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