ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Jun. 30, 2024

ALLOWANCE FOR CREDIT LOSSES [Abstract]

ALLOWANCE FOR CREDIT LOSSES

7. ALLOWANCE FOR CREDIT LOSSES

The following table provides the activity in our allowance for credit losses for the three months ended June 30, 2024, and 2023 (in thousands):

	Accounts Receivable			Notes Receivable		Lease Receivables			Total
Balance as of April 1, 2024	$	2,687		$	1,056	$	1,435		$	5,178
Provision for credit losses		90			32		(26	)		96
Write-offs and other		(13	)		-		-			(13	)
Balance as of June 30, 2024	$	2,764		$	1,088	$	1,409		$	5,261

	Accounts Receivable			Notes Receivable			Lease Receivables			Total
Balance as of April 1, 2023	$	2,572		$	801		$	981		$	4,354
Provision for credit losses		629			(106	)		(45	)		478
Write-offs and other		(13	)		1			-			(12	)
Balance as of June 30, 2023	$	3,188		$	696		$	936		$	4,820

We evaluate our customers using an internally assigned credit quality rating “CQR”. The CQR categories of our financing receivables are:

• High CQR: This rating includes accounts with excellent to good business credit, asset quality and capacity to meet financial obligations. Loss rates in this category are generally less than 1%.

• Average CQR: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. Loss rates in this category are in the range of 1% to 8%.

• Low CQR: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. The loss rates in this category in the normal course are greater than 8% and up to 100%.

The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of June 30, 2024 (in thousands):

	Amortized cost basis by origination year ending March 31,
	2025		2024		2023		2022		2021		2020 and prior		Total		Transfers (2)			Net credit exposure
Notes receivable:
High CQR	$	25,158	$	48,541	$	14,290	$	1,858	$	1,786	$	24	$	91,657	$	(26,831	)	$	64,826
Average CQR		2,490		14,551		2,895		148		28		-		20,112		(3,302	)		16,810
Total	$	27,648	$	63,092	$	17,185	$	2,006	$	1,814	$	24	$	111,769	$	(30,133	)	$	81,636
Lease receivables:
High CQR	$	15,363	$	18,528	$	8,750	$	1,218	$	946	$	84	$	44,889	$	(2,931	)	$	41,958
Average CQR		6,298		14,816		8,373		1,732		164		2		31,385		(4,292	)		27,093
Total	$	21,661	$	33,344	$	17,123	$	2,950	$	1,110	$	86	$	76,274	$	(7,223	)	$	69,051
Total amortized cost (1)	$	49,309	$	96,436	$	34,308	$	4,956	$	2,924	$	110	$	188,043	$	(37,356	)	$	150,687

(1) Unguaranteed residual values of $3,554 thousand that we retained after selling the related lease receivable excluded from amortized cost.

(2) Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis.

The following table provides the amortized cost basis of our financing receivables by CQR and by credit origination year as of March 31, 2024 (in thousands):

	Amortized cost basis by origination year ending March 31,
	2024		2023		2022		2021		2020		2019 and prior		Total		Transfers (2)			Net credit exposure
Notes receivable:
High CQR	$	63,934	$	15,821	$	3,440	$	2,656	$	30	$	-	$	85,881	$	(25,683	)	$	60,198
Average CQR		18,715		3,260		302		52		-		-		22,329		(3,476	)		18,853
Total	$	82,649	$	19,081	$	3,742	$	2,708	$	30	$	-	$	108,210	$	(29,159	)	$	79,051
Lease receivables:
High CQR	$	22,123	$	9,457	$	1,341	$	1,151	$	100	$	7	$	34,179	$	(1,128	)	$	33,051
Average CQR		22,861		9,548		2,133		259		2		-		34,803		(5,436	)		29,367
Total	$	44,984	$	19,005	$	3,474	$	1,410	$	102	$	7	$	68,982	$	(6,564	)	$	62,418
Total amortized cost (1)	$	127,633	$	38,086	$	7,216	$	4,118	$	132	$	7	$	177,192	$	(35,723	)	$	141,469

(1) Unguaranteed residual values of $3,718 thousand that we retained after selling the related lease receivable excluded from amortized cost.

(2) Transfers consist of receivables that have been transferred to third-party financial institutions on a non-recourse basis.

The following table provides an aging analysis of our financing receivables as of June 30, 2024 (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		> 90 Days Past Due		Total Past Due		Current		Total Billed		Unbilled		Amortized Cost
Notes receivable	$	174	$	823	$	1,153	$	2,150	$	7,302	$	9,452	$	102,317	$	111,769
Lease receivables		281		522		1,852		2,655		5,191		7,846		68,428		76,274
Total	$	455	$	1,345	$	3,005	$	4,805	$	12,493	$	17,298	$	170,745	$	188,043

The following table provides an aging analysis of our financing receivables as of March 31, 2024 (in thousands):

	31-60 Days Past Due		61-90 Days Past Due		> 90 Days Past Due		Total Past Due		Current		Total Billed		Unbilled		Amortized Cost
Notes receivable	$	1,251	$	334	$	2,484	$	4,069	$	9,337	$	13,406	$	94,804	$	108,210
Lease receivables		1,174		284		2,213		3,671		4,691		8,362		60,620		68,982
Total	$	2,425	$	618	$	4,697	$	7,740	$	14,028	$	21,768	$	155,424	$	177,192

Our financial assets on nonaccrual status were not significant as of June 30, 2024, and March 31, 2024.