Note 5 - Accounts Receivable

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Trade and Financing Receivables [Text Block]

5. ACCOUNTS RECEIVABLE

The Company’s products may be sold under subscription agreements with unencumbered title passing to the customer at the end of the lease term, which is generally 36 months. These arrangements are considered to be sales-type leases, where the present value of all cash flows to be received under the agreement is recognized upon shipment to the customer as lease revenue.

A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s consolidated balance sheets. The Company’s financing receivables, consisting of sales-type leases, totaled $32,393 and $40,377 at December 31, 2023 and 2022, respectively, and are included in accounts receivable and long-term receivables on the consolidated balance sheets. The Company evaluates the credit quality of an obligor at lease inception and monitors credit quality over the term of the underlying transactions.

The Company performed an assessment of the allowance for expected credit losses as of December 31, 2023 and 2022. Based upon such assessment, the Company recorded an allowance for expected credit losses totaling $7,415 and $13,619 as of December 31, 2023 and 2022, respectively. The balance as of December 31, 2023 includes $0.5 million due to the adoption of revised guidance of ASC 326 "Financial Instruments – Credit Losses" (Topic 326) Measurement of Credit Losses on Financial Instruments.

A summary of the Company’s accounts receivables is presented below:

	As of December 31,
	2023			2022
Gross accounts receivable	$	47,884		$	70,925
Unearned income		(2,139	)		(3,354	)
Allowance for expected credit losses		(7,415	)		(13,619	)
	$	38,330		$	53,952
Reported as:
Current trade receivables	$	29,151		$	37,262
Current unearned interest income		(1,468	)		(2,397	)
Long-term trade receivables		11,318			20,044
Long-term unearned interest income		(671	)		(957	)
	$	38,330		$	53,952

Current subscription agreements are reported as part of accounts receivable. The following are the contractual commitments, net of allowance for expected credit losses, to be received by the Company over the next 5 years:

			December 31,
	Total		2024		2025		2026		2027		2028
Current financing receivables, net of allowance of $486	$	21,075	$	21,075	$	—	$	—	$	—	$	—
Long-term financing receivables, net of allowance of $77		11,318		—		8,923		2,327		68		—
	$	32,393	$	21,075	$	8,923	$	2,327	$	68	$	—

Accounts receivable do not bear interest and are typically not collateralized. The Company performs credit evaluations on new and existing customers' financial condition and maintains an allowance for expected credit losses. Uncollectible accounts are charged to expense when deemed uncollectible, and accounts receivable are presented net of an allowance for expected credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement. Actual losses may differ from the Company’s estimates and could be material to its consolidated financial position, results of operations and cash flows.

The allowance for expected credit losses consisted of the following activity:

	As of December 31,
	2023			2022
Balance at beginning of year	$	13,619		$	11,997
Write-offs		(7,554	)		(5,715	)
Provision		1,350			7,337
Balance at end of year	$	7,415		$	13,619