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Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
Commitments And Contingencies  
10. Commitments And Contingencies

10. Commitments and Contingencies

 

Legal Matters

 

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of its business. On a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, it records a liability in its consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, the Company does not accrue legal reserves, consistent with applicable accounting guidance. There were no pending material claims or legal matters as of March 31, 2022.

 

COVID-19

 

In December 2019, a novel strain of the coronavirus (COVID-19) surfaced in Wuhan, China, which spread globally and was declared a pandemic by the World Health Organization in March 2020. Although we believe the pandemic has not had a material adverse impact on our business through 2020, it may have the potential of doing so in the future. The extent of the potential impact of the COVID-19 pandemic on our business and financial performance will depend on future developments, which are uncertain and, given the continuing evolution of the COVID-19 pandemic and the global responses to curb its spread, cannot be predicted. In addition, the pandemic has significantly increased economic uncertainty and caused a worldwide economic downturn. Even after the COVID-19 pandemic has subsided, we may continue to experience an adverse impact to our business as a result of its national and, to some extent, global economic impact, including any recession that may occur in the future.

 

Purchase Commitments

 

As of March 31, 2022, the Company had purchase commitments for inventory totaling approximately $12,533.

 

Significant Customers

 

Sales to United States government agencies represented approximately $1,650 (25.05%) of the Company’s net total sales for the three months ended March 31, 2022, compared with approximately $2,116 (24.71%) for the same period last year. Accounts receivable from agencies of the United States government were $1,314 as of March 31, 2022, compared with approximately $1,490 at the same date last year.