NOTE 5—Accounts Receivable

The following table presents the components of the Company’s receivables:

Schedule of Accounts Receivable

As of January 1, 2022, accounts receivable, net, was $10,803 and non-trade receivables was $2,255.

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.

During 2023, the Company implemented ASC 326 and accrued an allowance for credit losses. The Company determined the probability of default for each pool of receivables with similar risk characteristics. The probability of loss was applied to the value of the receivables and an allowance for potential credit losses was 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, 2023:

Schedule of Allowance For Credit Losses on Trade Receivables

Trade receivables from the customer that purchases tablets from the Company accounts for 69% and 84%, respectively, of accounts receivable, net, at December 31, 2023 and 2022. One additional customer accounted for 15% of accounts receivable, net, at December 31, 2023. In October 2023, the Company stopped sales of the tablets to this 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. See Note 15.