Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

Concentrations of Credit Risk

Credit Risk

The Company is potentially subject to concentrations of credit risk in its accounts receivable. Credit risk is the risk of an unexpected loss if a customer fails to meet its contractual obligations. Although the Company is directly affected by the financial condition of its customers and the loss of or a substantial reduction in orders or the ability to pay from the customer

could have a material effect on the consolidated financial statements, management does not believe significant credit risks exist at December 31, 2021. The Company had one customer whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable.

Major Customer

As previously disclosed in Note 16, effective February 7, 2016, Ebix and Vayam Technologies Ltd ("Vayam") formed a joint venture named Ebix Vayam Limited JV. This joint venture was established to carry out IT projects in the government sector of the country of India and particularly in regards to the implementation of e-governance projects in the areas of education and healthcare. Ebix has a 51% equity interest in the joint venture, and Vayam has a 49% equity interest in the joint venture. Vayam is also a customer of Ebix Vayam Limited JV, and during the twelve months ending December 31, 2021 and 2020, Ebix Vayam Limited JV recognized $784 thousand and $667 thousand of revenue from Vayam, respectively, and as of December 31, 2021, Vayam had $17.0 million of accounts receivable with Ebix Vayam Limited JV, net of the estimated allowance for doubtful accounts receivable in the amount of $7 million. As of December 31, 2020, Ebix Vayam Limited JV had $20.5 million of accounts receivable with Vayam, net of the estimated allowance for doubtful accounts receivable in the amount of $11.3 million against receivables due from BSNL, a public sector entity in India.