Accounts Receivable and Significant Clients

3 Months Ended

Sep. 30, 2023

Accounts Receivable and Significant Clients

ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

Accounts receivable, net in the accompanying consolidated balance sheets consists of the following:


	September 30,		June 30,
($000s)	2023		2023
Accounts receivable	$	90,245	$	86,484
Less: Allowance for credit losses	(131)		(120)
Accounts receivable, net	$	90,114	$	86,364

The Company estimates its expected credit losses using the lifetime expected credit loss model. The allowance for credit losses is calculated quarterly based on the Company’s historical loss percentages, net of recoveries. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible. The Company did not have any write-offs for the three months ended September 30, 2023 and 2022.

Activity in the Company’s allowance for credit losses consists of the following:


	Three months ended September 30,
($000s)	2023		2022
Beginning balance	$	120	$	1,290
Provision for credit losses	11		2
Effect of foreign exchange	—		(101)
Ending balance	$	131	$	1,191

Significant Clients

The Company had one client that contributed in excess of 10% of total revenue for the three months ended September 30, 2023 and 2022. During the three months ended September 30, 2023 and 2022, the revenue from this client as a percentage of total revenue was 12% and 14%, respectively.

To limit the Company’s credit risk with its clients, management regularly monitors the aging of customer receivables, maintains allowances for credit losses and may require prepayment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of September 30, 2023.