Contract Receivables

9 Months Ended

Sep. 30, 2018

Contract Receivables [Abstract]

Contract Receivables

7. Contract Receivables

Contract receivables represent the Company's unconditional rights to consideration due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months.

The components of contract receivables are as follows:

(in thousands)	September 30,			December 31,
	2018			2017
Billed receivables	$	12,592		$	8,154
Unbilled receivables		6,926			5,980
Allowance for doubtful accounts		(280	)		(137	)
Total contract receivables, net	$	19,238		$	13,997

Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce our receivables to their net realizable value when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the receivable. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, and specific identification and review of customer accounts. During the nine months ended September 30, 2018 and 2017, the Company recorded allowances for doubtful accounts of $146,000 and $118,000, respectively.

During October 2018, the Company invoiced $5.0 million of the unbilled amounts related to the balance at September 30, 2018.

As of September 30, 2018, the Company had two customers that accounted for 19.7% and 13.1% of its consolidated contract receivables, respectively. As of December 31, 2017, the Company had one customer that accounted for 26.7% of its consolidated contract receivables.