Allowance for Doubtful Accounts

12 Months Ended

Dec. 31, 2022

Allowance for Doubtful Accounts [Abstract]

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The activity in the allowance for doubtful accounts was as follows during the years ended December 31, 2022 and 2021:

 

	2022		2021
Balance at the beginning of the year	$	202,904	$	209,667
Provision for bad debts	1,265,143		7,487
Charge-offs	(27,369)		(16,154)
Recoveries	—		1,904
Balance at the end of the year	$	1,440,678	$	202,904

During 2022, we expanded our Direct customer business by 73% due in part by acquiring new customers (see Note 2). These customers typically require longer credit terms than traditional CPC based customers. One of these Direct customers was a significant portion, 24.1% of our total revenue, and has stretched its payments to 120 days and beyond. Though the customer is paying amounts due and has significantly reduced the balance since year end, management believed it to be prudent to increase the allowance for doubtful accounts.