Quarterly report [Sections 13 or 15(d)]

Customer Concentrations and Accounts Receivable

v3.26.1
Customer Concentrations and Accounts Receivable
3 Months Ended
Jun. 30, 2026
Risks and Uncertainties [Abstract]  
Customer Concentrations and Accounts Receivable

4. Customer Concentrations and Accounts Receivable

Accounts receivable are presented on the Condensed Consolidated Balance Sheets, net of estimated credit losses. The Company applies the aging method by pooling receivables based on levels of delinquency and applying historical loss rates on what has been historically uncollectible by aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses, as necessary. Additionally, the allowance for credit loss calculation includes subjective adjustments for qualitative risk factors that could likely cause estimated credit losses to differ from historical experience. The factors include assessments of various economic conditions, significant events that have or will occur, geographic location, size, and credit ratings of the customers. The Company may also record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. Accounts deemed uncollectible are written off against the allowance for credit loss.

Changes in the current expected credit losses (“CECL”) allowance for accounts receivable are as follows (in thousands):

Balance, March 31, 2026

$

1,337

Provision for credit loss

 

80

Write-offs

 

Balance, June 30, 2026

$

1,417

 

 

Revenue Concentrations

The Company’s revenue is concentrated among a limited number of distributors. For the three months ended June 30, 2026, sales to Horizon Power Systems and E-Finity Distributed Generation (“E-Finity”) accounted for approximately 41% and 12% of total revenue, respectively.

For the three months ended June 30, 2025, sales to Cal Microturbine and Lone Star accounted for approximately 47% and 10% of total revenue, respectively.

Accounts Receivable Concentrations

As of June 30, 2026, RSP Systems and E-Finity accounted for approximately 13% and 10%, respectively, of total accounts receivable. As of March 31, 2026, E-Finity, Lone Star and RSP Systems accounted for approximately 14%, 14% and 10%, respectively, of total accounts receivable.