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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
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.