ACCOUNT RECEIVABLE, NET

12 Months Ended

Dec. 31, 2023

ACCOUNTS RECEIVABLE, NET

Accounts receivable balances are composed of trade and unbilled receivables. Unbilled accounts receivable represent revenue recorded in advance of processing formal invoices pursuant to the completion of contract provisions and, generally, become billable at contractually specified dates. Unbilled receivables of $5,163 and $8,523 as of December 31, 2023 and 2022, respectively, are expected to be invoiced and collected within one year. The Company records accounts receivable when its right to consideration becomes unconditional. Contract assets primarily relate to our rights to consideration for services provided that they are conditioned on satisfaction of future performance obligations. Accounts receivable, net, are stated at the amount the Company expects to collect, which is net of estimated losses resulting from the inability of its customers to make required payments.

The Company generally establishes customer credit limits and estimates the allowance for credit losses on a country or geographic basis. Customer credit limits are based upon an initial evaluation of the customer’s credit quality and we adjust that limit accordingly based upon ongoing credit assessments of the customer, including payment history and changes in credit quality. Consistent with our adoption of ASU 2016-13, effective January 1, 2023 (refer to Note 3 – Summary of Significant Accounting Policies), the allowance for expected credit losses is determined based on an assessment of past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends.

The following table summarizes the components of “Accounts receivable, net” as presented on the Consolidated Balance Sheets:


	As of December 31,
Accounts Receivable:	2023		2022
Billed receivables	$	14,925	$	17,798
Unbilled receivables	5,163		8,523
Accounts Receivable, Gross	$	20,088	$	26,321
Allowance for expected credit losses	(378)		(51)
Accounts Receivable, Net	$	19,710	$	26,270

The following table summarizes the total provision for expected credit losses and write-offs:


	For The Year Ended December 31,
	2023		2022
Beginning balance	$	51	$	196
Provision for expected credit losses	483		26
Write-offs and other	(207)		(171)
Cumulative-effect adjustment from adoption of ASU 2016-13, Credit Losses	51		—
Ending Balance	$	378	$	51