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Note 3 - Allowance for Credit Losses
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]

Note 3. Allowance for Credit Losses

 

The allowance for credit losses on trade receivables was approximately $122 and $50 on gross trade receivables of $9,467 and $7,952 as of September 30, 2024, and December 31, 2023, respectively. The measurement and recognition of credit losses involves the use of judgment and represents management’s estimate of expected lifetime credit losses based on historical experience and trends, current conditions, and forecasts. The Company’s assessment of expected credit losses includes consideration of historical credit loss experience, the aging of account balances, customer concentrations, customer creditworthiness, and current and expected economic, market and industry factors affecting the Company’s customers, including their financial condition. The Company evaluates its experience with historical losses and then applies this historical loss ratio to financial assets with similar characteristics. Based on information available, management believes the allowance for credit losses as of September 30, 2024 and December 31, 2023 is adequate.