v3.26.1
Note 6 - Commitments and Contingencies
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 6 Commitments and Contingencies

 

Vendor concentration

 

The Company’s products include components that are manufactured and supplied by third parties. Certain components and products that meet the Company’s requirements are available only from a single supplier or a limited number of suppliers. This concentration creates potential for disruptions, which may include issues with availability of product components and pricing. Shortages of product components, quality control problems, production capacity constraints, or delays by suppliers could negatively affect the Company’s ability to meet its production goals, which in turn could have a material adverse effect on the Company’s business, financial condition, and results of operations. The Company believes that it will be able to source alternative suppliers or materials if required to do so.

 

At  June 30, 2026, the Company had accounts payable to a vendor that accounted for 32% of the total outstanding balance. For the year ended  December 31, 2025, the Company had accounts payable to two vendors that each accounted for 12% of the total outstanding balance.

 

Purchase Commitments

 

At  June 30, 2026 and  December 31, 2025, the Company had $625,110 and $218,912, respectively, in outstanding firm purchase commitments for raw materials inventory and prototype components used in research and development activities. As of  June 30, 2026, payment of the purchase commitments is expected to be made within one year. During the six months ended June 30, 2026 and 2025, the Company purchased $87,740 and $137,101, respectively, under firm purchase commitments outstanding at the beginning of the respective year.

 

Retirement Plan

 

The Company maintains retirement plans for its employees in which eligible employees can contribute a percentage of their compensation. During the three months ended  June 30, 2026 and 2025, the Company contributed $117,204 and $70,044 to these plans, respectively. During the six months ended June 30, 2026 and 2025, the Company contributed $246,996 and $171,331 to these plans, respectively.

 

Employment Agreements

 

The Company has employment agreements with the CEO and certain senior executives of the Company. The agreements require severance of twelve and six months, respectively, of current annual salary and medical insurance in the event employment is terminated without cause.