Consolidated Financial Statements' Components

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021

Depreciation
Leasehold improvements	$	87	$	64	$	88
Asset retirement costs	(261)		(702)		(87)
Paging and computer equipment	3,792		3,289		3,797
Furniture, fixtures and vehicles	222		240		258
Total depreciation	3,840		2,891		4,056
Amortization
Intangible assets	—		—		417
Capitalized software development costs	—		—		5,357
Total amortization	—		—		5,774
Accretion	656		680		616
Total depreciation, amortization and accretion expense	$	4,496	$	3,571	$	10,446

Accounts Receivable, net

Accounts receivable was recorded net of an allowance of $1.6 million and $1.8 million for the years ended December 31, 2023 and 2022, respectively. Accounts receivable, net, included $6.0 million and $5.9 million of unbilled receivables for the years ended December 31, 2023 and 2022, 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)		2023		2022

Leasehold improvements	lease term	$	2,202	$	2,497
Asset retirement costs	1-5	3,722		3,848
Paging and computer equipment	1-5	86,332		88,427
Furniture, fixtures and vehicles	3-5	3,129		3,289
Total property and equipment		95,385		98,061
Accumulated depreciation		(88,064)		(89,838)
Total property and equipment, net		$	7,321	$	8,223

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 2023 (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 2027 to 2028. 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 2024. 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.