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BALANCE SHEET COMPONENTS | 12 Months Ended
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Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
BALANCE SHEET COMPONENTS | (7) BALANCE SHEET COMPONENTS Inventories Inventories, net consists of the following: SCHEDULE OF INVENTORIES
|  | 2021 |  |  | 2020 |
|  | December 31, |
|  | 2021 (As Restated) |  |  | 2020 |
Materials |  | $ | 1,047,156 |  |  | $ | 1,238,332 |
Work in process |  |  | 7,540 |  |  |  | 84,203 |
Finished goods |  |  | 32,836,591 |  |  |  | 15,182,305 |
Total |  | $ | 33,891,287 |  |  | $ | 16,504,840 |
Finished goods includes consigned inventory held by our customers of $4.5 million and $2.3 million at December 31, 2021 and 2020, respectively and includes in-transit inventory of $6.3 million and $6.2 million at December 31, 2021 and 2020, respectively. The Company reviews inventory for obsolete and slow-moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The inventory reserves were $800 thousand and $480 thousand for the years ended December 31, 2021 and 2020, respectively. Equipment Equipment, net consists of the following: SCHEDULE OF EQUIPMENT
|  | December 31, |  |  | Estimated Useful |
|  | 2021 |  |  | 2020 |  |  | lives in years |
Computer hardware and software |  | $ | 447,092 |  |  | $ | 398,520 |  |  |  | 3 |
Machinery and equipment |  |  | 682,980 |  |  |  | 426,885 |  |  |  | 5 |
Molds, tools and dies |  |  | 997,313 |  |  |  | 760,563 |  |  |  | 5 |
Office furniture and fixtures |  |  | 85,699 |  |  |  | 64,128 |  |  |  | 5 |
|  |  | 2,213,084 |  |  |  | 1,650,096 |  |  |  |  |
Accumulated depreciation |  |  | (1,450,266 | ) |  |  | (1,195,030 | ) |  |  |  |
|  | $ | 762,818 |  |  | $ | 455,066 |  |  |  |  |
Depreciation expense was $255 thousand and $157 thousand for the years ended December 31, 2021 and 2020, respectively. Goodwill In December 2018, Zoom Connectivity acquired the net assets of MCP Networks Inc., a provider of a cloud-based home network management platform. The acquisition expanded Zoom Connectivity’s subscriber base and thereby offered sales opportunities of Zoom Connectivity’s SaaS to these subscribers. Zoom Connectivity recorded $58 thousand of goodwill related to this acquisition in its historical accounts of December 2018. In accordance with the accounting of a common control transaction (Note 4), the Company recorded $58 thousand of goodwill at Zoom Connectivity’s historical carrying amount as of October 9, 2020. Intangible Assets In December 2018, Zoom Connectivity acquired the net assets of MCP Networks Inc., a provider of a cloud-based home network management platform. The acquisition expanded Zoom Connectivity’s subscriber base and thereby offered sales opportunities of Zoom Connectivity’s SaaS to these subscribers. Zoom Connectivity recorded $122 thousand of customer relationships related to this acquisition in its historical accounts of December 2018. In accordance with the accounting of a common control transaction (Note 4), the Company recorded Zoom Connectivity’s historical carrying amounts as of October 9, 2020. Intangible assets consisted of the following at December 31, 2021 and 2020: SCHEDULE OF INTANGIBLE ASSETS
|  | Estimated |  |  | As of December 31, 2021 |  |  | As of December 31, 2020 |
|  | Useful |  |  | Gross |  |  |  |  |  |  |  |  | Gross |  |  |  |  |  |  |
|  | Life |  |  | Carrying |  |  | Accumulated |  |  |  |  |  | Carrying |  |  | Accumulated |  |  |  |
|  | (in years) |  |  | Amount |  |  | Amortization |  |  | Net |  |  | Amount |  |  | Amortization |  |  | Net |
Customized internal use software |  |  | 2.5 |  |  | $ | 230,106 |  |  | $ | (115,306 | ) |  | $ | 114,800 |  |  | $ | 230,106 |  |  | $ | (20,431 | ) |  | $ | 209,675 |
Customer relationships |  |  | 9.0 |  |  |  | 122,435 |  |  |  | (42,477 | ) |  |  | 79,958 |  |  |  | 122,435 |  |  |  | (28,768 | ) |  |  | 93,667 |
Acquired web domain |  |  | 5.0 |  |  |  | 86,732 |  |  |  | (18,792 | ) |  |  | 67,940 |  |  |  | 86,732 |  |  |  | (1,445 | ) |  |  | 85,287 |
|  |  |  |  |  | $ | 439,273 |  |  | $ | (176,575 | ) |  | $ | 262,698 |  |  | $ | 439,273 |  |  | $ | (50,644 | ) |  | $ | 388,629 |
Amortization expense was $125 thousand and $25 thousand in the years ended December 31, 2021 and 2020, respectively. The estimated annual amortization expense for each of the five succeeding years and thereafter is as follows: SCHEDULE OF ANNUAL AMORTIZATION EXPENSES
Years ended December 31, |  |  |
2022 |  | $ | 123,097 |
2023 |  |  | 54,065 |
2024 |  |  | 31,092 |
2025 |  |  | 29,609 |
2026 |  |  | 13,708 |
Thereafter |  |  | 11,127 |
Total |  | $ | 262,698 |
Accrued expenses Accrued expenses consists of the following: SCHEDULE OF ACCRUED EXPENSES
|  | 2021 |  |  | 2020 |
|  | December 31, |
|  | 2021 |  |  | 2020 |
Inventory purchases |  | $ | 287,571 |  |  | $ | 1,458,850 |
Payroll and related benefits |  |  | 210,495 |  |  |  | 853,402 |
Professional fees |  |  | 229,597 |  |  |  | 618,308 |
Royalty costs |  |  | 1,588,025 |  |  |  | 1,906,439 |
Sales allowances |  |  | 1,958,050 |  |  |  | 1,559,847 |
Sales and use tax |  |  | 50,916 |  |  |  | 183,264 |
Other |  |  | 955,263 |  |  |  | 884,953 |
Total accrued other expenses |  | $ | 5,279,917 |  |  | $ | 7,465,063 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
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