ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2023

NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable are recorded at the invoiced amounts. As set forth in a settlement agreement, Artesian Water will receive reimbursements from the Delaware Sand and Gravel Remedial Trust, or Trust, for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site, or Site, in groundwater that Artesian Water uses for public potable water supply. Approximately $2.5 million was paid in August 2022. The remaining $7.5 million is due in three equal installments no later than August of each year from 2023 through 2025.

An allowance for doubtful accounts is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current conditions. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related allowance for doubtful accounts and associated bad debt expense has not been significant. The following table summarizes the changes in the Company’s accounts receivable balance:

	March 31,		December 31,
(in thousands)	2023		2022

Customer accounts receivable – water	$	5,972	$	5,981
Customer accounts receivable – wastewater		483		482
Settlement agreement receivable		2,567		2,532
Miscellaneous accounts receivable		692		3,781
Developer receivable		914		1,151
		10,628		13,927
Less allowance for doubtful accounts		410		416
Net accounts receivable	$	10,218	$	13,511