ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2025

NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable are recorded at the invoiced amounts. As set forth in a settlement agreement, Artesian Water received reimbursements from the Delaware Sand and Gravel Remedial Trust, or Trust, for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site, or Site, in groundwater that Artesian Water uses for public potable water supply. The full amount of $10.0 million has been paid to us, in four installments of approximately $2.5 million each, in August 2022, July 2023, July 2024 and July 2025. In addition, from July 1, 2021 onward the Trust shall reimburse Artesian Water for documented reasonable and necessary capital and operating costs that Artesian Water incurs to treat contaminants of concern and of emerging concern.

A provision for expected credit loss is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current and reasonable projections based upon expected economic conditions. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related provision for expected credit loss and associated bad debt expense has not been significant. The following table summarizes the changes in the Company’s accounts receivable balance:

(in thousands)		September 30, 2025		December 31, 2024		December 31, 2023

Customer accounts receivable – water	$	6,706	$	6,824	$	6,573
Customer accounts receivable – wastewater		749		928		869
Customer accounts receivable – SLP Plan		457		470		409
Settlement agreement receivable – short term		-		2,523		2,747
Developer receivable		518		837		2,089
Miscellaneous accounts receivable		137		100		471
		8,567		11,682		13,158
Less: provision for expected credit loss		406		343		328
Net accounts receivable	$	8,161	$	11,339	$	12,830