v3.26.1
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
 3 Months Ended
Mar. 31, 2026
Risks and Uncertainties [Abstract]  
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

NOTE 2. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

 

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, accounts receivable, and contract assets. We maintain our excess cash balances in checking accounts primarily at two financial institutions, one in the United States and one in China. The account in the United States may at times exceed federally insured limits. The Company’s $1,964 cash balance as of March 31, 2026, included approximately $612 and $78 that was held at banks located in China and Mexico, respectively. We grant credit to customers in the normal course of business and generally do not require collateral on our accounts receivable.

 

We have certain customers whose revenue individually represented 10% or more of net sales, or whose accounts receivable balances or contract asset balances individually represented 10% or more of gross accounts receivable.

 

Customers who represent 10% or more of net sales for the three months ended March 31, 2026 and 2025 are as follows:

  

         
  

Three Months Ended

March 31,

 
   2026   2025 
Customer A   32%   31%
Customer B   13%   11%
Total   45%   42%

 

Customers who represent 10% or more of accounts receivable and contract assets for the periods ended March 31, 2026 and December 31, 2025 are as follows:

 SCHEDULE OF ACCOUNTS RECEIVABLE CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS 

         
   Accounts Receivable 
  

March 31,

2026

  

December 31,

2025

 
Customer A   26%   20%

 

 SCHEDULE OF CONTRACT ASSETS CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

         
   Contract Assets 
  

March 31,

2026

  

December 31,

2025

 
Customer A   34%   36%
Customer C   12%   13%
Total   46%   49%

 

Export sales from the U.S. represented approximately 3% and 2% of net sales for the three months ended March 31, 2026 and 2025, respectively.