The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ trade accounts receivable. Customers are pooled based on sharing specific risk factors. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. 

Customers are assessed for credit worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements when a credit rating is not available. The Company evaluates contract terms and conditions, country and political risk, and may require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written off as they are determined to be uncollectible after all collection efforts have been exhausted. Estimates of potential credit losses are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information that is reasonably available. 

For the three months ended March 31, 2026, the Company had one major customer to which sales accounted for 16.6% of the Company’s revenues. The Company had accounts receivable from one customer amounting to 26.0% of the total accounts receivable balance as of March 31, 2026. The Company had an additional customer with an accounts receivable balance amounting to 13.7% of the total accounts receivable balance as of March 31, 2026.

For the three months ended March 31, 2025, the Company had one major customer to which sales accounted for 16.5% of the Company’s revenues. The Company had accounts receivable from this customer amounting to 10.5% of the total accounts receivable balance. The Company had an additional customer with an accounts receivable balance amounting to 12.1% of the total accounts receivable balance as of March 31, 2025.

The accounts receivable balance from all sources on the Company’s consolidated balance sheets as of March 31, 2026 was $17,444, net of $1,298 (inclusive of $829 for related party receivables) of allowances. The following table provides a roll-forward of the allowance for credit losses for the three months ended March 31, 2026 and 2025 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected:

Accounts receivable at March 31, 2026 and December 31, 2025, includes allowance for credit losses of $1,298 and $1,378 (inclusive of $829 and $829 for related party receivables), respectively. Accounts receivable at December 31, 2024 was $18,665 (inclusive of $573 for related party receivables and net of an allowance for credit losses of $464).