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Financial Instrument Risks
 3 Months Ended
Mar. 31, 2023
Financial Instrument Risks [Abstract]  
Financial Instrument Risks
14.Financial Instrument Risks

 

Credit and Concentration Risk

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company is exposed to credit risk resulting from the possibility that a customer or counterparty to a financial instrument defaults on their financial obligations or if there is a concentration of transactions carried out with the same counterparty. Financial instruments that potentially subject the Company to concentrations of credit risk include cash, cash equivalents, marketable securities and accounts receivable.

 

The Company’s cash, cash equivalents, and marketable securities are held in reputable banks in its country of domicile and management believes the risk of loss to be remote.

 

The Company is exposed to credit risk in the event of default by its customers. Accounts receivable are recorded at the invoiced amount, do not bear interest, and do not require collateral. For the three months ended March 31, 2023 and 2022, one customer accounted for $9,168,526 and $1,170,057 or 52% and 29% of revenue, respectively. As of March 31, 2023, one customer accounted for 58% of accounts receivable (December 31, 2022 - 66%), which has been collected in the month of April 2023.

 

The allowance for credit losses at March 31, 2023 was $nil (December 31, 2022 - $nil).