ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE

Accounts receivable, net, consists of the following at December 31:



	2016			2015
Accounts receivable trade	$	12,598,493		$	8,280,749
Allowance for doubtful accounts	(1,646,274		)	(1,965,335		)
Accounts receivable trade, net	$	10,952,219		$	6,315,414

Accounts receivable represents amounts due from customers. Accounts receivable are recorded at invoiced amounts, net of reserves and allowances, and do not bear interest. The Company uses its best estimate to determine the required allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, economic trends and conditions affecting its customer base, significant one-time events and historical write-off experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. The Company reviews the adequacy of its reserves and allowances quarterly.

Receivable balances greater than 30 days past due are individually reviewed for collectability and if deemed uncollectible, are charged off against the allowance accounts after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any significant off balance sheet credit exposure related to its customers.

Notes receivable, net, consists of the following at December 31:



	2016		2015
Notes receivable (collateralized by invoiced accounts receivable)	$	—	$	5,346,452
Payments received and amounts written off	—		(3,654,790		)
Allowance for doubtful accounts	—		—
Note receivable (collateralized by invoiced accounts receivable), net	$	—	$	1,691,662

The 2015 notes receivable represents amounts due from Omega Holdings, LLC. The total notes receivable balance of $1,691,662 as of December 31,2015 represents invoiced amounts that do not bear interest as of December 31, 2015.

The remaining portion of the term notes receivable balance $8,308,000 at December 31, 2015 represents amounts due from Omega Holdings, LLC. The $8,308,000 balance was based on the purchase price allocated to the Nevada facility. The note carried an interest rate of 9.5% per annum and was collateralized by assets at the Nevada facility. The Company sold the Nevada facility in January, 2016 when the note was satisfied in full.

The accounts receivable and notes receivable balances of $1,691,662 and $8,308,000, respectively, were re-classified as "Assets held for sale" on the Balance Sheet at December 31, 2015.