Notes Receivable

9 Months Ended

Sep. 30, 2023

We provide financing to some individuals who want to become independent contractors by purchasing a tractor from us and leasing their services to us. We maintain a primary security interest in the tractor until the independent contractor pays the note balance in full. On January 24, 2023, we purchased a $25.0 million subordinated promissory note from MLSI with a maturity date of January 24, 2030. The proceeds of the promissory note may be used by MLSI for working capital and general business purposes, including a limited amount for possible repayment of certain advances. There are no scheduled principal payments due on the MLSI promissory note until the maturity date, and interest accrues at 7.5% compounded annually, with the first accrued interest payment due on January 24, 2028, and at the end of each calendar year thereafter. The independent contractor notes receivable, MLSI subordinated promissory note, and other notes receivable are included in other current assets and other non-current assets in the consolidated condensed balance sheets.

The following table presents our notes receivable (in thousands):


	September 30, 2023		December 31, 2022
Independent contractor notes receivable	$	7,432	$	8,287
MLSI subordinated promissory note	25,000		—
Other notes receivable	7,935		7,921
Notes receivable	40,367		16,208
Less current portion	2,603		2,691
Notes receivable – non-current	$	37,764	$	13,517

We also provide financing to some individuals who attended our driver training schools. The student notes receivable is included in other receivables and other non-current assets in the consolidated condensed balance sheets. The following table presents our student notes receivable (in thousands):


	September 30, 2023		December 31, 2022
Student notes receivable	$	64,720	$	63,351
Allowance for doubtful student notes receivable	(22,945)		(23,491)
Total student notes receivable, net of allowance	41,775		39,860
Less current portion, net of allowance	13,433		12,574
Student notes receivable – non-current	$	28,342	$	27,286