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Concentrations and Credit Risk
 3 Months Ended
Mar. 31, 2020
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 three months ended March 31, 2019 and 2020 as follows:

 

   Three months ended March 31, 
   2019   2020 
Customer A  $1,321,428    25.55%  $*    * 
Customer B   1,241,675    24.01%   2,093,093    30.33%
Customer C   1,071,820    20.72%   *    * 
Customer D   735,494    14.22%   *    * 
Customer E    *    *    3,796,267    55.01%

 

*  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, 2019 and March 31, 2020 as follows:

 

   December 31, 2019   March 31, 2020 
Customer A  $902,309    11.47%  $*    * 
Customer B   1,725,293    21.93%   1,617,568    15.18%
Customer C   1,713,628    21.78%   1,544,088    14.49%
Customer E   *    *    4,193,562    39.35%
Customer F   830,821    10.56%   *    * 

 

The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended March 31, 2019 and 2020 as follows:

 

   Three months ended March 31, 
   2019   2020 
Supplier A  $996,484    32.66%  $*    * 
Shenzhen BAK   *    *    3,841,680    82.43%

 

* 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, 2019 and March 31, 2020 as follows:

 

   December 31, 2019   March 31, 2020 
Supplier B  $1,126,582    10.10%  $1,107,981    10.26%

 

For the three months ended March 31, 2019 and 2020, the Company recorded the following transactions:

 

   Three months ended
March 31,		 
   2019   2020 
Purchase of inventories from        
Shenzhen BAK*  $-   $3,841,680 
           
Sales of finished goods to          
BAK Shenzhen*  $83,841   $69,226 

 

* Mr. Xiangqian Li, the 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, 2019 and March 31, 2020, 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. Historically, such losses have been within management's expectations.