Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Allowance for Credit Losses

Allowance for Credit Losses

Note 4. Allowance for Credit Losses

The Company is exposed to credit losses primarily through accounts receivable from sales of its products and services. The Company’s expected credit loss allowance methodology is developed using historical collection experience, current and future economic and market conditions, and a review of the status of customers’ accounts receivable.

The change in the allowance for credit losses on accounts receivable is summarized as follows (in thousands):

	2023		2022
Balance at December 31 of prior year	$	118	$	419
Provision for expected credit losses		605		102
Write-offs and recoveries collected		(294)		—
Balance at September 30	$	429	$	521