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NOTE 7 — Segment Information and Concentrations
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
NOTE 7 — Segment Information and Concentrations

NOTE 7 — Segment Information and Concentrations

 

Segment Information

The Company operates in the mobile barcode scanning and RFID/NFC data capture market. Mobile scanning typically consists of mobile devices such as smartphones or tablets, with mobile scanning or NFC peripherals for data collection, and third-party vertical applications software. The Company distributes its products in the United States and foreign countries primarily through distributors and resellers. The Company markets its products primarily through application developers whose applications are designed to work with the Company’s products.

 

Revenues by geographic areas for the three months ended March 31, 2024 and 2023 were as follows:

 

                
   Three Months Ended March 31,
Revenues:  2024  2023
   United States   $3,558,315   $3,138,653 
   Europe    595,076    542,527 
   Asia and rest of world    824,406    630,998 
      Total revenues   $4,977,797  $4,312,178

 

 

Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations.

 

SOCKET MOBILE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

March 31, 2024

 

Major Customers

Customers who accounted for at least 10% of the Company’s total revenues for the three months ended March 31, 2024 and 2023 were as follows:

 

                
  Three Months Ended March 31,
   2024  2023
BlueStar, Inc.   23%   20%
Ingram Micro, Inc.   16%   23%
Synnex Corporation   14%   -*
Nippon Primex, Inc.   13%   -*
*Customer accounted for less than 10% of the Company’s total revenue

 

 

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company invests its cash in demand deposit accounts in banks and the Company has not experienced losses on the investments. The Company’s trade accounts receivables are primarily with distributors. The Company performs ongoing credit evaluations of its customers’ financial condition, but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances on March 31, 2024 and December 31, 2023 were as follows:

 

             
  March 31,  December 31,
   2024  2023
BlueStar, Inc.   23%   - *
Ingram Micro Inc.   20%   20%
Synnex Corporation   13%   14%
Nippon Primex, Inc.   12%   11%
ScanSource, Inc.   11%   13%
* Customer accounted for less than 10% of the Company’s accounts receivable balances

 

Concentration of Suppliers

Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or due to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. The Company’s inability to procure certain materials could have a material adverse effect on the Company’s results. For the three months ended March 31, 2024 and 2023, the top three suppliers accounted for 54% and 55%, respectively, of inventory purchases. As of March 31, 2024 and December 31, 2023, 28% and 40%, respectively, of the Company’s accounts payable balances were concentrated with top three suppliers.