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CONCENTRATIONS OF REVENUES AND CREDIT RISK
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12 Months Ended |
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Dec. 31, 2013
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| CONCENTRATIONS OF REVENUES AND CREDIT RISK [Abstract] | |
| CONCENTRATIONS OF REVENUES AND CREDIT RISK |
NOTE 3 - CONCENTRATIONS OF REVENUES AND CREDIT RISK
We sell our products and services to companies in the chemical, plastics, and petroleum industries. We perform periodic credit evaluations of our customers and generally do not require collateral from our customers. For the year ended December 31, 2013, two customers accounted for 16.5% and 16.2% of total product sales. 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. The associated accounts receivable balances for those customers were approximately $7.7 million and $1.9 million and $2.4 million and $1.1 million as of December 31, 2013 and 2012, respectively. The carrying amount of accounts receivable approximates fair value at December 31, 2013.
Accounts receivable serving as collateral for our line of credit with a domestic bank was $17.7 million and $11.7 million at December 31, 2013 and 2012, respectively (see Note 10).
We market our products in many foreign jurisdictions. For the years ended December 31, 2013, 2012 and 2011, sales revenue in foreign jurisdictions accounted for approximately 26.2%, 24.7%, and 22.2%, respectively.
We utilize one major supplier for our feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. The percentage of feedstock purchased from the supplier during 2013, 2012, and 2011 was 99%, 100% and 98%, respectively. At December 31, 2013, and 2012, we owed the supplier approximately $5.2 million and $3.7 million, respectively for feedstock purchases.
We hold our 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. We have not experienced any losses in such accounts and do not believe we are exposed to any significant risk of loss related to cash.
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