Concentration of credit risk and off-balance sheet risk
|6 Months Ended|
Jun. 30, 2020
|Concentration of credit risk and off-balance sheet risk [Abstract]|
|Concentration of credit risk and off-balance sheet risk||
Note 19 - Concentration of credit risk and off-balance sheet risk
Cash and cash equivalents and accounts receivable potentially subject the Company to concentrations of credit risk. As of June 30, 2020 and December 31, 2019 the Company’s cash and cash equivalents were deposited in accounts at several financial institutions. The Company maintains its cash and cash equivalents with high-quality, accredited financial institutions and, accordingly, such funds are subject to minimal credit risk. The Company may maintain balances with financial institutions in excess of federally insured limits.
The Company has not experienced any losses historically in these accounts and believes it is not exposed to significant credit risk in its cash and cash equivalents. The Company has no significant off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts, or other hedging arrangements. Accounts receivable from two customers represented 71% of accounts receivable as of June 30, 2020. Accounts receivable from one customer represented 44% of accounts receivable as of December 31, 2019.
Two customers represented 39% of gross sales for the six months ended June 30, 2020. None of the Company’s customers represented over 10% of gross sales for the six months ended June 30, 2019.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef