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Accounts receivables and other receivables
 12 Months Ended
Dec. 31, 2025
Credit Loss [Abstract]  
Accounts receivables and other receivables

Note 3 - Accounts receivables and other receivables (continued)

 

The Company’s accounts and other receivable are recorded at amortized cost. The accounts and other receivables balance at December 31, 2025 and 2024, consists of the following:

 

   December 31,   December 31, 
   2025   2024 
Accounts receivable  $3,020,898   $5,611,980 
Other receivables   36,244    934 
Total   3,057,142    5,612,914 
Allowance for credit losses   (285,699)   (84,088)
Total accounts and other receivables, net  $2,771,443   $5,528,826 

 

Changes in allowance for doubtful accounts in the year ended December 31, 2024, relate to establishing an additional allowance for expected credit losses. The Company has no amounts written-off that are still subject to collection enforcement activity at December 31, 2025. 

 

The Company’s December 31, 2025, aging of accounts receivable is as follows:

 

1-30 Days  $2,738,517 
31-60 Days   82,971 
61-90 Days   45,669 
91+ Days   189,985 
Total accounts receivables  $3,057,142 

 

The Company’s December 31, 2024 aging of accounts receivable is as follows:

 

1-30 Days  $5,481,279 
31-60 Days   25,670 
61-90 Days   21,986 
91+ Days   83,979 
Total accounts receivables  $5,612,914 

 

 

REDCLOUD HOLDINGS PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025, AND 2024

 

Note 3 - Accounts receivables and other receivables (continued)

 

A continuity schedule of the allowance for expected credit losses for the years ended December 31, 2025, and 2024 is as follows:

 

   December 31,   December 31, 
   2025   2024 
Balance at January 1  $(84,088)  $- 
Current period additions for expected credit losses   (300,828)   (84,088)
Write-offs charges against allowance   99,217      
Balance at December 31  $(285,699)  $(84,088)

 

Trade receivables are stated at amortized cost, net of an allowance for expected credit losses. The Company estimates this allowance using a matrix-based aging model in accordance with ASC 326, which applies predefined loss rates to receivables grouped by aging buckets. These rates are derived from historical loss experience and adjusted for management’s expectations of future conditions.

 

Receivables are aged by invoice date and netted against any customer payables where contractual offset rights exist. The aging buckets and corresponding estimated credit loss percentages are as follows:

 

Aging Bucket  Estimated Credit Loss % 
Current (0–29 days)   5%
30–59 days   15%
60–89 days   25%
90–119 days   50%
120+ days   90%

 

The allowance is calculated by applying these rates to the net aged receivable balances across each operating entity. No additional quantitative overlays were applied, and management has determined that the current model sufficiently captures expected losses.