Annual report pursuant to Section 13 and 15(d)

Concentrations of Credit Risk

v3.20.2
Concentrations of Credit Risk
12 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Concentrations of Credit Risk

15. Concentrations of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts and trade receivables. The Company maintains its cash at large financial institutions. At June 30, 2020, bank deposits exceeded Federal Deposit Insurance Corporation insured limits. The Company believes that concentrations of credit risk with respect to trade receivables are limited due to the Company’s large customer base. Also, based on the Company’s credit evaluation, trade receivables are often collateralized by the equipment sold. Sales to a federal government agency accounted for approximately 5% and 9% of the Company’s revenues for fiscal 2020 and 2019, respectively. Additionally, no single contract for a federal government facility or other contract accounted for more than 10% of the Company’s revenues for fiscal 2020 or 2019. As of June 30, 2020, the largest account receivable from a single third party entity relating to a single project was $4.8 million. There were no other accounts receivable due from any individual entity which accounted for greater than 10% of the Company’s accounts receivable at June 30, 2020.