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Concentrations and Credit Risk

12 Months Ended

Dec. 31, 2018

Concentrations and Credit Risk [Abstract]

Concentrations and Credit Risk

22.

Concentrations and Credit Risk

(a)

Concentrations

The Company had the following customers that individually comprised 10% or more of net revenue for the years ended December 31, 2017 and 2018 as follows:

	Year ended					Year ended
	December 31, 2017					December 31, 2018
Customer A	$	12,869,446	22.05		%	$	*	*
Customer B		29,837,878		51.11	%		*		*
Customer C		*		*			6,330,608		25.91	%
Customer D		*		*			3,807,854		15.58	%

*	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, 2017 and 2018 as follows:

	December 31, 2017				December 31, 2018
Customer A	$	*	*		$	*	*
Customer B		23,835,201	62.08	%		*	*
Customer C		*	*			1,769,416	11.49	%
Customer D		*	*			4,283,023	27.82	%
Customer E		4,855,518	12.65	%		*	*
Customer F		4,664,285	12.15	%		*	*
Customer G		*	*			2,293,257	14.89	%

For the years ended December 31, 2017 and 2018, the Company recorded the following transactions:

	December 31, 2017		December 31, 2018
Purchase of inventories from
BAK Tianjin	$	126,567	$	716,997
BAK Shenzhen**		27,903,206		107,280
Zhengzhou BAK Battery Co., Ltd*		-		2,032,756

Sales of finished goods to
BAK Tianjin		141,117		36,766
BAK Shenzhen		61,961		-
Zhengzhou BAK Battery Co., Ltd*		29,867		-

Proceeds on disposal of patented proprietary technology offset against amount due to BAK Shenzhen (Note 7)**		-		12,845,795

*	Mr. Xiangqian Li, the former CEO, is a director of this company. As of December 31, 2018 and December 31, 2017, payable to Zhengzhou BAK Battery Co., Ltd were $2,291,621 and nil, respectively, was included in trade accounts and bills payable.

**	Mr. Xiangqian Li, our 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, 2017 and 2018, 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.