Accounts receivable, net

9 Months Ended

Jun. 30, 2025

Accounts receivable, net

Accounts receivable, net

4.            Accounts receivable, net

The Company recognizes an allowance for losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, management’s assessment of current conditions and reasonable and supportable expectation of future conditions as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible including reviewing the current receivables aging. This results in a general reserve and a specific reserve. The Company assesses collectability by pooling receivables where similar characteristics exist and evaluates receivables individually when specific customer balances no longer share those risk characteristics and are considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in Selling, general, and administrative expenses in the Consolidated Statements of Operations.

The following tables present the changes in the allowance for accounts receivable for the periods indicated.

	Three months ended
		June 30, 2025		June 30, 2024
		(Amounts in thousands)
Allowance for credit losses for accounts receivable:
Balances at beginning of the period		$	131	$	73
Provision (benefit) for credit losses			42		(10)
Balances at end of the period		$	173	$	63

	Nine months ended
		June 30, 2025		June 30, 2024
		(Amounts in thousands)
Allowance for credit losses for accounts receivable:
Balances at beginning of the period		$	147	$	100
Adjustment for adoption of new CECL standard			-		(67)
Provision (benefit) for credit losses			26		30
Balances at end of the period		$	173	$	63