Concentration of Risks and Significant Customers

12 Months Ended

Dec. 31, 2024

Concentration of Risks and Significant Customers

Concentration Risks and Significant Customers

Financial instruments that potentially expose the Company to concentration of credit risk consist of cash and cash equivalents, short-term investments, and accounts receivable. Cash on deposit with financial institutions may exceed federally insured limits.

As of December 31, 2024, short-term investments were $179.4 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of this total balance, except for U.S. Treasury securities, which amounted to $168.9 million, or 94%, of the short-term investments. As of December 31, 2024, all debt securities within the Company's portfolio were investment grade.

As of December 31, 2023, short-term investments were $268.7 million, and there was no concentration of securities of the same issuer with an aggregate fair value greater than 5% of the total balance, except for U.S. Treasuries, which amounted to $255.2 million, or 95% of the short-term investments. As of December 31, 2023, all debt securities within the Company's portfolio were investment grade.

A significant portion of the Company's payment transactions is settled through one Issuing Bank, Sutton Bank. For the years ended December 31, 2024, 2023 and 2022, 70%, 76% and 82% of Total Processing Volume was settled through Sutton Bank, respectively.

A significant portion of the Company's revenue and accounts receivable is derived from a single customer. The following provides net revenue as a percentage of total net revenue and customers' receivables as a percentage of total customers receivables for our significant customers:


	Percent of Net Revenue for the Year Ended December 31,
	2024	2023	2022
Customer A	47%	68%	71%


	Percent of Customers' Receivables as of December 31,
	2024	2023
Customer A	10%	*
Customer B	*	11%
Customer C	13%	*