Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 115

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 the three and nine months ended September 30, 2024, respectively.Accounts Receivable, NetAccounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in the Company’s existing accounts receivable, based on both specific and general reserves. The Company maintains general reserves on a collective basis by considering factors such as historical experience, creditworthiness, the age of the trade receivable balances, and current economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. The activity in the allowance for credit losses as of the dates presented is as follows:September 30,2025December 31,2024(In thousands)Balance, beginning of year$8,627 $9,290 (Reductions) charges to costs and expenses(494)14,959 Deductions/write-offs(2,626)(15,622)Balance, end of period$5,507 $8,627 

16

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Note 3. Net Income (Loss) Per Share 

In September 2025, the Company issued Series B convertible preferred stock (“Series B Preferred Stock”). The Series B Preferred Stockholders do not have a contractual obligation to share in the Company’s losses. As such, losses are attributed entirely to common shareholders. Due to the Company’s net income for the quarter ended September 30, 2025, earnings per share (“EPS”) is calculated using the two-class method. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders but does not require the presentation of basic and diluted EPS for securities other than common stock. The two-class method is required because Series B Preferred Stock has the right to receive dividends or dividend equivalents should the Company have declared dividends on its common stock as if such Series B Preferred Stock had been converted to common stock. Under the two-class method, earnings for the period are allocated to the common and preferred stockholders taking into consideration the participation of holders of Series B Preferred Stock in dividends on an as-converted basis. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for