Contract Receivables

9 Months Ended

Sep. 30, 2021

Note 5 - Contract Receivables

Contract receivables represent our unconditional rights to consideration due from our domestic and international customers. We expect to collect all contract receivables within the next twelve months.

The components of contract receivables were as follows:

(in thousands)	September 30, 2021			December 31, 2020

Billed receivables	$	4,521		$	5,694
Unbilled receivables		8,221			5,160
Allowance for doubtful accounts		(213	)		(360	)
Total contract receivables, net	$	12,529		$	10,494

Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce the Company’s receivables to their net realizable value when management determines it is probable that we will not be able to collect all amounts due from customers. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, specific identification and review of customer accounts.

During the nine months ended September 30, 2021 and 2020, we recorded bad debt (recovery) expense of $(133) thousand and $103 thousand, respectively.

During the month of October 2021, we invoiced $2.6 million of the unbilled receivable as of September 30, 2021.

As of September 30, 2021, we had one customer that accounted for 10% of our consolidated contract receivables. As of December 31, 2020, we had no customer that accounted for over 10% of our consolidated contract receivables.