Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Allowance for Credit Losses

Allowance for Credit Losses

Note 4 – Allowance for Credit Losses 

The activity in the allowance for doubtful accounts was as follows during the years ended December 31, 2023 and 2022:

	2023			2022
Balance at the beginning of the year	$	1,440,678		$	202,904
Provision for bad debts		786,549			1,265,143
Charge-offs		(582,189	)		(27,369	)
Recoveries		7			—
Balance at the end of the year	$	1,645,045		$	1,440,678

The allowance for doubtful accounts at December 31, 2023 was $1,645,045, an increase of $204,367 from December 31, 2022. During 2022, we expanded our business in part by acquiring new customers with whom we contract directly. These customers typically require longer credit terms than traditional CPC based customers. One of these customers was a significant portion, 24.1% of our total 2022 revenue, and has stretched its payments to 120 days and beyond. Ultimately, we agreed to extended payments from the customer through September 2024. All amounts due from this customer have been fully reserved as of December 31, 2023.