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Commitments and Contingencies
6 Months Ended
Jun. 30, 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 June 30, 2022.

 

Covid 19 and Geo Political Tension

 

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. The pandemic may have the potential of adversely impacting our business and financial performance in the future. The extent of the potential impact 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. 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.

 

Additionally, U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine.

Purchase Commitments

 

As of June 30, 2022, the Company had purchase commitments for inventory totaling approximately $9,394.

 

Significant Customers

 

Sales to United States government agencies represented approximately $5,316 (43.9%) and $6,965 (37.3%) of the Company’s net total sales for the three and six months ended June 30, 2022, respectively, compared with approximately $4,749 (41.9%) and $6,865 (34.5%), for the same periods last year. Accounts receivable from agencies of the United States government were $2,554 as of June 30, 2022, compared with approximately $3,279 at the same date last year.