Concentrations and Credit Risk

3 Months Ended

Mar. 31, 2019

Concentrations and Credit Risk [Abstract]

Concentrations and Credit Risk

21. Concentrations and Credit Risk

(a) Concentrations

The Company had the following customers that individually comprised 10% or more of net revenue for the three months ended March 31, 2018 and 2019 as follows:

	Three months ended March 31,
	2018				2019
Customer A	$	1,162,051	35.08	%	$	1,241,675	24.01	%
Customer B		693,347	20.93	%		*	*
Customer C		383,773	11.58	%		*	*
Customer D		374,213	11.30	%		*	*
Customer E		*	*			1,321,428	25.55	%
Customer F		*	*			1,071,820	20.72	%
Customer G		*	*			735,494	14.22	%

* Comprised less than 10% of net revenue for the respective period.

The Company had the following customers that individually comprised 10% or more of accounts receivable as of December 31, 2018 and March 31, 2019 as follows:

	December 31, 2018				March 31, 2019
Customer A	$	1,769,416	11.49	%	$	2,611,583	15.83	%
Customer H		4,283,023	27.82	%		4,389,574	26.61	%
Customer I		2,293,257	14.89	%		2,350,307	14.25	%

For the three months ended March 31, 2018 and 2019, the Company recorded the following transactions:

	Three months ended March 31,
	2018		2019
Purchase of inventories from
BAK Tianjin	$	480	$	-
Sales of finished goods to
BAK Tianjin		10,080		-
BAK Shenzhen*	$	-	$	83,841

* Mr. Xiangqian Li, the former CEO, is a director of this company.

(b) Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2018 and March 31, 2019, substantially all of the Company's cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality.

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management's expectations.