RECEIVABLES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RECEIVABLES | RECEIVABLES Receivables consist of the following:
Trade receivables generally represent amounts due to the Company from social and mobile platform operators, including Apple, Google, Amazon and Facebook. Trade receivables are recorded when the right to consideration becomes unconditional. No allowance for doubtful accounts was considered necessary as of September 30, 2022 and December 31, 2021.
Concentration of Credit Risk
As of September 30, 2022, Apple, Inc. and Google, Inc. accounted for 46.2% and 32.0% of the Company’s total receivables, respectively, while as of December 31, 2021, Apple, Inc. and Google, Inc. accounted for 43.0% and 34.6% of the Company’s total receivables, respectively. As of September 30, 2022 and December 31, 2021, the Company did not have any additional counterparties that exceeded 10% of the Company’s accounts receivable.
During the year ended December 31, 2021, the Company entered into agreements pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games. As contemplated in the agreements, the Company agreed to an $8.0 million Advance Payment (as defined in Note 15—Commitments and Contingencies), which is reported within the "Other long-term assets" line item on the Consolidated Balance Sheets. If the Company and the counterparty fail to perform according to the terms of the agreements, the maximum amount of loss which the Company would be expected to incur is approximately $8.1 million, which includes the failure to recoup any portion of the $8.0 million Advance Payment to which the Company may become entitled under the terms of the agreements.
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