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Concentrations and Credit Risk
 9 Months Ended
Sep. 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 September 30, 2019 and 2020 as follows:

 

    Three months ended
September 30,		  
    2019     2020  
Sales of finished goods and raw materials                        
Customer A   $ 2,118,783       26.19 %   $ 1,588,192       14.95 %
Customer B     2,264,415       27.99 %      *       *   
Customer C       *       *       1,278,893       12.04 %
Zhengzhou BAK Battery Co., Ltd (note a)     1,941,101       23.99 %     4,269,312       40.2 %
Zhengzhou BAK New Energy Technology Co., Ltd (note b)     *       * %     1,896,207       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 revenue for the nine months ended September 30, 2019 and 2020 as follows:

 

    Nine months ended
September 30,		  
    2019     2020  
Sales of finished goods and raw materials                        
Customer A   $ 5,994,110       34.19 %   $ 5,793,828       26.16 %
Customer B     3,330,675       19.00 %     *       *  
Customer C     *       *       2,908,728       13.13 %
Customer D     *       *       3,787,585       17.10 %
Zhengzhou BAK Battery Co., Ltd (note a)     1,941,101       11.07 %     4,269,312       19.28  

 

  * 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 (net) as of December 31, 2019 and September 30, 2020 as follows:

 

   December 31,
2019		   September 30,
2020		 
Customer A  $1,725,293    21.93%  $2,087,657    11.09%
Customer B   1,713,628    21.78%   *    * 
Customer D   *    *    4,373,326    23.23%
Customer E   902,309    11.47%   *    * 
Customer F   830,821    10.56%   *    * 
Zhengzhou BAK New Energy Technology Co., Ltd (note b)   *    *    2,103,771    11.17%
Zhengzhou BAK Battery Co., Ltd (note a)   *    *    4,970,545    26.40%

 

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

 

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

 

    Three months ended September 30,  
    2019     2020  
Supplier A   $ 1,949,106       22.67 %   $ *       *  
Supplier B     *       *       4,329,602       72.65 %
Zhengzhou BAK New Energy Vehicle Co., Ltd (note b)     3,838,213       44.64 %     *       *  

 

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

 

    Nine months ended September 30,  
    2019     2020  
Supplier A   $ 2,940,420       20.43 %   $ *       *  
Supplier B     *       *       4,329,602       36.47 %
Shenzhen BAK (note c)     *       *       3,841,680       32.35 %
Zhengzhou BAK New Energy Vehicle Co., Ltd (note b)     3,838,213       26.67 %      *       *  

 

  * 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 September 30, 2020 as follows:

 

    December 31, 2019     September 30, 2020  
Supplier B     *       *       4,798,233       38.04 %
Supplier C   $ 1,126,582       10.10 %   $ *       *  

 

Apart from the above, for the three and nine months ended September 30, 2019 and 2020, the Company recorded the following transactions:

 

    Three months ended
September 30,		     Nine months ended
September 30,		  
    2019     2020     2019     2020  
Purchase of inventories from                        
BAK Shenzhen (note c)   $ -     $ -      $ 65,102     $ -   
                                 
Sales of finished goods and raw materials to                                
BAK Shenzhen (note c)     -       -        769,052       -   
Zhengzhou BAK New Energy Technology Co., Ltd (note b)      -        1,896,207        -        1,896,207   

 

  Notes:  
  a Mr. Xiangqian Li, the Company's former CEO, is a director of Zhengzhou BAK Battery Co., Ltd.
  b Mr. Xiangqian Li, is a director of Zhengzhou BAK New Energy Vehicle Co., Ltd, which has 29% equity interests in Zhengzhou BAK New Energy Technology Co., Ltd
  c Mr. Xiangqian Li is a director of BAK Shenzhen and Shenzhen BAK

 

  (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 September 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.