Company: UFPT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001171843-25-003049
Chunk: 85

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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)

			-

			Non-cash investing and financing activities:

			Capital additions accrued but not yet paid

			$
			89

			$
			105

			(6)

			Receivables and Allowance for Credit Losses

Receivables consist of the following (in thousands):

			March 31,

			December 31,

			2025

			2024

			Accounts receivable–trade

			$
			94,821

			$
			85,562

			Less allowance for credit losses

			(1,042
			)

			(885
			)

			Receivables, net

			$
			93,779

			$
			84,677

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on the aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written-off when determined to be uncollectible. Estimates based on an assessment of anticipated payment and all other historical, current, and future information that is reasonably available are used to determine the allowance.

14

The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected for the three months ended March 31, 2025 and 2024 (in thousands):

			Allowance for Credit Losses

			Three Months Ended March 31, 

			2025

			2024

			Allowance - beginning of period

			$
			885

			$
			727

			Provision (adjustment) for expected credit losses

			157

			(51
			)

			Amounts written off against the allowance

			-

			(16
			)