Vishay Precision Group, Inc. Commitments Disclosure

Note 11 – Commitments, Contingencies, and Concentrations

 

Tax Assessment

 

During the second quarter of 2024, the Israeli Tax Authority has issued a Value Added Tax (VAT) assessment to the Company, in the amount of ILS 8.4 million (approximately $2.6 million), pertaining to claims of VAT between the years 2019 to 2023.

 

On August 6, 2025, the Company received the decision of the Israeli Tax Authority regarding the Company's appeal of the VAT assessment. The appeal was rejected, based on the same reasoning outlined in the original assessment issued to the Company. The Company deferred the assessment and with the assistance of its legal counsel appealed on this decision to the court on January 18, 2026.

 

The Company believes that the liability for the assessment is not probable, and given the stage of this matter, the Company is currently unable to predict the likely outcome or estimate the potential financial impact, if any, of this matter.

 

Litigation

 

The Company is subject to various legal proceedings that constitute ordinary, routine litigation incidental to its business. The Company is of the opinion that the disposition of these proceedings will not have a material adverse effect on its business or its financial condition, results of operations, and cash flows.

 

Executive Employment Agreements

 

The Company has employment agreements with its executive officers which outline base salary, incentive compensation, and equity-based compensation. The employment agreements with the Company's executive officers also provide for incremental compensation in the event of termination without cause or resignation for good reason.

 

Sources of Supplies

 

Although most materials incorporated in the Company’s products are available from a number of sources, certain materials are available only from a relatively limited number of suppliers.

 

Some of the most highly specialized materials for the Company’s sensors are sourced from a single vendor. The Company maintains a safety stock inventory of certain critical materials at its facilities.

 

Certain metals used in the manufacture of the Company’s products are traded on active markets, and can be subject to significant price volatility.

 

Note 11 – Commitments, Contingencies, and Concentrations (continued)

 

Market Concentrations

 

No single customer comprises greater than 10% of net revenues.

 

The vast majority of the Company’s products are used in the broad industrial market, with selected uses in military and aerospace, medical, agriculture, and construction. Within the broad industrial segment, the Company’s products serve wide applications in the waste management, bulk hauling, logging, scale manufacturing, engineering systems, pharmaceutical, oil, chemical, steel, paper, and food industries.

 

Credit Risk Concentrations

 

Financial instruments with potential credit risk consist principally of cash and cash equivalents, accounts receivable, and notes receivable. The Company maintains cash and cash equivalents with various major financial institutions. Concentrations of credit risk with respect to receivables are generally limited due to the Company’s large number of customers and their dispersion across many countries and industries. At December 31, 2025 and 2024, the Company had no significant concentrations of credit risk.

 

Geographic Concentrations

 

At December 31, 2025 and 2024, a significant percentage of the Company’s cash and cash equivalents are held outside the United States. See the following table for the percentage of cash and cash equivalents by region of subsidiary, at December 31, 2025 and December 31, 2024:

 

		December 31,
		2025				2024
Asia			22	%			21	%
United States			9	%			6	%
Israel			31	%			56	%
Europe			30	%			14	%
Canada			8	%			3	%
Total			100	%			100	%