ACCOUNTS RECEIVABLE

6 Months Ended

Jun. 30, 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 payable in two equal installments, one of which was paid in July 2024 and the final payment is due no later than July 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:

	June 30,		December 31,		December 31,
(in thousands)	2024		2023		2022

Customer accounts receivable – water	$	7,437	$	6,573	$	5,981
Customer accounts receivable – wastewater		696		644		637
Customer accounts receivable – SLP Plan		392		409		384
Settlement agreement receivable – short term		2,500		2,747		2,532
Developer receivable		798		2,089		1,151
Miscellaneous receivable		191		696		3,242
		12,014		13,158		13,927
Less: provision for expected credit loss		338		328		416
Net accounts receivable	$	11,676	$	12,830	$	13,511