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Note 9 - Commitments and Contingencies
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 9. Commitments and Contingencies

 

Legal Matters

 

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of its business. We assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we do not record an accrual, consistent with applicable accounting guidance. In the opinion of management, while the outcome of such claims and disputes cannot be predicted with certainty, our ultimate liability in connection with these matters is not expected to have a material adverse effect on our results of operations, financial position or cash flows, and the amounts accrued for any individual matter are not material. However, legal proceedings are inherently uncertain. As a result, the outcome of a particular matter or a combination of matters may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.  

 

Purchase Commitments

 

As of June 30, 2025, the Company had purchase commitments for inventory totaling approximately $12,115, which are to be satisfied in the third quarter of 2025.

 

Significant Customers

 

Sales to United States government agencies represented approximately 12.0% and 11.5% of the Company’s net total sales for the three and six months ended June 30, 2025, respectively, compared with approximately 30.4% and 41.5% for the same periods last year, respectively.  Accounts receivable from agencies of the United States government were 2% of accounts receivable at of   June 30, 2025, compared with approximately 17.4% at the same date last year.  In addition, two commercial customers accounted for approximately 24.8% and 26.6% of net sales for the three and six months ended June 30, 2025, respectively.  There were no commercial customers accounting for more than 10% of net sales for the same periods last year.  Three commercial customers accounted for approximately 45.1% of accounts receivable at June 30, 2025, compared to approximately 39.1% of accounts receivable at June 30, 2024. 

 

Geopolitical Tensions

 

 U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the military conflict between Russia and Ukraine and in the Middle East. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflict in both of these regions could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions.