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Business Segments, Concentration of Credit Risk and Significant Customers
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Business Segments, Concentration of Credit Risk and Significant Customers

Note 7. Business Segments, Concentration of Credit Risk and Significant Customers

The Company determined its reporting units in accordance with ASC 280, Segment Reporting (ASC 280). Management evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated.

Management has determined that the Company has one consolidated operating segment. The Company’s reporting segment reflects the manner in which its chief operating decision maker reviews results and allocates resources. The Company’s reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments.

The Company recognized revenue from shipments of product, licensing of its technologies and performance of services to customers by geographical location as follows (in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

North America

 

$

1,918

 

 

$

984

 

 

$

7,158

 

 

$

1,145

 

Hong Kong

 

 

447

 

 

 

1,027

 

 

 

1,328

 

 

 

2,057

 

Taiwan

 

 

131

 

 

 

(2

)

 

 

646

 

 

 

586

 

Japan

 

 

368

 

 

 

—

 

 

 

905

 

 

 

—

 

Rest of world

 

 

430

 

 

 

9

 

 

 

944

 

 

 

28

 

Total net revenue

 

$

3,294

 

 

$

2,018

 

 

$

10,981

 

 

$

3,816

 

 

 

Customers who accounted for at least 10% of total net revenue were:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2022

 

2021

 

2022

 

2021

Customer A

 

24%

 

*

 

24%

 

*

Customer B

 

22%

 

14%

 

28%

 

*

Customer C

 

14%

 

45%

 

12%

 

48%

Customer D

 

*

 

*

 

*

 

15%

Customer E

 

*

 

33%

 

*

 

18%

 

*

Represents less than 10%

 

As of September 30, 2022, two customers accounted for 60% of accounts receivable, and the Company recorded a provision for doubtful accounts of $683,000 against one of the customer’s receivables. Three customers accounted for 96% of accounts receivable as of December 31, 2021.