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Note 2 - Concentration of Credit Risk and Major Customers
6 Months Ended
Jun. 30, 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 $1,175 in cash and restricted cash at June 30, 2022, approximately $691 and $54 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 28% and 26% of net sales for the three and six months ended June 30, 2022, respectively. One customer accounted for 25% and 27% of net sales for the three and six months ended June 30, 2021, respectively.

 

At June 30, 2022, two customers represented approximately 37% of our total accounts receivable. At December 31, 2021, one customer represented approximately 19% of our total accounts receivable.

 

Export sales represented approximately 4% of net sales for both the three and six months ended June 30, 2022. Export sales represented approximately 2% and 3% of net sales for the three and six months ended June 30, 2021 respectively.