ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2025

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. Three installments for approximately $2.5 million each were paid in August 2022, July 2023 and July 2024. The final $2.5 million installment 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:

	March 31,		December 31,		December 31,
(in thousands)	2025		2024		2023

Customer accounts receivable – water	$	6,264	$	6,824	$	6,573
Customer accounts receivable – wastewater		725		928		869
Customer accounts receivable – SLP Plan		435		470		409
Settlement agreement receivable – short term		2,500		2,523		2,747
Developer receivable		425		837		2,089
Miscellaneous accounts receivable		84		100		471
		10,433		11,682		13,158
Less: provision for expected credit loss		351		343		328
Net accounts receivable	$	10,082	$	11,339	$	12,830