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Note 2 - Concentration of Credit Risk and Major Customers
3 Months Ended
Mar. 31, 2024
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, accounts receivable, and contract assets. 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. The Company’s $4,028 cash balance as of March 31, 2024, included approximately $930 and $7 was held at banks located in China and Mexico, respectively. We grant credit to customers in the normal course of business and generally 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 gross accounts receivable. Two customers accounted for 35% of net sales for the three months ended March 31, 2024. One customer accounted for 29% of net sales for the three months ended March 31, 2023.

 

As of March 31, 2024, two customers represented approximately 37% of our gross accounts receivable. As of December 31, 2023, two customers represented approximately 35% of our gross accounts receivable.

 

Contract assets for three customers accounted for 41% of gross contract assets as of March 31, 2024. Contract assets for two customers accounted for 34% of gross contract assets as of December 31, 2023.

 

Export sales from the U.S. represented approximately 3% and 4% of net sales for the three months ended March 31, 2024 and 2023, respectively.