Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
We
are exposed to certain market risks in the ordinary course of our business. The Company monitors and manages these financial exposures
as an integral part of its overall risk management program.
Interest Rate Risk
We
do not have significant exposure to interest rate risk that could affect the balance sheet, statement of operations, and the statement
of cash flows, as we do not have any outstanding variable rate debt as of December 29, 2024.
Concentrations
of Credit Risk and Major Customers
Our
customer base consists primarily of residential homeowners. We do not require collateral on our accounts receivable. Further, our accounts
receivable are with individual homeowners and we are exposed to normal industry credit risks. We continually evaluate our reserves for
potential credit losses and establish reserves for such losses.
As of December 29, 2024 no customer accounted for more than 10% of
total accounts receivable, net, and at December 31, 2023, one customer accounted for 10% or more of the total accounts receivable.
For the fiscal years ended December 29, 2024 and December 31, 2023,
three customers and one customer represented 36% and 55% of gross revenues, respectively, all from the Residential Solar Installation
reportable segment.
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