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CONCENTRATIONS
 9 Months Ended
Sep. 30, 2025
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 10 – CONCENTRATIONS

 

Concentrations of credit risk

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade accounts receivable and cash deposits.

 

The Company’s cash is held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) limit. To date, the Company has not experienced any losses on its invested cash. As of September 30, 2025 and December 31, 2024, the Company recorded no cash in bank in excess of FDIC insured levels. In August 2024, the Company entered into a deposit placement agreement for Insured Cash Sweep Service (“ICS”). This service is a secure, and convenient way to access FDIC protection on large deposits, earn a return, and enjoy flexibility. This reduces the Company’s risk as it relates to uninsured FDIC amounts in excess of $250,000.

 

Geographic concentrations of sales

 

For the three months ended September 30, 2025, 64.6% of total sales were to customers in the United State and 35.4% were to a customer in Asia. During the nine months ended September 30, 2025, 74.1% of total sales were to a customer in the United States, 9.5% total sales were to a customer in Asia and 16.4% of total sales were to a customer in Canada.

 

For the three months ended September 30, 2024, 98.7% of total sales were to customers in the United States and 1.3% of total sales were to a customer in Europe. During the nine months ended September 30, 2024, 67.3% of total sales were to customers in the United States and 32.7% of total sales were to customers in Europe.

 

Customer concentration

 

For the three months ended September 30, 2025, four customers accounted for approximately 84.7% of total sales (Golden West Humanitarian Foundation 35.4%, Florida Power & Light 19.2%, Classic Custom 18.6%, and Security Pro USA 11.6%, respectively). For the nine months ended September 30, 2025, three customers accounted for approximately 69.9% of total sales (Classic Custom, 35.2%, JD Advanced Forensics 18.3% and Mriya Aid 16.4%, respectively).

 

For the three months ended September 30, 2024, two customers accounted for approximately 92.7% of total sales, (Classic Custom 29.5% and Florida Power & Light 63.2%, respectively). For the nine months ended September 30, 2024, four customers accounted for approximately 95.2% of total sales (Classic Custom 23.8%, Mriya Aid 32.5%, Hialeah Gardens PD 12.2% and Florida Power & Light 26.7%, respectively).

 

 

SAFE PRO GROUP INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(unaudited)

 

A reduction in sales from or the loss of such customers would have a material adverse effect on the Company’s results of operations and financial condition. On September 30, 2025, three customers accounted for 95.1% of the total accounts receivable balance (Florida Power & Light 28.6%, JD Advanced Forensics 55.5% and U.S. Department of Veteran Affairs 11.0%).

 

On September 30, 2024, one customer accounted for 94.4% of the total accounts receivable balance. On December 31, 2024, one customer accounted for 89.5% of the total accounts receivable balance (Florida Power & Light). Sales of Airborne Response are seasonal based on weather conditions or patterns.

 

Supplier concentration

 

During the three months ended September 30, 2025, the Company purchased approximately 78.5% of its inventory from three suppliers. During the nine months ended September 30, 2025, the Company purchased approximately 56.8% of its inventory from two suppliers.

 

During the three months ended September 30, 2024, the Company purchased approximately 37.9% of its inventory from two suppliers. During the nine months ended September 30, 2024, the Company purchased approximately 50.1% of its inventory from two suppliers.

 

The loss of these suppliers may have a material adverse effect on the Company’s results of operations and financial condition. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations.