Note 8 – 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 $36,000 and $44,000 as of December 31, 2016 and 2015, respectively.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following at December 31, 2016 and 2015 (in thousands):

	2016		2015
Due to auction clients	$	3,152	$	3,457
Sales and other taxes		935		1,421
Remuneration and benefits		637		645
Accounting, auditing and tax consulting		151		128
Customer deposits		—		108
Due to Joint Venture partners		1,371		69
Asset liquidation expenses		257		246
Interest expense		—		76
Other		243		489
Total accounts payable and accrued liabilities	$	6,746	$	6,639