NOTE 4 – ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Accounts receivable are stated at amortized cost and consist primarily of trade receivables from customers arising from the sale of goods/services in the ordinary course of business. The Company estimates expected credit losses on accounts receivable using relevant available information from internal and external sources, including historical credit loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts.

The Company's historical credit loss experience on trade receivables, adjusted for current conditions and reasonable and supportable forecasts of future economic conditions, results in an expectation that nonpayment of the amortized cost basis is zero. This assessment considers factors such as the credit quality of customers, short collection periods, low historical default rates, and no material adverse changes expected in relevant economic conditions or customer circumstances.

Accordingly, no allowance for credit losses has been recorded as of June 30, 2026 and December 31, 2025, and no credit loss expense related to accounts receivable was recognized during the three and six months ended June 30, 2026 and the year ended December 31, 2025.