ToughBuilt Industries, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Concentrations (Tables)

Concentrations (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Concentration Risk Percentage

Concentration of Purchase Order Financing

The Company used a third-party financing company for the quarters ended March 31, 2021 and 2020, 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, 2021 and 2020, 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,
	2021			2020			2021			2020
Customer 1		37	%		0	%		60	%		0	%
Customer 2		17	%		26	%		6	%		9	%
Customer 3		10	%		21	%		7	%		36	%
Customer 4		8	%		18	%		9	%		17	%
Customer 5		6	%		5	%		7	%		15	%

Concentration of Suppliers

For the three months ended March 31, 2021 and 2020, respectively, the Company had the following concentrations of suppliers:

	Percentage of purchases for the					Percentage of accounts
	Three Months Ended					payable as of
	March 31,					March 31,
	2021			2020		2021			2020
Supplier 1		51	%	11	%		8	%		29	%
Supplier 2		24	%	0	%		0	%		14	%
Supplier 3		11	%	21	%		16	%		6	%
Supplier 4		10	%	10	%		8	%		6	%
Supplier 5		0	%	22	%		16	%		0	%
Supplier 6		0	%	16	%		12	%		0	%

Schedule of Geographical Distribution of Revenue Percentage

Geographic Concentration

For the three months ended March 31, 2021 and 2020, respectively, the Company had the following geographic concentrations:

	Percentage of revenues for the						Percentage of accounts
	Three Months Ended						receivable as of
	March 31,						March 31,
	2021			2020			2021			2020
Australia		0	%		3	%		0	%		4	%
Canada		4	%		11	%		4	%		11	%
Europe		3	%		7	%		3	%		7	%
USA		92	%		81	%		92	%		80	%
Other		1	%		-2	%		1	%		-2	%

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

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