Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 16

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 16
Chunk 16
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ASB”) Accounting Standards Codification (“ASC”) 326-20-30-2, Financial Instruments – Credit Losses, requiring a reporting entity to use a pooled approach to estimate expected credit losses for financial assets with similar risk characteristics. If a financial asset does not share similar risk characteristics with other financial assets held by the reporting entity, the allowance for credit losses should be determined on an individual basis. Similar risk characteristics for trade receivables may include customer credit rating, trade receivable aging category (e.g., 30-90 days past due), industry, geographical location of the customer, product line, and other factors that may influence the likelihood of the customer not being able to pay for the goods or services. The Company utilizes this individual approach for its trade receivables and unbilled services as each customer does not share similar risks.Trade receivables and unbilled services with customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant industry sector and customer's geographical location) and days past due (i.e., delinquency status), while considering the following, if appropriate:•Customers in the same geographical location share similar risk characteristics associated with the macroeconomic environment of their region.•The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due.The following table represents the roll-forward of the allowance for expected credit losses:(in thousands)December 31, 2024December 31, 2023Balance at beginning of year$510 $490 Current period provision for expected losses50 115 Write-offs(13)(95)Balance at end of year$547 $510 

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Prepaid Expenses and Other Current AssetsThe following table presents the components of prepaid expenses and other current assets:As of(in thousands)December 31, 2024December 31, 2023Interest receivable$11,051 $— Restricted cash3,500 — Prepaid expenses and other current assets3,788 2,684 Total prepaid expenses and other current assets$18