CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

9 Months Ended

Sep. 30, 2025

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

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. We maintain our excess cash balances in checking accounts primarily at 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 $1,271 cash balance as of September 30, 2025, included approximately $1,042 and $120 that 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 or contract asset balances individually represented 10% or more of gross accounts receivable.

Customers who represent 10% or more of net sales for the three and nine months ended September 30, 2025 and 2024 are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Customer A		32	%		28	%		31	%		26	%
Customer B		11	%		N/A			10	%		N/A
Total		43	%		28	%		41	%		26	%

Customers who represent 10% or more of accounts receivable and contract assets for the period ended September 30, 2025 and December 31, 2024 are as follows:

	Accounts Receivable
	September 30, 2025			December 31, 2024
Customer A		26	%		23	%
Customer C		10	%		13	%
Total		36	%		36	%

	Contract Assets
	September 30, 2025			December 31, 2024
Customer A		33	%		33	%
Customer D		14	%		12	%
Total		47	%		45	%

Export sales from the U.S. represented approximately 2% of net sales for both the three and nine months ended September 30, 2025. Export sales from the U.S. represented approximately 2% of net sales for both the three and nine months ended September 30, 2024.