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Concentrations and Credit Risk

9 Months Ended

Sep. 30, 2023

Concentrations and Credit Risk [Abstract]

28. 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, 2022 and 2023 as follows:

	Three months ended September 30,
Sales of finished goods and raw materials	2022				2023
Customer A	$	5,935,356	10.3	%	$	21,227,599	29.5	%
Customer B		8,380,509	11.7	%		9,097,887	15.8	%
Customer C		16,529,769	28.6	%		*	*

The Company had the following customers that individually comprised 10% or more of net revenue for the nine months ended September 30, 2022 and 2023 as follows:

	Nine months ended September 30,
Sales of finished goods and raw materials	2022				2023
Customer A	$	*	*		$	45,852,359	29.2	%
Customer B		24,844,997	12.8	%		*	*
Customer C		45,453,981	23.4	%		*	*
Zhengzhou BAK Battery Co., Ltd (note 17)		52,064,148	26.8	%		22,815,451	14.5	%

*	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 trade receivable (included VAT) as of December 31, 2022 and September 30, 2023 as follows:

	December 31, 2022				September 30, 2023
Customer A	$	4,004,880	18.94	%	$	6,443,841	16.2	%
Zhengzhou BAK Battery Co., Ltd (note 17)		9,156,383	43.3	%		15,051,787	37.7	%

*	Comprised less than 10% of net trade 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 September 30, 2022 and 2023 as follows:

	Three months ended September 30,
	2022				2023
Supplier A	$	5,271,460	10.4	%	$	*	*
Supplier D		4,885,560	10.1	%		*	*
Supplier E		6,231,067	12.8	%		*	*
Supplier F		*	*			6,391,095	13.4	%
Zhejiang Shengyang Renewable Resources Technology Co., Ltd (“Shengyang”) (note 13)		5,449,408	10.7	%		*	*
Zhengzhou BAK Battery Co., Ltd (note 17)		10,624,282	20.9	%		7,554,267	15.85	%

The Company had the following suppliers that individually comprised 10% or more of net purchase for the nine months ended September 30, 2022 and 2023 as follows:

	Nine months ended September 30,
	2022				2023
Supplier B	$	19,851,008	10.3	%	$	*	*
Supplier C		30,906,898	16.1	%		15,284,263	13.8	%
Zhengzhou BAK Battery Co., Ltd (note 17)		25,743,966	13.4	%		*	*

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

The Company had the following suppliers that individually comprised 10% or more of trade payable as of December 31, 2022 and September 30, 2023 as follows:

	December 31, 2022				September 30, 2023
Supplier A	$	4,064,942	12.50	%	$	*	*
Supplier C		*	*			4,710,982	11.9	%
Zhengzhou BAK Battery Co., Ltd (note 17)		5,629,343	17.3	%		5,405,548	13.7	%

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

(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, 2022 and September 30, 2023, 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.