Contract Receivables

3 Months Ended

Mar. 31, 2022

Contract Receivables [Abstract]

Contract Receivables

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)	March 31, 2022			December 31, 2021
Billed receivables	$	4,955		$	6,124
Unbilled receivables		6,472			6,143
Allowance for doubtful accounts		(1,006	)		(1,010	)
Total contract receivables, net	$	10,421		$	11,257

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 three months ended March 31, 2022, we recorded no bad debt expense. We recorded $4 thousand bad debt expense during the three months ended March 31, 2021.

During the month of April 2022, we invoiced $2.6 million of the unbilled receivables as of  March 31, 2022.

Our foreign currency denominated contract receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into our functional currency, using the current exchange rate at the end of the period. The gain or loss resulting from such remeasurement is included in other income, net in the consolidated statements of operations. As of March 31, 2022 and 2021, we recognized a gain on remeasurement of these foreign exchange contracts of $3 thousand and $33 thousand, respectively.

As of March 31, 2022 and December 31, 2021, we had no customer that accounted for 10% of our consolidated contract receivables. On May 10, 2022, we had a customer that notified us of debt restructuring, and we are assessing any potential impact to the Company.