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Note 16 - Concentration of Credit Risk
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

16.

Concentration of Credit Risk

 

Customer concentration: Accounts receivable potentially exposes the Company to concentrations of credit risk. The Company monitors the amount of credit it allows each of its customers, using the customer’s prior payment history to determine how much credit to allow or whether any credit should be given at all. It is the Company’s policy to discontinue shipments to any customer that is substantially past due on its payments. The Company sometimes requires payment in advance from customers whose payment record is questionable. As a result of its monitoring of the outstanding credit allowed for each customer, as well as the fact that the majority of the Company’s sales are to customers whose satisfactory credit and payment record has been established over a long period, the Company believes that its credit risk from accounts receivable has been reduced.

 

For the three months ended March 31, 2025, three of the Company’s pharmaceutical distributors and one of its cosmetic ingredient distributors collectively accounted for 67% of the Company’s gross sales and 67% of its outstanding accounts receivable. During the three months ended March 31, 2024, the same three pharmaceutical distributors and cosmetic ingredient distributor were together responsible for a total of approximately 83% of the Company’s gross sales. They also accounted for 90% of the Company’s outstanding accounts receivable at March 31, 2024.