RECEIVABLES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 March 31, 2023 and December 31, 2022.
Concentration of Credit Risk
As of March 31, 2023, Apple, Inc. and Google, Inc. accounted for 43.3% and 21.0% of the Company’s total receivables, respectively, while as of December 31, 2022, Apple, Inc. and Google, Inc. accounted for 33.6% and 27.2% of the Company’s total receivables, respectively. As of March 31, 2023 and December 31, 2022, the Company did not have any additional counterparties that exceeded 10% of the Company’s net 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 17—Commitments and Contingencies). If the Company and the counterparty fail to perform according to the terms of the agreements, the maximum amount of loss which the Company may incur is approximately $7.1 million, of which $6.2 million related to the Advance Payment is reported within the Prepaid Expenses and Other Current Assets line item on the Consolidated Balance Sheets.
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