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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2020
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, 2020 and 2019:
Year |  | Balance at Beginning of Year |  | Charged to Costs and Expenses |  | Amounts Written Off |  | Balance at End of Year
| 2020 |  |  | $ | 40,651 |  |  | $ | — |  |  | $ | — |  |  | $ | 40,651 |
| 2019 |  |  | $ | 89,058 |  |  | $ | — |  |  | $ | (48,407 | ) |  | $ | 40,651 |
Inventory components | Inventories, net of write-downs, at December 31, 2020 and 2019 consisted of the following:
|  | December 31,
|  | 2020 |  | 2019
Raw materials and sub-assemblies |  | $ | 3,642,377 |  |  | $ | 3,767,588 |
Finished goods |  |  | 281,104 |  |  |  | 241,681 |
Inventory reserves |  |  | (727,639 | ) |  |  | (830,361 | )
Inventory, net |  | $ | 3,195,842 |  |  | $ | 3,178,908 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets at December 31, 2020 and 2019 consisted of the following:
|  | December 31,
|  | 2020 |  | 2019
Prepaid insurance |  | $ | 58,865 |  |  | $ | 47,884 |
Product certification costs |  |  | 75,592 |  |  |  | 83,749 |
Prepaid inventory purchases |  |  | 93,859 |  |  |  | 77,606 |
Others |  |  | 107,070 |  |  |  | 102,888 |
Prepaid expenses and other current assets |  | $ | 335,386 |  |  | $ | 312,127 |
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, 2020 and December 31, 2019 were as follows:
|  | December 31,
|  | 2020 |  | 2019
Ingram Micro Inc. |  |  | 34 | % |  |  | 45 | %
Bluestar, Inc. |  |  | 29 | % |  |  | 32 | %
ScanSource, Inc. |  |  | 13 | % |  |  | * |
Bluestar Europe DistributionBV |  |  | 11 | % |  |  | * |
* Customer accounted for less than 10% of the Company’s accounts receivable balances
Reserves for product warranty costs | The following describes activity in the reserves for product warranty costs for the years ended December 31, 2020 and 2019:
Year |  | Balance at Beginning of Year |  | Additional Warranty Reserves |  | Amounts Charged to Reserves |  | Balance at End of Year
| 2020 |  |  | $ | 78,871 |  |  | $ | 73,734 |  |  | $ | (73,734 | ) |  | $ | 78,871 |
| 2019 |  |  | $ | 78,871 |  |  | $ | 89,702 |  |  | $ | (89,702 | ) |  | $ | 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,
|  | 2020 |  | 2019
Numerator: |  |  |  |
Net income (loss) |  | $ | (3,278,601 | )* |  | $ | 286,586 |
Net income (loss) allocated to restricted stock award |  |  | 188,375 |  |  |  | — |
Adjusted net income (loss) for basic earnings per share |  | $ | (3,090,226 | )* |  | $ | 286,586 |
Convertible note interest |  |  | 62,172 |  |  |  | — |
Adjusted net income (loss) after interest |  | $ | (3,028,054 | )* |  | $ | 286,586 |
Denominator: |  |  |  |  |  |  |  |
Weighted average shares outstanding used in computing net income (loss) per share: |  |  |  |  |  |  |  |
Basic |  |  | 6,036,310 |  |  |  | 5,984,381 |
Fully diluted |  |  | 6,036,310 |  |  |  | 6,207,731 |
Net income (loss) per share applicable to common stockholders: |  |  |  |  |  |  |  |
Basic |  | $ | (0.51 | ) |  | $ | 0.05 |
Fully diluted |  | $ | (0.50 | ) |  | $ | 0.05 |
*Amounts for 2020 include goodwill impairment charges of $4.43 million recorded as of September 30, 2020. Additional information regarding goodwill impairment is contained in "Note 1 - Organization and Summary of Significant Accounting Policies.”
Revenue by geographic areas | Revenues for the geographic areas for the years ended December 31, 2020 and 2019 are as follows:
|  | Years Ended December 31,
Revenues: (in thousands) |  | 2020 |  | 2019
United States |  | $ | 12,137 |  |  | $ | 14,558 |
Europe |  |  | 2,209 |  |  |  | 2,431 |
Asia and rest of world |  |  | 1,354 |  |  |  | 2,264 |
|  | $ | 15,700 |  |  | $ | 19,253 |
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, 2020 and 2019 were as follows:
|  | Years Ended December 31,
|  | 2020 |  | 2019
Ingram Micro Inc. |  |  | 31 | % |  |  | 38 | %
BlueStar, Inc. |  |  | 23 | % |  |  | 21 | %

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