Note 5 - Receivables and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(5) Receivables and Allowance for Credit Losses

Receivables consist of the following (in thousands):

	June 30,			December 31,
	2022			2021
Accounts receivable–trade	$	58,577		$	39,903
Less allowance for credit losses		(664	)		(519	)
Receivables, net	$	57,913		$	39,384

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Estimates based on an assessment of anticipated payment and all other historical, current, and future information that is reasonably available are used to determine the allowance.

The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected as of June 30, 2022 and 2021 (in thousands):

	Allowance for Credit Losses
	Six Months Ended June 30,
	2022			2021
Allowance - beginning of period	$	519		$	484
Provision for expected credit losses		159			88
Amounts written off against the allowance		(14	)		(8	)
Allowance - end of period	$	664		$	564