Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 54

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 5
Chunk 54
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 our unlikely recoverability of the Note's carrying value.   Cash and Cash Equivalents – Cash and cash equivalents, which consist primarily of money market funds and demand deposits, are stated at fair value. All highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Our cash balances exceed the Federal Deposit Insurance Corporation limits. The Company does not believe it is exposed to significant credit risk related to cash and cash equivalents.Allowance for Credit Losses – The Company's accounts receivable are subject to concentrations of credit risk. We maintain an allowance for credit losses that reflects any estimated credit losses. This allowance is evaluated each quarter on a customer by customer basis and considers historical write-off experience with each customer, the number of days that any delinquent invoices are past due, and an evaluation of the potential risk of loss associated with any delinquent accounts. We record the allowance in "general and administrative" expense in the Consolidated Statements of Operations.  Account receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.For the years ended December 31, 2024 and 2023, changes to and ending balances of the allowance for credit losses were as follows (in thousands): 

          Years endedDecember 31,

          2024

          2023

          Allowance for credit losses balance - beginning of year
           
          $
          173

          $
          188

          Additions to the allowance for credit losses

          85

          37

          Deductions against the allowance for credit   losses

          (11
          )

          (52
          )

          Allowance for credit losses balance - end of year
           
          $
          247

          $
          173

34

Property and Equipment – Property and equipment is stated at cost.  Depreciation and amortization of property and equipment is provided using the straight-line method over the estimated useful lives of the assets. Upon retirement or sale, the costs of the assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss on disposal is included in the determination of income or loss.  Expenditures for repairs and maintenance are charged to expense as incurred. The estimated useful lives of assets are: 

          Leasehold improvements
           
          10 years

          Furniture and fixtures
           
          5 years

          Computer and office equipment
           
          3