0001140361-23-038340 | 10-Q | XBRL Viewer | Lincoln Educational Services Corp

STUDENT RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2023

The following table presents the amortized cost basis of student receivables as of June 30, 2023 by year of origination.

			June 30, 2023
	Student		Three Months Ended		Six Months Ended
Year	Receivables (1)		Write-Off’s (2)		Write-Off’s (2)
2023	$	53,823	$	-	$	-
2022		20,331		7,916		14,246
2021		8,865		939		2,027
2020		3,935		210		385
2019		2,662		178		387
Thereafter		1,545		96		159
Total	$	91,161	$	9,339	$	17,204

(1)	Student receivables are presented gross and only relate to amounts owed directly from the individual student. These receivables do not include amounts owed relating to federal subsidy or from corporate partnerships.

(2)	Write-off amounts included only relate to the three months and six months ended June 30, 2023.

Allowance for Credit Losses

We define student receivables as a portfolio segment under ASC Topic 326. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio are calculated in accordance with the guidance effective January 1, 2023 under CECL for the three months and six months ended June 30, 2023.

	Three Months Ended			Six Months Ended
	June 30,			June 30,
	2023			2023
Balance, beginning of period	$	46,599		$	35,370
Cumulative effect of ASC 326		-			10,841
Adjusted beginning of period balance		46,599			46,211
Provision for credit losses		10,347			18,600
Write-off’s		(9,339	)		(17,204	)
Balance, at end of period	$	47,607		$	47,607

LONG-TERM DEBT

6 Months Ended

Jun. 30, 2023

LONG-TERM DEBT [Abstract]

LONG-TERM DEBT

6.	LONG-TERM DEBT

Credit Facility

On November 14, 2019, the Company entered into a senior secured credit agreement (the “Credit Agreement”) with its lender, Sterling National Bank (the “Lender”), providing for borrowing in the aggregate principal amount of up to $60 million (the “Credit Facility”). Initially, the Credit Facility was comprised of four facilities: (1) a $20 million senior secured term loan maturing on December 1, 2024 (the “Term Loan”), with monthly interest and principal payments based on a 120-month amortization, with the outstanding balance due on the maturity date; (2) a $10 million senior secured delayed draw term loan maturing on December 1, 2024 (the “Delayed Draw Term Loan”), with monthly interest payments for the first 18 months and thereafter monthly payments of interest and principal based on a 120-month amortization and all balances due on the maturity date; (3) a $15 million senior secured committed revolving line of credit providing a sublimit of up to $10 million for standby letters of credit maturing on November 13, 2022 (the “Revolving Loan”), with monthly payments of interest only; and (4) a $15 million senior secured non-restoring line of credit maturing on January 31, 2021 (the “Line of Credit Loan”). The Credit Facility was secured by a first priority lien in favor of the Lender on substantially all of the personal property owned by the Company as well as a pledge of the stock and other rights in the Company’s subsidiaries and mortgages on parcels of real property owned by the Company. The Credit Agreement was amended on various occasions.

On November 4, 2022, the Company agreed with its Lender to terminate the Credit Agreement and the remaining Revolving Loan. The Lender agreed to allow the Company’s existing letters of credit to remain outstanding, provided that they are cash collateralized. As of June 30, 2023, the letters of credit, in the aggregate outstanding principal amount of $4.0 million, remained outstanding, were cash collateralized, and were classified as restricted cash on the Condensed Consolidated Balance Sheet. As of June 30, 2023, the Company did not have a credit facility and did not have any debt outstanding. The Company is continuing to consider potential lenders for its future credit needs.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands

Common Stock [Member]