Quarterly report pursuant to Section 13 or 15(d)

Concentrations

v3.20.2
Concentrations
 9 Months Ended
Sep. 30, 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 September 30, 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 and nine months ended September 30, 2020 and 2019, respectively, the Company had the following concentrations of customers:

 

   

Percentage of revenues for the

Three Months Ended

    

Percentage of revenues for the

Nine Months Ended

     Percentage of accounts receivables as of  
    September 30,     September 30,     September 30,     December 31,  
    2020     2019     2020     2019     2020     2019  
Customer 1     14 %     17 %     16 %     21 %     14 %     7 %
Customer 2     5 %     20 %     10 %     33 %     3 %     16 %
Customer 3     11 %     14 %     15 %     6 %     4 %     21 %
Customer 4     49 %     0 %     30 %     0 %     56 %     0 %

 

Concentration of Suppliers

 

For the three and nine months ended September 30, 2020 and 2019, respectively, the Company had the following concentrations of suppliers:

 

    Percentage of purchases for the     Percentage of purchases for the     Percentage of accounts  
    Three Months Ended     Nine Months Ended     payable as of  
    September 30,     September 30,     September 30,     December 31,  
    2020     2019     2020     2019     2020     2019  
Supplier 1     30 %     19 %     26 %     17 %     20 %     16 %
Supplier 2     13 %     33 %     19 %     19 %     12 %     36 %
Supplier 3     13 %     15 %     13 %     17 %     8 %     11 %
Supplier 4     12 %     16 %     17 %     20 %     22 %     5 %
Supplier 5     4 %     11 %     5 %     10 %     2 %     2 %
Supplier 6     18 %     7 %     14 %     10 %     3 %     3 %

 

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, 2020 and 2019. The Company’s bank balances exceeded FDIC insured amounts at times during the three and nine months ended September 30, 2020 and 2019. The Company’s bank balance exceeded the FDIC insured amounts as of September 30, 2020 by approximately $8.4 million.

 

Geographic Concentration

 

For the three and nine months ended September 30, 2020 and 2019, respectively, the Company had the following geographic concentrations:

 

    Percentage of revenues for the     Percentage of revenues for the     Percentage of accounts  
    Three Months Ended     Nine Months Ended     receivables as of  
    September 30,     September 30,     September 30,     December 31,  
    2020     2019     2020     2019     2020     2019  
Australia     2 %     10 %     3 %     9 %     1 %     7 %
Belgium     0 %     0 %     0 %     0 %     0 %     12 %
Canada     4 %     6 %     5 %     4 %     3 %     10 %
Germany     4 %     1 %     4 %     2 %     4 %     1 %
Russia     2 %     3 %     1 %     1 %     0 %     3 %
South Korea     0 %     7 %     4 %     7 %     0 %     5 %
United Kingdom     3 %     14 %     3 %     10 %     3 %     3 %
United States of America     85 %     59 %     80 %     67 %     89 %     59 %