Accounts Receivable and Significant Clients

6 Months Ended

Dec. 31, 2023

Accounts Receivable and Significant Clients

ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

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


	December 31,		June 30,
($000s)	2023		2023
Accounts receivable	$	104,864	$	86,484
Less: Allowance for credit losses	(117)		(120)
Accounts receivable, net	$	104,747	$	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.

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


	Three Months Ended December 31,				Six Months Ended December 31,
($000s)	2023		2022		2023		2022
Beginning balance	$	131	$	1,191	$	120	$	1,290
Provision for credit losses	13		136		24		138
Reversal of provision for credit losses	(18)		(21)		(18)		(21)
Uncollectible receivables written off	(11)		(951)		(11)		(951)
Effect of foreign exchange	2		69		2		(32)
Ending balance	$	117	$	424	$	117	$	424

Significant Client

During the six months ended December 31, 2023 and 2022, the Company had one client that contributed approximately 12.9% and 13.5% of total revenue, 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 December 31, 2023.