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Concentrations and Credit Risk
 6 Months Ended
Jun. 30, 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 June 30, 2019 and 2020 as follows:

 

   Three months ended June 30, 
   2019   2020 
Customer B  $2,633,652    61.66%  $2,584,606    55.89%
Customer D   *    *    1,626,944    35.18%
Shenzhen BAK   769,052    18.01%   *    * 

 

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

 

  The Company had the following customers that individually comprised 10% or more of net revenue for the six months ended June 30, 2019 and 2020 as follows:

 

   Six months ended June 30, 
   2019   2020 
Customer A  $1,527,998    16.18%  $*    * 
Customer B   3,875,327    41.04%   4,677,699    40.59%
Customer C   1,066,260    11.29%   *    * 
Customer D   *    *    2,009,845    17.44%
Customer E   *    *    3,767,605    32.69%
Customer F   1,025,998    10.87%   *    * 

 

*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 June 30, 2020 as follows:

 

   December 31, 2019   June 30, 2020 
Customer A  $902,309    11.47%  $*    * 
Customer B   1,725,293    21.93%   1,740,448    15.19%
Customer C   1,713,628    21.78%   1,519,014    13.26%
Customer G   830,821    10.56%   *    * 
Customer E   *    *    4,103,268    35.82%

 

*Comprised less than 10% of account receivable for the respective period.

 

The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended June 30, 2019 and 2020 as follows:

 

   Three months ended June 30, 
   2019   2020 
Supplier A  $326,949    12.03%  $*    * 
Supplier B   402,026    14.79%   *    * 
Supplier C   278,794    10.25%   *    * 
Supplier D   *    *    294,786    23.52%

 

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

 

The Company had the following suppliers that individually comprised 10% or more of net purchase for the six months ended June 30, 2019 and 2020 as follows:

 

   Six months ended June 30, 
   2019   2020 
Supplier E  $996,484    17.26%  $*    * 
Shenzhen BAK   *    *    3,841,680    64.96%

 

The Company had the following suppliers that individually comprised 10% or more of accounts payable as of December 31, 2019 and June 30, 2020 as follows:

 

   December 31, 2019   June 30, 2020 
Supplier B  $1,126,582    10.10%  $1,096,148    11.53%

 

For the three and six months ended June 30, 2019 and 2020, the Company recorded the following transactions:

 

   Three months ended
June 30,		   Six months ended
June 30,		 
   2019   2020   2019   2020 
Purchase of inventories from                
BAK Shenzhen*  $65,102   $        -   $65,102   $- 
Shenzhen BAK*   -    -    -    3,841,680 
                     
Sales of finished goods to                    
BAK Shenzhen*   685,211    -    769,052    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 June 30, 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.