Quarterly report pursuant to Section 13 or 15(d)

Concentration of Risk

Concentration of Risk
6 Months Ended
Jun. 30, 2019
Risks and Uncertainties [Abstract]  
Concentration of Risk

Note 8 - Concentration of Risk


Cash and cash equivalents.


We maintain deposits in banks in amounts that might exceed the federal deposit insurance available. Management believes the potential risk of loss on these cash and cash equivalents to be minimal. All cash balances as of June 30, 2019 and December 31, 2018, including foreign subsidiaries, without FDIC coverage were $3.2 million and $1.1 million, respectively.


On July 18, 2019, one of our former merchant processors released a reserve of $2.0 million and has agreed to refund an additional $1.5 million in November 2019, subject to certain conditions. As a result of this transaction, our unrestricted cash position significantly improved. As of June 30, 2019 and December 31, 2018, this amount was recorded as part of the restricted cash in our condensed consolidated balance sheets.




A significant portion of our revenue is derived from the Rich Dad brands. For the three months ended June 30, 2019 and 2018, Rich Dad brands provided 74.1% and 68.5% of our revenue, and 73.1% and 71.1% for the six months ended June 30, 2019 and 2018, respectively. In addition, we have operations in North America, United Kingdom and Other foreign markets (see Note 9 — Segment Information).