Accounts Receivable and Contract Assets, Net

3 Months Ended

Mar. 31, 2020

Accounts Receivable Net [Abstract]

Accounts Receivable and Contract Assets, Net

(3) Accounts Receivable and Contract Assets, Net

On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. See Note 2. The cumulative effect of initially applying ASU 2016-13 had an immaterial impact on the Company’s opening balance of accumulated deficit.

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

	As of			As of
	March 31, 2020			December 31, 2019
Accounts receivable amortized cost	$	72,513		$	69,767
Allowance for credit losses		(1,753	)		(1,125	)
Net accounts receivable	$	70,760		$	68,642

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

	Three Months Ended March 31,
	2020			2019
Balance, beginning of period	$	(1,125	)	$	(711	)
Provision for expected credit losses		(743	)		(148	)
Write-offs		115			49
Balance, end of period	$	(1,753	)	$	(810	)

Contract assets, net is as follows (in thousands):

	As of			As of
	March 31, 2020			December 31, 2019
Contract asset amortized cost	$	3,585		$	1,959
Allowance for credit losses		(25	)		—
Net contract asset	$	3,560		$	1,959

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

	Three Months Ended March 31, 2020
Balance, beginning of period	$	—
Provision for expected credit losses		(25	)
Write-offs		—
Balance, end of period	$	(25	)

Credit loss expense was $0.7 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.   

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

	Three Months Ended March 31,
	2020			2019
Balance, beginning of period	$	(175	)	$	(200	)
Additions		(200	)		—
Write-offs		—			—
Balance, end of period	$	(375	)	$	(200	)