ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2024

ACCRUED EXPENSES [Abstract]

ACCRUED EXPENSES

4. ACCRUED EXPENSES

Accrued expenses at September 30, 2024 and December 31, 2023 are as follows:

(dollars in thousands)	September 30, 2024		December 31, 2023
Accrued expenses	$	586	$	764
Accrued compensation		929		754
Accrued franchise, property and sales and use taxes		152		287
CHC temporary funding assistance		1,057		—
Accrued interest		19		19
	$	2,743	$	1,824

The Company uses Change Healthcare (“CHC”), a healthcare technology company owned by UnitedHealth Group, to process some of its patient claims billings. In February 2024, CHC announced that it had experienced a cyberattack and as a result had to temporarily shut down some of its information technology systems. This system shut down caused delays in billing and reimbursement processes to CHC’s customers and, as a result, CHC established a Temporary Funding Assistance Program to help bridge the gap in short-term cash flow needs for customers affected by the disruption of its services due to the cyberattack. Funding distributed through this program is interest free and has no other fees or costs associated with it. As of September 30, 2024, CHC’s systems have yet to be fully restored.  

During the nine months ended September 30, 2024, the Company received approximately $1.1 million through CHC’s Temporary Assistance Program. On October 28, 2024, the Company received a notice from CHC stating that they have restored the connectivity of their systems and are requesting repayment of the funds the Company received through the Temporary Assistance Program. The repayment date contained in the notice is January 2, 2025. The Company anticipates negotiating a repayment plan that will enable the Company to meet its obligations to CHC while continuing to support our ongoing operational needs with minimal disruption.