Concentration of Credit Risk

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

Note 12 – Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash deposits and trade accounts receivable.

Credit risk with respect to trade accounts receivable was concentrated with three of the Company’s customers in both 2021 and 2020, respectively. These customers accounted for approximately 62% and 39% of the Company’s outstanding trade accounts receivable at December 31, 2021 and 2020, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition, uses credit insurance and requires collateral, such as letters of credit, to mitigate its credit risk. The deterioration of the financial condition of one or more of its major customers could adversely impact the Company’s operations. From time to time where the Company determines that circumstances warrant, such as when a customer agrees to commit to a large blanket purchase order, the Company extends payment terms beyond its standard payment terms.

The following table summarizes credit risk with respect to customers as percentage of sales for the years ended December 31, 2021 and 2020:

	Years ended December 31,
	2021			2020
Customer A		20	%		-
Customer B		14	%		-
Customer C		13	%		-

No customer exceeded ten percent of sales for the year ended December 31, 2020.

The following table summarizes credit risk with respect to customers as percentage of accounts receivable:

	December 31,
	2021			2020
Customer A		24	%		11	%
Customer B		-			13	%
Customer D		21	%		-
Customer E		17	%		15	%

The following table summarizes credit risk with respect to vendors as percentage of purchases for the years ended December 31, 2021 and 2020:

	Years ended December 31,
	2021			2020
Vendor A		20	%		15	%
Vendor B		16	%		-
Vendor C		10	%		-
Vendor D		-			17	%
Vendor E		-			15	%

The following table summarizes credit risk with respect to vendors as percentage of accounts payable:

	December 31,
	2021			2020
Vendor A		28	%		11	%
Vendor C		10	%		-
Vendor F		-			20	%
Vendor G		-			45	%