ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2024

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. Two installments for approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. In addition, the Trust shall reimburse Artesian Water for documented reasonable and necessary capital and operating costs after July 1, 2021 that Artesian Water incurs to treat contaminants of concern and of emerging concern.

A provision for expected credit loss is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current and reasonable projections based upon expected economic conditions. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related provision for expected credit loss 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)	2024		2023

Customer accounts receivable – water	$	6,168	$	6,573
Customer accounts receivable – wastewater		525		513
Settlement agreement receivable – short term		2,517		2,747
Miscellaneous accounts receivable		1,039		1,236
Developer receivable		772		2,089
		11,021		13,158
Less: provision for expected credit loss		340		328
Net accounts receivable	$	10,681	$	12,830