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Concentrations and Credit Risk
 12 Months Ended
Dec. 31, 2025
Concentrations and Credit Risk [Abstract]  
CONCENTRATIONS AND CREDIT RISK

Note 18 - CONCENTRATIONS AND CREDIT RISK

 

(a) Concentrations

 

In the year ended December 31, 2025, no third-party client accounted for more than 10% of the Company’s revenues, respectively. In the year ended December 31, 2024, one third-party client accounted for 17% of the Company’s revenues. No other client accounted for more than 10% of the Company’s revenues for the years ended December 31, 2024.

 

As of December 31, 2025, two third-party clients accounted for 59%,32% of the Company’s accounts receivable, respectively. As of December 31, 2024, two third-party clients accounted for 41%,17% of the Company’s accounts receivable, respectively. No other client accounted for more than 10% of the Company’s accounts receivable as of ended December 31, 2025 and 2024.

 

As of December 31, 2025, two third-party suppliers accounted for 47% and 32% of the Company’s accounts payable, respectively. As of December 31, 2024, three third-party suppliers accounted for 44%, 13%, 13% of the Company’s accounts payable, respectively. No other supplier accounted for over 10% of the Company’s accounts payable as of ended December 31, 2025 and 2024.

 

(b) Credit risk

 

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of December 31, 2025, substantially all of the Company’s cash was held at Erasl Bank, which is licensed to operate by the Saudi Central Bank, and which management believes is of medium credit quality.

 

The ongoing coronavirus pandemic that surfaced in China and is spreading throughout the world has had a material adverse effect on the Company’s industry and the markets in which it operates. The Company’s revenues and workforce are concentrated in China. The pandemic has caused its customers to take longer time to make payments, which subjects it to increased credit exposures.

 

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its clients and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.