PIONEER POWER SOLUTIONS, INC. 10-Q

ITEM 1A. RISK FACTORS A description of the risks associated with our business, financial condition and results of operations is set forth in “Item 1A. Risk Factors” of our annual report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the Securities and Exchange Commission on April 14, 2025, and are supplemented with the following revised risk factor: A significant portion of our revenues have historically been concentrated and derived from a few customers. Material or significant loss of business from customers could have an adverse effect on our business, financial condition and operating results. We historically have depended, and expect to continue to depend on a small number of customers for a large portion of our business each quarter, due to the scope of certain contracts. Any change in the level of orders from customers could have a significant impact on our results of operations, and a loss of business from customers could have an adverse effect on our business, financial condition and operating results. Approximately 19% and 17% of our revenues during the three months ended September 30, 2025, were made to two customers. Approximately 45% and 10% of our revenues during the three months ended September 30, 2024, were made to two customers. Approximately 30% of our revenues during the nine months ended September 30, 2025, were made to one customer. Approximately 22%, 10% and 10% of our revenues during the nine months ended September 30, 2024, were made to three customers. The majority of our sales to these customers and other customers in the past were made pursuant to contract terms and conditions for each project and it is expected that future sales will similarly be made pursuant to the relevant contract terms and conditions for future contracts. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. MINE SAFETY DISCLOSURES Not applicable.