Concentrations of risks

12 Months Ended

Dec. 31, 2024

Risks and Uncertainties [Abstract]

Concentrations of risks

Concentrations of risks

Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. The Canadian Deposit Insurance Corporation pays compensation up to a limit of CAD100,000 (approximately USD69,522) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2024, a cash balance of CAD1,937,962 (USD1,347,304) was maintained at financial institutions in Canada, of which CAD1,837,962 (USD1,276,880) was subject to credit risk. The Taiwan Central Deposit Insurance Corporation pays compensation up to a limit of New Taiwan Dollar 3,000,000 (approximately USD91,500) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2024, an aggregated cash balance of USD2,548,188 was maintained at financial institutions in Taiwan, of which USD2,260,205 was subject to credit risk. The European Banking Authority pays compensation up to a limit of EUR100,000 (approximately USD104,167) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2024, cash balance of EUR132,650 (USD138,178) was maintained at financial institutions in Europe, of which EUR11,182 (USD11,647) was subject to credit risk. As of December 31, 2024, cash balance of USD143,567 was maintained at financial institutions in Kingdom of Cambodia, all of which was subject to credit risk. The Reserve Bank of India pays compensation up to a limit of INR500,000 (approximately USD5,849) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2024, cash balance of INR1,714,244 (USD20,052) was maintained at financial institutions in India, of which INR1,214,244 (USD14,203) was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

Customer concentration risk

For the year ended December 31, 2024, two customers accounted for 17.9% and 16.7% of the Company’s total revenue, respectively. For the year ended December 31, 2023, three customers accounted for 17.6%, 16.4% and 10.4% of the Company’s total revenue, respectively. No other customer accounted for more than 10% of the Company’s revenue for the years ended December 31, 2024 and 2023.

As of December 31, 2024, two customers accounted for 29.4% and 11.4% of the total balance of accounts receivable, respectively. As of December 31, 2023, four customers accounted for 27.2%, 19.0%, 12.0% and 11.1% of the total balance of accounts receivable, respectively. No other customer accounted for more than 10% of the Company’s accounts receivable as of December 31, 2024 and 2023.

Vendor concentration risk

For the year ended December 31, 2024, Tangshan Huida Ceramic Group Co., Ltd (“Huida”) accounted for 55.5% of the Company’s total purchases. For the year ended December 31, 2023, Huida accounted for 54.7% of the Company’s total purchases, respectively. No other supplier accounted for more than 10% of the Company’s total purchases for the years ended December 31, 2024 and 2023.

As of December 31, 2024, Huida accounted for 69.6% of the total balance of accounts payable. As of December 31, 2023, Huida accounted for 71.4% of the total balance of accounts payable. No other supplier accounted for more than 10% of the Company’s accounts payable as of December 31, 2024 and 2023.