ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

At September 30, 2023 and December 31, 2022, accounts receivable, net consisted of the following:

	September 30, 2023		December 31, 2022
Accounts receivable	$	252,198	$	182,936
Less: Allowance for credit losses	(3,721)		-
	$	248,477	$	182,936

	September 30, 2023
Cumulative effect of change in accounting principle under ASC 326, before tax, as of January 1, 2023	$	(2,099)
Provision for credit loss expense	(1,622)
Allowance for credit losses, before tax, as of September 30, 2023	$	(3,721)

The $65.5 million increase in accounts receivable for the first nine months of 2023 corresponds to a $107.1 million increase in revenue as compared to the same period in 2022.

The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As a result of the Company’s adoption of ASC 326 as of January 1, 2023 (Note 2), the Company recorded an allowance for credit losses as of September 30, 2023, as compared to no allowance for credit losses as of December 31, 2022.