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CONCENTRATIONS OF REVENUES AND CREDIT RISK
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12 Months Ended |
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Dec. 31, 2012
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| CONCENTRATIONS OF REVENUES AND CREDIT RISK [Abstract] | |
| CONCENTRATIONS OF REVENUES AND CREDIT RISK |
NOTE 5 - CONCENTRATIONS OF REVENUES AND CREDIT RISK
Our Petrochemical operation sells its products and services to companies in the chemical and plastics industries. It performs periodic credit evaluations of its customers and generally does not require collateral from its customers. For the year ended December 31, 2012, two customers accounted for 13.2% and 12.1% of total product sales. For the year ended December 31, 2011, two customers accounted for 12.9% and 12.6% of total product sales. For the year ended December 31, 2010, two customers accounted for 18.2% and 21.3% of total product sales. The associated accounts receivable balances for those customers were approximately $2.4 million and $1.1 million and $2.1 million and $2.1 million as of December 31, 2012 and 2011, respectively. The carrying amount of accounts receivable approximates fair value at December 31, 2012.
Accounts receivable serving as collateral for the Company's line of credit with a domestic bank was $11.7 million and $16.8 million at December 31, 2012 and 2011, respectively (see Note 12).
South Hampton markets its products in many foreign jurisdictions. For the years ended December 31, 2012, 2011 and 2010, sales' revenue in foreign jurisdictions accounted for approximately 24.7%, 22.2%, and 20.2%, respectively.
South Hampton utilizes one major supplier for its feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. The percentage of feedstock purchased from the supplier during 2012, 2011, and 2010 was 100%, 98% and 98%, respectively. At December 31, 2012, and 2011, South Hampton owed the supplier approximately $3.7 million and $2.8 million, respectively for feedstock purchases.
The Company holds its cash with various financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000. At times during the year, cash balances may exceed this limit. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk of loss related to cash.
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