Risks and Uncertainties

6 Months Ended

Jun. 30, 2025

NOTE 11 – RISKS AND UNCERTAINTIES

Concentration Risk

The table below shows customers who account for 10% or more of the Company’s total revenues and 10% or more of the Company’s accounts receivable for the periods presented:

Customers exceeding 10% of revenue

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Company Customer Number	2025			2024			2025			2024
C000002187		*			*			*			24	%
C000002552		10	%		65	%		11	%		36	%
C000001462		*			*			12	%		*
C000002607		*			*			13	%		*
C000002722		10	%		*			25	%		*

*	Amounts less than 10%

Customers exceeding 10% of accounts receivable

	June 30,			December 31,
Company Customer Number	2025			2024
C000002187		*			14	%
C000002463		56	%		*
C000002722		34	%		*
C000002607		20	%		*
C000002596		18	%		*
C000002195		13	%		*
C000001999		10	%		*

*	Amounts less than 10%

The table below shows vendors who account for 10% or more of the Company’s total purchases and 10% or more of the Company’s accounts payable for the periods presented:

Vendors exceeding 10% of purchases

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Company Vendor Number	2025			2024			2025			2024
V000002275		*			*			*			*
V000002198		*			15	%		*			16	%
V000002503		*			23	%		*			25	%
V000001029		17	%		*			18	%		*
V000001153		11	%		*			10	%		*

*	Amounts less than 10%

Vendors exceeding 10% of accounts payable

	June 30,	December 31,
Company Vendor Number	2025	2024
V000002275	*	*

*	Amounts less than 10%

Foreign Exchange Risk

Although our revenues and expenses are expected to be predominantly denominated in United States dollars, we may be exposed to currency exchange fluctuations. Recent events in the global financial markets have been coupled with increased volatility in the currency markets. Fluctuations in the exchange rate between the U.S. dollar, the Canadian dollar, the Euro, and the currency of other regions in which we may operate may have a material adverse effect on our business, financial condition and operating results. We may, in the future, establish a program to hedge a portion of our foreign currency exposure with the objective of minimizing the impact of adverse foreign currency exchange movements. However, even if we develop a hedging program, it may not mitigate currency risks.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 275
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-URI https://asc.fasb.org/275/tableOfContent

+ Details

urban-gro, Inc. 10-Q