Quarterly report pursuant to Section 13 or 15(d)

Accounts Receivable

Accounts Receivable
3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Accounts Receivable

Note 4 – Accounts Receivable


Accounts receivable at March 31, 2022 (unaudited) and December 31, 2021 consisted of the following:


    March 31,     December 31,  
    2022     2021  
Accounts receivable   $ 10,840,792     $ 12,961,817  
Allowance for contractual obligations     (7,175,150 )     (8,737,502 )
Allowance for doubtful accounts     (1,038,274 )     (1,456,791 )
Accounts receivable owed under settlements/sales agreements     (529,411 )     (688,236 )
Accounts receivable, net   $ 2,097,957     $ 2,079,288  


Estimated implicit price concessions for doubtful accounts deducted from revenues for the three months ended March 31, 2022 and 2021 were $1.4 million and $3.0 million, respectively. The allowance for doubtful accounts deducted from accounts receivable was $1.0 million at March 31, 2022 compared to $1.5 million at December 31, 2021. The Company’s policy is to write off an accounts receivable balance against the allowance for doubtful accounts once an accounts receivable ages past a specified number of days.


Accounts Receivable Sales Agreements


During the year ended December 31, 2020, the Company entered into six accounts receivable sales agreements under which the Company sold an aggregate of $3.3 million of accounts receivable on a non-recourse basis for an aggregate purchase price paid to the Company of $2.2 million, less $0.1 million of origination fees. Accordingly, the Company recorded a loss on the sales of $1.2 million during the year ended December 31, 2020. As of December 31, 2020, $1.7 million was outstanding and owed to three funding parties under three accounts receivable sales agreements. On September 14, 2021, the Company entered into separate settlement agreements with the three funding parties under which the Company agreed to repay an aggregate of $0.9 million in full settlement of the sales agreements. Per the settlement agreements, the Company is required to make equal monthly payments totaling $52,941 through January 1, 2023. As of March 31, 2022 and December 31, 2021, $0.5 million and $0.7 million, respectively, remained outstanding. As a result of the settlements, the Company recorded a gain from legal settlements of $0.6 million in the three months ended September 30, 2021.