CUSTOMER CONCENTRATION |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| CUSTOMER CONCENTRATION | |
| CUSTOMER CONCENTRATION | NOTE 14. CUSTOMER CONCENTRATION
The Company monitors customer concentration by identifying customers whose accounts receivable balances individually represent 10% or more of accounts receivable at the balance sheet date, and customers whose revenue for the fiscal year individually represents 10% or more of total revenue. The following sets forth the Company’s significant customer concentrations for the periods presented.
Accounts Receivable Concentration
As of June 30, 2026, two customers accounted for approximately 29% of the Company’s gross accounts receivable. As of December 31, 2025, two customers accounted for approximately 40% of the Company’s gross accounts receivable.
Revenue Concentration
For the three months ended June 30, 2026, two customers accounted for approximately 33% of the Company’s revenue. For the three months ended June 30, 2025, one customer accounted for approximately 10% of the Company’s revenue.
For the six months ended June 30, 2026, one customer accounted for approximately 11% of the Company’s revenue. There were no customers who accounted for 10% or more of net revenue for the six months ended June 30, 2025.
The increase in the concentration percentage was mainly due to a distributor that was onboarded during the first half of 2026 and additional CES-related projects undertaken this period.
The Company does not have any long-term purchase commitments with any of its significant customers, and there can be no assurance that these customers will continue to purchase the Company’s products and services at historical levels or at all. The loss of, or a significant reduction in purchases by, any one of these customers could have a material adverse effect on the Company’s revenue and results of operations. See Item 1A, Risk Factors, from our recently filed Form 10-K for further discussion of risks related to customer concentration and the absence of long-term customer contracts. |