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Concentrations and Credit Risk | 9 Months Ended
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Sep. 30, 2021
Risks and Uncertainties [Abstract] |
Concentrations and Credit Risk |
24. | 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, 2020 and 2021 as follows:
|  | Three months ended September 30, |
|  | 2020 |  |  | 2021 |
Sales of finished goods and raw materials |  |  |  |  |  |  |  |  |  |  |  |
Customer A |  | $ | 1,588,192 |  |  |  | 14.95 | % |  | $ | * |  |  |  | * |
Customer C |  |  | 1,278,893 |  |  |  | 12.04 | % |  |  | 3,103,626 |  |  |  | 32.46 | %
Customer D |  |  | * |  |  |  | * |  |  |  | 1,081,071 |  |  |  | 11.31 | %
Zhengzhou BAK Battery Co., Ltd (note a) |  |  | 4,269,312 |  |  |  | 40.20 | % |  |  | * |  |  |  | * |
Zhengzhou BAK New Energy Technology Co., Ltd (note d) |  |  | 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, 2020 and 2021 as follows:
|  | Nine months ended September 30, |
|  | 2020 |  |  | 2021 |
Sales of finished goods and raw materials |  |  |  |  |  |  |  |  |  |  |  |
Customer A |  | $ | 5,793,828 |  |  |  | 26.16 | % |  | $ | 2,583,245 |  |  |  | 10.39 | %
Customer B |  |  | * |  |  |  | * |  |  |  | 2,777,456 |  |  |  | 11.17 | %
Customer C |  |  | 2,908,728 |  |  |  | 13.13 | % |  |  | 4,693,308 |  |  |  | 18.87 | %
Customer D |  |  | * |  |  |  | * |  |  |  | 3,360,174 |  |  |  | 13.51 | %
Customer E |  |  | 3,787,585 |  |  |  | 17.10 | % |  |  | * |  |  |  | * |
Zhengzhou BAK Battery Co., Ltd (note a) |  |  | 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, 2020 and September 30, 2021 as follows:
|  | December 31, 2020 |  |  | September 30, 2021 |
Customer A |  | $ | 3,148,737 |  |  |  | 11.23 | % |  | $ | 2,845,127 |  |  |  | 12.94 | %
Customer C |  |  | * |  |  |  | * |  |  |  | 3,538,038 |  |  |  | 16.10 | %
Zhengzhou BAK Battery Co., Ltd (note a) |  |  | 15,258,164 |  |  |  | 54.42 | % |  |  | 4,562,413 |  |  |  | 20.76 | %
| * | 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, 2020 and 2021 as follows:
|  | Three months ended September 30, |
|  | 2020 |  |  | 2021 |
Supplier A |  | $ | * |  |  |  | * |  |  | $ | 810,963 |  |  |  | 13.29 | %
Supplier B |  |  | 4,329,602 |  |  |  | 72.65 | % |  |  | 704,401 |  |  |  | 11.54 | %
The Company had the following suppliers that individually comprised 10% or more of net purchase for the nine months ended September 30, 2020 and 2021 as follows:
|  | Nine months ended September 30, |
|  | 2020 |  |  | 2021 |
Supplier B |  |  | 4,329,602 |  |  |  | 36.47 | % |  |  | * |  |  |  | * |
Shenzhen BAK (note b) |  |  | 3,841,680 |  |  |  | 32.35 | % |  |  | * |  |  |  | * |
| * | 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, 2020 and September 30, 2021 as follows:
|  | December 31, 2020 |  |  | September 30, 2021 |
Supplier B |  | $ | 9,272,478 |  |  |  | 47.40 | % |  | $ | * |  |  |  | * |
Supplier C |  |  | 2,017,814 |  |  |  | 10.32 | % |  |  | 970,564 |  |  |  | 17.99 | %
Supplier D |  |  | * |  |  |  | * |  |  |  | 709,952 |  |  |  | 13.16 | %
Apart from the above, for the three and nine months ended September 30, 2020 and 2021, the Company recorded the following transactions:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |
Purchase of inventories from |  |  |  |  |  |  |  |  |  |  |  |
Zhengzhou BAK Battery Co., Ltd (note a) |  |  | - |  |  |  | 477,185 |  |  |  | - |  |  |  | 1,736,494 |
Sales of finished goods and raw materials to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BAK Shenzhen (note b) |  |  | - |  |  |  | - |  |  |  |  |  |  |  | 18,402 |
Zhengzhou BAK Electronics Co., Ltd (note c) |  |  | - |  |  |  | 746 |  |  |  | - |  |  |  | 413,099 |
Zhengzhou BAK Battery Co., Ltd (note a) |  |  | - |  |  |  | 6,982 |  |  |  |  |  |  |  | 148,564 |
Apart from the above, the Company recorded the following as of December 31, 2020 and September 30, 2021:
|  | December 31, 2020 |  |  | September 30, 2021 |
Trade accounts and bills receivables, net |  |  |  |  |  |
Zhengzhou BAK Electronics Co., Ltd (note c) |  | $ | - |  |  |  | 422,080 |
Zhengzhou BAK New Energy Technology Co., Ltd (note d) |  |  | 1,759,050 |  |  |  | 840,675 |
| 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 BAK Shenzhen and Shenzhen BAK.
| c | BAK Shenzhen has 95% equity interests in Zhengzhou BAK Electronics Co., Ltd. Up to the date of this report, Zhengzhou BAK Electronics Co., Ltd. repaid $27,839 to the Company.
| d | Mr. Xiangqian Li, is a director of Zhengzhou BAK New Energy Technology Co., Ltd. Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid $219,943 to the 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, 2020 and September 30, 2021, 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.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 + Details
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