Note 7. Concentrations of Risk

The Company is exposed to certain concentrations of risk that could reasonably be expected to have a material impact on its business, financial condition, and results of operations, including customer concentration risk, related party concentration risk and cash concentration risk.

Customer Concentration

A customer is considered significant if it represents 10% or more of total revenue or total receivables for the applicable period.

For the three months ended June 30, 2026, the Company had two related party customers that individually represented more than 10% of total revenue, collectively accounting for approximately 85.6% of total revenue. For the six months ended June 30, 2026, the Company had two customers that individually represented more than 10% of total revenue, collectively accounting for approximately 86.9% of total revenue.

As of June 30, 2026, receivables from related parties constituting customers individually accounting for more than 10% of total receivables totaled approximately $17,884 and are included in receivables from related parties in the Consolidated Balance Sheets.

For the three months ended June 30, 2025, the Company had two related party customers that individually represented more than 10% of total revenue, collectively accounting for approximately 93.5% of total revenue. For the six months ended June 30, 2025, the Company had two customers that individually represented more than 10% of total revenue, collectively accounting for approximately 94.0% of total revenue.

As of December 31, 2025, receivables from related parties constituting customers individually accounting for more than 10% of total receivables totaled approximately $10,665 and are included in receivable from related parties in the Consolidated Balance Sheets.

Related Party Concentration

A significant portion of the Company's revenue is generated from customers affiliated with the Company's controlling shareholder, HCI. For the three and six months ended June 30, 2026, customers that individually represented more than 10% collectively accounted for 85.6% and 86.9% of total revenue, respectively. For the three and six months ended June 30, 2025, such customers collectively accounted for 93.5% and 94.0% of revenue, respectively. Accordingly, the Company is exposed to concentration risk related to these related party customers. A reduction in, or loss of, revenue from these customers could have a material adverse effect on the Company's results of operations.