Note 3 - Accounts Receivable, Net

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Accounts Receivable [Text Block]

Note 3—Accounts Receivable, Net

Accounts receivable, net consisted of the following (in thousands):

	December 31, 2021		December 31, 2020
Trade accounts receivable	$	29,646	$	21,515
License revenue receivable		—		2,500
Royalty revenue receivable		2,880		2,528
Total accounts receivable	$	32,526	$	26,543
Allowance for credit losses		—		(1,000	)
Total accounts receivable, net	$	32,526	$	25,543

Trade accounts receivable consist entirely of amounts owed from the Company’s customers related to product sales. License revenue receivable represents an amount owed from a sub-licensee under a sub-license agreement. Royalty revenue receivable represents amounts owed related to royalty revenue recognized based on the Company’s sub-licensees’ sales in their respective territories in the years ended December 31, 2021 and 2020.

For all accounts receivable, the Company recognized credit losses based on lifetime expected losses. In determining estimated credit losses, the Company evaluated its historical loss rates, current economic conditions and reasonable and supportable forecasts of future economic conditions. The Company recorded a recovery of credit loss expense of $1.0 million and $1.0 million as a credit loss expense in the years ended December 31, 2021 and 2020, respectively. The rollforward of the allowance for credit losses is as follows:

Allowance for credit losses (in thousands):
Beginning balance at January 1, 2020	$	(1,000	)
Provision for credit loss expense		—
Accounts receivable written-off		—
Recoveries		1,000
Total ending allowance balance as December 31, 2021	$	—