4.  Customer Concentrations and Accounts Receivable

 

Sales to Reliable Secure Power Systems, (“RSP”), Regatta Solutions, Inc. (“Regatta”) and E-Finity Distributed Generation, LLC (“E-Finity”), three of the Company’s domestic distributors, and Optimal Group Australia Pty Ltd, one of the Company’s Australian distributors and IBT Europe GmbH (“IBT”), one of the Company’s European distributors, accounted for 12%,  11%,  11%,  11% and 10%, respectively, of revenue for the three months ended September 30, 2017. Sales to BPC Engineering (“BPC”), one of the Company’s Russian distributors, accounted for 11% of revenue for the three months ended September 30, 2016. For the six months ended September 30, 2017, E-Finity, Horizon Power Systems (“Horizon”) and Optimal accounted for 13%,  12% and 10% of revenue, respectively. For the six months ended September 30, 2016, Regatta Solutions, Inc. (“Regatta”), one of the Company’s domestic distributors, accounted for 11% of revenue.

Additionally, E-Finity, RSP, Regatta and IBT accounted for 16%,  16%, 13% and 11%, respectively, of net accounts receivable as of September 30, 2017. E-Finity, Dtc Soluciones Inmobiliarias S.A. de C.V. (“DTC”), one of the Company’s Mexican distributors and RSP accounted for 29%,  12% and 10%, respectively, of net accounts receivable as of March 31, 2017.

The Company recorded a net bad debt recovery of approximately $9,000 and $22,000 during the three and six months ended September 30, 2017, respectively. As of September 30, 2017, the Company collected approximately $1.7 million from BPC on their accounts receivable allowance of approximately $8.1 million. The Company recorded net bad debt recovery of approximately $0.5 million for the three months ended September 30, 2016. During the six months ended September 30, 2016, the Company recorded approximately $1.4 million in net bad debt recovery, which was previously reserved during Fiscal 2015, for cash received primarily from BPC and Electro Mecanique Industries, one of the Company’s distributors in the Middle East and Africa.