REVENUE |
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| REVENUE | 9. REVENUE All of our operating revenue is generated from contracts with customers. Our primary source of revenue is generated from sales of towing and recovery equipment. Because our product lines have substantially similar characteristics, the Company has identified one operating segment regularly reviewed to assess performance and allocate resources. Alternatively, the Company uses a geographic approach to track revenues by geographic regions. Net revenues by geographic region are as follows:
Concentrations of Credit Risk Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and temporary investments and trade accounts receivable. As of June 30, 2025 and December 31, 2024, the Company had cash deposited net of outstanding checks of $31.8 million and $24.3 million, respectively, held in multiple high-credit quality financial institutions. We attempt to limit our credit risk associated with accounts receivable by performing ongoing credit evaluations of our customers and maintaining adequate allowances for potential credit losses. No single customer accounted for more than 10% of total revenues for the three or six months ended June 30, 2025 or the comparable periods in 2024. As of June 30, 2025, there was one customer with a trade accounts receivable of 10.5% of the Company’s total trade receivable. As of December 31, 2024 there was one customer with a trade accounts receivable of 14.9% of the Company’s total trade receivable. |
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