Note 10 - Customer and Supplier Concentration

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

10. Customer and Supplier Concentration

The Company’s revenues include significant concentration from a limited number of customers. Customer concentration for the three-month periods ended  March 31, 2025 and 2024 included customers A, B, C, and D, which collectively accounted for approximately 84% and 86% of revenues, respectively. While the Company continues to pursue diversification of its customer base, the loss of, or significant reduction in business from, any of these major customers could have a material adverse effect on the Company’s financial condition, results of operations, and cash flows. The Company routinely assesses its relationships with major customers, including creditworthiness, market conditions, and competitive pressures, to mitigate risks associated with customer concentration. Despite these efforts, there can be no assurance that the Company will successfully reduce its dependence on any single customer in the future. The Company's foreign sales for the three-month periods ended  March 31, 2025 and 2024 were approximately $3,460,000 and $2,660,000, respectively, and constitute a substantial part of the Company’s revenue.

The Company relies on a variety of suppliers for the procurement of raw materials, components, and services necessary for its operations. For the period ended March 31, 2025, no single supplier accounted for 10% of purchases. For the period ended March 31, 2024, supplier concentration included purchases from one supplier, accounting for approximately 10% of total purchases. While the Company actively manages its relationships with suppliers and seeks to diversify its supplier base, a disruption in the supply of goods or services from this major supplier could have a material adverse effect on the Company's operations and financial results. To mitigate the risks associated with supplier concentration, the Company engages in ongoing efforts to identify alternative sources of supply, assess supplier reliability and performance, and negotiate favorable contractual terms where feasible. However, there can be no assurance that the Company will be successful in reducing its dependence on any single supplier or mitigating the impact of supplier-related risks in the future.