ACCOUNTS RECEIVABLE

9 Months Ended

Mar. 31, 2024

Accounts receivable includes amounts due to the Company for sales of equipment and subscription fees, settlement receivables for amounts due from third-party payment processors, receivables from contract manufacturers and unbilled amounts due from customers, net of the allowance for credit losses. Accounts receivable, net of the allowance for uncollectible accounts were $43.3 million as of March 31, 2024 and $30.2 million as of June 30, 2023. The increase in accounts receivable at March 31, 2024 compared to June 30, 2023 is primarily due to the timing of the settlement receivables due from third-party payment processors which varies depending on the timing of the last business day of each period.

Concentrations

As of March 31, 2024 and June 30, 2023, no customer represented more than 10% of the Company's accounts receivable, net of allowance.

Allowance for credit losses

The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The allowance is calculated under an expected loss model. We estimate our allowance using an aging analysis (days past due status) of the receivables balances, primarily based on historical loss experience. Additionally, current conditions are analyzed to determine if the allowance calculation needs to be adjusted further for any qualitative factors impacting a customer’s ability to meet its financial obligations that is not already reflected through the historical loss analysis. The Company writes off receivable balances against the allowance for credit losses when management determines the balance is uncollectible and the Company ceases collection efforts.

The following table represents a rollforward of the allowance for credit losses for the nine months ended March 31, 2024 and 2023:


	Nine months ended March 31,
($ in thousands)	2024		2023
Beginning balance of allowance as of June 30	$	10,815	$	9,328
Provision for expected losses	958		1,044
Write-offs	(60)		(127)
Balance at September 30	11,713		10,245
Provision for expected losses	1,266		91
Write-offs	(134)		(214)
Balance at December 31	12,845		10,122
Provision for expected losses	1,085		296
Write-offs	(735)		—
Balance at March 31	$	13,195	$	10,418