Concentration, Credit and Other Risks

12 Months Ended

Dec. 31, 2023

Risks and Uncertainties [Abstract]

Concentration, Credit and Other Risks

Concentration, Credit and Other Risks

a.Major Customers

For the year ended December 31, 2023, no customer individually accounted for more than 10.0% of the Company’s revenue. seven customer individually accounted for more than 10.0% of the Company’s net accounts receivable as of December 31, 2023.

For the year ended December 31, 2022, no customer individually accounted for more than 10.0% of the Company’s revenue. No customers individually accounted for more than 10.0% of the Company’s net accounts receivable as of December 31, 2022 .

Major Suppliers

For the year ended December 31, 2023, no suppliers individually accounted for more than 10.0% of the Company’s cost of revenues. One suppliers individually accounted for more than 10.0% of the Company’s accounts payable as of December 31, 2023.

For the year ended December 31, 2022, one suppliers individually accounted for more than 10.0% of the Company’s cost of revenues. No suppliers individually accounted for more than 10.0% of the Company’s accounts payable as of December 31, 2022.

Concentration of Credit Risks

Financial instruments that potentially subject the Company to significant concentration of credit risk primarily consist of cash, cash equivalents, and accounts receivable. As of December 31, 2023 and 2022, the Company’s cash and cash equivalents were held by financial institutions (located in the PRC, Hong Kong, Malaysia, Italy, and the U.S.) that management believes have acceptable credit. Accounts receivable are typically unsecured. The risk with respect to accounts receivable is mitigated by regular credit evaluations that the Company performs on its distribution partners and its ongoing monitoring of outstanding balances.

b.Foreign Currency Risks, Currency Concentrations, and Capital Requirements

A portion of the Company’s operating transactions are denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes in the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by laws to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Company in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance.

As of December 31, 2023, the Company had cash and cash equivalents of $1.2 million. Approximately $1.2 million was held in Italy.

As of December 31, 2023 and 2022, deposits of $0.4 million and $1.1 million were insured, respectively. To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in Italy and U.S. with acceptable credit ratings.