Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Credit Losses

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Note 3 - Credit Losses
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Credit Loss, Financial Instrument [Text Block]

3.

Credit Losses

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The majority of the Company’s accounts receivable are due from distributors of truck equipment and dealers of completed upfit trucks. Credit is extended based on an evaluation of a customer’s financial condition. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Accounts receivable are written off after all collection efforts have been exhausted. The Company takes a security interest in the inventory as collateral for the receivable but often does not have a priority security interest. The Company has short-term accounts receivable at its Work Truck Attachments and Work Truck Solutions segments subject to evaluation for expected credit losses. Expected credit losses are estimated based on the loss-rate and probability of default methods. On a periodic basis, the Company evaluates its accounts receivable and establishes the allowance for credit losses based on specific customer circumstances, past events including collections and write-off history, current conditions, and reasonable forecasts about the future. As of March 31, 2024, the Company had an allowance for credit losses on its trade accounts receivable of $1,503 and $390 at its Work Truck Attachments and Work Truck Solutions segments, respectively. As of December 31, 2023, the Company had an allowance for credit losses on its trade accounts receivable of $1,400 and $246 at its Work Truck Attachments and Work Truck Solutions segments, respectively.

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The following table rolls forward the activity related to credit losses for trade accounts receivable at each segment, and on a consolidated basis for the three months ended March 31, 2024 and 2023:

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   Balance at December 31, 2023     Additions (reductions) charged to earnings    

Writeoffs

     Changes to reserve, net     Balance at March 31, 2024  

Three Months Ended March 31, 2024

  

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Work Truck Attachments

   $ 1,400     $ 104     $ -     $ (1 )   $ 1,503  

Work Truck Solutions

     246       75       -       69       390  

Total

   $ 1,646     $ 179     $ -     $ 68     $ 1,893  

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    Balance at December 31, 2022     Additions (reductions) charged to earnings    

Writeoffs

     Changes to reserve, net     Balance at March 31, 2023  

Three Months Ended March 31, 2023

                                        

Work Truck Attachments

   $ 1,000     $ 100     $ -     $ (2 )   $ 1,098  

Work Truck Solutions

     366       75       -       (9 )     432  

Total

   $ 1,366     $ 175     $ -     $ (11 )   $ 1,530  

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