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 $110,000 and $36,000 as of December 31, 2017 and 2016, respectively.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following at December 31, 2017 and 2016 (in thousands):

	2017		2016
Due to auction clients	$	2,478	$	3,152
Sales and other taxes		342		935
Remuneration and benefits		957		637
Accounting, auditing and tax consulting		174		151
Customer deposits		102		—
Due to Joint Venture partners		247		1,371
Asset liquidation expenses		254		257
Interest expense		42		—
Other		423		243
Total accounts payable and accrued liabilities	$	5,019	$	6,746