Note 5 - Receivables and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(5) Receivables and Allowance for Credit Losses

Receivables consist of the following (in thousands):

	September 30,			December 31,
	2023			2022
Accounts receivable–trade	$	61,694		$	55,850
Less allowance for credit losses		(726	)		(733	)
Receivables, net	$	60,968		$	55,117

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on the aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Estimates based on an assessment of anticipated payment and all other historical, current, and future information that is reasonably available are used to determine the allowance.

The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected as of September 30, 2023 and 2022 (in thousands):

	Allowance for Credit Losses
	Nine Months Ended September 30,
	2023			2022
Allowance - beginning of period	$	733		$	519
Provision (adjustment) for expected credit losses		(5	)		275
Amounts written off against the allowance		(11	)		(53	)
Recoveries		9			-
Allowance - end of period	$	726		$	741