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

Quarterly report pursuant to Section 13 or 15(d)

CONCENTRATIONS

CONCENTRATIONS

3 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

CONCENTRATIONS

NOTE 8: CONCENTRATIONS

Concentration of Customers

For the three months ended March 31, 2022 and 2021, respectively, the Company had the following concentrations of customers:

	Percentage of
	revenues for the						Percentage of accounts
	Three Months Ended						receivables as of
	March 31,						March 31,			December 31,
	2022			2021			2022			2021
Customer 1		39	%		37	%		30	%		34	%
Customer 2		18	%		17	%		6	%		5	%
Customer 3		10	%		10	%		3	%		4	%

Concentration of Suppliers

For the three months ended March 31, 2022 and 2021, 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,			December 31,
	2022			2021			2022			2021
Supplier 1		13	%		21	%		15	%		16	%
Supplier 2		11	%		22	%		3	%		16	%
Supplier 3		16	%		11	%		9	%		8	%
Supplier 4		10	%		16	%		8	%		12	%
Supplier 5		10	%		0	%		6	%		2	%
Supplier 6		4	%		0	%		3	%		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 March 31, 2022 and 2021. The Company’s bank balances exceeded FDIC insured amounts at times during the three months ended March 31, 2022 and 2021. The Company’s bank balance exceeded the FDIC insured amounts as of March 31, 2022 and December 31, 2021, by approximately $338,000 and $7.2 million, respectively.

Geographic Concentration

For the three a months ended March 31, 2022 and 2021, respectively, the Company had the following geographic concentrations:

	Percentage of revenues for the						Percentage of accounts
	Three Months Ended						receivables as of
	March 31,						March 31,			December 31,
	2022			2021			2022			2021
Canada		3	%		4	%		6	%		7	%
Europe		13	%		3	%		11	%		14	%
United States of America		83	%		92	%		76	%		72	%
Other		1	%		1	%		7	%		7	%