Note 9 – Accounts Receivable and Accounts Payable

Accounts receivable

As described in Note 2, the Company’s accounts receivable are primarily related to the operations of its asset liquidation business. With respect to auction proceeds and asset dispositions, including NLEX’s accounts receivable brokerage transactions, the assets are not released to the buyer until payment has been received. The Company, therefore, is not exposed to significant collectability risk relating to these receivables. Given this experience, together with the ongoing business relationships between the Company and its joint venture partners, the Company has not historically required a formal credit quality assessment in connection with these activities. The Company has not experienced any significant collectability issues with its accounts receivable. As the Company’s asset liquidation business expands, more comprehensive credit assessments may be required.

The Company’s allowance for doubtful accounts was $44,000 and $31,000 as of December 31, 2015 and 2014, respectively.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following at December 31 (in thousands):

	2015		2014
Due to auction clients	$	3,457	$	2,353
Sales and other taxes		1,421		1,156
Remuneration and benefits		645		957
Accounting, auditing and tax consulting		128		140
Customer deposits		108		503
Due to Joint Venture partners		69		1,020
Asset liquidation expenses		246		540
Interest expense		76		94
Other		523		462
Total accounts payable and accrued liabilities	$	6,673	$	7,225