Concentration of Credit Risk

9 Months Ended

Sep. 30, 2023

Note 14. 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 September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Customer A		22	%		1	%		15	%		16	%
Customer B		12	%		12	%		10	%		12	%
Customer C		8	%		12	%		16	%		13	%

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


	September 30, 2023			December 31, 2022
Customer A		14	%		3	%
Customer B		12	%		12	%
Customer C		12	%		15	%
Customer D		11	%		2	%
Customer E		10	%		0	%

The allowance for credit losses as of September 30, 2023 and December 31, 2022 was not material.

Concentration of Purchases

During the nine months ended September 30, 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. In the second quarter of 2023, the Company moved most of the deposits out of this institution to several accounts at a larger institutional bank.

Concentration of Property and Equipment

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


	September 30, 2023		December 31, 2022
North America	$	2,227	$	2,469
Asia Pacific (APAC)		93		138
Europe, Middle East and Africa (EMEA)		134		158
Property and equipment, net	$	2,454	$	2,765