Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
General
We
are required to make certain disclosures regarding our financial instruments, including derivatives, if any.
A
financial instrument is defined as cash, evidence of an ownership interest in an entity, or a contract that imposes on one entity a contractual
obligation either to deliver or receive cash or another financial instrument to or from a second entity. Examples of financial instruments
include cash and cash equivalents, deposits, trade accounts receivable, loans, investments, trade accounts payable, accrued expenses,
options and forward contracts. The disclosures below include, among other matters, the nature and terms of derivative transactions, information
about significant concentrations of credit risk, and the fair value of financial assets and liabilities.
Fair
Value of Financial Instruments
Fair
values of financial instruments included in current assets and current liabilities are estimated to approximate their book values due
to the short maturity of such investments.
Concentrations
of Credit Risk
The
Company’s financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of
cash and trade accounts receivable. The Company’s cash was deposited with a U.S. bank and amounted to $1,449,000 at December 31,
2023. The Company had one customer that represented 25% of its accounts receivable at December 31, 2023. This is a large corporate customer
with 90-day payment terms. Credit risk with respect to the balance of trade receivables is generally diversified due to the number of
entities comprising the Company’s customer base. The Company does not believe the risk of non-performance by
these counterparties is significant.
Interest
Rate Risk
OmniMetrix
has no interest rate risk related to debt since the Company paid off our credit line in February 2021.
ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Furnished
at the end of this report commencing on page F-1.
23
ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
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