diff --git a/libs/common/src/platform/services/sdk/default-sdk.service.spec.ts b/libs/common/src/platform/services/sdk/default-sdk.service.spec.ts
index 9bbd04cda43..dad99401f75 100644
--- a/libs/common/src/platform/services/sdk/default-sdk.service.spec.ts
+++ b/libs/common/src/platform/services/sdk/default-sdk.service.spec.ts
@@ -122,9 +122,10 @@ describe("DefaultSdkService", () => {
         await new Promise(process.nextTick);
 
         userKey$.next(undefined);
+        await new Promise(process.nextTick);
 
         expect(mockClient.free).toHaveBeenCalledTimes(1);
-        expect(subject.value).toBeUndefined();
+        expect(subject.value).toBe(undefined);
       });
     });
   });
diff --git a/libs/common/src/platform/services/sdk/default-sdk.service.ts b/libs/common/src/platform/services/sdk/default-sdk.service.ts
index 5fcc4bf1111..1b7a9a939a4 100644
--- a/libs/common/src/platform/services/sdk/default-sdk.service.ts
+++ b/libs/common/src/platform/services/sdk/default-sdk.service.ts
@@ -95,10 +95,9 @@ export class DefaultSdkService implements SdkService {
         return new Observable<BitwardenClient>((subscriber) => {
           let client: BitwardenClient;
 
-          async function createAndInitializeClient() {
+          const createAndInitializeClient = async () => {
             if (privateKey == null || userKey == null || orgKeys == null) {
-              subscriber.next(undefined);
-              return;
+              return undefined;
             }
 
             const settings = this.toSettings(env);
@@ -107,7 +106,7 @@ export class DefaultSdkService implements SdkService {
             await this.initializeClient(client, account, kdfParams, privateKey, userKey, orgKeys);
 
             return client;
-          }
+          };
 
           createAndInitializeClient()
             .then((c) => {