Concentrations and Credit Risk |
3 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | ||||||||
| Risks and Uncertainties [Abstract] | ||||||||
| Concentrations and Credit Risk |
During the three months ended March 31, 2025, two customers accounted for nearly 74% of the Company’s revenues. During the three months ended March 31, 2024, two customers accounted for nearly 81% of the Company’s revenues. No other customer accounts for more than 10% of the Company’s revenue in the three months ended March 31, 2025 and 2024. As of March 31, 2025, five customers accounted for 41% of the Company’s accounts receivable. As of December 31, 2024, five customers accounted for 84% of the Company’s accounts receivable. No other customer accounts for more than 10% of the Company’s accounts receivable for the three months ended March 31, 2025 and for the year ended December 31, 2024. During the three months ended March 31, 2025, no supplier accounts for over 10% of the Company’s cost of revenues. During the three months ended March 31, 2025, five suppliers accounted for a total of 73% of the Company’s cost of revenues. No other supplier accounts for over 10% of the Company’s cost of revenues. As of March 31, 2025, no supplier accounted for over 10% of the Company’s accounts payable. As of December 31, 2024, no supplier accounted for 10% of the Company’s accounts payable.
Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of March 31, 2025 and December 31, 2024, substantially all of the Company’s cash were held by major financial institutions located in the PRC, Hong Kong, and the United States, which management believes are of high credit quality. Deposits in the United States up to $250,000 are insured by the Federal Depository Insurance Corporation. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations. |