ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE

ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE

Accounts Receivable

Accounts receivable represents primarily outstanding balances from sending agents for pending wire transfers or money orders from consumers. The outstanding balance of accounts receivable, net of allowance for credit losses, consists of the following (in thousands):

	June 30, 2023		December 31, 2022
Accounts receivable	$	126,248	$	132,363
Allowance for credit losses	(2,548)		(2,555)
Accounts receivable, net	$	123,700	$	129,808

Agent Advances Receivable

Agent advances receivable, net of allowance for credit losses, from sending agents is as follows (in thousands):

	June 30, 2023		December 31, 2022
Agent advances receivable, current	$	1,513	$	1,373
Allowance for credit losses	(79)		(62)
Net current	$	1,434	$	1,311
Agent advances receivable, long-term	$	1,546	$	1,423
Allowance for credit losses	(63)		(31)
Net long-term	$	1,483	$	1,392

The net current portion of agent advances receivable is included in prepaid expenses and other current assets (see Note 5), and the net long-term portion is included in other assets in the condensed consolidated balance sheets. Some agent advances receivable have interest rates ranging from 0% to 10.5% per annum. The Company had an immaterial amount of accrued interest receivable as of June 30, 2023 and December 31, 2022, which was included in the allowance for credit losses calculation. At June 30, 2023 and December 31, 2022, there were $3.1 million and $2.8 million, respectively, of agent advances receivable collateralized by personal guarantees from sending agents and assets from their businesses in case of a default by the agent.

The maturities of agent advances receivable at June 30, 2023 are as follows (in thousands):

	Unpaid Advance Balance
Under 1 year	$	1,513
Between 1 and 2 years	1,137
More than 2 years	409
Total	$	3,059

Allowance for Credit Losses

The changes in the allowance for credit losses related to accounts receivable and agent advances receivable are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Beginning balance	$	2,657	$	2,256	$	2,648	$	2,249
Provision	1,155		1,056		1,940		1,498
Charge-offs	(1,426)		(970)		(2,434)		(1,502)
Recoveries	304		100		536		197
Ending Balance	$	2,690	$	2,442	$	2,690	$	2,442

The allowance for credit losses allocated by financial instrument category is as follows (in thousands):

	June 30, 2023		December 31, 2022
Accounts receivable	$	2,548	$	2,555
Agent advances receivable	142		93
Allowance for credit losses	$	2,690	$	2,648