v3.26.3
Concentration of Credit Risks
6 Months Ended
Jun. 30, 2026
Concentration of Credit Risks [Abstract]  
Concentration of credit risks

Note 5. Concentration of credit risks

 

Financial instruments subject to credit risk

 

Financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Our cash and cash equivalents is mostly held with one large financial institution. Management believes that the financial institution that holds most of our cash and cash equivalents is financially sound and, accordingly, is subject to minimal credit risk. However, to the extent that such deposits exceed the maximum insurance levels, they are uninsured.

 

Customer concentration

 

The Group sells to large, international customers and, as a result, may maintain individually significant trade accounts receivable balances with such customers during the year. We generally do not require collateral on trade accounts receivable.

 

Summarized below are the clients whose revenue was 10% or higher than the respective total consolidated net sales for the six months ended June 30, 2026 and 2025, and the clients whose trade accounts receivable balances were 10% or higher than the respective total consolidated trade accounts receivable balance as of June 30, 2026 and December 31, 2025. In addition, we note that some of our clients are contract manufacturers for the same companies; should these companies reduce their operations or change contract manufacturers, this would cause a decrease in our customer orders which would adversely affect our operating results.

 

Revenue concentration  Unaudited
6 months ended June 30,
 
(% of total net sales)  2026   2025 
International computer and hardware manufacturer   15%   9%
International distributor of semiconductor, electronics   15%   9%

 

Receivables concentration  As of
June 30, 2026
(unaudited)
   As of
December 31, 2025
 
(% of total accounts receivable and maximum amount of loss due to credit risk)  %   USD’000   %   USD’000 
International computer and hardware manufacturer   17%   856    28%   1,196 
International distributor of semiconductor, electronics   12%   617    3%   134 
International cables designer and manufacturer   4%   223    11%   460