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Commitments and Contingencies
3 Months Ended
Mar. 31, 2024
Commitments and contingencies  
Commitments And Contingencies

Note 11. 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. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings using the latest information available, on a quarterly basis. 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, 2024.

Purchase Commitments

 

As of March 31, 2024, the Company had purchase commitments for inventory totaling approximately $12,308.

 

Significant Customers

 

Sales to United States government agencies represented approximately $9,830 (53.9%) of the Company’s net total sales for the three months ended March 31, 2024, compared with approximately $8,644 (46.2%) for the same period last year. Accounts receivable from agencies of the United States government were $5,941 as of March 31, 2024, compared with approximately $3,412 at the same date last year.

 

Geopolitical Tensions and COVID-19

 

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the military conflicts between Russia and Ukraine, and in the Middle East. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflict in both of these regions could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. While the impacts of COVID-19 are reflected in our results of operations for 2023 and 2022 respectively, we cannot separate the direct COVID-19 impacts from other factors that cause our performance to vary from quarter to quarter. The ultimate duration and impact of the COVID-19 pandemic on our supply chain and geopolitical factors to our business, results of operations, financial condition and cash flows is dependent on future developments, including the duration and severity of the geopolitical factors on the global economy, which are uncertain and cannot be predicted at this time.