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Changes in Accounting Principles
12 Months Ended
Dec. 31, 2023
Changes in Accounting Principles  
Changes in Accounting Principles

2. Changes in Accounting Principles

 

On January 1, 2023, the Company adopted ASC 326 Financial Instruments — Credit Losses (“ASC 326”). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss (“CECL”) model. For trade and other receivables, held-to-maturity debt securities, loans, contract assets, and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. The Company applied the modified retrospective method of adoption for ASC 326. Under this transition method, the Company applied the transition provisions starting at the date of adoption. The cumulative effect of the adoption of ASC 326 on our January 1, 2023 Consolidated Balance Sheet was as follows:

 

Consolidated Balance Sheet

 

December 31, 2022

 

 

New ASC 326

 

 

January 1, 2023

 

 

 

As Previously

 

 

Standard

 

 

As

 

(In thousands)

 

Reported

 

 

Adjustment

 

 

Adjusted

 

Assets

 

 

 

 

 

 

 

 

 

Trade receivables, net of allowance

 

$3,297

 

 

$(18)

 

$3,279

 

Contract assets, net of allowance

 

 

318

 

 

 

(29)

 

 

289

 

Equipment financing receivables, net of allowance

 

 

635

 

 

 

(37)

 

 

598

 

Total current assets

 

 

12,032

 

 

 

(84)

 

 

11,948

 

Long-term equipment financing receivables, net of allowance

 

 

1,255

 

 

 

(75)

 

 

1,180

 

Total Assets

 

$55,634

 

 

$(159)

 

$55,475

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(87,946)

 

 

(159)

 

 

(88,105)

Total stockholders' equity

 

 

41,459

 

 

 

(159)

 

 

41,300

 

Total Liabilities and Stockholders' Equity

 

$55,634

 

 

$(159)

 

$55,475