Note 20. Concentration, Credit and Other Risks

a) PRC Regulations

The PRC market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extended to the ability of the Company to conduct wireless telecommunication services through contractual arrangements in the PRC since the industry remains highly regulated. The Company conducted legacy YOD business in China through a series of contractual arrangements, which were terminated as of December 31, 2019. Refer to Note 5 for additional information. The Company believed that these contractual arrangements were in compliance with PRC law and were legally enforceable, or their respective legal shareholders failed to perform their obligations under the contractual arrangements or any dispute relating to these contracts remained unresolved, the Company could enforce its rights under the VIE contracts through PRC law and courts. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In particular, the interpretation and enforcement of these laws, rules and regulations involve uncertainties.

b) Major Customers

For the year ended December 31, 2019, one customers individually accounted for more than 10.0% of the Company’s revenue (91% of revenue). One customer individually accounted for more than 10.0% of the Company’s net accounts receivable as of December 31, 2019 (95% of accounts receivable).

For the year ended December 31, 2018, two customers individually accounted for more than 10.0% of the Company’s revenue (91% of revenue). Two customers individually accounted for more than 10.0% of the Company’s net accounts receivable as of December 31, 2018 (39% of accounts receivable).

c) Major Suppliers

For the year ended December 31, 2019, no suppliers individually accounted for more than 10.0% of the Company’s cost of revenues. Two suppliers individually accounted for more than 10.0% of the Company’s accounts payable as of December 31, 2019.

For the year ended December 31, 2018, three suppliers (two of whom are related parties) individually accounted for more than 10.0% of the Company's cost of revenues. Two suppliers individually accounted for more than 10.0% of the Company's accounts payable as of December 31, 2018.

(d) Concentration of Credit Risks

Financial instruments that potentially subject the Company to significant concentration of credit risk primarily consist of cash and accounts receivable. As of December 31, 2019 and 2018, the Company’s cash was held by financial institutions (located in the PRC, Hong Kong, the United States and Singapore) that management believes have acceptable credit. Accounts receivable are typically unsecured. The risk with respect to accounts receivable is mitigated by regular credit evaluations that the Company performs on its distribution partners and its ongoing monitoring of outstanding balances.

(e) Foreign Currency Risks

A majority of the Company’s operating transactions are denominated in RMB and a significant portion of the Company’s assets and liabilities is denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes in the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by laws to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance.

Cash consist of cash on hand and demand deposits at banks, which are unrestricted as to withdrawal.

Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets.

The following table summarizes the Company’s cash and time deposits maintained at banks:


	December 31,
	2019		2018
RMB denominated bank deposits with financial institutions in the PRC	$	135,899	$	1,523,622
US dollar denominated bank deposits with financial institutions in the PRC		24,459		133,053
HKD denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)		7		13,133
US dollar denominated bank deposits with financial institutions in HK SAR		51,240		44,182
US dollar denominated bank deposits with financial institutions in Singapore		570,373		697,099
US dollar denominated bank deposits with financial institutions in the United States of America (“USA”)		1,804,124		695,155
Ringgit denominated bank deposits with financial institutions in Malaysia		229		—
SGD denominated bank deposits with financial institutions in Singapore		45,635		—
Total	$	2,631,966	$	3,106,244

As of December 31, 2019 and December 31, 2018 deposits of $0.4 million and $0.0 million were insured, respectively. To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, USA, Singapore and Cayman with acceptable credit rating.