v3.26.1
Receivables
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Receivables

4) Receivables

 

Receivables consist of the following:

 

  

As of

March 31, 2026

  

As of

December 31, 2025

 
Contracts with customers  $7,034,138   $6,981,676 
Receivables from sales agents   4,441,441    4,193,842 
Insurance premiums due   1,414,850    1,275,664 
Other   4,835,232    4,588,564 
Total receivables   17,725,661    17,039,746 
Allowance for credit losses   (1,523,072)   (1,428,672)
Net receivables  $16,202,589   $15,611,074 

 

The Company records an allowance for credit losses for its receivables in accordance with GAAP.

 

The following table presents a roll forward of the allowance for credit losses as of the dates indicated:

 

   Three Months Ended 
Beginning balance - December 31, 2025  $1,428,672 
Change in provision for credit losses (1)   147,555 
Charge-offs   (53,155)
Ending balance - March 31, 2026  $1,523,072 
      
Beginning balance - December 31, 2024  $1,678,531 
Change in provision for credit losses (1)   16,142 
Charge-offs   (62,574)
Ending balance - March 31, 2025  $1,632,099 

 

 

(1)Included in other expenses on the condensed consolidated statements of earnings

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

4) Receivables (Continued)

 

Contracts with Customers

 

The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers.

 

Information about Performance Obligations and Contract Balances

 

The Company’s funeral home and cemetery segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled.

 

The Company’s two types of future obligations are as follows:

 

Pre-need Merchandise and Service Revenue: All pre-need merchandise and service revenue are deferred, and the funds are placed in trust until the need arises; the merchandise is received, or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. The transfer of goods and services does not fulfill the contract and revenue remains deferred.

 

At-need Specialty Merchandise Revenue: At-need specialty merchandise revenue consists of customizable merchandise ordered from manufacturers such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received.

 

Complete payment does not constitute fulfillment of the contract. Goods or services are deferred until such a time the service is performed, or merchandise is received.

 

The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows:

 

   Contract Balances 
   Receivables (1)   Contract Asset   Contract Liability 
Opening (December 31, 2025)  $6,981,676   $-   $22,991,603 
Closing (March 31, 2026)   7,034,138    -    23,487,532 
Increase/(decrease)   52,462          -    495,929 

 

   Contract Balances 
   Receivables (1)   Contract Asset   Contract Liability 
Opening (December 31, 2024)  $7,095,589   $      -   $20,168,405 
Closing (December 31, 2025)   6,981,676    -    22,991,603 
Increase/(decrease)   (113,913)   -    2,823,198 

 

 

(1)Included in Receivables, net on the condensed consolidated balance sheets

 

The amount of revenue recognized and included in the opening contract liability balance for the three-month periods ended March 31, 2026, and 2025 was $1,723,991 and $1,159,212, respectively.

 

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment.

 

Disaggregation of Revenue

 

The following table disaggregates revenue for the Company’s funeral home and cemetery contracts:

 

         
   Three Months Ended
March 31,		 
   2026   2025 
Major goods/service lines          
At-need  $5,845,861   $5,716,277 
Pre-need   1,887,962    1,583,944 
Net mortuary and cemetery sales  $7,733,823   $7,300,221 
           
Timing of Revenue Recognition          
Goods transferred at a point in time  $4,859,344   $4,154,547 
Services transferred at a point in time   2,874,479    3,145,674 
Net mortuary and cemetery sales  $7,733,823   $7,300,221 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)