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Customer Loans Receivable | 3 Months Ended
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Mar. 31, 2024
Customer Loans Receivable |
Customer Loans Receivable | 6. Customer Loans Receivable In past years, the Company provided financing to qualified customers to purchase residential or commercial photovoltaic systems, as well as other products the Company offered in the U.S. Depending on the credit rating of customers, the interest rate generally ranges from 0.00% to 10.99% per annum with financing terms ranging from one to fifteen years. At March 31, 2024 and December 31, 2023, the percentage of the Company’s loan portfolio with a 0% interest rate is 5% and 14%, respectively. The customer gives the Company a security interest in the photovoltaic systems and other products financed. The following tables summarize the Company’s customer loan receivables by credit rating, determined at origination, for each vintage of the customer loan receivable portfolio at March 31, 2024:
|  | Year of Origination |  |  | March 31, 2024 |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Total |  |  | % |
Prime — FICO score 680 and greater |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 141,710 |  |  | $ | 5,164,659 |  |  | $ | 5,306,369 |  |  |  | 86 | %
Near-prime — FICO score 620 to 679 |  |  | - |  |  |  | - |  |  |  | 18,191 |  |  |  | - |  |  |  | 11,057 |  |  |  | 606,219 |  |  |  | 635,467 |  |  |  | 10 | %
Sub-prime — FICO score less than 620 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 155,722 |  |  |  | 155,722 |  |  |  | 3 | %
Business entity — FICO not available |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 48,396 |  |  |  | 22,932 |  |  |  | - |  |  |  | 71,328 |  |  |  | 1 | %
Total Customer Loan Receivables, gross |  | $ | - |  |  | $ | - |  |  | $ | 18,191 |  |  | $ | 48,396 |  |  | $ | 175,699 |  |  | $ | 5,926,600 |  |  | $ | 6,168,886 |  |  |  | 100 | %
The following tables summarize the Company’s customer loan receivables by credit rating, determined at origination, for each vintage of the customer loan receivable portfolio at December 31, 2023:
|  | Year of Origination |  |  | December 31, 2023 |
|  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Total |  |  | % |
Prime — FICO score 680 and greater |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 181,315 |  |  | $ | 438,676 |  |  | $ | 5,234,583 |  |  | $ | 5,854,574 |  |  |  | 87 | %
Near-prime — FICO score 620 to 679 |  |  | - |  |  |  | 19,117 |  |  |  | - |  |  |  | 18,107 |  |  |  | 42,175 |  |  |  | 622,398 |  |  |  | 701,797 |  |  |  | 10 | %
Sub-prime — FICO score less than 620 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 72,489 |  |  |  | 84,992 |  |  |  | 157,481 |  |  |  | 2 | %
Business entity — FICO not available |  |  |  |  |  |  | - |  |  |  | 52,753 |  |  |  | 28,051 |  |  |  | - |  |  |  | - |  |  |  | 80,804 |  |  |  | 1 | %
Total Customer Loan Receivables, gross |  | $ | - |  |  | $ | 19,117 |  |  | $ | 52,753 |  |  | $ | 227,473 |  |  | $ | 553,340 |  |  | $ | 5,941,973 |  |  | $ | 6,794,656 |  |  |  | 100 | %
Customer loans receivable consist of the following as of March 31, 2024 and December 31, 2023:
|  | March 31, 2024 |  |  | December 31, 2023 |
|  | (Unaudited) |  |  |  |
Customer loans receivable, gross |  | $ | 6,168,886 |  |  | $ | 6,794,656 |
Less: unamortized loan discounts |  |  | (572 | ) |  |  | (2,332 | )
Allowance for loan losses |  |  | (328,308 | ) |  |  | (256,808 | )
Customer loans receivable, net |  |  | 5,840,006 |  |  |  | 6,535,516 |
Less: Current portion |  |  | 1,395,744 |  |  |  | 2,212,574 |
Non-current portion |  | $ | 4,444,262 |  |  | $ | 4,322,942 |
Principal maturities of the customer loans receivable at March 31, 2024 are summarized as follows:
For the year ending December 31, |  | Amount |
2024 (remainder of) |  | $ | 1,395,744 |
2025 |  |  | 1,367,415 |
2026 |  |  | 1,203,664 |
2027 |  |  | 990,290 |
2028 |  |  | 665,563 |
Thereafter |  |  | 546,210 |
Total customer loans receivable |  | $ | 6,168,886 |
The Company is exposed to credit risk on the customer loans receivable. Credit risk is the risk of loss arising from the failure of customers to meet the terms of their contracts with the Company or otherwise fail to perform as agreed. The activity in the allowance for loan losses for customer loans receivable for the three months ended March 31, 2024 and 2023 is as follows:
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
|  | (Unaudited) |
Balance – beginning of period |  | $ | 256,808 |  |  | $ | 288,457 |
Provision for loan losses |  |  | 61,298 |  |  |  | 106,862 |
Chargeoffs and adjustments |  |  | 10,202 |  |  |  | 23,308 |
Balance – end of period |  | $ | 328,308 |  |  | $ | 418,627 |
Total interest income on the customer loans receivable included in revenues was approximately $100,000 and $150,000 for the three months ended March 31, 2024 and 2023, respectively.

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