Accounts Receivable and Contract Assets, Net

9 Months Ended

Sep. 30, 2022

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Accounts Receivable and Contract Assets, Net

(3) Accounts Receivable and Contract Assets, Net

Accounts receivable, net is as follows (in thousands):

	As of			As of
	September 30, 2022			December 31, 2021
Accounts receivable amortized cost	$	98,626		$	127,917
Allowance for credit losses		(5,296	)		(6,922	)
Net accounts receivable	$	93,330		$	120,995

The following table summarizes the changes in the allowance for credit losses for accounts receivable (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance, beginning of period	$	(6,685	)	$	(5,243	)	$	(6,922	)	$	(3,788	)
Recovery of (provision for) expected credit losses, net		1,127			(321	)		731			(1,738	)
Write-offs, net		262			283			895			245
Balance, end of period	$	(5,296	)	$	(5,281	)	$	(5,296	)	$	(5,281	)

Contract assets, net, included in deferred costs and other current assets on the condensed consolidated balance sheets is as follows (in thousands):

	As of			As of
	September 30, 2022			December 31, 2021
Contract asset amortized cost	$	7,763		$	8,569
Allowance for credit losses		(1,078	)		(1,160	)
Net contract asset	$	6,685		$	7,409

The following table summarizes the changes in the allowance for credit losses for contract assets (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance, beginning of period	$	(1,067	)	$	(841	)	$	(1,160	)	$	(398	)
Provision for expected credit losses, net		(45	)		(316	)		(7	)		(789	)
Write-offs		34			7			89			37
Balance, end of period	$	(1,078	)	$	(1,150	)	$	(1,078	)	$	(1,150	)

The Company recognized a net credit loss recovery of $1.1 million and $0.8 million during the three and nine months ended September 30, 2022, respectively, due to a payment received from a customer during the three months ended September 30, 2022 reducing the accounts receivable provision for expected credit losses by $1.4 million. Credit loss expense was $0.8 million and $2.3 million for the three and nine months ended September 30, 2021, respectively.

The following table summarizes the changes in the sales reserve (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance, beginning of period	$	(251	)	$	(400	)	$	(250	)	$	(175	)
Additions		(135	)		20			(136	)		(239	)
Write-offs		36			130			36			164
Balance, end of period	$	(350	)	$	(250	)	$	(350	)	$	(250	)