has a history of limited write-offs. Therefore, the Company believes that its accounts receivable credit risk exposure is limited.

Customers

Customers who accounted for 10% or more of the Company's revenues and outstanding balance of accounts receivable are presented as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,		As of	As of
	2022	2021	2022	2021	June 30, 2022	December 31, 2021
Distributor customer A	*	10%	*	*	12%	16%
Distributor customer B	14%	19%	13%	17%	16%	10%
Direct customer A	*	*	*	*	*	12%

* Represents less than 10%.

The Company's customers that are distributors, as opposed to direct customers, represent highly diversified customer bases.

Suppliers

Suppliers who accounted for 10% or more of the Company's inventory purchases and outstanding balance of accounts payable are presented as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,		As of	As of
	2022	2021	2022	2021	June 30, 2022	December 31, 2021
Distributor supplier A	39%	32%	35%	36%	23%	20%
Direct supplier A	*	*	12%	*	*	*
Direct supplier B	16%	10%	14%	*	14%	*
Direct supplier C	*	16%	*	14%	*	*

* Represents less than 10%.