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

Notes 16 – Concentrations, Risks and Uncertainties

 

Bank Liquidity and Financial Stability

 

At times, the Company maintains cash in United States bank accounts that are more than the Federal Deposit Insurance Corporation insured amounts. The Company maintains cash balances in foreign financial institutions. The Company regularly monitors the financial stability of this financial institution and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations.

 

 

Revenue Concentration

 

The Company derives a majority of its revenue from sales of its AI-enabled software logistics services in India. The Company’s allowance for credit losses is based upon management’s estimates and historical experience and reflects the fact that accounts receivable is concentrated with several large customers. As of September 30, 2025, 56% of accounts receivable were due from two customers in India that each individually owed more than 10% of the Company’s total accounts receivable. At December 31, 2024, no customer individually owed more than 10% of the Company’s total accounts receivable.

 

Revenue derived from the Company’s largest customer and three largest customers collectively as a percentage of total net sales was 31% and 72% of the Company’s revenue, respectively, for the three months ended September 30, 2025. Revenue derived from the Company’s largest customer and three largest customers collectively as a percentage of total net sales was 31% and 73% of the Company’s revenue, respectively, for the nine months ended September 30, 2025. The loss of any of these customers could have an adverse impact on the Company.

 

Revenue from customers representing greater than 10% of total net sales that were derived from the Company’s three largest customers as a percentage of total net sales for the three months ended September 30, 2025 was 31%, 30% and 12%. Revenue from customers representing greater than 10% of total net sales that were derived from the Company’s three largest customers as a percentage of total net sales for the nine months ended September 30, 2025 was 32%, 28% and 13%. The loss of any of these customers could have an adverse impact on the Company.