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

Quarterly report pursuant to Section 13 or 15(d)

CONCENTRATIONS

CONCENTRATIONS

9 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

CONCENTRATIONS

NOTE 9: CONCENTRATIONS

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	%		-	%

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, 2022 and 2021. The Company’s bank balances exceeded FDIC insured amounts at times during the nine months ended September 30, 2022 and 2021. The Company’s bank balance exceeded the FDIC insured amounts as of September 30, 2022 and December 31, 2021, by approximately $1.1 million and $7.2 million, respectively.

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	%