Concentration of Credit Risk

3 Months Ended

Mar. 31, 2023

Note 16. Concentration of Credit Risk

Concentration of Sales and Accounts Receivable

The following represents customers that accounted for 10% or more of total revenue:


	Three months ended March 31,
	2023			2022
Customer A		16	%		12	%
Customer B		14	%		17	%
Customer C		13	%		6	%
Customer D		11	%		12	%
Customer E		9	%		15	%

The following represents customers that accounted for 10% or more of total trade accounts receivable:


	March 31, 2023			December 31, 2022
Customer A		13	%		21	%
Customer B		11	%		3	%
Customer C		11	%		0	%
Customer D		10	%		15	%
Customer E		9	%		12	%

Concentration of Purchases

During the three months ended March 31, 2023, the Company’s products were primarily manufactured by six contract manufacturers with locations in China, Mexico, Minnesota, and Vietnam.

Concentration of Cash

The bank where most of the Company’s cash was held was placed into receivership with the FDIC on March 10, 2023. The Company’s cash deposits exceeded the FDIC insured limits at that time. However, the Treasury, the Federal Reserve, and the FDIC, as receiver, jointly released a statement that depositors at this specific bank would have access to their funds, including funds in excess of standard FDIC insurance limits. The Company has not experienced losses on these accounts. The Company is in the process of allocating cash deposits among other financial institutions to mitigate its concentration risk.

Concentration of Property and Equipment

The Company’s property and equipment, net by geographic region, are as follows (in thousands):


	March 31, 2023		December 31, 2022
North America	$	2,421	$	2,469
Asia Pacific (APAC)		112		138
Europe, Middle East and Africa (EMEA)		150		158
Property and equipment, net	$	2,683	$	2,765