Table of Content The following table shows a rollforward of the allowance for credit losses (in thousands): Twelve Months Ended December 31, 2023 2022 Balance at beginning of period $ 5,262 $ 7,843 Provision for expected credit losses 1,680 1,059 Recoveries collected (1,638) (1,114) Write-offs (1,560) (2,479) Foreign exchange effects (6) (47) Balance at end of period $ 3,738 $ 5,262 5. INVENTORY A summary of inventory as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 2022 Raw materials $ 9,958 $ 8,978 Work-in-progress 2,326 2,945 Finished goods 26,569 24,408 Inventory $ 38,853 $ 36,331 6. PREPAID AND OTHER CURRENT ASSETS A summary of prepaid expenses and other current assets as of December 31, 2023 and 2022 is as follows (in thousands): December 31, 2023 2022 Insurance receivables $ 39,000 $ 39,000 Prepaid expenses 18,398 15,238 Other current assets 8,594 11,441 Prepaid and other current assets $ 65,992 $ 65,679 The insurance receivables relate to receivables from our third-party insurance providers for legal claims that are recorded in other accrued liabilities, refer to Note 9 - Other Accrued Liabilities. These receivables will be covered from our third-party insurance providers for litigation matters that have been settled or are pending settlements and where the deductibles have been satisfied. The prepaid expenses primarily relate to prepaid insurance and other expenses that have been paid in advance of the coverage period. As of December 31, 2023 and 2022, other current assets include deferred financing fees of $1.8 million each in connection with that certain Substitute Insurance Reimbursement Facility Agreement (as amended); other accounts receivable of $4.4 million and $2.4 million, respectively, primarily related to insurance rebates; and software implementation cost (net of amortization) of $1.7 million and $2.1 million, respectively. As of December 31, 2022, the other current assets also included deferred financing costs of $3.1 million due to all long-term debt then being classified as current. 41