Contract Receivables

6 Months Ended

Jun. 30, 2020

Note 5 - Contract Receivables

Contract receivables represent our unconditional rights to consideration due from our domestic and international customers. We expect to collect all contract receivables within the next twelve months.

The components of contract receivables were as follows:

(in thousands)	June 30, 2020			December 31, 2019

Billed receivables	$	6,657		$	11,041
Unbilled receivables		6,080			6,624
Allowance for doubtful accounts		(402	)		(458	)
Total contract receivables, net	$	12,335		$	17,207

Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce the Company's receivables to their net realizable value when management determines it is probable that we will not be collect all amounts according to the contractual terms of the receivable. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, specific identification and review of customer accounts. During the six months ended June 30, 2020 and 2019, we recorded bad debt expense of $93 thousand and $0, respectively.

During the month of July 2020, we invoiced $3.0 million of the unbilled amounts as of the period ended June 30, 2020. We expect to bill the remaining unbilled amounts during the remainder of fiscal 2020.

As of June 30, 2020, we had two customers that accounted for 12% and 11% of our consolidated contract receivables. As of December 31, 2019, we had two customers that accounted for 13% and 10% of our consolidated contract receivables.