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ACCOUNTS RECEIVABLE | 6 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable primarily include amounts due to the Company for sales of equipment and subscription fees, settlement receivables for amounts due from third-party payment processors and receivables from contract manufacturers, net of the allowance for uncollectible accounts. Accounts receivable, net of the allowance for uncollectible accounts were $45.7 million as of December 31, 2022 and $37.7 million as of June 30, 2022. Concentrations Accounts receivable from one contract manufacturer represented 16% of accounts receivable, net of allowance as of December 31, 2022 and June 30, 2022. The Company also had accounts payable due to this contract manufacturer as of December 31, 2022. On January 31, 2023, the Company entered into an Offset and Release of Claims Agreement with this counterparty. As part of the agreement, outstanding receivables and payables were offset and the net position was settled through a cash disbursement from the Company. The accounts receivable balance with the contract manufacturer that was outstanding as of December 31, 2022 has subsequently been fully resolved. Accounts receivable with the Company's largest customer represented represented 15% and 17% of accounts receivable, net of allowance as of December 31, 2022 and June 30, 2022 respectively. The Company has collected approximately $2.9 million of outstanding accounts receivables in January 2023 resulting in a significant reduction of this concentration. Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts for losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The allowance is calculated under an expected loss model. We estimate our allowance using an aging analysis of the receivables balances, primarily based on historical loss experience. Furthermore, current conditions are analyzed on a quarterly basis as we reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the reserve calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. The Company writes off receivable balances against the allowance for doubtful accounts when management determines the balance is uncollectible and the Company ceases collection efforts. The following table represents a rollforward of the allowance for doubtful accounts for the three months ending December 31, 2022 and 2021:
|  | Six months ended December 31,
($ in thousands) |  | 2022 |  | 2021
Beginning balance of allowance as of June 30 |  | 9,328 |  |  | 7,715 |
Provision for expected losses |  | 1,044 |  |  | 312 |
Write-offs |  | (127) |  |  | — |
Balance at September 30 |  | 10,245 |  |  | 8,027 |
Provision for expected losses |  | 91 |  |  | 801 |
Write-offs |  | (214) |  |  | (566) |
Balance at December 31 |  | 10,122 |  |  | 8,262 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI https://asc.fasb.org/topic&trid=2196771 + Details
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- References No definition available. + Details
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