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Significant Customers | 12 Months Ended
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Dec. 31, 2024
Risks and Uncertainties [Abstract] |
Significant Customers |
(12) | Significant Customers
We had three significant customers for the year ended December 31, 2024. Revenues from these three customers, as a percentage of total Company revenue, was approximately:
|  |  |  |  | For the years ended |
|  |  |  |  | December 31, |
Customer # |  |  | Product Category |  | 2024 |  |  | 2023 |
1 |  |  | Consumer Products |  |  | 32 | % |  |  | 17 | %
2 |  |  | Personal Care Ingredients |  |  | 13 | % |  |  | 25 | %
3 |  |  | Consumer Products |  |  | 7 | % |  |  | 15 | %
|  |  | Total |  |  | 52 | % |  |  | 57 | %
Accounts receivable balances for these three customers, as a percentage of total Company accounts receivable, was approximately:
|  |  |  |  | As of December 31, |
Customer # |  |  | Product Category |  | 2024 |  |  | 2023 |
1 |  |  | Consumer Products |  | $ | 2,366 |  |  | $ | 1,288 |
2 |  |  | Personal Care Ingredients |  |  | 160 |  |  |  | — |
3 |  |  | Consumer Products |  |  | 309 |  |  |  | 864 |
|  |  | Total |  | $ | 2,835 |  |  | $ | 2,152 |
We currently have exclusive supply agreements with BASF Corporation (“BASF”), our second largest customer, that have contingencies outlined which could potentially result in 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. 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 equipment sale mentioned above, 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 could result in the loss of some 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.

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- 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 -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent + Details
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