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Concentrations and Credit Risk
 12 Months Ended
Dec. 31, 2019
Concentrations and Credit Risk [Abstract]  
Concentrations and Credit Risk

23. 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, 2018 and 2019 as follows:

 

   Year ended   Year ended 
   December 31,
2018		   December 31,
2019		 
Customer A  $6,330,608    25.91%  $7,222,245    32.54%
Customer B   3,807,854    15.58%   *    * 
Customer D   *    *    3,308,638    14.91%
Zhengzhou BAK Battery Co., Ltd (a)   *    *    3,961,050    17.85%

 

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

 

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

 

    December 31,
2018		     December 31,
2019		  
Customer A   $ 1,769,416       11.49 %   $ 1,725,293       21.93 %
Customer B     4,283,023       27.82 %     *         *
Customer C     2,293,257       14.89 %     *         *
Customer D     *       *       1,713,628       21.78 %
Customer E     *       *       902,309       11.47 %
Customer F     *       *       830,821       10.56 %

 

The Company had the following suppliers that individually comprised 10% or more of net purchase for the years ended December 31, 2018 and 2019 as follows:

 

   Year ended   Year ended 
   December 31,
2018		   December 31,
2019		 
Supplier A  $3,719,739    16.73%  $*    * 
Supplier B   *    *    2,920,966    21.40%
Zhengzhou BAK New Energy Vehicle Co., Ltd (b)   *    *    3,812,819    27.93%

 

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

 

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

 

    December 31,
2018		     December 31,
2019		  
Supplier C     2,962,247       12.80 %     *       *  
Supplier D     *       *       1,126,582       10.10 %

 

For the years ended December 31, 2018 and 2019, the Company recorded the following transactions:

 

   December 31, 2018   December 31, 2019 
Purchase of inventories from        
BAK Tianjin  $716,997   $- 
BAK Shenzhen(b)   107,280    63,950 
Zhengzhou BAK Battery Co., Ltd (a)   2,032,756    - 
Zhengzhou BAK New Energy Vehicle Co., Ltd (b)   -    3,812,819 
           
Net sales of finished goods to          
BAK Tianjin   36,766    - 
BAK Shenzhen   -    526,719 
Zhengzhou BAK Battery Co., Ltd (a)   -    3,961,050 
           
Proceeds on disposal of patented proprietary technology offset against amount due to BAK Shenzhen (Note 7) (c)   12,845,795    - 

 

(a)Mr. Xiangqian Li, the former CEO, is a director of this company. As of December 31, 2018 and December 31, 2019, payable to Zhengzhou BAK Battery Co., Ltd were $2,291,261 and nil, respectively, was included in trade accounts and bills payable.
(b)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, 2018 and 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.