Note 11 - Concentrations of Credit Risk, Significant Customers and Geographic Information

12 Months Ended

Dec. 30, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

(11) Concentrations of Credit Risk, Significant Customers and Geographic Information

Financial instruments which subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company maintains cash deposits in a sweep account, whereby funds are automatically moved in increments of $250,000 to various FDIC insured financial institutions on a nightly basis.

The Company extends credit to customers who consist principally of microelectronics systems companies in the United States, Europe and Asia. The Company generally does not require collateral or other security as a condition of sale rather relying on credit approval, balance limitation and monitoring procedures to control credit risk of trade accounts receivable. The Company also maintains a credit insurance policy covering most of its non-US customers to further mitigate credit risk. Management conducts on-going credit evaluations of its customers, and historically the Company has not experienced any significant credit-related losses with respect to its trade accounts receivable.

Revenues from significant customers as a percentage of total revenues in 2023 and 2022 were as follows:

	Percent of Total Revenues
Significant Customer	2023			2022
A		33	%		21	%
B		18	%		15	%
C		9	%		17	%

As of December 30, 2023, the Company had trade accounts receivable due from these three customers that accounted for 50% of total trade accounts receivable as of that date. To further mitigate the potential for credit losses the Company has acquired a credit insurance policy covering most of our sales to non-US accounts.  Management believes that any credit risks have been properly provided for in the accompanying financial statements.

The Company’s revenue was derived from the following countries in 2023 and 2022:

	Percent of Total Revenues
Country	2023			2022
United States of America		56	%		42	%
Germany		18	%		16	%
Other		26	%		42	%

Many of the Company’s customers based in the United States conduct design, purchasing and payable functions in the United States, but manufacture overseas.

All of the Company’s long-lived assets and operations are located in the United States.