Quarterly report pursuant to Section 13 or 15(d)

Concentrations

v3.20.1
Concentrations
 3 Months Ended
Mar. 31, 2020
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 March 31, 2020 and 2019, 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.

 

Concentration of Customers

 

For the three months ended March 31, 2020 and 2019, respectively, the Company had the following concentrations of customers:

 

    Percentage of
Revenues for the
Three Months Ended		     Percentage of accounts receivables as of  
    March 31,     March 31,  
    2020     2019     2020     2019  
Customer 1     26 %     -       9 %     - %
Customer 2     21 %     22 %     36 %     44 %
Customer 3     18 %     51 %     17 %     36 %

 

Concentration of Suppliers

 

For the three months ended March 31, 2020 and 2019, respectively, the Company had the following concentrations of suppliers:

 

    Percentage of
purchases for the
Three Months Ended		     Percentage of
accounts payable as of		  
    March 31,     March 31,  
    2020     2019     2020     2019  
Supplier 1     11 %     17 %     6 %     9 %
Supplier 2     8 %     -       5 %     4 %
Supplier 3     19 %     -       14 %     7 %
Supplier 4     15 %     22 %     6 %     8 %
Supplier 5     26 %     -       29 %     36 %
Supplier 6     6 %     14 %     2 %     7 %

 

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 March 31, 2020 and 2019. The Company’s bank balances exceeded FDIC insured amounts at times during the three months ended March 31, 2020 and 2019. The Company’s bank balance exceeded the FDIC insured amounts as of March 31, 2020. by approximately $2 million.

 

Geographic Concentration

 

For the three months ended March 31, 2020 and 2019, respectively, the Company had the following geographic concentrations:

 

   

Share of revenues for the

Three Months Ended

    

Share of accounts

receivables as of

  
    March 31,     March 31,  
    2020     2019     2020     2019  
Australia     3 %     6 %     3.97 %     0.82 %
Other     14 %     10 %     10.79 %     2.84 %
UK     7 %     6 %     4.88 %     0.87 %
USA     76 %     78 %     80.36 %     95.47 %