Note 3 - Credit Losses

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Credit Loss, Financial Instrument [Text Block]

3. Credit Losses

The majority of the Company’s accounts receivable are due from distributors of truck equipment and dealers of completed upfit trucks. Credit is extended based on an evaluation of a customer’s financial condition. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Accounts receivable are written off after all collection efforts have been exhausted. The Company takes a security interest in the inventory as collateral for the receivable but often does not have a priority security interest. The Company has short-term accounts receivable at its Work Truck Attachments and Work Truck Solutions segments subject to evaluation for expected credit losses. Expected credit losses are estimated based on the loss-rate and probability of default methods. On a periodic basis, the Company evaluates its accounts receivable and establishes the allowance for credit losses based on specific customer circumstances, past events including collections and write-off history, current conditions, and reasonable forecasts about the future. As of June 30, 2023, the Company had an allowance for credit losses on its trade accounts receivable of $1,196 and $497 at its Work Truck Attachments and Work Truck Solutions segments, respectively. As of December 31, 2022, the Company had an allowance for credit losses on its trade accounts receivable of $1,000 and $366 at its Work Truck Attachments and Work Truck Solutions segments, respectively.

The following table rolls forward the activity related to credit losses for trade accounts receivable at each segment, and on a consolidated basis for the six months ended June 30, 2023 and 2022:

	Balance at December 31, 2022		Additions (reductions) charged to earnings		Writeoffs		Changes to reserve, net			Balance at June 30, 2023
Six Months Ended June 30, 2023
Work Truck Attachments	$	1,000	$	200	$	-	$	(4	)	$	1,196
Work Truck Solutions		366		150		-		(19	)		497
Total	$	1,366	$	350	$	-	$	(23	)	$	1,693

	Balance at December 31, 2021		Additions (reductions) charged to earnings			Writeoffs			Changes to reserve, net		Balance at June 30, 2022
Six Months Ended June 30, 2022
Work Truck Attachments	$	1,430	$	200		$	-		$	4	$	1,634
Work Truck Solutions		1,540		(150	)		(105	)		3		1,288
Total	$	2,970	$	50		$	(105	)	$	7	$	2,922