Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 42

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 15
Chunk 42
---
10 – Accounts Receivable and Accounts PayableAccounts receivable, netAs described in Note 2, the Company’s accounts receivable are primarily related to the operations of its business. With respect to auction proceeds and asset dispositions, including NLEX’s brokerage transactions, the assets are not released to the buyer until payment has been received. The Company, therefore, is not exposed to significant collectability risk relating to these receivables. Given this experience, together with the ongoing business relationships between the Company and its joint venture partners, the Company has not historically required a formal credit quality assessment in connection with these activities. The Company has not experienced any significant collectability issues with its accounts receivable. As the Company’s business expands, more comprehensive credit assessments may be required.   In accordance with ASC 326, the Company performs a review of accounts receivables on a quarterly basis. During the years ended December 31, 2024 and 2023, the Company recorded no material adjustments for credit losses in selling, general and administrative expense on the condensed consolidated statement of income related to accounts receivable. As of both December 31, 2024 and 2023, the allowance for credit losses related to accounts receivable was approximately $0.1 million.Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities consisted of the following (in thousands): 

        2024

        2023

        Remuneration and benefits

        3,354

        4,423

        Accrued auction and liquidation expenses

        908

        705

        Due to Joint Venture partners

        254

        638

        Deferred revenue

        550

        497

        Sales and other taxes

        493

        626

        Accounting, auditing and tax consulting

        171

        189

        Other

        249

        159

        Total accounts payable and accrued liabilities
         
        $
        5,979

        $
        7,237

Note 11 – DebtOutstanding debt is summarized as follows (in thousands):

        December 31, 2024

        December 31, 2023

        Current portion of third party debt:

        ALT note
         
        $
        395

        $
        511

        2021 credit facility

        —

        —

        2023 credit facility

        —

        1,222

        Total

        395