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Business Segments, Concentration of Credit Risk and Significant Customers
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Business Segments, Concentration of Credit Risk and Significant Customers [Abstract]    
Business Segments, Concentration of Credit Risk and Significant Customers

Note 5. 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, 
   2023   2022   2023   2022 
United States  $3,359   $1,918   $7,868   $7,158 
Taiwan   544    131    2,535    646 
China   321    447    614    1,328 
Japan   6    368    20    905 
Rest of world   251    430    879    944 
Total net revenue  $4,481   $3,294   $11,916   $10,981 

 

The following is a breakdown of product revenue by category (in thousands):

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
Product category  2023   2022   2023   2022 
Memory ICs  $3,384   $1,748   $7,181   $5,528 
mmWave ICs   576    533    2,614    1,699 
mmWave antenna modules   302    779    1,586    3,139 
mmWave other products   
-
    
-
    4    18 
   $4,262   $3,060   $11,385   $10,384 

 

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

 

   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   2023   2022 
Customer A   45%   24%   29%   24%
Customer D   11%   
*
    20%   
*
 
Customer B   
*
    
*
    
*
    24%
Customer C   
*
    14%   
*
    10%
Customer E   
*
    
*
    
*
    11%

 

* Represents less than 10%

 

As of September 30, 2023, two customers accounted for 82% of accounts receivable. Four customers accounted for 79% of accounts receivable as of December 31, 2022.

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

 

The Company determined its reporting units in accordance with ASC No. 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):

 

   Year Ended 
   December 31, 
   2022   2021 
United States  $8,932   $1,968 
Hong Kong   2,428    2,955 
Taiwan   1,205    693 
Rest of world   2,303    63 
Total net revenue  $14,868   $5,679 

 

The following is a breakdown of product revenue by category (in thousands):

 

(amounts in thousands)  Years Ended
December 31,		 
Product category  2022   2021 
Memory ICs  $7,722   $150 
mmWave ICs   3,289    3,566 
mmWave modules   3,170    1,101 
mmWave other products   18    89 
   $14,199   $4,906 

 

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

 

   Year Ended 
   December 31, 
   2022   2021 
Customer A   26%   
*
 
Customer B   21%   19%
Customer C   16%   48%
Customer D   11%   
*
 
Customer E   
*
    11%

 

*Represents less than 10%

 

As of December 31, 2022, four customers accounted for 79% of accounts receivable, and the Company had a provision for doubtful accounts of $183,000 against one of the customer’s receivables. Three customers accounted for 96% of accounts receivable as of December 31, 2021.