Annual report [Section 13 and 15(d), not S-K Item 405]

Accounts Receivable

v3.25.1
Accounts Receivable
12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Accounts Receivable

NOTE 5—Accounts Receivable

 

The following table presents the components of the Company’s accounts receivable, net:

 

    2024     2023  
    December 31,  
    2024     2023  
Trade receivables     6,906       25,576  
Allowance for credit losses     (2,567 )     (272 )
Total accounts receivable   $ 4,339     $ 25,304  

 

As of January 1, 2023, accounts receivable, net, was $22,433 and non-trade receivables was $2,269.

 

The Company has non-trade receivables from manufacturing vendors resulting from the sale of components to the vendors who manufacture and assemble final products for the Company.

 

The Company determines the probability of default for each pool of receivables with similar risk characteristics. The probability of loss is applied to the value of the receivables and an allowance for potential credit losses is recorded with the offset to credit loss expense.

 

The following table displays the roll forward of the allowance for credit losses on the Company’s trade receivables during the year ended December 31, 2024:

 

 

Beginning Balance, January 1, 2024   $ 272  
Provision for credit losses     2,295  
Ending Balance, December 31, 2024   $ 2,567  

 

As of December 31, 2024, three customers account for 33%, 24%, and 12% of accounts receivable, net, respectively.

 

Trade receivables from the customer that purchased white label tablets from the Company accounts for 69% of accounts receivable, net, at December 31, 2023. In October 2023, the Company stopped sales of white label tablets to its tablet customer as the product reached the end of its life cycle. The tablet customer had a receivable due to the Company of $17,443 at December 31, 2023. In February 2024, an agreement was executed that transferred $11,308 of the receivables to the manufacturer of the tablets in exchange for relieving the Company of a $11,308 accounts payable liability. During the year ended December 31, 2024, the Company recorded an allowance for credit losses for this customer of approximately $2,564, which resulted in an insignificant remaining trade receivables balance from this customer as of December 31, 2024. One additional customer accounts for 15% of accounts receivable, net, at December 31, 2023.