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CONCENTRATIONS OF RISK

9 Months Ended

Sep. 30, 2021

NOTE－17 CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the nine months ended September 30, 2021 and 2020, the customers who accounted for 10% or more of the Company’s revenues and its outstanding receivable balances at year-end dates, are presented as follows:

Schedule of concentrations of risk
	Nine months ended September 30, 2021					September 30, 2021
Customer	Revenues		Percentage of revenues			Accounts receivable
Customer A	$	24,813		25	%	$	19,308
Customer B	$	12,615		13	%	$	—
Customer C	$	58,300		58	%	$	68,285	*

*	- This included value added taxes (“VAT”)

Nine months ended September 30, 2020

September 30, 2020

Customer

Revenues

Percentage
of revenues

Accounts
receivable

Customer A

31,604

—

For the three months ended September 30, 2021 and 2020, the customers who accounted for 10% or more of the Company’s revenues and its outstanding receivable balances at year-end dates, are presented as follows:

	Three months ended September 30, 2021
Customer	Revenues		Percentage of revenues
Customer A	$	10,016		12	%
Customer B	$	12,615		13	%
Customer C	$	58,300		58	%

Three months ended September 30, 2020

Customer

Revenues

Percentage
of revenues

Customer A

9,789

All customers are located in Vietnam except one located in Indonesia.

(b) Major vendors

For the nine months ended September 30, 2021 and 2020, the vendors who accounts for 10% or more of the Company’s hardware purchases and software cost its outstanding payable balances as at year-end dates, are presented as follows:

	Nine months ended September 30, 2021			September 30, 2021
Vendors	Purchases		Percentage of purchases	Accounts payable
Vendor A	$	30,577	27%	$	44,867
Vendor B	$	17,827	16%

	Nine months ended September 30, 2020			September 30, 2020
Vendors	Purchases		Percentage of purchases	Accounts payable
Vendor A	$	46,863	72%	$	—
Vendor B		—	—		—

For the three months ended September 30, 2021 and 2020, the vendors who accounts for 10% or more of the Company’s hardware purchases and software cost its outstanding payable balances as at year-end dates, are presented as follows:

	Three months ended September 30, 2021
	Purchases		Percentage of purchases
Vendors
Vendor A	$	—	—

	Three months ended September 30, 2020
Vendors	Purchases		Percentage of purchases
Vendor A	$	24,401	90%
Vendor B		—	—

All vendors are located in Vietnam.

Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

(d) Exchange rate risk

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in VND, SGD and INR and a significant portion of the assets and liabilities are denominated in VND, SGD and INR. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and VND, SGD and INR. If VND, SGD and INR depreciates against US$, the value of VND, SGD and INR revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.

(e) Economic and political risks

The Company's operations are conducted in the Republic of Vietnam. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the Vietnam, and by the general state of the Vietnam economy.

The Company's operations in the Vietnam and India are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the Vietnam and India, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.