Note 23. Concentrations of Risks

12 Months Ended

Dec. 31, 2017

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure

23. Concentrations of Risks

Customer Concentration. The following customers each comprised 10% or more of our total net sales and/or 10% or more of our total accounts receivable for the years ended December 31, 2017, 2016, and 2015:

2017

2016

2015

% of Net Sales

% of A/R

% of Net Sales

% of A/R

% of Net Sales

% of A/R

Customer #1

47

%

*

*

*

*

*

Customer #2

*

26

%

*

*

*

*

Customer #3

*

12

%

*

*

*

*

Customer #4

*

*

39

%

*

36

%

21

%

Customer #5

*

*

11

%

*

25

%

48

%

Customer #6

*

*

10

%

*

*

*

Customer #7

*

*

*

32

%

*

*

Customer #8

*

*

*

12

%

*

15

%

——————————

* Net sales and/or accounts receivable to these customers were less than 10% of our total net sales and/or accounts receivable for the period.

Geographic Risk. During the year ended December 31, 2017, our third-party solar module and solar power system net sales were predominantly in the United States. The concentration of our net sales in a limited number of geographic regions exposes us to local economic, public policy, and regulatory risks in such regions.

Production. Our products include components that are available from a limited number of suppliers or sources. Shortages of essential components could occur due to increases in demand or interruptions of supply, thereby adversely affecting our ability to meet customer demand for our products. Our solar modules are currently produced at our facilities in Perrysburg, Ohio and Kulim, Malaysia, and we expect to begin solar module production at our facility in Ho Chi Minh City, Vietnam in 2018. Damage to or disruption of these facilities could interrupt our business and adversely affect our ability to generate net sales.