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ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended
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Jun. 30, 2025
Receivables [Abstract] |
ALLOWANCE FOR CREDIT LOSSES | NOTE 4—ALLOWANCE FOR CREDIT LOSSES For the Company, ASC 326, “Financial Instruments – Credit Losses (Topic 326)” applies to its contract assets (deferred COGS and deferred sales commissions), lease receivables (sublease, see Note 6) and trade receivables. There are no expected or estimated credit losses on the Company’s contract assets or its lease receivable based on the Company’s analysis of ASC 326. The Company’s trade receivables primarily arise from the sale of our products to independent residential dealers, industrial distributors and dealers, national and regional retailers, equipment distributors, and certain end users with payment terms generally ranging from 30 to 90 days. The Company evaluates the credit risk of a customer when extending credit based on a combination of various financial and qualitative factors that may affect the customer’s ability to pay. These factors include the customer’s financial condition and past payment experience. The Company maintains an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The Company measures expected credit losses on its trade receivables on an entity-by-entity basis. The estimate of expected credit losses considers a historical loss experience rate that is adjusted for delinquency trends, collection experience, and/or economic risk where appropriate. Additionally, management develops a specific allowance for trade receivables known to have a high risk of expected future credit loss. The Company has historically experienced immaterial write-offs given the nature of the customers that receive credit. As of June 30, 2025, the Company had gross receivables of $2,144,000 and an allowance for credit losses of $4,000. SCHEDULE OF ACCOUNTS RECEIVABLE
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | As of |
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | (in thousands) |
Accounts Receivable, net, beginning of period |  | $ | 1,933 |  |  | $ | 536 |
Accounts Receivable, net, end of period |  | $ | 2,140 |  |  | $ | 1,933 |
The following is a tabular reconciliation of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCES FOR CREDIT LOSSES
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | As of |
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | (in thousands) |
Balance at beginning of period |  | $ | 4 |  |  | $ | 10 |
Decrease in provision for credit losses |  |  | — |  |  |  | (6 | )
Net charge-offs |  |  | — |  |  |  | — |
Balance at end of period |  | $ | 4 |  |  | $ | 4 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -Publisher FASB -URI https://asc.fasb.org/310/tableOfContent + Details
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- References No definition available. + Details
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