Note 5 – Accounts Receivable, Net

Accounts receivable are stated at their estimated net realizable value, net of an allowance for expected credit losses. The Company evaluates the collectability of trade receivables on an ongoing basis and estimates expected credit losses based on historical collection experience, customer-specific considerations, current economic conditions, and reasonable and supportable forecasts. As of June 30, 2026 and December 31, 2025 the allowance for expected credit losses was $0 and $25,586, respectively. During the six months ended June 30, 2026, the Company wrote off previously reserved receivables. Based on the Company’s evaluation of its outstanding accounts receivables as of June 30, 2026, management concluded that no allowance for expected credit losses was required.

The Company has customers whose net revenue or accounts receivable balances individually represent 10% or more of consolidated net revenue or accounts receivable, respectively. For the three and six months ended June 30, 2026, four customers accounted for 95.9% and 96.6%, respectively, of consolidated net revenue. For the three and six months ended June 30, 2025, three customers accounted for 99.1% and 97.1%, respectively, of consolidated net revenue. As of June 30, 2026 and December 31, 2025, three customers accounted for approximately 88% and 97% of gross accounts receivable, respectively.