Consolidated Financial Statements' Components

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONSOLIDATED FINANCIAL STATEMENTS' COMPONENTS

Depreciation, Amortization and Accretion

Depreciation, amortization and accretion consisted of the following for the periods stated:


	For the Year Ended December 31,
(Dollars in thousands)	2022		2021		2020

Depreciation
Leasehold improvements	$	64	$	88	$	57
Asset retirement costs	(702)		(87)		(643)
Paging and computer equipment	3,289		3,797		5,291
Furniture, fixtures and vehicles	240		258		307
Total depreciation	2,891		4,056		5,012
Amortization
Intangible assets	—		417		2,500
Capitalized software development costs	—		5,357		1,073
Total amortization	—		5,774		3,573
Accretion	680		616		471
Total depreciation, amortization and accretion expense	$	3,571	$	10,446	$	9,056

Accounts Receivable, net

Accounts receivable was recorded net of an allowance of $1.8 million and $1.4 million for the years ended December 31, 2022 and 2021, respectively. Accounts receivable, net included $5.9 million and $7.1 million of unbilled receivables for the years ended December 31, 2022 and 2021, respectively. Unbilled receivables are defined as the Company's right to consideration in exchange for goods or services that we have transferred to the customer but have not yet billed for, generally as a result of contractual billing terms.

Property and Equipment, net

Property and equipment, net consisted of the following for the periods stated:


	Useful Life (In Years)	For the Year Ended December 31,
(Dollars in thousands)		2022		2021

Leasehold improvements	lease term	$	2,497	$	3,307
Asset retirement costs	1-5	3,848		2,307
Paging and computer equipment	1-5	88,427		89,844
Furniture, fixtures and vehicles	3-5	3,289		3,668
Total property and equipment		98,061		99,126
Accumulated depreciation		(89,838)		(92,380)
Total property and equipment, net		$	8,223	$	6,746

For purposes of assessing our asset retirement costs, we completed a review of the estimated useful life of our transmitter assets during the fourth quarter of 2022 (that are part of paging and computer equipment). This review was based on the results of our long-range planning and network rationalization process and indicated that the expected useful life of the last tranche of the transmitter assets was no longer appropriate. As a result of that review, the expected useful life of the final tranche of transmitter assets was extended from 2026 to 2027. This change resulted in a revision of the expected future depreciation expense for the transmitter assets and an immaterial impact on the consolidated financial statements beginning in 2023. We believe these estimates remain reasonable at the present time, but we can give no assurance that changes in technology, customer usage patterns, our financial condition, the economy or other factors would not result in changes to our transmitter decommissioning plans. Any further variations from our estimates could result in a change in the expected useful lives of the underlying transmitter assets and operating results could differ in the future by any difference in depreciation expense. The extension of the depreciable life was accounted for as a change in accounting estimate.