Note 7 - Trade Accounts and Notes Receivable

12 Months Ended

Sep. 30, 2024

Notes to Financial Statements

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

7. Trade Accounts and Notes Receivable

Trade accounts receivable, net (excluding notes receivable) are reflected in the following table (in thousands):

	AS OF SEPTEMBER 30,
	2024			2023
Trade accounts receivable	$	16,151		$	20,282
Allowance for credit losses		(4	)		(125	)
Total		16,147			20,157
Less current portion		(14,637	)		(20,157	)
Non-current trade accounts receivable	$	1,510		$	—

Allowances for credit losses related to trade accounts receivable are reflected in the following table (in thousands):

	AS OF SEPTEMBER 30,
	2024			2023
Allowance for credit losses:
Beginning of period		125			591
Provision for credit losses		65			428
Recoveries		(175	)		(566	)
Write-offs		(11	)		(303	)
Currency translation		—			(25	)
End of period	$	4		$	125

Trade accounts receivable at September 30, 2024, included $1.5 million classified as non-current, which is due in December 2025.  Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable.

Notes receivable are reflected in the following table (in thousands):

	AS OF SEPTEMBER 30,
	2024			2023
Notes receivable	$	12,996		$	1,216
Discount to fair value		(900	)		—
	12,096			1,216
Less current portion		(7,231	)		(1,216	)
Non-current notes receivable	$	4,865		$	—

In August 2024, the Company entered into a $9.4 million promissory note with a customer related to a product sale.  The note bears interest at 9.5% per annum and matures in December 2025.  Principal and interest installments of $0.9 million are due monthly beginning in January 2025. The note is collateralized by the product sold.

In August 2024, the Company entered into a $3.5 million promissory note with the buyer of its Russian subsidiary.  The note is bears interest at 5% per annum and is for a 10-year term. Principal and interest installments of $37,000 are due monthly beginning in November 2024.  Based on a fair value analysis performed at the date of sale, a discount to fair value of $0.9 million was placed on the note. Interest income on the amortization of the discount will recognized under the effective interest method.

Credit quality indicators used for the non-current portion of trade accounts and notes receivable consisted of historical collection experience, internal credit risk grades and collateral.  The Company determines the allowance for credit losses through a review of several factors, including historical collection experience, customer credit worthiness, current aging of customer accounts and current financial conditions of its customers.