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)

9 Months Ended

Sep. 30, 2022

Schedule of concentration risk percentage

Concentration of Customers

For the three and nine months ended September 30, 2022 and 2021, respectively, the Company had the following concentrations of customers:

	Percentage of						Percentage of
	revenues for the						revenues for the						Percentage of accounts
	Three Months Ended						Nine Months Ended						receivables as of
	September 30,						September 30,						September 30,			December 31,
	2022			2021			2022			2021			2022			2021
Customer 1		51	%		12	%		63	%		9	%		52	%		5	%
Customer 2		15	%		10	%		11	%		9	%		-	%		33	%
Customer 3		-	%		15	%		-	%		16	%		-	%		6	%
Customer 4		-	%		35	%		-	%		36	%		-	%		8	%
Customer 5		-	%		-	%		-	%		-	%		-	%		11	%

Concentration of Suppliers

For the three and nine months ended September 30, 2022 and 2021, respectively, the Company had the following concentrations of suppliers:

	Percentage of						Percentage of
	purchases for the						purchases for the						Percentage of accounts
	Three Months Ended						Nine Months Ended						payable as of
	September 30,						September 30,						September 30,			December 31,
	2022			2021			2022			2021			2022			2021
Supplier 1		12	%		29	%		5	%		33	%		15	%		24	%
Supplier 2		1 2	%		-	%		6	%		-	%		-	%		-	%
Supplier 3		1 1	%		4	%		4	%		14	%		9	%		3	%
Supplier 4		-	%		11	%		-	%		11	%		5	%		9	%
Supplier 5		-	%		10	%		-	%		5	%		-	%		8	%
Supplier 6		-	%		-	%		-	%		-	%		1	%		-	%

Schedule of Geographical Distribution of Revenue Percentage

Geographic Concentration

For the three and nine months ended September 30, 2022 and 2021, respectively, the Company had the following geographic concentrations:

	Percentage of						Percentage of
	revenues for the						revenues for the						Percentage of accounts
	Three Months Ended						Nine Months Ended						receivables as of
	September 30,						September 30,						September 30,			December 31,
	2022			2021			2022			2021			2022			2021
Canada		2	%		3	%		3	%		4	%		-	%		4	%
Europe		4	%		5	%		5	%		9	%		11	%		11	%
United States of America		90	%		80	%		87	%		78	%		80	%		82	%
Other		4	%		12	%		6	%		9	%		10	%		3	%

- 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.

+ References + Details