Note 12 - Customer and Supplier Concentrations

12 Months Ended

Mar. 02, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

12. CUSTOMER AND SUPPLIER CONCENTRATIONS

The Company operates in a single segment.. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM assesses the performance of this reportable segment and allocates resources on a consolidated basis using the entity-wide revenues and expense information reported on the Consolidated Statement of Operations. The primary measure of segment profit is consolidated net income as reported on the Consolidated Statement of Operations. In addition, segment assets reviewed by the CODM are reported on the Company's Consolidated Balance Sheet as total assets.

Customers – Net sales to affiliate and non-affiliate subtier suppliers of General Electric Company were 39.8%, 37.7%, and 41.2% of the Company’s total worldwide sales in the 2025, 2024, and 2023 fiscal years, respectively.

While no other customer accounted for 10% or more of the Company’s total worldwide net sales in the 2025, 2024, or 2023 fiscal years, the loss of a major customer or of a group of customers could have a material adverse effect on the Company’s business or consolidated results of operations or financial position.

Sources of Supply – The principal materials used in the manufacture of the Company’s advanced composite materials are aerospace grade reinforcements, thermoset resins and base chemicals. Although there is a limited number of qualified suppliers of these materials, the Company has nevertheless identified alternate sources of supply for many of such materials. While the Company has not experienced significant problems in the delivery of these materials and considers its relationships with its suppliers to be strong, a disruption of the supply of material from a principal supplier could adversely affect the Company’s business. Furthermore, substitutes for these materials are not readily available, and an inability to obtain essential materials, if prolonged, could materially adversely affect the Company’s business.