Note 9 – Significant Customers

Revenue for the three months ended September 30, 2020 and 2019 was $3.8 million and $2.8 million, respectively. Two third-party contract manufacturing customers accounted for 57.6% and 15.9%, respectively, of our revenue for the three months ended September 30, 2020. Three third-party contract manufacturing customers accounted for 33.0%, 30.1% and 10.2%, respectively, of our revenue for the three months ended September 30, 2019. The loss of sales to any of these large third-party contract manufacturing customers could have a material adverse effect on our business operations and financial condition.

Revenue for the nine months ended September 30, 2020 and 2019 was $9.4 million and $6.7 million, respectively. Two third-party contract manufacturing customers accounted for 56.2% and 16.6%, respectively, of our revenue for the nine months ended September 30, 2020. Two third-party contract manufacturing customers accounted for 44.2% and 27.2%, respectively, of our revenue for the nine months ended September 30, 2019. The loss of sales to any of these large third-party contract manufacturing customers could have a material adverse effect on our business operations and financial condition.

We are subject to account receivable credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. These concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. Three customers represented 55.7%, 12.8% and 11.1% of our total trade receivable balances at September 30, 2020 and three customers represented 70%, 14% and 11% of our total trade receivable balances at December 31, 2019.