Quarterly report pursuant to Section 13 or 15(d)

Concentrations

v3.19.2
Concentrations
 6 Months Ended
Jun. 30, 2019
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 June 30, 2019 and 2018, 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 (Note 3).

 

Concentration of Customers

 

For the three and six months ended June 30, 2019 and 2018, respectively, the Company had the following concentrations of customers:

 

      Percentage of revenues for the     Percentage of revenues for the     Percentage of accounts receivables as of  
      Three Months Ended June 30,     Six Months Ended June 30,     June 30,     December 31,  
      2019     2018     2019     2018     2019     2018  
Customer 1       32 %     22 %     29 %     32 %     62 %     75 %
Customer 2       23 %     30 %     37 %     22 %     11 %     6 %
Customer 3       12 %     0 %     9 %     0 %     11 %     0 %
Customer 4       11 %     8 %     8 %     8 %     3 %     7 %
Customer 5       0 %     23 %     0 %     21 %     0 %     0 %

  

Concentration of Suppliers

 

For the three and six months ended June 30, 2019 and 2018, 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    

Six Months Ended

     payable as of  
    June 30,     June 30,     June 30,     December 31,  
    2019     2018     2019     2018     2019     2018  
Supplier 1     42 %     64 %     32 %     64 %     20 %     43 %
Supplier 2     16 %     9 %     16 %     8 %     31 %     17 %
Supplier 3     15 %     1 %     18 %     1 %     17 %     0 %
Supplier 4     11 %     18 %     12 %     19 %     14 %     38 %
Supplier 5     15 %     0 %     10 %     0 %     18 %     0 %
Supplier 6     1 %     8 %     12 %     8 %     0 %     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 June 30, 2019. The Company’s bank balances exceeded FDIC insured amounts at times during the three and six months ended June 30, 2019. The Company’s bank balance exceeded the FDIC insured amounts during the three and six months ended as of June 30, 2019.

 

Geographic Concentration

 

For the three and six months ended June 30, 2019 and 2018, respectively, the Company had the following geographic concentrations:

 

    Percentage of revenues for the     Percentage of revenues for the     Percentage of accounts receivables as of  
    Three Months Ended June 30,     Six Months Ended June 30,     June 30,     December 31,  
    2019     2018     2019     2018     2019     2018  
Australia     11 %     9 %     8 %     9 %     3 %     7 %
Belgium     3 %     1 %     2 %     0 %     3 %     1 %
Canada     3 %     3 %     2 %     3 %     1 %     4 %
Germany     1 %     0 %     1 %     0 %     0 %     0 %
Russia     0 %     2 %     1 %     1 %     0 %     6 %
South Korea     8 %     4 %     7 %     5 %     3 %     0 %
United Kingdom     12 %     5 %     9 %     4 %     11 %     0 %
United States of America     62 %     76 %     70 %     78 %     79 %     82 %