Note 5 - Trade Accounts and Notes Receivable

9 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5. Trade Accounts and Notes Receivable

Trade accounts receivable, net (excluding notes receivable) are reflected in the following table (in thousands):

	June 30, 2023			September 30, 2022
Trade accounts receivable	$	24,409		$	13,252
Allowance for doubtful accounts		(208	)		(591	)
Total	$	24,201		$	12,661

The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a current review of its trade accounts receivable balances. Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable.

Notes receivable are reflected in the following table (in thousands):

	June 30, 2023			September 30, 2022
Notes receivable	$	2,108		$	8,225
Less current portion		(2,108	)		(8,225	)
Non-current notes receivable	$	—		$	—

Promissory notes receivable are generally collateralized by the products sold. At June 30, 2023, the Company had one promissory note outstanding from a customer with a face amount of $10.0 million.  The note originated during the second quarter of fiscal year 2020 in connection with a $12.5 million product sale with the customer. The note bears interest at 7.0% per year and has a three-year term with monthly principal and interest payments of $0.3 million. During the fourth quarter of fiscal year 2021, the Company granted the customer a six-month principal payment forbearance. The customer recommenced its monthly payments to the Company in the second quarter of fiscal year 2022.  In October 2022, the Company granted the customer an additional six-month principal payment forbearance. The customer recommenced its monthly payments to the Company in the third quarter of fiscal year 2023.  The customer has made payments totaling $10.4 million (exclusive of interest) as of June 30, 2023 related to the product sale, and the balance outstanding on the promissory note at June 30, 2023 was $2.1 million.  The note matures in January 2024.