Quarterly report pursuant to Section 13 or 15(d)

Concentrations

v3.19.3
Concentrations
 9 Months Ended
Sep. 30, 2019
Risks and Uncertainties [Abstract]  
Concentrations

NOTE 8: CONCENTRATIONS

 

Concentration of Purchase Order Financing

 

The Company used a third-party financing company for the quarters ended September 30, 2019 and 2018, respectively, which provided letters of credit to vendors for a fee against the purchase orders received by the Company for sale of products to its customers. The letters of credit were issued to the vendors to manufacture Company’s products pursuant to the purchase orders received by the Company (Note 3).

 

Concentration of Customers

 

For the three and nine months ended September 30, 2019 and 2018, respectively, the Company had the following concentrations of customers:

 

    Percentage of
Revenues for the
Nine Months Ended		     Percentage of
revenues for the
Three Months Ended		     Percentage of
revenues for the
Six Months Ended		     Percentage of accounts receivables as of  
    Sept 30     June 30,     June 30,     9/30/2019     June 30,     December 31,  
    2019     2018     2019     2018     2019     2018     2019     2019     2018  
Customer 1     26 %     25 %     32 %     22 %     29 %     32 %     62 %     62 %                     75 %
Customer 2     33 %     10 %     23 %     30 %     37 %     22 %     11 %     11 %     6 %
Customer 3     10 %     17 %     12 %     0 %     9 %     0 %     11 %     11 %     0 %
Customer 4     9 %     5 %     11 %     8 %     8 %     8 %     3 %     3 %     7 %
Customer 5     7 %     4 %     8 %     4 %     7 %     5 %     6 %     3 %     6 %

 

Concentration of Suppliers

 

For the three and nine months ended September 30, 2019 and 2018, respectively, the Company had the following concentrations of suppliers:

 

    Percentage of
Purchases for the
Nine Months Ended		     Percentage of
purchases for the
Three Months Ended		     Percentage of
purchases for the
Six Months Ended		     Percentage of accounts payable as of  
    Sept 30     Sept 30,     June 30,     9/30/2019     June 30,     December 31,  
    2019     2018     2019     2018     2019     2018     2019     2019     2018  
Supplier 1     38 %     62 %     49 %     57 %     32 %     64 %     63 %     20 %                       43 %
Supplier 2     17 %     8 %     19 %     9 %     16 %     8 %     18 %     31 %     17 %
Supplier 3     17 %     2 %     15 %     6 %     18 %     1 %     8 %     17 %     0 %
Supplier 4     10 %     17 %     7 %     14 %     12 %     19 %     5 %     14 %     38 %
Supplier 5     10 %     0 %     11 %     0 %     10 %     0 %     7 %     18 %     0 %
Supplier 6     8 %     10 %     0 %     15 %     12 %     8 %     0 %     0 %     0 %

 

Concentration of Credit Risk

 

The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through September 30, 2019 and 2018. The Company’s bank balances exceeded FDIC insured amounts at times during the three and nine months ended September 30, 2019 and 2018. The Company’s bank balance exceeded the FDIC insured amounts during the three and nine months ended as of September 30, 2019.

 

Geographic Concentration

 

For the three and nine months ended September 30, 2019 and 2018, respectively, the Company had the following geographic concentrations:

 

   

Share of revenues for the

Three Months Ended

    

Share of revenues for the

Nine Months Ended

    

Share of accounts

receivables as of

  
    September 30,     September 30,     September 30,  
    2019     2018     2019     2018     2019     2018  
Australia     9 %     10 %     8.92 %     10.10 %     1 %     3 %
Other     14 %     11 %     14.5 %     10.1 %     8 %     2 %
UK     10 %     4 %     10.40 %     4.23 %     10 %     0 %
USA     66 %     76 %     66.16 %     75.58 %     80 %     95 %