XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.22.1

Significant Customers and Contingencies | 12 Months Ended
--- | ---
Dec. 31, 2021
Risks and Uncertainties [Abstract] |
Significant Customers and Contingencies |
(12) | Significant Customers and Contingencies
We had five significant customers for the year ended December 31, 2021.
|  |  |  | For the years ended December 31, |
Customer # |  | Product Category |  | 2021 |  |  | 2020 |
1 |  | Personal Care Ingredients |  |  | 26 | % |  |  | 30 | %
2 |  | Solésence® |  |  | 19 | % |  |  | 14 | %
3 |  | Solésence® |  |  | 15 | % |  |  | 11 | %
4 |  | Solésence® |  |  | 10 | % |  |  | 5 | %
5 |  | Advanced Materials (Medical Diagnostics customer) |  |  | 8 | % |  |  | 20 | %
|  | Total |  |  | 78 | % |  |  | 80 | %
Accounts receivable balances for these five customers were approximately:
|  |  |  | For the years ended December 31, |
Customer # |  | Product Category |  | 2021 |  |  | 2020 |
1 |  | Personal Care Ingredients |  | $ | 641 |  |  | $ | 381 |
2 |  | Solésence® |  |  | 534 |  |  |  | 342 |
3 |  | Solésence® |  |  | 1,048 |  |  |  | 116 |
4 |  | Solésence® |  |  | 239 |  |  |  | 863 |
5 |  | Advanced Materials (Medical Diagnostics customer) |  |  | -0- |  |  |  | 735 |
|  | Total |  | $ | 2,462 |  |  | $ | 2,437 |
We currently have exclusive supply agreements with BASF Corporation (“BASF”), our largest customer, that have contingencies outlined which could potentially result in the license of technology and/or the sale of production equipment from the Company to the customer intended to provide capacity sufficient to meet the customer’s production needs. This outcome may occur if we fail to meet certain performance requirements. Our supply agreements with BASF also “trigger” a technology transfer right in the event of our insolvency, as further defined within the agreements. In the event of an equipment sale, upon incurring a triggering event, the equipment would be sold to the customer at either 115% of the equipment’s net book value or the greater of 30% of the original book value of such equipment, and any associated upgrades to it, or 115% of the equipment’s net book value, depending on the equipment and related products. If a triggering event were to occur and BASF elected to proceed with the license and related equipment sale mentioned above, we would receive royalty payments from this customer for products sold using our technology; however, we would lose both significant revenue and the ability to generate significant revenue to replace that which was lost in the near term. Replacement of necessary equipment that could be purchased and removed by the customer pursuant to this triggering event could take in excess of twelve months. Any additional capital outlays required to rebuild capacity would probably be greater than the proceeds from the purchase of the assets as dictated by our agreement with the customer. Similar consequences would occur if we were determined to have materially breached certain other provisions of the supply agreement with BASF. Any such event would also likely result in the loss of many of our key staff and line employees due to economic realities. We believe that our employees are a critical component of our success, and it could be difficult to replace them quickly. Given the occurrence of any such event, we might not be able to hire and retain skilled employees given the stigma relating to such an event and its impact on us.

X
- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 + Details
Name: | us-gaap_ConcentrationRiskDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RisksAndUncertaintiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration