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Significant Balance Sheet Components

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 4 — Significant Balance Sheet Components

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

Schedule of Accounts Receivable

	September 30, 2024			December 31, 2023
Trade receivables	$	5,689		$	25,576
Allowance for credit losses		(449	)		(272	)
Total accounts receivable	$	5,240		$	25,304

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 52% and 69%, respectively, of accounts receivable, net, at September 30, 2024, and December 31, 2023. One additional customer accounts for 28% of accounts receivable, net, at September 30, 2024. A separate customer accounts for 15% of accounts receivable, net, at December 31, 2023. 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 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.

Customer Concentration Risk

Accounts Receivable

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

Schedule of Inventory

	September 30, 2024		December 31, 2023
Devices – for resale	$	5,408	$	5,324
Raw materials		6,542		751
Accessories		424		442
Inventory, net	$	12,374	$	6,517

For certain new products, the Company began purchasing raw materials in 2024 that will be used by the third-party manufacturers to build the products. These purchased parts represent most of the raw materials in inventory at September 30, 2024.

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

Schedule of Accrued Expenses

	September 30, 2024		December 31, 2023
Customer allowances	$	11,454	$	8,148
Contract fulfillment liabilities		4,074		568
Inventory received, not billed		4,324		325
Employee-related liabilities		1,309		1,755
Warranties		519		518
Other		1,448		919
Accrued liabilities	$	23,128	$	12,233