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Note 2 - Concentration of Credit Risk and Major Customers
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

NOTE 2. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

 

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. With regard to cash, we maintain our excess cash balances in checking accounts at primarily two financial institutions, one in the United States and one in China. The account in the United States may at times exceed federally insured limits. Of the $1,617 in cash and restricted cash at March 31, 2022, approximately $769 and $63 was held at banks located in China and Mexico, respectively. We grant credit to customers in the normal course of business and do not require collateral on our accounts receivable.

 

We have certain customers whose revenue individually represented 10% or more of net sales, or whose accounts receivable balances individually represented 10% or more of total accounts receivable. One customer accounted for 23% and 29% of net sales for the three months ended March 31, 2022 and 2021, respectively.

 

At March 31, 2022, two customers represented approximately 35% of our total accounts receivable. At December 31, 2021, one customer represented approximately 19% of our total accounts receivable.

 

Export sales represented approximately 5% and 4% of net sales for the three months ended March 31, 2022 and 2021, respectively.