18)Trade Accounts Receivable and Other Current Assets (a)Trade Accounts Receivable Trade accounts receivable are presented net of provisions for expected credit loss. As of June 30, 2025 and December 31, 2024, there were no provisions for expected credit loss. (b)Other Current Assets The following table presents other currents assets of June 30, 2025 and December 31, 2024: | | | | | | | | (U.S. Dollars in thousands) | | At June 30, 2025 | | At December 31, 2024 | | Trade receivables | | $ | 7,085 | | $ | 6,251 | | Trade receivables due from KNOT and affiliates (see Note 14 (d)) | | | — | | | 804 | | Insurance claims for recoveries (refer to note 5) | | | 116 | | | 3,877 | | Refund of value added tax | | | 1,446 | | | 1,337 | | Prepaid expenses | | | 1,988 | | | 1,505 | | EU-ETS current asset (1) | | | 4,068 | | | — | | Other receivables | | | 2,904 | | | 1,019 | | Total other current assets | | $ | 17,607 | | $ | 14,793 | |
| (1) | The EUs Emission Trading Systems (EU ETS) require that companies are responsible for surrendering CO2 quotas (EU Allowances, EUA’s) to the authorities. EU ETS and the total EUA follows the consumption of bunkers, and the cost is treated like cost of bunkers when vessel is off-hire, i.e., EU-ETS/EUA is the owners’ cost when the vessel is off hire. EU-ETS/EUA is also owners’ cost for vessels operating in the spot market. |
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