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v3.20.1

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Activities in allowance for doubtful accounts | The following describes activity in the allowance for doubtful accounts for the years ended December 31, 2019 and 2018:
Year |  | Balance at Beginning of Year |  | Charged to Costs and Expenses |  | Amounts Written Off |  | Balance at End of Year
| 2019 |  |  | $ | 89,058 |  |  | $ | — |  |  | $ | (48,407 | ) |  | $ | 40,651 |
| 2018 |  |  | $ | 89,058 |  |  | $ | — |  |  | $ | — |  |  | $ | 89,058 |
Inventory components | Inventories, net of write-downs, at December 31, 2019 and 2018 consisted of the following:
|  | December 31,
|  | 2019 |  | 2018
Raw materials and sub-assemblies |  | $ | 3,767,588 |  |  | $ | 2,785,154 |
Finished goods |  |  | 241,681 |  |  |  | 335,335 |
Inventory reserves |  |  | (830,361 | ) |  |  | (848,161 | )
Inventory, net |  | $ | 3,178,908 |  |  | $ | 2,272,328 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets at December 31, 2019 and 2018 consisted of the following:
|  | December 31,
|  | 2019 |  | 2018
Prepaid insurance |  | $ | 47,884 |  |  | $ | 18,061 |
Product certification costs |  |  | 83,749 |  |  |  | 74,919 |
Prepaid inventory purchases |  |  | 77,606 |  |  |  | 110,301 |
Others |  |  | 102,888 |  |  |  | 104,551 |
Prepaid expenses and other current assets |  | $ | 312,127 |  |  | $ | 307,832 |
Major customers as a percentage of net accounts receivable balances | Customers who accounted for at least 10% of the Company’s accounts receivable balances at December 31, 2019 and December 31, 2018 were as follows:
|  | December 31,
|  | 2019 |  | 2018
Ingram Micro Inc. |  |  | 45 | % |  |  | 41 | %
Bluestar, Inc. |  |  | 32 | % |  |  | 19 | %
Reserves for product warranty costs | The following describes activity in the reserves for product warranty costs for the years ended December 31, 2019 and 2018:
Year |  | Balance at Beginning of Year |  | Additional Warranty Reserves |  | Amounts Charged to Reserves |  | Balance at End of Year
| 2019 |  |  | $ | 78,871 |  |  | $ | 89,702 |  |  | $ | (89,702 | ) |  | $ | 78,871 |
| 2018 |  |  | $ | 78,871 |  |  | $ | 56,383 |  |  | $ | (56,383 | ) |  | $ | 78,871 |
Net income (loss) per share applicable to common stockholders | The following table sets forth the reconciliation of basic shares to diluted shares and the computation of basic and diluted net income (loss) per share:
|  | Years Ended December 31,
|  | 2019 |  | 2018
Numerator: |  |  |  |
Net income (loss) |  | $ | 286,586 |  |  | $ | (571,141 | )
Denominator: |  |  |  |  |  |  |  |
Weighted average shares outstanding used in computing net income (loss) per share: |  |  |  |  |  |  |  |
Basic |  |  | 5,984,381 |  |  |  | 6,094,709 |
Fully diluted |  |  | 6,207,731 |  |  |  | 6,094,709 |
Net income (loss) per share applicable to common stockholders: |  |  |  |  |  |  |  |
Basic |  | $ | 0.05 |  |  | $ | (0.09 | )
Fully diluted |  | $ | 0.05 |  |  | $ | (0.09 | )
Revenue by geographic areas | Revenues for the geographic areas for the years ended December 31, 2019 and 2018 are as follows:
|  | Years Ended December 31,
Revenues: (in thousands) |  | 2019 |  | 2018
United States |  | $ | 14,558 |  |  | $ | 12,562 |
Europe |  |  | 2,431 |  |  |  | 2,526 |
Asia and rest of world |  |  | 2,264 |  |  |  | 1,366 |
|  | $ | 19,253 |  |  | $ | 16,454 |
Major customers accounted for at least 10% of total revenues | Customers who accounted for at least 10% of total revenues for the years ended December 31, 2019 and 2018 were as follows:
|  | Years Ended December 31,
|  | 2019 |  | 2018
Ingram Micro Inc. |  |  | 38 | % |  |  | 32 | %
BlueStar, Inc. |  |  | 21 | % |  |  | 21 | %
ScanSource, Inc. |  |  | * |  |  |  | 10 | %
___________________________ * less than 10% of total revenues for year ended December 31, 2019.

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