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Notes Receivable, Net | 3 Months Ended
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Mar. 31, 2023
Receivables [Abstract] |
Notes Receivable, net | Note 4 – Notes Receivable, net The Company’s notes receivable, net consists of investments in loans to buyers of charged-off and nonperforming receivable portfolios. As of March 31, 2023 and December 31, 2022, the Company’s outstanding notes receivables, net of unamortized deferred fees and costs on originated loans, and adjusted for the reserve for credit losses was $16.0 million and $8.5 million, respectively. The activity during the three months ended March 31, 2023 includes the additional investment in notes receivable of approximately $13.2 million, which was offset by principal payments made by borrowers of approximately $1.1 million, the transfer of notes to partners of approximately $4.6 million, adjustments to the deferred fees and costs balance of approximately $0.1 million, and an adjustment to the reserve for credit losses of $0.1 million. On January 1, 2023, the Company recorded an allowance for credit losses for notes receivable in accordance with ASC 326, as described in Note 2 – Summary of Significant Accounting Policies. The cumulative effects as of December 31, 2022 of the modified retrospective method of adoption of ASC 326 required the Company to record on the condensed consolidated balance sheets as of January 1, 2023 a reserve for credit losses to notes receivable of $0.2 million for the estimated credit losses to notes receivable as of December 31, 2022. The following presents the adjustment to notes receivable, net as a result of the implementation of ASC 326 on January 1, 2023 (in thousands):
Notes receivable, net as of December 31, 2022 |  | $ | 8,750 |
Reserve for credit losses of December 31, 2022 |  |  | — |
Cumulative effect of the implementation of ASC 326 |  |  | (119 | )
Beginning balance of reserve for credit losses as of January 1, 2023 |  |  | (119 | )
Notes receivable, net of reserve for credit losses as of January 1, 2023 |  | $ | 8,631 |
In accordance with ASC 326, the Company performs a review of notes receivables on a quarterly basis. During the three months ended March 31, 2023, the Company recorded a provision for credit losses in selling, general and administrative expense on the condensed consolidated statement of income of $0.1 million. The provision relates solely to the change in the outstanding balance of notes receivable. To date, the Company has recorded no actual credit losses on notes receivable.

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2196816 + Details
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- References No definition available. + Details
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