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Commitments and Contingencies
3 Months Ended
Mar. 31, 2023
Commitments and contingencies  
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, 2023.

 

Covid 19 and Geopolitical Tension

 

The COVID-19 pandemic continues to evolve, impacting the global economy, causing market instability and uncertainty in the labor market. The full extent of the impact of the COVID-19 pandemic will depend on the impact of inflation related to supply chain and labor costs, interest rates, monetary policy and geopolitical tension.

 

Purchase Commitments

 

As of March 31, 2023, the Company had purchase commitments for inventory totaling approximately $15,533.

 

Significant Customers

 

Sales to United States government agencies represented approximately $8,644 (46.2%) of the Company’s net total sales for the three months ended March 31, 2023, compared with approximately $1,650 (25.1%) for the same period last year. Accounts receivable from agencies of the United States government were $3,412 as of March 31,2023 compared with approximately $1,314 at the same date last year.