NOTE F - CONCENTRATIONS OF RISK

Cash, Cash Equivalents and Marketable Securities

The Company’s domestic cash and cash equivalents, and marketable securities consist of cash deposits in FDIC insured banks (substantially covered by FDIC insurance by the spreading of deposits in multiple FDIC insured banks), and U.S. Treasury securities with maturities of twelve months or less. The U.S. Treasury securities are held in the custody of major financial institutions and their value is not subject to insurance. In the foreign markets we serve, we also maintain cash deposits in foreign banks, which have no specific insurance. Normally, these uninsured bank deposits are not significant, and they are deposited with major multinational banks. No significant losses have been experienced nor are they expected on these bank accounts or investments.

Accounts receivable and revenues

The Company’s revenues, and the related receivables, are concentrated in the pharmaceutical industry in Puerto Rico, the United States of America and Europe. Although a few customers represent a significant source of revenue, the Company’s functions are not a continuous process, accordingly, the client base for which the services are typically rendered, on a project-by-project basis, changes regularly.

The Company provided a substantial portion of its services to four customers, which accounted for 10% or more of its revenues in either of the three-month and nine-month periods ended July 31, 2026 and 2025. During the three months ended July 31, 2026, revenues from these customers were 23.8%, 18.3%, 6.4% and 0.6%, or a total of 49.1%, as compared to the same period last year of 13.0%, 17.8%, 0.0% and 14.9%, or a total of 45.7%, respectively. During the nine months ended July 31, 2026, revenues from these customers were 18.6%, 14.7%, 13.8% and 5.5%, or a total of 52.6%, as compared to the same period last year of 11.8%, 16.9%, 14.1% and 11.7%, or a total of 54.5%, respectively. For the three months ended July 31, 2026 and 2025, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 24.4%, 18.3% and 6.4%, as compared to 27.9%, 17.8% and 0.0%, respectively. For the nine months ended July 31, 2026 and 2025, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 24.1%, 14.7% and 13.8%, as compared to 23.5%, 16.9% and 14.1%, respectively. On July 31, 2026, amounts due from these customers represented 44.5% of the Company’s total accounts receivable balance. This customer information is based on revenues earned from said customers at the segment level.

At the global level, four global groups of affiliated companies accounted for 10% or more of the Company’s revenues in either of the three-month and nine-month periods ended July 31, 2026 and 2025. During the three months ended July 31, 2026, aggregate revenues from these global groups of affiliated companies were 23.8%, 22.8%, 6.4% and 0.6%, or a total of 53.6%, as compared to the same period last year for 13.0%, 20.3%, 0.0% and 14.9%, or a total of 48.2%, respectively. During the nine months ended July 31, 2026, aggregate revenues from these global group of affiliated companies were 18.6%, 17.9%, 13.8% and 5.5%, or a total of 55.8%, as compared to the same period last year for 11.8%, 19.0%, 14.1% and 11.7%, or a total of 56.6%, respectively. For the three months ended July 31, 2026 and 2025, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 28.9%, 18.3% and 6.4%, as compared to 30.4%, 17.8% and 0.0%, respectively. For the nine months ended July 31, 2026 and 2025, these customers represented for the Puerto Rico, United States and Europe consulting reportable segments 27.3%, 14.7% and 13.8%, as compared to 25.6%, 16.9% and 14.1%, respectively. At July 31, 2026, amounts due from these global groups of affiliated companies represented 51.6% of total accounts receivable balance.