The Company sells to a variety of domestic and international customers on an open-unsecured account basis, in certain cases requiring letters of credit. These customers principally operate in the medical, military, and avionics industries. The Company had direct and indirect net sales to the U.S. government, primarily the Department of Defense for training and simulation programs, which comprised approximately 52% and 53% of consolidated net sales in fiscal 2020 and 2019, respectively. Sales to foreign customers were 11% of consolidated net sales in fiscal 2020 and 2019. The Company had two customers who each comprised more than 10% of the Company’s sales in fiscal year 2020 (aggregated 24%). These accounts are in good standing with the Company.

The Company attempts to minimize credit risk by reviewing all customers’ credit history before extending credit, by monitoring customers’ credit exposure on a daily basis and requiring letters of credit for certain sales. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.