Trade Accounts and Financing Receivables

9 Months Ended

Jun. 30, 2019

Trade Accounts and Financing Receivables

6. Trade Accounts and Financing Receivables

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

	June 30, 2019			September 30, 2018
Trade accounts receivable	$	15,789		$	15,776
Allowance for doubtful accounts		(1,050	)		(1,453	)
	$	14,739		$	14,323

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 accounts receivable balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Trade accounts receivable at June 30, 2019 includes $5.4 million due from a single customer, of which $1.1 million was collected in July 2019. Revenue from this customer for the nine months ended June 30, 2019 was $14.6 million, more than 10% of the Company’s revenue.

Financing receivables are reflected in the following table (in thousands):

	June 30, 2019			September 30, 2018
Promissory notes	$	4,426		$	5,646
Sales-type lease		3,405			5,533
Total financing receivables		7,831			11,179
Unearned income:
Promissory notes		(95	)		(95	)
Sales-type lease		(90	)		(237	)
Total unearned income		(185	)		(332	)
Total financing receivables, net of unearned income		7,646			10,847
Allowance for doubtful promissory notes		(2,354	)		(1,849	)
Less current portion		(3,584	)		(4,258	)
Non-current financing receivables	$	1,708		$	4,740