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Significant Balance Sheet Components
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Significant Balance Sheet Components

NOTE 4 — Significant Balance Sheet Components

 

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

 

Schedule of Accounts Receivable 

   June 30, 2024   December 31, 2023 
Trade receivables  $11,053   $25,576 
Allowance for credit losses   (272)   (272)
Accounts receivable, net   10,781    25,304 
Non-trade receivables   2,198    961 
Total accounts receivable  $12,979   $26,265 

 

The Company has non-trade receivables from manufacturing vendors resulting from the sale of components to 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.

 

Trade receivables from the customer that purchased white label tablets from the Company accounts for 25% and 69%, respectively, of accounts receivable, net, at June 30, 2024, and December 31, 2023. One additional customer that purchased white label phones from the Company accounts for 25% of accounts receivable, net, at June 30, 2024, and another customer accounts for 17% of accounts receivable, net, at June 30, 2024. A separate customer accounts for 13% and 15% of accounts receivable, net, at June 30, 2024, and December 31, 2023, respectively. In October 2023, the Company stopped sales of the 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.

 

 

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

 

Schedule of Inventory 

   June 30, 2024   December 31, 2023 
Devices – for resale  $4,275   $       5,324 
Raw materials   2,340    751 
Accessories   405    442 
Inventory, net  $7,020   $6,517 

 

The Company purchases raw materials in bulk to obtain a lower price and to ensure availability. The raw materials are resold to third-party manufacturers.

 

Distributor returns allowance

 

The Company records reductions to Cost of Revenues related to future distributor product returns based on the Company’s expectation.

 

The following table presents the components of the Company’s other assets:

 

Schedule of Other Assets 

   June 30, 2024   December 31, 2023 
Advances to third-party manufacturers  $2,000   $2,000 
Other   1,011    898 
Total other assets  $3,011   $2,898 

 

The following table presents the components of the Company’s accrued liabilities:

 

Schedule of Accrued Expenses 

   June 30, 2024   December 31, 2023 
Customer allowances  $10,280   $8,148 
Contract fulfillment liabilities   2,374    568 
Inventory received, not billed   2,198    325 
Employee-related liabilities   729    1,755 
Warranties   550    518 
Other   1,583    919 
Accrued liabilities  $17,714   $12,233